Yesterday’s admission by President Bush that he personally ordered the Solicitor General and the Justice Department to suppress a legal brief to the United States Supreme Court in a key case that could help Enron’s workers recover money that’s rightfully theirs is among the most outrageous events in the long and sordid history of the Enron scandal.

By suppressing a brief that explained to the Supreme Court why investors have a right to sue the investment banks that conspired with Enron to defraud workers, President Bush has shown that he’s on the side of the Enron executives, bankers, lawyers and consultants who helped the company steal billions from working Americans and devastate their pension funds.

We are also deeply disappointed by the role played by the Treasury Department and Secretary Paulson.  The Treasury Department appears to believe that allowing banks to defraud investors with impunity is good for the “competitiveness of our markets.” Nothing could be further from the truth. The lawsuit against the banks that conspired with Enron to defraud employees is the last recourse for Enron workers to recover any significant amount of money from the banks.

In this affair, the SEC deserves considerable credit for standing up as the investors’ advocate. Congress must act to ensure that this effort to silence the SEC fails and the public and the Supreme Court have the benefit of the commission’s views on the meaning of securities laws.

The AFL-CIO fought long and hard to win severance pay for Enron workers at a time when no one in the Bush Administration stepped forward to help them.  While we’re disappointed with the President’s actions, the AFL-CIO is committed to continue its fight for Enron workers and their families.

Contact: Steve Smith 202-637-5018