"The Subcommittee''s investigation has revealed yet another example of corporate integrity and professional judgment falling prey to corporate greed," said Senator Collins. "It appears that Merrill Lynch, like other financial institutions, knowingly participated in deals that were used to make Enron''s financial position appear more robust than it actually was. Merrill''s desire to make money from Enron and stay in Enron''s good graces apparently superceded professional responsibilities and reputational and financial concerns. "This attitude must change. The day of the deal that serves no other purpose than to exploit an accounting loophole, and the day when the law serves as the ceiling rather than the floor on the conduct of Wall Street professionals and corporate executives, must come to an end.
"It is important to remember that the Enron debacle is more than just a tale of one company's greed. As a result of Enron's downward spiral and ultimate bankruptcy, shareholders – large and small, individual and institutional – lost an estimated sixty billion dollars. The collapse of Enron caused thousands of Americans to lose jobs, to lose savings, and to lose confidence in corporate America. It is time to halt practices that are beneficial to a select few and harmful to thousands."
Witnesses at today's hearing: MR. G. KELLY MARTIN Senior Vice President and President of International Private Client Merrill Lynch & Co. New York, New York
MR. ROBERT FURST Former Managing Director Merrill Lynch & Co. Dallas, Texas
MR. SCHUYLER TILNEY Managing Director Global Energy and Power Global Markets & Investment Banking Merrill Lynch & Co. Houston, Texas