Andersen have now been subpoenaed to provide documentation to prove that its insurer is unable to settle the claim. It appears that the insurer, Bermuda-based Professional Services Insurance Co., is actually owned by 30 Andersen firms around the world and that it could be technically insolvent. If this proves to be true, then settlement of any claims relating to Enron would appear extremely unlikely and it could all soon be over for the firm.
An Andersen spokesman confirmed that the firm acted in good faith when it negotiated the settlement with the trustees and stated that the settlement itself included a provision which made clear that it was conditional upon the insurance company approving the arrangement.
Andersen agreed to settle a claim for $217m last month in favour of trustees for the liquidators for the Baptist Foundation of Arizona. The firm had been main auditor for the bankrupt foundation. Andersen believed that their insurers would pay out and all would be sorted. They haven't and the firm is now experiencing further problems.
What We've Been Reading
50 Shades of Embarrassing
A Price To Pay - The Inside Story Of The NatWest Three
Videos
Latest in Business
back-up- Man Slides After S&P Moves Outlook On Hedge Fund To Negative
- UK 'May Never Fully Recover' If Greece Exits Euro
- 11 Things That Happened This Day In History - 21st May
- What Jamie Dimon Said When He Found Out About That Big Trading Loss
- 15 People Who May Be Called As Witnesses In The Rajat Gupta Trial
- BNY Mellon Face Off, BNP Appoints, Citi Sued, RBS Reject, Facebook Underwriters
- Senate Summons JP Morgan's Jamie Dimon To Explain $2bn-Plus Losses
- US Lawmakers Hit Out At Facebook co-Founder, Who Says He Will Continue To Pay Taxes
- Banking Rules May Encourage Riskier Trading, Warns Ratings Agency
- HSBC Chief Reaffirms Three-Year Targets
- Lloyds Bankers Relax At Luxury Spa
- Files Close On BCCI Banking Scandal
- Euro 2012 Predictor Competition - Free Entry, £4,000 Prize Fund
- 11 Things That Happened This Day In History - 18th May
- The 2012 Recruitment Awards - Nominations Close In 4 Days
- Featured Recruiter Of The Month - GQR Global Markets
- Recruitment Firms We Like
- One Top Firm Cuts Jobs, Another Cuts $2bn From Costs
- Bidders For BofA's EMEA Wealth Unit Revealed
- 556 Billion Reasons To Be Fearful
- Goldman's Big Facebook Payday
- Credit Suisse Global M&A Head Quits
- Facebook IPO Will Be Biggest Ever High Tech IPO
- JPMorgan's Trading Loss Said To Have Already Significantly Increased
- Barclays - Bob Diamond Bonus Subplot Thickens
- FSA Decides To Ban Senior BGC Executive
- Eurozone Banks Nearly Collapsed, Says ECB Director
- Cost of Greek Exit From Euro Put at $1 Trillion
- Mizuho International Announces Resignation of Paul Hearn, Chief Executive
- Standard Chartered Staff's 250 Mile Bike Ride Raises Over $300,000
- If The UK Economy Was A Football Team, It'd Be Fighting Relegation
- Job Hunting: Nobody Wants To Feedback - There's Someone Out There Better Than You
- JPMorgan Said Warned Last Year About Risk Management Oversight
- Regulators Don't Look Much Like Idiots Now
- Morgan Stanley Has An Interesting Annual Meeting
- Top Firm To Limit Voluntary Layoffs As Too Many Want To Leave
Features
Jobs on Careers
- Electronic Trading Support Analyst - Birmingham
- eFX Support Team Lead - Top FX Bank
- Agile / Scrum MasterJava Developer
- Java Developer - Equities Technology D&EL
- Lead Java Developer
- FX IT Java Server Cash Developer
- Java Developer (Senior Java Developer)
- Java Dev Greenfield
- Java Developer AVP ( Front Office Java Developer )
- Programme Manager, IT, Interest Rates, Investment Bank
