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American Morning

Ken Lay Comes Under Fire For Fifth Amendment Assertion

Aired February 13, 2002 - 09:43   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.
JACK CAFFERTY, CNN ANCHOR: If you watched the hearings yesterday with Enron CEO Ken Lay, it was a little like a tying a dog to a post and then hitting it with a stick. Lay went before the Senate committee, took the Fifth Amendment, but he took a beating from the Senators.

"Fortune" Magazine's Editor-at-large Andy Serwer is here. And, boy, they laid it on him.

ANDY SERWER, "FORTUNE" MAGAZINE: Yeah, they laid it on him. And like Skilling taking a grilling, this guy got laid into. And, you know, a lot of people thought him taking the Fifth was perfunctory. I actually thought it was some pretty interesting stuff. Let's listen in.

CAFFERTY: Okay.

(BEGIN VIDEO CLIP)

KEN LAY, FORMER ENRON CEO: I am deeply troubled about asserting these rights, because may be perceived by some that I have something to hide. But after agonizing consideration, I cannot disregard my counsel's instruction.

(END VIDEO CLIP)

SERWER: Now, you know he said -- this is interesting stuff -- he said he was -- with "profound sadness" about all this stuff that happened. What about -- I mean, we're profoundly sad too.

CAFFERTY: Yes.

SERWER: What about the shareholders? They're profoundly sad.

CAFFERTY: Yep.

SERWER: And what about the employees who lost their jobs and their life savings? They're profoundly sad. Then he said he was "deeply troubled," Jack, for taking the Fifth. He was -- I'm deeply troubled. America is deeply troubled that you took the Fifth.

CAFFERTY: That's right.

SERWER: And then another good one is, he said, his lawyer made him do it. Now this reminds me of the mobster who gets up in front of the judge and says, "My lawyer says I don't remember."

CAFFERTY: Yeah.

(LAUGHTER)

SERWER: What do you -- what do you mean your lawyer told you to do it.

CAFFERTY: My lawyer says I don't remember.

(CROSSTALK)

SERWER: The last one is -- that really got to me, is when he said. "Now, don't draw a negative inference here..."

CAFFERTY: Yeah.

SERWER: "...for me taking the Fifth." And my question is, Mr. Lay, how many people in the history of mankind have taken the Fifth because they're innocent?

CAFFERTY: Yeah. Because they have nothing to hide.

SERWER: Because they have nothing to hide.

CAFFERTY: Right.

SERWER: I mean, this -- it just -- it just keeps going on and on.

CAFFERTY: It's getting rough, too.

SERWER: It is getting rough.

CAFFERTY: Lovely portrait of the man on the magazine cover this week.

SERWER: This is "Business 2.0," a business magazine. I just want to see if we can get that up there.

CAFFERTY: Isn't that nice

(LAUGHTER)

SERWER: I thought this was a little over the top..

CAFFERTY: Yeah, well...

SERWER: ...initially. But I'm starting to think it's not over the top. That's kind of a nice Pinocchio nose there. And, you know, and the implications keep on going. Enronitis keeps sweeping through the market.

CAFFERTY: Yeah.

SERWER: Yesterday, Harley-Davidson is under attack. EMC, the giant computer company. This morning Microsoft is acknowledging that it too is being investigated by the SEC.

CAFFERTY: For not revealing how much money they had, not how much lost. It's a little...

SERWER: Kind of the opposite problem. Let's be honest here.

CAFFERTY: Kind of like and unEnron.

SERWER: Right, an unEnron. Microsoft, the unEnron. But the question is -- the problem is the accounting things keep going.

CAFFERTY: Talk to you tomorrow.

SERWER: Okay.

CAFFERTY: Thanks, Andy. Andy Serwer, "Fortune" Magazine.

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