Andersen CEO resigns
Andersen global CEO Joe Berardino resigned last night in an attempt to save the US firm.
Berardino said that as the shredding of Enron-related documents had taken place on ?his watch? he had litle choice but to stand down if the US firm was to stand a chance of rescue.
Andersen partners are now expected to meet in London in the next few days to discuss a successor.
And in another twist this morning US financial news agency Bloomberg reported that Paul Volcker, the former Federal Reserve chairman brought in to save Andersen in the US, had warned the firm that he would abandon it if partners fail to back his rescue plan in the near future.
?They’ve got to get together and decide who their leadership is going to be and decide with more forcefulness,’ Volcker said. ?The partnership is confused, dispirited, some of them anyway. It is very difficult for them to come to a decision about anything.?
Volcker is pressing the firm?s 1,600 US partners this week to agree to hive off its consulting and tax services to leave a pure audit firm. The changes, which include a management takeover, are designed to stave off the US Justice Department indictment that has jeopardised the firm’s future.