Legislation, Hearings on the Way

Responding to the Enron case, House members Peter Deutsch (D-FL) and Gene Green (D-TX) are introducing legislation to limit employer stock in 401(k) plans to 10% of total assets. Senator Jeff Bingaman (D-NM) is also drafting legislation to limit employer stock. Meanwhile, the House Committee of Financial Services is planning on hearings on the Enron case, including how it handled its 401(k) plan. The Department of Labor is also investigating, particularly the propriety of a freeze Enron put on the movement of shares in the plan just prioor to the company's stock falling 35%. The Department if also investigating whether Enron misled investors, including employees, by misstating its financials. After Enron restated its financials, its stock fell 70% to 90%.