Cooperation could pay off for Fastow

[Judi Lynn]

Sept. 26, 2006, 12:21AM
Cooperation could pay off for Fastow
Shareholders may urge reduced penalty because of his help in lawsuit

By TOM FOWLER
Copyright 2006 Houston Chronicle

Some of the kindest words said about Andrew Fastow during his sentencing today may not be from his own lawyers but from those representing angry Enron shareholders.

Attorneys for the shareholders say they will ask U.S. District Judge Kenneth Hoyt to shave some time off the former Enron finance chief's expected 10-year sentence because of his help trying to build cases against the half-dozen banks that have not settled in the massive class-action lawsuit.

Fastow started meeting with the shareholders in recent weeks, providing details of how he worked with the banks as early as 1997 on financial transactions.

The shareholders have already negotiated $7.3 billion in settlement fees from banks such as Canadian Imperial Bank of Commerce, JPMorganChase and Citigroup, but other banks, including Merrill Lynch and Credit Suisse First Boston continue to hold out.
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http://www.chron.com/disp/story.mpl/business/4214118.html