Robert Rubin, invisible man

[Carl Remick]

>From: Michael Pollak <mpollak at panix.com>
>
>On Thu, 25 Jul 2002, Carl Remick wrote:
>
> > So, in late 11/01, Robert Rubin, the Vice Chairman of CitiGroup, and
> > William Harrison, the Chairman of JP Morgan, called Moody's -- a key
> > rating agency -- and pressured Moody's to keep Enron's investment grade
> > credit rating in place until they had completed the sale of Enron to
> > Dynegy."
>
>If he did, he sure wasn't successful, was he?  As I remember, Enron's
>rating quickly went to junk and the Dynegy deal accordingly tanked.
>
>Michael

Right you are.  But remember, as a practitioner of the black magic of PR, it 
is my custom to engage in *selective* quotation ;-)  The very next point in 
that University of California legal complaint that I cited was this:

"66. Rubin's and Harrison's effort to strong-arm Moody's failed. Despite the 
efforts of Enron, JP Morgan and CitiGroup to conceal Enron's true financial 
condition from Dynegy and get Dynegy to agree to acquire Enron, the due 
diligence efforts of Dynegy and its investment bankers uncovered that the 
true financial condition of Enron was far worse than had ever been disclosed 
publicly to date and that Enron had been engaged in a wide-ranging fals 
ification of its financial statements over the several prior years."

Still, the key fact is that Rubin -- arrayed in all the glory of his former 
Cabinent status -- joined in the effort to mislead a debt rating agency.

Carl

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