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Some Industry Analysts Say Guilty Verdict in Andersen Criminal Trial Signals End

Aired June 17, 2002 - 10:41   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LEON HARRIS, CNN ANCHOR: Now back to news of companies that aren't doing too well. Some industry analyst say the guilty verdict in the Arthur Andersen criminal trial signals the end for the embattled accounting firm. After 10 days of deliberations, a Houston jury Saturday convicted Andersen of obstruction of justice because of the shredding of Enron documents. The conviction means that Andersen could have restrictions imposed on its business practices and face probation and fines of at least a half-million dollars when the sentence is handed down in October.

The fine is actually small change compared to the other problems Andersen's plate. To talk right now about the verdict and Arthur Andersen's future, let's go now to Ceci Rodgers of CNN Financial News. She's got her perspective with her this morning and she's joining us from Andersen headquarters in Chicago, which I got to think, Ceci is not a very happy place to be this morning.

CECI RODGERS, CNN CORRESPONDENT: Not a very happy place at all. We've been trying to talk to employees this morning, and most of them have not wanted to talk to us, a very somber mood. Of course the big disappointment, kind of an emotional roller coaster for the remaining 10,000 Andersen employees, because as the jury continue to deliberate day after day, hopes were raised that perhaps that jury was going to deliver an acquittal, but no such luck for the Andersen employees left.

Instead this guilty verdict ensures that Andersen is going to be exiting the auditing business, according to the company. However, a company spokesman said over the weekend, the firm will not file for chapter 11 bankruptcy protection. There is not much of an Andersen left, especially at the Chicago headquarters. Employees we've talked to this morning said they would be surprised if anyone left in Chicago at all after July, that these headquarters are pretty much dark. It's like a ghost town, and a lot of disappointment here. Back to you.

HARRIS: Ceci Rogers, thanks very much.

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