BusinessCompany NewsEnron spills over to English banking sector

Enron spills over to English banking sector

Two British bankers have been accused by the US Justice Department of being involved in an off-balance sheet partnership with Enron.

Former National Westminster Bank Greenwich employees Gary Mulgrew, Giles Darby and David Bermingham were accused by the US authorities after allegedly taking $7.3m from an off-balance sheet partnership between their bank and Enron.

Press reports say the charges are in connection with Campsie Limited, a fund affiliated with NatWest. LJM Cayman, one of the off-balance sheet partnerships devised by former Enron CFO Andrew Fastow, contributed £10.2m to the fund.

According to the Justice Department, between 1999 and 2000, the men allegedly recommended an interest held by NatWest in Campsie be sold for $1m when it was more valuable than that. The men purchased a portion of the interest themselves for $250,000, selling it weeks later for a personal profit of $7.3m.

NatWest Greenwich was later acquired by the Royal Bank of Scotland. A spokesman from RBS said the bank would ‘monitor criminal proceedings carefully’ and would ‘continue to co-operate with the with the appropriate authorities involved in the Enron investigation.’

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