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CNN Live Saturday

J. Clifford Baxter's Death Ruled Suicide

Aired January 26, 2002 - 17:01   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.
FREDRICKA WHITFIELD, CNN ANCHOR: Today's news from Houston concerning the death of former Enron executive J. Clifford Baxter confirms what police had already suspected. CNNfn's Fred Katayama has been covering this story. He joins us now from Houston with a live report. Hi there, Fred.

FRED KATAYAMA, CNN FINANCIAL NEWS CORRESPONDENT: Hi there, Fredricka.

Before I get to that, some breaking news. Enron is closer to naming a new chief executive. Enron's board of directors met today over a holding phone conference, and a source close to the search tells CNN that the board has narrowed the list of candidates to two finalists. The front-runner in the search is Stephen Cooper. He is a bankruptcy reorganization specialist working for the New York-based consultancy firm Zolfo Cooper. The other candidate, I am told, is a male executive, we are not toll which industry he works in. The source says expected announcement within three to four days. Another source says the announcements could come as early as this weekend.

Now earlier today, we heard from the coroner office. It's official, the -- J. Clifford Baxter, the former vice chairman of Enron, his death has been ruled as suicide. Baxter was found dead at 2:30 Friday morning in a Mercedes parked just outside just near his home in Sugar Land, which is located just outside of Houston. The investigator at Harris County medical examiner's office told CNN that he was found with a penetrating gunshot wounded to the head. It was self-inflicted. She added that there were no signs of foul play.

Earlier, I spoke to some friends of Cliff Baxter, and they noted that in the past few weeks he was disappointed, concerned and depressed over the turn of events at Enron, the demise of his former employer, and the fate of his colleagues and friends. One friend told me that over the just one month they noticed that his hair, which used to be salt and pepper gray, had turned white, signs, friends say, that shows that he was suffering from some sort of stress -- Fredricka.

WHITFIELD: So the friends talk about their observations, but are you learning anything more about exactly what his, you know, motivation was, or what exactly the reasons that led up to him taking his own life?

KATAYAMA: Well, Fredricka, there's speculation out there, but we do know that Baxter was named in an internal memo, that internal memo that was written by the whistle blower, Sherron Watkins. In that memo, it said that the memo said that basically Baxter had questioned the accounting practices of Enron, those accounting practices which eventually led to its demise. Plus, he had also been named in some shareholder lawsuits. He was one of 29 defendants. Those are some things that could have contributed to stress.

WHITFIELD: All right. Thanks very much, Fred from Houston.

The Houston suburb of Sugar Land where J. Clifford Baxter was found is just one of the many fronts where the Enron story is unfolding. It's also make big waves in Washington. CNN White House correspondent Kelly Wallace joins us now with the latest Enron developments from the White House -- Kelly.

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Hello again to you, Fredricka. Well, one issue that is really coming to a head right now is the clash between the White House and Congress' investigative arm, the General Accounting Office, over access to information and documents related to the vice president's energy task force which met last week. And as for why this is connected to Enron, many Democrats in the Congress are pressing the administration to come forward with what went on behind closed doors, and also to see if Enron, which was one of the largest contributors to Mr. Bush's presidential campaign, had any undue influence over the energy task force.

I talked late today with the head of the General Accounting Office. He says he's still hopeful that this matter can be resolved without having to go to court, but he says he will make his decision this week after the State of the Union address about whether to file suit against the Bush administration.

The White House for its part, though, Fredricka, is remaining defiant. A senior administration official telling CNN, quote: "We would not be surprised if they take it to court. When they do, we'll see them in court. We do not expect they would prevail."

Now, as for President Bush, he arrived back here at the White House early this afternoon. He didn't answer any reporters' questions about the subject. The president and his aides say this is really all about principles, protecting the president's ability and future president's ability to meet with private individuals, private sector individuals in private to try to formulate policy.

But the pressure is increasing on the White House. This past week, four Democratic senators wrote the GAO saying they back its pursuit. Also, some members of the president's own party say it's really time for the administration to come forward and release details about this meeting. So far, the administration has said that Enron executives met with the vice president or energy task force aides six times last year. The White House says there was never any discussion about Enron's financial situation.

The backdrop here, though, is there is still no allegation of any wrongdoing by anyone in the White House. Perceptions, though, might be a bigger problem for this administration, because according to a new CNN-"TIME" poll which was released today, when Americans are asked, "who does the president care more about, big business or people like yourself?" You see it there, 51 percent think the president cares more about big business, 39 percent say the president cares more about people like themselves.

And Fredricka, this all coming, again, as the president gets ready for his State of the Union address. And if, if the GAO does file a lawsuit against this administration, it would be the first time in history that Congress' investigative arm is filing a lawsuit against a federal agency -- Fredricka.

WHITFIELD: That's right, Kelly. And what, if anything, is being said at the White House right now about the timing of this GAO threat and the State of the Union address as he gets prepared for that, coming that it's just Tuesday when he is expected to address the nation?

WALLACE: It's interesting; no one here sort of addressing timing and saying that there is any maybe motive or motivation by the GAO. In fact, the head of the GAO says that he sort of has been pressing the administration for months, and so he is really saying that he has been asking for this information -- excuse me -- for many months, and that is why he is putting some more pressure on the White House.

Aides here say, look, this is about principle and not politics, so they think the president is very well positioned to stand firm and hold firm, that it's not just about protecting this administration, but it's about protecting future administrations.

Nevertheless, you can look at these polls, there is obviously some concern. And that is why, of course, you see this president, Fredricka, continuing to talk about this issue, talking about the people who have been hurt in this case. You heard him earlier this week saying he was outraged that so many people, including his own mother-in-law, lost money due to Enron executives not revealing the facts. So look for the president to continue to stress that point in the days ahead -- Fredricka.

WHITFIELD: All right, thanks very much, Kelly.

And more on those polls that you just mentioned, which reflect what Americans really say they want to hear from President Bush in his State of the Union speech Tuesday night: Almost three-quarters of those polled think the president should emphasize the economy and other domestic issues, 16 percent want more focus on the war on terrorism, and the poll indicates 62 percent of Americans consider Mr. Bush a leader they can trust, compared to 46 percent a year ago.

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