enron mentions usa fault rating agencies enron debacle reuters english news service 11 28 01 usa update 1 enron names two new litigation committee reuters english news service 11 28 01 usa enron hires blackstone corporate advice source reuters english news service 11 28 01 usa metals traders lament loss enrononline liquidity reuters english news service 11 28 01 usa u stocks fall enron woes ripple market reuters english news service 11 28 01 usa enron falls victim deregulation preached reuters english news service 11 28 01 usa northwest natural files acquire enron utility reuters english news service 11 28 01 enron employees angry stunned merger dies dow jones energy service 11 28 01 mirant confident light enron situation dow jones news service 11 28 01 enron trade partners liquidate positive portfolios dow jones energy service 11 28 01 citigroup jp morgan bonds weaken enron downgrade dow jones capital markets report 11 28 01 point view enron mess long term capital mgmt dow jones news service 11 28 01 money enron trades heavily nyse dow jones news service 11 28 01 stocks finish lower merger collapse weak fed report dow jones business news 11 28 01 u physical gas prices end converge nymex dow jones energy service 11 28 01 dynegy pulls plug enron thestreet com 11 28 01 dynegy abandons enron deal cbsmarketwatch com 11 28 01 citi morgan sink enron exposure cbsmarketwatch com 11 28 01 enron best lay plans go awry commentary cabinet prospect bankruptcy cbsmarketwatch com 11 28 01 usa fault rating agencies enron debacle jonathan stempel 11 28 2001 reuters english news service c reuters limited 2001 new york nov 28 reuters enron corp credit debt ratings fallen junk status crippling largest u energy trader observers pointing fingers wondering took top three u credit rating agencies long act rating agencies fault waiting long thinking could hold deal together said tom burnett director merger insight research analysis firm job one new piece information available today available last week agencies standard poor moody investors service fitch denied influenced keep enron investment grade ratings declined discuss issue observers though said investment banks arranging enron dissolved merger smaller rival dynegy inc citigroup inc j p morgan chase co fighting preserve ratings stand lose millions dollars advisory fees merger collapse p moody stated going cause problems company opinion waited dynegy decided proceed merger said sean egan managing director egan jones ratings co philadelphia egan jones wednesday cut debt rating enron c one notch default anger grows prices enron distressed bonds tailspin several sessions wednesday cuts fell half traders bid wednesday near 25 cents dollar often triple digit yields get feeling lot anger feeling something occurred wednesday said mary ann hurley vice president fixed income trading davidson seattle talk markets absence official statements dynegy enron tuesday taken rating agencies clue merger fall apart happened wednesday within two hour period rating agencies cut senior unsecured debt ratings enron b minus p b 2 moody cc fitch almost simultaneous fitch downgrade dynegy announced backed 9 billion merger three big rating agencies paid companies assess ability repay debt many companies need ratings raise money investors sometimes though agencies face criticism slow act susceptible outside pressure indeed january criticized waiting actual defaults downgrading california utilities pacific gas electric co southern california edison junk status role agencies regard proposed enron dynegy merger nov 8 day merger announced top citigroup j p morgan officials met moody person familiar meeting said day later moody cut enron rating junk john diaz moody managing director denied facing new pressures week rating activity discussing developments companies touch companies normally would said contact banks ron barone p director denied getting pressure banks week hold rating downgrade none whatsoever said conference call substance contact banks meanwhile glen grabelsky senior director fitch policy group said conversations issuers agents confidential diaz grabelsky said respective agencies decide wednesday morning downgrade enron one specific event trigger downgrade said diaz last couple days concerns heightened given rate erosion enron franchise declining probability merger would consummated originally expected grabelsky said lost confidence transaction started preparing notify markets davidson hurley said delays could understandable given merger buyout dynegy officially called wednesday said would really hard rating agencies move enron junk status buyout pending additional reporting lynn adler tom johnson new york c bryson hull houston copyright 2000 dow jones company inc rights reserved usa update 1 enron names two new litigation committee 11 28 2001 reuters english news service c reuters limited 2001 houston nov 28 reuters enron corp wednesday named two outsiders new litigation committee evaluate claims shareholder lawsuits troubled energy trader totters edge one biggest corporate collapses u history analysts said one would go days securities exchange commission formed 1930 find corporate unraveling magnitude enron currently faces drop value enron stock 60 cents share one point wednesday time high 90 56 15 months ago attracted flood suits alleging misleading investors inflate stock price benefit corporate executives enron said raymond troubh new york based financial consultant non executive director 25 public companies elected director chair special litigation committee william powers jr dean university texas school law joined enron board october also serve litigation committee company said statement lawsuits filed enron top management series surprise disclosures including admission company erred financial statements earlier wednesday dynegy inc terminated merger agreement enron causing enron shares close 3 53 85 27 percent 61 cents copyright 2000 dow jones company inc rights reserved usa enron hires blackstone corporate advice source 11 28 2001 reuters english news service c reuters limited 2001 new york nov 28 reuters enron corp troubled energy trading firm hired new york based investment bank blackstone group advice corporate matters according person familiar situation enron threatened collapse rival dynegy inc wednesday scuttled proposed 9 billion purchase company hired blackstone late last week source said enron could immediately reached comment blackstone declined comment blackstone advised troubled companies including xerox corp chiquita brands international inc globalstar telecommunications inc provides advice reorganization debt restructuring well mergers acquisition services copyright 2000 dow jones company inc rights reserved usa metals traders lament loss enrononline liquidity 11 28 2001 reuters english news service c reuters limited 2001 new york nov 28 reuters u metals dealers lamented loss leading online trading platform crippled enron corp shut enrononline system wednesday said might present opportunity grab market share base metals brokerage business things quickly unraveled giant commodities trader wednesday cross town rival energy trader dynegy inc pulled deal buy saying conditions changed since takeover agreed almost three weeks ago unless enrononline comes back line dealers used internet based system swiftly migrate business brokerages market sources said hoping going able business done formerly enrononline usable platform easy trade time around clock system going dry new york broker said houston based enron said indefinitely suspended future operation enrononline wednesday u european traders said closed shortly standard poor cut financially troubled houston based company credit rating junk status base metal markets could poised lose least temporarily degree liquidity hours new york mercantile exchange london metal exchange close afternoon people going make adjustments go back way enrononline either going kind quoting ability markets going quiet exchange hours broker told reuters question remains whether enron competitors would step fill void spokesperson energy precious metals platform offers physical cash settled trading gold silver energy power products said ice would accommodate customers demanded trading base metals products hours trading base metals something customers want see ice system look seeing implement spokesperson atlanta based ice said market participants pretty much dictate system works metals well said one ice partners mirant said wednesday ice trading volume increased 30 percent last month players flocked ice alternative enrononline midwestern base metals trader said markets would feel strong ripple effects enron problems although players seemed immediately puzzled react really affect futures markets could mean business enron competitors said trader enron metals trader new york wednesday declined comment asked outlook company trading enron metals acquired mg plc 2002 taking positions lme sizable physical metal book enrononline recently accounted 60 percent daily trade volume handled enron nobody wishes happen enron good people business professional way opinion said midwestern trader copyright 2000 dow jones company inc rights reserved usa u stocks fall enron woes ripple market denise duclaux 11 28 2001 reuters english news service c reuters limited 2001 new york nov 28 reuters stocks sank wednesday energy trader enron corp teetered brink one biggest corporate implosions u history added fuel debate swirling around market powerful run market come awfully far awfully fast said jon brorson director equities northern trust manages 300 billion enron weighing think people little squeamish reverberations great excuse take profits enron plunged 85 percent frenzied trading rival dynegy inc pulled planned 9 billion takeover beleaguered energy trader credit rating agencies slashed enron bonds junk status shoved mighty company another step closer bankruptcy enron squeezed energy traders financial giants citigroup inc jp morgan chase co inc may suffer losses 400 million combined lending energy trading group according least one analyst gold stocks rose skittish investors sought safe havens blue chip dow jones industrial average surrendered 160 74 points 1 63 percent 9 711 86 largest drop month lowest close since nov 12 broader standard poor 500 index slid 20 98 points 1 83 percent 1 128 52 technology laced nasdaq composite index dropped 48 points 2 48 percent 1 887 97 enron dragged market questions swirled around strong rally lifted stocks well sept 21 lows reached aftermath attacks united states investors still expecting economic recovery 2002 pocketed profits worries share prices getting far ahead prospects corporate earnings market felt getting little optimistic little quickly recognition many many risks environment said milton ezrati senior strategist lord abbett co oversees 40 billion losers outpaced winners ratio 2 1 new york stock exchange nasdaq 1 4 billion shares traded big board 1 8 billion nasdaq economic conditions still sluggish late october early november wake sept 11 attacks according federal reserve beige book report anecdotal snapshot economy based reports fed 12 regional banks fed added slowdown deepened regions outweighing signs recovery areas enron plunged 3 53 61 cents snagging year high almost 85 late last year stock trading volume soared 181 million shares regular session setting new record stock single day new york stock exchange negative disclosures finances strangled proud energy giant forced lower reported earnings 600 million past four years result questionable balance sheet transactions enron entrapped sophisticates said robert stovall senior strategist prudential securities referring almost fawning admiration enron institutional investors think going become classic case dynegy 4 92 35 97 pulled deal rescue enron saying conditions changed since takeover agreed almost three weeks ago dynegy planned buy rival 9 billion stock collapse enron stock led dynegy invoke escape clauses allowing get deal j p morgan 2 30 37 50 citigroup 2 75 47 80 pulled dow investors worried exposure enron could facing bankruptcy two investment banks accounted one fifth blue chip dow losses standard poor natural gas index sank 9 36 percent reflecting losses enron dynegy sectoral issues el paso corp 3 59 44 91 kinder morgan inc 1 03 47 60 philadelphia stock exchange semiconductor index tumbled 4 70 percent chip leader intel corp lost 55 cents 31 76 semiconductor shares surged past two months investors hoped would first benefit economic recovery major u airlines sank sector pulled back recent gains fueled slump oil prices p airline index surrendered 2 76 percent continental airlines inc fell 2 40 21 70 announcement public share offering add 12 percent stock us airways group inc fell 1 58 6 42 unexpected resignation chief executive tuesday nexell therapeutics inc surged 220 percent 1 65 2 40 drug developer said experimental drug rare blood ailment granted orphan drug status u regulators drug company receives seven years u marketing exclusivity orphan drug approved sale food drug administration sri surgical express inc tanked 41 percent 10 35 14 63 medical supplies company said restated quarterly results cutting reported earnings wall street estimates also said lost customers failed expand business anticipated flextronics international ltd added 80 cents 26 35 contract manufacturer said business good comfortable quarterly estimates copyright 2000 dow jones company inc rights reserved usa enron falls victim deregulation preached vibeke laroi 11 28 2001 reuters english news service c reuters limited 2001 san francisco nov 28 reuters enron corp champion energy deregulation fallen victim volatility often accompanies transition orderly regulated marketplace one follows harsh laws supply demand enron recently nation largest energy trader stood brink one biggest corporate collapses u history wednesday rescue rival dynegy inc fell apart enron ways victim success said gerald keenan lead energy strategy partner pwc consulting part occured market deregulated enron one earliest aggressive advocates power deregulation breaks traditional utility monopolies letting customers choose electricity provider banking competition drive prices aggressive strategies gave enron 20 percent north american electricity natural gas market enron ranked 7 fortune magazine list biggest u companies downfall recent weeks enron credit debt spiralled control series partnerships designed hide debt balance sheet caused investors lose faith partnerships included top enron executives subject u securities exchange investigation fluid competitive marketplace punishment comes quickly enron share price closed 61 cents wednesday 3 53 85 percent peak 90 august 2000 top three u rating agenices downgraded enron junk status winners losers deregulated markets people champion necessarily around end keenan said business mounting profits fell enron hands company took air invicibility despised market players many trading partners nevertheless willing go limb enron good reputation smart traders high flying share price enron core business trading electricity natural gas relies highly creditworthiness much trading backed corporate guarantee kind standby iou credit guarantee began doubted credit managers pulled fire alarm reduced exposure two months ago enron corporate guarantee seen many money bank whole house cards came keenan said people began looking enron closely especially since october series negative disclosures company finances forced company lower reported earnings 600 million last four years result questionable balance sheet transactions enron trading business crown jewel also suffered lower volumes wary trading partners shifted business away cash poor credit threatened enron enron fallout significant affect regulated companies business regulators policymakers could slow pace power deregulation damage confined wholesale trading market much impact analysts said far 23 states district columbia moved deregulate retail power markets although nearly one third delayed onset competition partly due california failed free market experiment analysts also said enron longer major player large customer market effective deregulation likely proceed quickly perception issue enron struggle may adverse consequences retail choice even though little said sharon reishus associate director north american power cambridge energy research associates cera independent research firm based cambridge massachusetts puts us muddle whether deregulation good copyright 2000 dow jones company inc rights reserved usa northwest natural files acquire enron utility 11 28 2001 reuters english news service c reuters limited 2001 salem ore nov 28 reuters northwest natural gas co wednesday said applied oregon regulators acquire utility portland general electric unit troubled energy giant enron corp statement northwest natural gas made mention crisis pge parent growing fears enron could forced bankruptcy credit ratings slashed junk status rescue rival dynegy inc collapsed wednesday analysts said bankruptcy filing cash strapped enron could complicate proposed sale oregon largest utility constrain ability buy power customers credit concerns deepen ratings agencies took different positions pge credit rating would affected enron financial crisis moody investor services cut credit ratings pge wednesday citing concerns utility ability remain insulated collapse investor confidence enron another major ratings agency standard poor excluded pge downgrade enron subsidiaries citing protective restrictions relationship utility parent northwest natural gas agreed oct 8 acquire pge state largest utility around 1 8 billion plus 1 1 billion assumed debt preferred stock enron stock plunged 80 percent new york stock exchange wednesday around 76 cents despite several trading halts turnover surged near 166 million shares shattering record single day trade stock new york stock exchange northwest natural due hold conference call investors 1330 pst 1630 est discuss filing oregon public utility commission shares northwest natural trading 54 cents 23 80 late trading new york stock exchange copyright 2000 dow jones company inc rights reserved enron employees angry stunned merger dies erwin seba dow jones newswires 11 28 2001 dow jones energy service copyright c 2001 dow jones 713 547 9214 erwin seba dowjones com copyright 2000 dow jones company inc rights reserved mirant confident light enron situation 11 28 2001 dow jones news service copyright c 2001 dow jones company inc atlanta dow jones mirant corp mir said confident energy marketing sector mature enough function without enron corp ene mirant estimated pretax exposure enron 50 million 60 million press release wednesday mirant said began limiting exposure risk early enron crisis mrinat already seeing new business opportunities develop enron situation earlier wednesday dynegy inc dyn terminated troubled merger agreement enron backing away deal despite frantic last minute attempts sides save dynegy cited enron breaches representations warranties convenants agreements including material adverse change provision announcement came standard dow jones newswires 201 938 5400 copyright 2000 dow jones company inc rights reserved enron trade partners liquidate positive portfolios jason leopold mark golden dow jones newswires 11 28 2001 dow jones energy service copyright c 2001 dow jones company inc los angeles dow jones energy companies said wednesday right liquidate contracts enron corp ene based enron bonds downgraded junk status wednesday morning major ratings companies companies bp plc bp calpine corp cpn edison international eix pg e corp pcg sempra energy sre said right liquidate positions enron decided yet whether master agreements generally would force choice liquidating none counterparty trades enron contracts provision gives us right begin liquidation process chapter 11 becomes imminent said spokesman bp bp decided whether take step wednesday afternoon decision rests whether liquidation advantageous particular energy companies whether liquidation event occurred standard poor corp moody investors service inc deeply downgrade enron debt wednesday 323 658 3874 jason leopold dowjones com copyright 2000 dow jones company inc rights reserved citigroup jp morgan bonds weaken enron downgrade richard bravo dow jones newswires 11 28 2001 dow jones capital markets report copyright c 2001 dow jones company inc new york dow jones j p morgan chase co jpm citigroup inc c outstanding paper weakened marginally wednesday afternoon major ratings agencies lowered enron corp ene credit rating junk potential acquirer dynegy inc dyn nixed deal afternoon trading spreads treasurys j p morgan citigroup outstanding bonds around 11 basis points wider bank sector general trading seven eight basis points wider citigroup j p morgan chase invested considerable amount equity enron facilitate company proposed merger dynegy shortly downgrades announced dynegy ended merger agreement enron j p morgan citigroup committed 800 million enron around 270 million unsecured lending said richard strauss bank analyst goldman sachs group inc said standard poor first box cutting enron senior unsecured debt single b minus triple b minus lowering company junk status concerns merger dynegy moody cut enron senior unsecured ratings b 2 baa 3 fitch cut rating double c triple b minus also speculative concern market sectors exposure enron whether pipelines financials said brendan burke corporate credit analyst asb capital management anyone enron exposure focused solely today market analysts however question extent banking sector much exposure secured capacity absorb potential losses strong said michael destefano senior banking analyst 201 938 2087 richard bravo dowjones com copyright 2000 dow jones company inc rights reserved point view enron mess long term capital mgmt gene colter 11 28 2001 dow jones news service copyright c 2001 dow jones company inc dow jones newswires column new york dow jones unraveling planned merger enron corp ene dynegy inc dyn going hurt doubt discussions systemic risk doomsday scenarios gain much foothold worth pointing enron mess long term capital management death enron dynegy deal probably tantamount demise enron eventuality come pass going repercussions beyond one two energy trading companies fair enough news pulled stocks kinds wednesday yet deal demise troubled enron likely subsequent fate call broader value stocks whose fortunes remain tied fundamentals later bottom line major corporation 62 billion assets seems destined fail ways enron could indeed end like implosion hedge fund long term capital management since much enron assets involved trading sure still relatively new industry trading energy commodities like gas oil called merchant energy business shock regroup stepping back bit energy business big name banks firms may end bad debts enron ends bankruptcy industry observers expect individual investors including mutual fund holders unlucky enough power company shares also take hit pension funds told holders enron stock lost 60 billion year stock 99 enron dynegy deal undoing painful headline grabbing endanger financial markets across globe analogy failed hedge fund thankfully breaks even epicenter enron debacle systemic risk merchant energy traders already saying able adjust p said conference call wednesday afternoon expect downgrade firms similar enron fact biggest risks stocks remain yesterday last week last month fundamentals unrelated going enron whose problems started questionable balance sheet transactions key among risks ironically stocks recent good fortune driven share prices back levels unsustainable history guide big concern technology shares host sectors proof elsewhere wednesday news gap shares may trapped near 52 week low according prudential securities lowered rating gap sell still trading 93 times projected 2001 earnings another fundamental worry stocks consumer economy whose health hampered rising unemployment rate u payrolls beefed like never 10 year economic expansion pared plenty fired people fear fate spend less certainly pull back equity investments third fundamental continue weigh stocks uncertainty exactly corporate earnings return meaningful growth companies many stripes begun talk bottoming exactly start see real revenue gains clear bet fundamental 2 consumer economy factor revenues thus earnings start advancing fundamental 3 share price valuations also risk enron debacle bankruptcy might way dynegy probably cough money breaking deal cover credit exposure enron though also stands gain natural gas pipeline owned enron chevrontexaco corp cvx owns quarter dynegy also injected cash enron might kiss money goodbye houston might also suffer home enron dynegy enron story despite headlines relatively contained one challenges risks rest stock market changed gene colter dow jones newswires 201 939 2068 e mail gene colter dowjones com copyright 2000 dow jones company inc rights reserved money enron trades heavily nyse carol remond 11 28 2001 dow jones news service copyright c 2001 dow jones company inc dow jones newswires column new york dow jones numbers often speak volumes case enron corp ene speak lack enron securities suffered massive meltdown wednesday rescue efforts embattled energy trader fell apart investors started run exit standard poor announced downgraded enron investment junk status move triggered 3 9 million debt became due immediately confirmation desperately needed merger rival dynegy inc dyn table investors jolted news getting enron stock easier said done new york stock exchange enron listed halted trading company stock seven minutes 201 938 2074 dow jones newswires carol remond dowjones com copyright 2000 dow jones company inc rights reserved stocks finish lower merger collapse weak fed report stacy forster 11 28 2001 dow jones business news copyright c 2001 dow jones company inc wall street journal online blue chip stocks sank wednesday key survey regional conditions federal reserve revealed many sectors u economy continued struggle investors also rattled news dynegy pulled merger talks energy trading giant enron 4 p trading new york dow jones industrial average 160 74 points 9711 86 flirting return 10000 last two sessions industrials finished 110 15 points 1 1 9872 60 tuesday meanwhile nasdaq composite index lost 48 1887 97 declining 5 26 points 1935 97 tuesday indexes also fell standard poor 500 stock index dropped 20 98 1128 52 russell 2000 index declined 7 01 453 70 new york stock exchange composite index lost 9 33 575 25 investors caught guard wednesday standard poor ratings group downgraded enron debt junk status move immediately followed word prospective suitor dynegy called agreement merge struggling energy company downgrade triggered financial covenants raised possibility enron forced file protection chapter 11 federal bankruptcy code shares enron tumbled 3 50 85 61 cents composite trading 4 p est new york stock exchange alone 181 9 million enron shares traded hands setting big board volume record dynegy lost 4 92 12 end 35 97 news hit shares energy trading companies including el paso corp skidded 3 59 7 4 44 91 williams cos lost 1 80 6 2 27 05 meanwhile fed called beige book survey regional economic conditions indicated economy remained soft october november report showed signs slowing outweighed signs recovery early november indicated production declined american factories said airlines hotels struggled sharp drop travel fed also found evidence additional slowing regions outweighed faint signs recovery reported fed districts report rekindled speculation fed reduce interest rates effort stimulate economy investors already mood take money table trend started tuesday conference board issued disappointing report consumer confidence federal reserve gov laurence meyer said likely u economic output continuing shrink indeed market analysts said fed survey surprise instead trying anticipate news get better alfred goldman chief market strategist g edwards european union commission expects companies request approval merger soon shares compaq fell 46 cents 4 8 9 06 shares handset phone makers slid nokia said global sales mobile phones across industry grow 10 15 2002 falling year weakening hopes recovery industry abn amro trimmed views motorola following forecast shares nokia fell 1 62 6 8 22 10 motorola lost 50 cents 2 9 17 01 major u market action stocks slid big board 1 4 billion shares traded 2 074 stocks fell 1 073 rose nasdaq 1 88 billion shares traded hands bonds mixed 10 year treasury note lost 1 32 yield moves inversely price fell 4 929 30 year bond lost nearly 1 2 yield 5 356 dollar fell dollar declined euro 88 81 cents 88 64 cents weakened yen falling 123 07 yen 123 96 yen late tuesday new york write stacy forster stacy forster wsj com copyright c 2001 dow jones company inc rights reserved copyright 2000 dow jones converge nymex 11 28 2001 dow jones energy service copyright c 2001 dow jones company inc houston dow jones u natural gas physical prices rose wednesday pushing toward convergence new york mercantile exchange traders said amount gas storage keep lid futures cash prices said one trader got plenty gas ground reason buy futures said mix short term cold plus weather demand december traders saw dramatic shift gas fine line severe cold seen midcontinent texas normal temperatures eastern corridor gulf coast trader said knew point time would converge said fate enron corp major market maker also mixed equation wednesday traders said enron closed enron line internet service midmorning standard john edmiston dowjones com copyright 2000 dow jones afterward enron plunged anew hitting 65 cents 3 46 ali p helped deliver knockout punch wendesday morning cutting enron long term corporate credit rating staggering six notches b minus triple b minus rival ratings agencies moody fitch later followed suit cutting enron bonds junk new junk ratings immediately triggered enron obligation repay 3 3 billion outstanding debt company facing severe liquidity squeeze enrononline unit pointedly offline traders nearly unanimous assessment houston energy trader able meet obligations part p noted report appears distinct possibility enron file chapter 11 bankruptcy protection absent merger enron said nothing obligations prospect chapter 11 filing wednesday afternoon press release company said exploring options protect core energy business offered specifics liston investors clearly expect enron imminent collapse hurt dynegy players including banks trying prop deal j p morgan chase citigroup lent large sums enron took instrumental role arranging trying salvage failed merger skidded wednesday amid fears energy market dislocation could dent banks profits morgan 6 citi 5 banks total exposure enron hard gauge recently arranged two stage 1 billion credit enron secured northern natural gas pipeline transwestern pipeline company october enron drew 3 billion credit lines pay 1 9 billion short term debt say time banks behind credit 690 million obligation partnership meant come due tuesday pushed back mid december banks may exposure since enron last week said lead bank informed obligation extension enron 14 3 billion debt mid november according quarterly sec filing 9 billion scheduled come due end 2002 according filing leon spinks meanwhile despite efforts distance carnage dynegy saw shares drop 12 investors began wonder energy trader may gotten enron dealings many investors astonished see dynegy rushing acquisition distressed company murky accounts quite possibly raft hidden debt obligations riskiness strategy suggested dynegy desperate see enron stay afloat almost impossible tell stage much damage enron collapse dynegy business enron may counterparty trades dynegy unhedged dynegy may back accrued profits booked enron trades without elaborating dynegy said wednesday press release stopped trading enron exposure enron 75 million addition enron allegedly aggressive accounting may contaminated entire energy market especially longer dated trades enron longer game auditors likely vigilant traders dynegy may able book sort upfront gains used one consolation dynegy 1 5 billion cash infusion made possible backing chevron secured enron northern natural gas pipeline dynegy moved take ownership pipeline wednesday exercising option purchase membership interests entity indirectly owns common stock nng enron said wednesday afternoon reviewing claim apparent effort keep dynegy taking ownership even dynegy take control pipeline credibility top dynegy managers ceo chuck watson hit hard turns dynegy suffer badly enron crash investors complain told vulnerability much earlier dynegy tied enron fortunes serious questions watson co risk management skills raised kenny norton ratings agency downgrades doubly damaging enron rating agencies played critical role efforts shore houston company observers noting steep discount enron bond prices criticized agencies reluctance downgrade enron debt p moody said wanted see dynegy offer would revive enron course enron core operations continued sputter even deal agreed rating agencies position looked increasingly untenable inevitably deal go enron implodes people blame p enron demise p analyst todd shipman replies always promised people overreact think overreacted adds turning point came rating agency stopped believing dynegy others could revise deal terms find cash time stop deterioration enron business also doubted whether working salvage merger would come sort provisions needed keep enron viable dynegy abandons enron deal shares energy trader plunge bankruptcy looms cbsmarketwatch com lisa sanders 11 28 01 enron shares ene closed 61 cents 3 50 lost much 85 percent value day collapsed 52 week high almost 85 11 months ago company lost around 2 6 billion worth market capitalization tuesday wednesday close 342 million enron shares changed hands wednesday close stock broke time volume record 309 million shares set intel sept 22 2000 dynegy dyn shares lost 4 92 12 percent 35 97 saying conference call protect shareholders dynegy announced terminated agreement enron citing enron breaches representations warranties covenants agreements merger agreement including material adverse change provision company specific problems dynegy chairman chief executive chuck watson said best deals ones get done regrettable see leading industry player difficulties reflect failure energy merchant business said dynegy president chief operating officer steve bergstrom said energy traders weeks prepare enron diminished role business industry suffered degradation put clear flight quality occurring speak bergstrom said dynegydirect highly scalable platform dynegydirect platform much like enron flagship enrononline turned wednesday month ago largest online energy trading platform accounting average 3 billion trades day dynegy trading exposure enron 75 million company longer trading embattled former merger partner fellow houston industrial giant bergstrom said dynegy customer based asset backed energy delivery network driver 45 percent compounded annual growth rate past 16 years continue provide us earnings sustainability future growth watson said part deal dynegy option keep northern natural gas enron highly valued natural gas pipeline even agreement terminated company said call would exercise option chevrontexaco cvx owns 27 percent stake dynegy originally gave 1 5 billion company transaction dynegy used money purchase 100 percent preferred shares northern natural gas enron 180 days date merger agreement signed nov 9 repurchase pipeline system watson said enron said statement reviewing dynegy claim rights northern enron representatives participate call dynegy executives said advised customary practice taking questions enron said temporarily suspended payments necessary maintain core energy businesses added exploring options keep operations alive work retain employees necessary continuing operations trading core energy businesses said enron chairman ceo ken lay enron told employees questions would answered due course would receive paychecks friday analysts said next step enron would likely bankruptcy filing chapter 11 worst worlds means said john olson houston based energy analyst key salvaging business level debtor possession financing get allow trade realistic fashion dip financing takes precedence claims said equity people bottom barrel people lower people filed stockholder suits olson said note clients analyst michael heim g edwards said enron without dynegy value enron likely declared bankrupt shortly heim said unlike bankruptcies stock continues trade low price hard assets salvage ahead news p cut enron rating b minus junk status bbb minus lowest investment grade rating rating agency said move reflects concerns viability merger agreement dynegy liquidity implications possible failure transaction ratings placed creditwatch developing implications moody made announcement rating cut b 2 baa 3 said enron debt remains review additional downgrade report moody cited likelihood dynegy enron breakup fueled enron declining financial performance reason downgrade moody baa 3 rating predicated good prospects completion merger dynegy reasonable prospects marginally investment grade characteristics merged entity moody wrote furthermore lack confidence enron trading counterparties appears adversely affecting enron core trading operations enron survive credit agency said imperative volumes trading business remain profitable fitch rated enron bbb minus lowered rating cc indicates default kind appears probable u treasury keeping eye impact enron fallout credit markets spokeswoman michele davis said wednesday monitoring credit markets every day davis said markets always fluctuate seen anything extraordinary treasury said outside surveillance credit markets would refer inquiries energy trading federal energy regulatory commission commodity futures trading commission earlier day dynegy originally offered buy enron 9 billion stock confirmed tuesday two companies discussing new deal structure said ahead credit ratings eventual termination news wednesday discussions continuing aware changes status merger dynegy spokesman john sousa said p announcement merger agreement contained material adverse affect clause triggered allowed dynegy walk away deal decline enron stock price information contained company 10 q filing nov 19 could activated clause olson said p downgrade clearly fit description material adverse affect also wednesday ubs warburg rbc capital cut ratings enron hold strong buy strong buy buy speculative respectively lisa sanders dallas based reporter cbs marketwatch com citi morgan sink enron exposure cbsmarketwatch com 11 28 01 greg morcroft new york cbs mw j p morgan citigroup shares fell wednesday investors fretted banks exposure troubled energy trader enron enron shares collapsed dynegy abandoned plans buy largest u energy trader standard poor cut rating company junk bond status j p morgan chase jpm fell 2 30 5 8 percent 37 50 fellow bank stock citigroup second biggest dow loser dropping 2 75 5 8 percent 47 80 firms served lenders advisers embattled enron today saw debt rating cut junk status would acquirer dynegy walk away deal early afternoon calls citigroup returned j p morgan spokesman declined comment reports bank exposure situation wall street journal reported banks attempting finance dynegy proposed purchase enron committed roughly 700 million 800 million form various loans half unsecured report noted banks also committed additional 250 million equity investments enron deal falls apart enron ene shares ended day 61 cents lost much 85 percent value dynegy dyn shares closed 12 percent 35 97 report wednesday rating agency p cut enron rating b minus junk status bbb minus lowest investment grade rating rating agency said move reflects concerns viability merger agreement dynegy liquidity implications possible failure transaction ratings placed creditwatch developing implications shares could worthless analyst michael heim g edwards said downgrade enron debt standard poor kills chance deal dynegy believes dynegy problems using debt downgrade walk away deal without paying break fee without deal enron value opinion likely declared bankrupt shortly heim explained note clients unlike bankruptcies stock continues trade low price hard assets salvage added p downgrade force enron accelerate debt payment 3 9 billion making virtually impossible enron trades interact counterparties u bancorp piper jaffray estimated enron represents 500 million exposure citigroup 300 million j p morgan chase n judgment credit facilities well collateralized firm said note anticipating non performing assets would increase 440 million citi fourth quarter 300 million j p morgan reflecting enron bankruptcy greg morcroft new york news editor cbs marketwatch com enron best lay plans go awry commentary cabinet prospect bankruptcy cbsmarketwatch com 11 28 01 david callaway san francisco cbs mw ken lay collapse enron corp goes beyond one largest swiftest corporate meltdowns u history represents destruction lifetime work three months ago texas business leader political rainmaker perched top corporate world powerful energy mogul history advisor president united states less year ago 59 year old lay touted incoming president bush top choice treasury secretary least energy secretary ranked 36 list 50 best ceos last year published worth magazine put together 240 percent return shareholder value enron ene stock last three years enron market value rose 2 billion 1985 lay created company merger two texas natural gas firms 80 billion earlier year power prestige came crashing last months culminating wednesday complete collapse enron shares reaction news rival dynegy dyn would step rescue failing company dust settled enron shares stood 61 cents total market value 454 million see full story lay enron face almost certain chapter 11 filing would biggest u history slew lawsuits well federal investigation built tangled web derivative trades energy businesses empire power broker unplugged lay behind scenes string puller corridors power decade find loyal friends starting bush lay close friend bush family one largest contributors president political campaigns president texas governor enron pumped half million bucks bush coffers years including 100 000 last year presidential campaign matched lay wife lay hired former cabinet members james baker robert mosbacher left positions cabinet bush father george bush early 1990 political largesse came benefits lay vice president cheney ear earlier year cheney presiding establishment bush energy policy process cloaked secrecy even today cheney refuses shed light may found hot water new york times reported lay called curtis hebert chairman federal energy regulatory commission offered support hebert would change views electricity deregulation embrace bush push retail energy competition hebert said refused impression job jeopardy lay later denied threatened hebert job security whatever case hebert later replaced chairman agency patrick wood chairman texas public utility commission lay successful adopted hometown houston able convince gov bush deregulate state electrical markets 1999 earlier year houston astros began playing new stadium enron field lay remarkable executive power broker without question took rinky dink natural gas company 16 years turned mightiest energy empire american history virtually inventing new energy market enron controlled bill gates would proud monopoly speed empire collapsed shambles left suggest best enron much elaborate hedge fund bet much ken lay rainmaker fallen back earth david callaway executive editor cbs marketwatch com