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Senate Failing Enron Reform Test
Delay On Feinstein Derivatives Amendment Shows Lack Of Will
Statement of Consumer Program Director Ed Mierzwinski

"The Senate is failing the Enron reform test so far by its continued failure to vote on a bipartisan amendment to re-regulate financial derivatives.

Special interests opposed to re-regulation of the derivatives trading that helped Enron hide its deceptive partnerships have made millions in contributions and are now lobbying to prevent a vote on the Feinstein amendment. Does this lack of will to enact Enron derivatives reform mean that critical accounting oversight and pension protection proposals will also be delayed and weakened by special interest lobbying when they get to the Senate floor?

Opponents of an amendment to the Senate Energy bill to end regulatory exemptions for energy derivatives trading that helped Enron inflate its balance sheet and hide its debt have spent $46 million lobbying Congress since 2000 and made campaign contributions of more than $2.7 million in hard and soft money in the 2000 and 2002 cycles, according to a report (www.enronwatchdog.org/reports/3_11_02.html) released last week by the Enron Watchdog campaign of the state Public Interest Research Groups.

Consumer groups support the Feinstein amendment because it restores necessary transparency and oversight to the financial marketplace. The Feinstein amendment is the first major test of whether Congress is going to enact Enron reforms, or just wring its hands and stick with business as usual."

The Enron Watchdog Campaign (www.enronwatchdog.org) is a project of the state Public Interest Research Groups (PIRGs), state-based advocacy organizations advancing an agenda of environmental health, good government and consumer protection.

For a copy of a “Dear Senator” letter supporting the Feinstein amendment from U.S. PIRG, the Consumer Federation of America, the Consumers Union and the Derivatives Study Center, click here.