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ENRON AS A SPY HOLE INTO BANKING

The official investigation into the manner in which Enron swindled investors out of £45 billion has revealed that by borrowing money into existence from the banks, it is a simple matter to make a trade look very profitable.

With blue chip accountants in on the deal, trading figures can be make to look so good that people will pour billions of pounds into the enterprise with total certainty of enormous profit.

By sleight of hand the bankers counterfeited the money provided as a loan to Enron, which they correctly say is perfectly legal - Enron can salt away the money the punters invest in her, allowing the bubble to burst when it is all spent, never to be seen again.

As the chairman, Carl Levin, tells us "the banks knew what Enron was doing, helped to hide the deception and made their own profit."

The Enron affair could be a blessing in disguise if we take it as a wake-up call to what banking is all about.