by Aamer Madhani
Back in 1999 when the late and disgraced Enron Corp. CEO Ken Lay was still raking in the dough and was an influential captain of industry, he donated $1.1 million in Enron stock to fund an endowed chair in economics at his alma mater, the University of Missouri.
The gift was a huge windfall for the university, and it gave Missouri's economics department an opportunity to search far-and-wide for a big name to fill the chair of a professorship named in honor of the executive and GOP benefactor that President Bush called "Kenny boy."
But with Enron's collapse and Lay being found guilty on conspiracy and fraud charges, the university was put in a bit of a pickle.
First, Lay asked the university in 2005 to give the money to charitable organizations in the aftermath of Hurricane Katrina. A few months later, his lawyers went to the university and demanded the money be returned to help pay for Lay's mounting legal debt. The university turned down both requests.
Over the years, the university offered the job four times, but the prospective candidates were lured back by counteroffers from their home institutions, said Michael O'Brien, the dean of Missouri's economics department.
Now, nearly a decade after the university announced the endowment, they have finally found someone willing to take the mantle of the Kenneth L. Lay Chair of Economics.
"I'm honored that the University would find my past research activity worthy of being appointed to this position," said Prof. Joseph Haslag, in a statement issued by the university to announce his appointment. "I want to continue to produce the best economic research that I can and transfer that knowledge to the students who are attending MU."
O'Brien said that the university could not legally remove Lay's name from the endowment, and it would have been a waste not fill the professorship. Lay died in July 2006 of a heart attack, ahead of his scheduled sentencing later that year.
O'Brien insisted that the controversy surrounding Enron and Lay did not contribute to the drawn-out search for the first Ken Lay Chair.
"It's a sellers market," O'Brien said.
"I am thrilled to be able to use [the professorship] to retain an excellent economist," O'Brien said of Haslag, who has taught at the university since 2000. "I don't worry about the taint."
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Comments
"ENRON "HEF" SPEAKS"
HEY, I'M LIKE ELVIS, I'M RIGHT HERE. I DIDN'T MEET GEORGE BUSH IN THE WHITE HOUSE. NO NO NEVER NEVER UH UH UH!
I'M STILL WITH YA, I'M NOT RESTING IN PEACE, I'M FILTHY RICH. I TOOK EVERYTHING MY EMPLOYEES HAD. THEN I WENT "ELVIS" ON YOU.
"DUBAI" ISN'T ALL THAT BAD!
SAND BOWLING IS NOT ALL THAT HARD.
NOT PAYING TAXES IS A "KILLER" OF A DEAL AT THE END OF THE DAY.
SO THE NEXT TIME ANY OF YA'LL VISIT DUBAI, JUST COME ON UP TO THE "HEAVENS AND THE EARTH"
I REALLY DIDN'T NEED THE MONEY BUT, MONEY ALWAYS HAS A TRAIL, AND ALL TRAILS WERE CLOSED AT THAT TIME. BUT IT'S ALL GOOD GEORGE, DICK AND JACK ABRAMHOFF TOOK REAL GOOD CARE OF ME.
HOW YA'LL LIKE MY "DETENTION CAMP" IN FLORIDA. BLACKWATER GUARDING YA'LL WELL. THAT'S MY BABY!
BUT IT'S ALL GOOD!
WE GOT IT ALL UP IN HERE!
DUBAI ROOM 500 ON THE 109TH FLOOR PENTHOUSE
KEN "HEF" LAY IN PEACE!
Posted by: Roger Morris | April 22, 2008 2:58 PM
"The Kenneth L. Lay Chair of Economics" is right up there with the:
George W. Bush Chair of Diplomacy.
Richard B. Cheney Chair of Constitutional Law
Posted by: Lois | April 22, 2008 3:29 PM
It should be:The Ken Lay Chair of Cooking the Books! The Republicans would stand in line to attend that class. When did we start honoring thieves!!? Oh, that's right, when we began the dumbing down of America!!
SUPPORT OUR TROOPS, BRING THEM HOME, ALIVE. NOW.
Posted by: Don Fitzgerald, Chicago | April 22, 2008 4:00 PM
"...Lay being found guilty on conspiracy and fraud charges..."
And this criminal flew George W Bush around the country in his private jet? This criminal had a desk in the White House after George W Bush was elected?
Oh right, it's only Obama who can't associate with anyone bad.
Posted by: Paul | April 22, 2008 4:04 PM
"... he donated $1.1 million in Enron stock to fund an endowed chair in economics at his alma mater, the University of Missouri
...
First, Lay asked the university in 2005 to give the money to charitable organizations in the aftermath of Hurricane Katrina. A few months later, his lawyers went to the university and demanded the money be returned."
Seems like there is a link missing here. If he gave stock, the stock is now worthless. Did the University sell the stock? And did it sell it having inside information that it would soon be worthless?
Posted by: jack | April 22, 2008 4:17 PM
Don Fitz,
The cooking of EnRon's books started in the late 90's, during the Clinton Administration's SEC. The collapse of EnRon occurred in 2001, a few years after the foundation for the collapse was put in place.
One of the reasons for the great stock run-up of the late 90's was the loosey-goosey accounting rules of the times.
Paul,
I guess you forgot the Ken Lay sleep overs in the White House during the Clinton years? Also, the billion dollars in gov't backed loans that EnRon rec'd from Billy.
http://www.mrc.org/cyberalerts/2002/cyb20020226.asp
Posted by: Terry | April 22, 2008 5:05 PM
he said taint
Posted by: beevee | April 22, 2008 5:26 PM
The university must have sold the stock before it crashed. Rather than funding the chair, it should have returned the money to the poor Enron employees. Why does it not surprise me that the wastrel Ken Lay wanted to reneg on the deal?
P.S. maybe he was friends with Clinton, but Terry, tinfoil hats are really out of fashion.
Posted by: Carol | April 22, 2008 5:40 PM
I thought this guy died? Or was that another Enron crook?
Posted by: Molly | April 22, 2008 5:48 PM
This is the perfect example of university hipocracy. Dispite Mr. Lay's reputation, it's all about the money to the university. I'll bet that if Richard Speck had donated millions of dollars to the university's School of Nursing, they would have kept that name as well!
Posted by: Ed-Chicago | April 22, 2008 5:54 PM
What's next--the Ted Manson chair of human relations?
The guy KILLED HIMSELF to save all his ill-gotten loot for his family, looked like to me.
What a sleazy place.
Gotta go spin in my grave now.
Posted by: Mark Twain | April 22, 2008 6:30 PM
Mizzery strikes again!
Remember the Paige Sports Arena?
Hahaha.
Posted by: Dave | April 22, 2008 6:50 PM
Ken Lay chair of Economics...Bwahahaha!
I'm going to University of Missouri for a Bachelor's degree in Ponzi Schemes and hope to get a Master's in Creative Accounting and Bank Fraud.
Posted by: Tom O | April 22, 2008 7:03 PM
They should have renamed the chair to the Frito Pay chair . they would have found a taker much quicker
Posted by: ejhickey | April 22, 2008 8:47 PM
One of his papers is apropos, read the last line of this abstract:
Crony Capitalism and Financial System Stability
JOSEPH HASLAG
University of Missouri at Columbia - Department of Economics
ROWENA PECCHENINO
NUI Maynooth - Department of Economics
Economic Inquiry, Vol. 43, Issue 1, pp. 24-38, 2005
Abstract:
Prior to the Asian financial crisis, the cozy relationships between corporations, governments, and banks were seen as a potent force for economic growth and development. In this article we examine the institution of crony capitalism. Under conditions in which the Second Welfare Theorem does not hold, there is a role for government. Some governmental institutions do encourage more risky, high-payoff entrepreneurial activities. Our aim is to examine crony capitalism as a potential source of government activity that enhances economic productivity...
Posted by: Da' Buffalo Amongst Wolves | April 23, 2008 12:56 PM
«I'm going to University of Missouri for a Bachelor's degree in Ponzi Schemes and hope to get a Master's in Creative Accounting and Bank Fraud.»
Isn't that usually shortened to MBA? :-)
Posted by: Blissex | May 5, 2008 6:02 AM