Does Chase effectively control Mahonia?
Earlier this week the Permanent Subcommittee on Investigations held a hearing on the role of financial institutions like yours in the collapse of the Enron Corporation. One of the very troubling factual issues that emerged was Citigroup’s use of a Special Purpose Vehicle (SPV), Delta Energy Corporation (Delta), as a pass-through entity established in the Cayman Islands for Enron’s “prepays” in which Citigroup participated. Citigroup witnesses told us that while Delta was established by Citigroup, while Citigroup paid for Delta’s legal and administrative fees, and while Delta was used exclusively for Citigroup’s purposes, nonetheless it was not effectively controlled by Citigroup. Substantial evidence the Subcommittee reviewed indicates otherwise. When we asked the Citigroup witnesses whether they would make available all of the documentation involving the establishment, administration and activities of Delta, the witnesses said they would have to consult legal counsel.
