In appreciation of the robust and critical forum that Doug has fostered on LBO talk, I am forwarding this story for the breakfast contemplation of all left business observers.
In well-choreographed newsmanagement on both sides of the Atlantic, BBC2's Newsnight progamme last night was able to go on from discussion of Bush's call for business ethics and executive who falsify accounts to be prosecuted, note that Wall street was underwhelmed, and commented that it now raises "the Cheney question". They just happened to have a promotional video by Cheney for Andersen to play to us and an analysis of how in recent years 1/4 of Halliburton's declared profits were based on cost overruns, liberally judged by Andersen to be coming in part from Halliburton's disappointed but generous and reliable customers. The declared profit stream was of course very helpful for raising the share price.
Now this morning as you can see below at 5:49 London time, the story is breaking that Cheney is to be sued.
More news later today on your side of the Atlantic...
But take a moment or two to reflect at leisure on how events are unfolding.
Regards
Chris Burford
London
>Wednesday, 10 July, 2002, 04:49 GMT 05:49 UK
>
>
>Anti-corruption group sues Cheney
>
>Cheney ran Halliburton oil company for five years US Vice-President Dick
>Cheney is to be sued by an anti-corruption pressure group for alleged
>fraudulent accounting practices.
>
>The group, Judicial Watch, claims Mr Cheney deceived investors while he
>was a director of the oil company Halliburton in the 1990s.
>
>In a case being filed in Dallas, Texas, Mr Cheney is alleged to have
>engaged in practices which led to the overvaluation of the company's shares.
>
>The move comes only a day after President Bush tried to distance himself
>from corporate fraud, proposing tougher penalties in an effort to restore
>confidence after the recent business scandals that have shaken the US.
>
>Judicial Watch is also suing for access to records of Mr Cheney's energy
>task force that drew up the Bush administration's energy policy last year.
>
>"To look the other way for the vice-president would be to set a precedent
>that the Washington elite are above the law," said Larry Klayman, chairman
>at Judicial Watch.
>
>But Halliburton spokeswoman Wendy Hall said, "We don't believe the case
>has any merit."
>
>Further details of the lawsuit are likely to emerge during a news
>conference in Miami on Wednesday at 9am local time (1300 GMT).
>
>Harsher punishments
>
>In a speech in New York's financial district on Tuesday, President Bush
>said he wanted to tighten measures against corporate fraud.
>
>He announced a doubling - to 10 years - of the maximum prison sentence,
>and the formation of a special investigative task force.
>
>But Judicial Watch said that Mr Bush's rush to crack down on corporate
>fraud seemed intended to deflect attention away from his and Mr Cheney's
>own business practices.
>
>Mr Bush has already faced questions about his work as a director of
>Texas-based Harken Energy Corp a decade ago, when the firm faced an
>inquiry for masking huge losses.
>
>The BBC's Washington correspondent Justin Webb says the business
>connections of the Bush administration are fast becoming a serious liability.