Criminals and Crooked Pols

If Ken Lay, the former Chairman of Enron, escapes a jail term (hopefully for the rest of his life), then America will have given itself a lobotomy.

From The Huffington Post:

Lay didn't become "Kenny Boy" and an intimate FOG (Friend of George) because of his folksy charm. Enron and its executives doled out $2.4 million to federal candidates and parties in the 2000 election -- including $113,000 to the Bush/Cheney campaign. Lay and his wife also gave $100,000 to Bush's 2000 inaugural fund (Skilling chipped in $100,000 of his own), and another $5,000 each to the Bush-Cheney 2000 Recount Fund to help assure there'd be an inauguration. What's more, Lay even gave W's folks a ride to their son's 2000 inauguration on an Enron plane.

It was money well spent, buying Lay and his company what Rep. Henry Waxman has called "extensive access" to the epicenter of American political power. Access and influence.

Representatives of Enron also had at least six meetings with Cheney and his staff as part of the VP's secretive Energy Task Force., the last of which occurred just six days before the company revealed it had vastly overstated its earnings, signaling the beginning of the end for the energy giant. These meetings included at least one between Cheney and Lay.

It was at this meeting that Lay handed Cheney a memo that gave the administration its marching orders on how to handle the 2000-2001 California energy crisis -- a crisis that we now know was largely rigged by Enron and other energy companies. The crisis cost the state an estimated $45 billion.

Lay's memo called on the administration to "reject any attempt to re-regulate wholesale power markets by adopting price caps." Just a few weeks after literally getting the memo from Lay, Cheney said of price caps: "We think that's a mistake." Bush followed suit, announcing: "I oppose price caps". This cozy relationship allowed Enron traders to rip off the people of California with impunity.

So as Ken Lay continues to plead his case on the stand deep in the heart of Texas, never forget that this scandal is not just about the crooks who cooked the books at Enron, it's about how the White House gave the crooks a prominent seat at the policy table.

Posted on The Human Stain