Enron Lawyers Weren't Always Happy

The lawyers are thought to have sometimes objected to the deals on the basis that they were not in the company's best interest. But it is thought that the lawyers did not 'blow the whistle' on the arrangements and backed down time and again when confronted by senior Enron executives.

Enron was, unsurprisingly, Vinson & Elkins biggest client, with billing at around $35.6m in 2001 - nearly 8% of the law firm's annual revenue. Having said this, it is thought that, as time went on, the law firm came to be regarded as less flexible than other attorneys used by Enron. As a result, Vinson & Elkin's share of Enron's legal work shrank to around 20% in 2001, although they were still the firm of choice for sensitive issues.

As the Wall Street Journal points out, Vinson & Elkin's are in a difficult position. It is clear that they were not always happy and had strong misgivings about what was going on. Having said that, the firm is not in a position to defend itself as it, too, is to face lawsuits and investigations.