White House to review impact of Enron scandal

WASHINGTON -- White House economic adviser Larry Lindsey studied the economic impact of the potential collapse of Enron Corp. as the Texas-based energy firm struggled for its financial life, the Bush administration disclosed Wednesday.

Lindsey served on an Enron board, receiving $50,000 in 2000.

The disclosure by White House press secretary Ari Fleischer came amid growing questions about the relationship between Enron and the Bush administration. President Bush is a longtime friend of Enron chairman Kenneth Lay.

Two members of Bush's Cabinet said last week they were contacted by Lay about Enron's financial troubles. Lay told Commerce Secretary Donald Evans he would appreciate any help the administration could give.

Evans told White House chief of staff Andrew Card about the call. Budget director Mitch Daniels said Lay called him in October to discuss the prospects for Bush's economic stimulus bill, which would help Enron.

The administration says it took no action on Lay's behalf.

The White House refuses to disclose every Enron contact with Bush aides, and Fleischer declined to say whether the White House was even keeping track of them.