27 January 2002
Enron Control:


   A starting point for researching who controls publicly traded and bankrupted soon to be former public companies like Enron is the annual proxy statement filed with the Securities and Exchange Commission.  This form is called the 'DEF-14A'.

   The control of modern corporations is identical to modern politics in ZOG-USA.  An absolute majority of the shares is almost never necessary for effective control.  This is because many shares don't vote.  Many other shares are effectively controlled by investment fund managers who rarely vote anti-management.   Many other investors automatically vote a straight management ticket when they fill out their proxy cards, just like they pull the straight ticket lever in the voting booth.  Proxy cards even include such Straight Management check boxes to facilitate ceding all annual meeting voting authority to, surprise, incumbent management.  The role of the large owners, especially big owners sitting on the board of directors, thus becomes critical.   These individuals can easily swing a sufficient plurality of the remaining shares behind them to retain effective control.  They often own large hidden blocks by means of offshore corporations whose ownership records are inaccessible.

   Who were these 800 lb. gorillas in Enron's case?  The following information comes directly from Enron's 1997 DEF-14A filed with the SEC.  I chose 1997 since it was a typical year in Enron.

   The first of these major owners was "ROBERT A. BELFER, 61 Director since 1983."  Mr. Belfer controlled 2.5% of the Enron stock directly and was the largest single private owner.   In virtue of this he sat on the board of directors.  "Mr. Belfer's principal occupation is Chairman, President and Chief Executive Officer of Belco Oil & Gas Corp., a company formed in 1992. Prior to that time, his principal occupation was diversified investments. Prior to his resignation in April, 1986 from Belco Petroleum Corporation ("BPC"), a wholly owned subsidiary of Enron, Mr. Belfer was President and then Chairman of BPC. Mr. Belfer is also a director of EOTT Energy Corp. (the general partner of EOTT Energy Partners, L.P.) and NAC Re Corporation."

   Mr. Belfer, as befits a man of his stature in his community, is active in many other fields.  Among his many charitable activities he is "Chairperson of the Board of Overseers of the Albert Einstein College of Medicine."  Mr. Belfer's address was given in the DEF-14 as 767 Fifth Avenue, New York, NY 10153.  Mr. Belser directly controlled 2.36% of the stock.

   The next largest known private stockholders were a Mr. and Mrs. Lawrence Ruben, 600 Madison Avenue, New York, NY 10022   These fine folks controlled a little over 6 million shares (true 4,923,813 +  945,949) of common stock plus preferred convertible stock equal to another 289,387 + 16,275 common shares.  Their total voting control was about 2.27% in 1997.

   The very largest owners though were theoretically Enron's employees themselves through the vehicles of the Enron Corporation Employee Stock Ownership (ESOP) and Enron Savings plans.  These two entities controlled about 9.4% of Enron's common stock and equivalents.  Enron's employees' pensions and savings were being ploughed back into Enron stock.  Tens of thousands of these people have thus had their life savings wiped out.

   Now who actually voted (and hence controlled) those Enron ESOP and Savings Plan shares?  It was not the employee 'owners' themselves.  "However, in either case, absent plan provisions to the contrary, participants do not have any right to vote the shares of employer stock held in the suspense account. In general, these shares are voted by the fiduciary of the ESOP having such authority,"  http://www.hr-esource.com/index.asp?rightframe=hresources/sampleChapters/ebhsampleChapter_6.html    The reference is a typical Human Resource manager's reference.

   So who chooses the Fiduciary?  Why the Board of Directors does at the recommendation of the company management of course.  Who did Enron's board choose?  They chose a bank holding corporation named Northern Trust.  This trustee therefore voted the largest single block of Enron shares.   We're lucky in this case since Northern Trust is also publicly traded on the NASDAQ.  Its own DEF-14A Proxy Statement is available.  The Chairman and CEO is Mr. WILLIAM A. OSBORN.  By sheer coincidence (remember to get those RNC campaign checks in the mail today, GOPers) Mr. Osborn is also a Class A Director of the Federal Reserve Bank of Chicago.

   By another strange coincidence Northern Trust has created a similar capital structure for its own stock.  The Northern Trust ESOP is the largest single Northern Trust shareholder at 6.38%.  Of course none of these Northern Trust employees vote their shares either.  Those are voted for them 'on their behalf' by U.S. Trust Corporation, the 'trustee' of Northern Trust's ESOP.  Before going back to Enron let's look a little closer at U.S. Trust Corporation.  (http://www.sec.gov/Archives/edgar/data/225971/0000950123-95-001030.txt )   U.S. Trust's largest single owner is also its own ESOP at 14% of the common.  The next largest owner at (no kidding) 6.66% is an entity called GeoCapital Corporation.  By a really strange coincidence GeoCapital's mailing address is 767 Fifth Avenue, New York, NY 10153. That's the same address Mr. Robert A. Belfer gave as the largest private Enron owner and member of Enron's board. The trip from 767 Fifth Avenue to Enron to Northern Trust and back to 767 Fifth Avenue was a short one.

   For those who need it spelled out, what we're seeing here is the true Soviet structure of the Late Great U.S.A.  The largest 'owners' are increasingly employee collectives who also have utterly no ability to control their ownership 'stakes'.  They can't vote the shares, can't take direct possession of the shares, can't collaterize the shares and can only sell the shares under conditions meaning the end of their relatively larger annual salary.  That's retirement or other change of employment.

    Thus the only moment these 'owners' can realize any benefit from ownership is the exact moment they cease to be employees, and thus subject to management's control.  How long does anyone suppose an employee who started organizing the other 'owners' to straighten out management would remain employed and hence an 'owner'?  To say that people bound with such conditions 'own' anything is just a brazen lie. It's the very same lie the commissars told when they operated the USSR 'for the workers'.  The real owners are the management, directors and large individual owners/controllers of voting stock.  These are the effective owners.  Here as in other leveraged entities, such as the bankrupted Savings and Loans of the 1980s, it's a 'heads we win tails you lose' proposition.  Risk is off-loaded to the employees whose 'capital' is at stake while all rewards are reaped by the controllers.  The next largest and first real owners are thus those who do control their shares and have voting control of their employees' shares.  The only differences between this and the Soviet enterprise structures are the labels.  And except for the labels the rest is identical to the old Soviet Nomenklatura system.  These are the specifics of why there's not a dimes' worth of difference between 'Communism' and 'Finance Capitalism'.

   I want to take just a further moment to precisely detail the Federal Reserve System connection with Enron and control of large corporations in general.  This is necessary for Republicans, Libertarians, Rush Limbaugh fans and other people living in the land of De Nial.

   1.  According to a 1982 decision of the 9th U.S. Circuit Court of Appeals, the Federal Reserve Banks are privately owned corporations.

   2.  The largest effective stock voter in Enron was Northern Trust in its role as fiduciary of the Enron ESOP and Savings Plans.  Northern Trust is a bank which is part of the Federal Reserve Bank of Chicago.  The Northern Trust CEO himself is one of the Chicago Fed's directors.

   3.  The largest effective stock voter in Northern Trust is the U.S. Trust Corporation in its role as fiduciary for the Northern Trust ESOP.  U.S. Trust Corporation is another bank that is located in and is one of the owners of the Federal Reserve Bank of New York.

   4.  The largest effective stock voter in U.S. Trust Corporation is the U.S. Trust Corporation of New York (a wholly owned subsidiary) in its role as fiduciary for the U.S. Trust Corporation ESOP.  Attentive students have already noticed 'They' didn't contract that responsibility outside of the New York Fed.  The U.S. Trust Corporation hired one its own subsidiaries to act as trustee of its ESOP.  A New York Fed member thus retains the ultimate hammer over the smaller Chicago Fed.  This current example merely confirms what other researchers have said in the past about the dominance of the New York Fed in the so-called 'system'.

   5.  Troll through the other S&P 500 or 1000 proxy filings.  In the majority of cases the employee 'owned' ESOP is the largest shareholder.  The trust departments of bank owners of the Federal Reserve System are controlling the direction these control blocks of shares vote.  The Federal Reserve System is thus the largest effective 'shareowner' in the country and controls the vast majority of the S&P 500.  It is doing this through the mechanism of the ESOPs and the bank trust departments.

  Now I pulled a needle out of a haystack (the Enron trail) and what else did we find?  A member bank of the New York Fed is holding a share control block of a bank belonging to the other Federal Reserve branches.  Track down the real owners of the banks comprising the Federal Reserve Bank of New York.  These people, whoever they are, are the ones calling the shots in ZOG-U.S.A.

This is known as Communism, sheeple!

   Now back to Enron.

   We see that 15% of the total Enron voting shares were already locked up right off the bat between the Belfers, Rubens and their captive goyim servants managed by Uncle Fed-ZOG.  Remember, only a plurality of the total voting shares are necessary to retain corporate control under all circumstances short of an attempted hostile purchase.  That's because of the 'stay-at-home' votes and the programmed RoboVotes by others.  With this 15% voting base they can easily find enough other shares among the college endowments and mutual funds operated by and the personal holdings of fellow tribesmen and connected people.

   Now what can you do with control of a corporation?  Naive people think the big money is overpaying yourself as an executive.  That's just the chicken feed thrown to the shabbez goy servants.  What you can really do is what Enron's management was doing at the behest of their masters.  You loot the corporation of all worthwhile assets by a series of sweetheart sales and deals to entities ultimately controlled by the insiders.  You further loot the employees' pension funds by concentrating it in stock you know will become worthless.  This over concentration has the added benefit of supporting the stock price at levels far past those justified by the financials of the company.

   At some point in time the bust-out will occur, as it has now happened in Enron.  The Judeo-ZOG media is finding it useful now to throw some mud on their compliant shabbez goy servants like Chinese GOPer Wendy Gramm and the rest of the Bush Administration.  This shifts the blame and also keeps their gentile bought dogs well-whipped and in their places.  The entities headquartered in New York, like Mr. Belser, Geo-Capital of the same address, will not be mentioned by the New York based media nor will they be mentioned during hearings in Congress.  Does anyone suppose the Federal Reserve System will be sullied in this mess?  Of course not.  Prez Bushoil and the Judeo-Masonic GOP may even decide to 'show compassion' (i.e. stave off adverse political reaction) by taking on the employees' pension losses and 'helping' the workers whose pensions and savings were stolen.  Translated this means spreading the load to other white taxpayers.


(Note on sources of stock ownership information.   The starting point is the SEC DEF-14A proxy statements.  Current SEC rules require disclosure of 1) all 5% and larger stock owners of any class of security and 2) all stock ownership of the corporate officers and board of directors.  Further ownership information is offered by private services who compile the holdings of mutual funds, pension funds, charitable endowments and other institutions required to file public reports on their holdings.  This disclosure data leaves a large gap in the less than 5% owner category.  The information gap is big enough for entire caravans of camels to pass through.  Ten separate offshore corporations each owning 4% but themselves owned by a single entity constitute an unreported 40% stake totally hidden from public view.  Since all real estate ownership records are public there's no real privacy reason to keep stock ownership records public.  There's a great political reason to keep these records secret.  Making all public stock ownership records publicly available would make it all too clear exactly who really controls 'America'.)