Enron’s stock drop costs state $103 million

Associated Press

OLYMPIA — Washington state retirement funds lost about $103 million in Enron stock and bonds, and state attorneys are hoping to get some of it back.

The loss represents less than 1 percent of the state Investment Board’s $54 billion portfolio, and it won’t affect actual pensions.

Enron stock has plummeted to less than a dollar a share, down from a high of $90.

Once the world’s biggest buyer and seller of energy, Enron declared bankruptcy last month after acknowledging it overstated profits and engaged in questionable accounting practices. The company is now under investigation by Congress, the Justice Department and the Securities and Exchange Commission.

Washington once held Enron stock valued at $12 million, now worth $1 million, and bonds of $112 million, now worth about $20 million. The state dropped Enron stock after it fell off the S&P 500 list, but is holding on to the bonds in case the price increases.

Washington recently joined Ohio and Georgia in seeking lead plaintiff status in a class action lawsuit against Enron. They expect to hear sometime in the next month whether a Texas court will approve their bid to take charge of the case.

The state "will seek to do all it can to recoup what it can in this extremely appalling situation," Investment Board executive director James Parker said. He accepts that investments sometimes lose value, "But this case, it seems like some bad things were going on."