Andersen Wants To Settle

The Washington Post and USA Today report that Andersen is thought to be offering a total payout of $750m in full and final settlement of lawsuits and claims in relation to its involvement with former energy giant Enron.

It is believed that $250m will come from an insurance company owned by Andersen and that the remaining funds will be paid out at $100m per annum from cashflow and, perhaps, reserves.

Both Andersen and the SEC refuse to comment on the story.

In the meantime, the head of Andersen's new board, ex-Chairman of the Federal Reserve Paul Volcker, announced Wednesday a broad outline of the changes that are likely to take place as a result of the firm's involvement with Enron. As expected, urgent attention will be given to implementing strong controls to ensure that complex technical accounting issues are resolved in the appropriate manner. Volcker also hinted that the firm may also introduce restrictions on future employment of Andersen personnel by audit clients. Some senior Enron staff were former Andersen employees.