Fastow Fingers the Banks
The former Enron CFO says the bankers helped him do it; settlement talks are likely to heat up
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Andrew Fastow got six years in prison for his role in the Enron collapse. Now he might be getting some karmic relief. The former Enron CFO recently spent nine days being grilled by lawyers representing Enron shareholders, who are trying to prove that the energy trader's bankers played an active role in the company's fraudulent bookkeeping.
And while the testimony of a convicted felon like Fastow might not be considered credible enough to sway a jury, it could keep defendant banks from winning dismissals from the case. U.S. District Court Judge Melinda Harmon earlier this year dismissed Barclays (BCS) and Deutsche Bank (DB) saying there wasn't enough evidence that they directly participated in the fraud.