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American Morning

Interview of Andy Serwer

Aired February 22, 2002 - 09:30   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: Little while ago, we heard a startling story, "Vanity Fair" article upcoming about the depth of the Enron scandal, going back perhaps 15 years. This morning there's word Enron is trying to do and end run around its rather tarnished corporate name.

Andy Serwer, "Fortune" magazine's editor at large, is here now to tell about a proposed Enron makeover.

ANDY SERWER, "FORTUNE": You know the beat goes on here, Jack. Every day I sit here, and every day I am just amazed by the stuff that keeps coming on out the Enron stuff. The "Vanity Fair" article sounds really incredible, but today in the "Washington Post," we are discovering that Enron wants to change its name.

CAFFERTY: Well, you can't blame them for that.

SERWER: Yeah, but you know, I think this is another example of obfuscation. This is ludicrous. You guys -- I'm sorry. You are Enron. You can't get away from that. You guys are Enron, and I don't think they should be allowed to changer their name.

CAFFERTY: What will they call themselves, "Gosh, It Was All a Misunderstanding?"

SERWER: Yeah, right. So, we'll have Jack Cafferty-Andy Serwer oversight board, you've got to get your approval from us first.

CAFFERTY: Okay, that's a good idea.

SERWER: How about about "Enrot."

CAFFERTY: "Enrot."

SERWER: "Enrot."

CAFFERTY: How about "Good Fellows," as in the organized crime movie.

SERWER: Right. "Enwrong."

CAFFERTY: "Enwrong." "Moron."

SERWER: "Morwrong" (ph). I mean, it's just -- did you know about the name, originally, where it came from, and it was a computer generated consultants -- they paid the consultants millions of dollars to come up with the name, and back -- I think this is back in the 80's, also, when the two companies -- the two pipeline companies merged, they came up with a name, was "Enteron." That was what the company was going to be called, and just before they went public, someone decided to look up in a medical dictionary...

CAFFERTY: Figure out what it meant.

SERWER: Yeah, and "enteron" means intestines.

CAFFERTY: So, it turned out to be, perhaps, more prophetic than we even realized at the time.

SERWER: Exactly. So they took out the "T" and the came up (ph) with "Enron."

CAFFERTY: Is it a fair question to ask, if the "Vanity Fair" article, as it suggests that these shenanigans began as long as ago 15 years, is it fair to ask ask where the regulators, where the enforcement agencies, where the government was that is supposed to, at some point, protect investors from this kind of stuff?

SERWER: Yeah, I think that is a good question. I mean, obviously, you have got to ask that about the auditors. Andersen. Where were you guys, year after year after year? Also, what about the SEC? I mean, the SEC says, you know, look, we were duped. But, you know, they have a staff. They are supposed to review. There were questions, short sellers and other people were asking questions about this company. It is true, year after year. So you have got to wonder about those guys.

CAFFERTY: Danny Pearl.

SERWER: Danny Pearl. You know, this situation is just unbelievable to me. I didn't know him personally. I had friends who did, and he was supposed to be just a terrific guy and a great reporter, it just shows how incredibly dangerous this job is, and we mourn for him.

CAFFERTY: Indeed we do. All right, Andy. Have a good weekend, talk to you Monday.

SERWER: Thank you, you too.

SERWER: Andy Serwer, "Fortune" magazine.

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