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Because of its silent complicity in the Enron scandal, the Arthur Andersen company was also forced to close its doors. The fallout. In the end, 90,000 people lost their jobs; Enron employees, who had been encouraged to invest their retirement plans in company stock, lost $2 billion into the bargain. Stockholders lost another $70 billion in the Enron scandal, and the state of California sued for $6 billion in energy losses.
Yet it has taken until now for this simmering affair to boil over in Washington, DC. And, as so often, the ensuing scandal risks focusing on the wrong issues. On Capitol Hill, much of the talk has been of the close links that Kenneth Lay, Enron's chairman, had with George Bush and other Texas Republicans. The press has been burrowing into how often Mr Lay and other Enron bosses called administration officials to beg fruitlessly for help.