Seeking to limit the fallout from Enron Corp.'s collapse, US President George W. Bush today will propose measures to protect workers like those who lost their pension savings when the energy trader and big Bush campaign contributor unraveled last year.
In a series of proposals to Congress, Mr Bush will call for barring executives from selling company stock during blackout periods like the one that kept Enron workers from bailing out while the Houston-based firm's shares plunged last year, a senior White House official said yesterday.
Thousands of Enron workers lost their jobs and pension savings as the company collapsed last year amid allegations that it misled investors about its accounting practices while top executives reaped huge profits by selling their holdings, possibly as lower-level workers were blocked from doing so.
Mr Bush's move underscores the Republicans' concern that the collapse of the company could hurt them in the November 5th congressional elections.
Democrats have raised questions about Mr Bush's close ties to Enron and its top executives and have asked if the firm used influence in secret meetings with Vice President Dick Cheney to shape a favorable administration energy policy.
On Thursday the White House played down reports that former Enron chairman Mr Kenneth Lay had recommended candidates to fill government posts including Mr Pat Wood, now chairman of the Federal Energy Regulatory Commission (FERC).
"These were recommendations early in the administration. Recommendations came from trade organizations, members of Congress and industry officials", said White House spokesman Mr Ken Lisaius.
Mr Wood, a Texas Republican, was appointed FERC chairman last summer by President Bush with the support of Enron.
On Thursday Mr Wood said his staff had begun looking at allegations of price manipulation by Enron. He would not speculate on the scope of the probe.