"The maze of financial transactions that Enron constructed to make its financial statements look good makes Rube Goldberg look like a slacker," said Levin. "Our hearings will look at what role some of our biggest and most respected banks had in creating these accounting gimmicks and the resulting impact on Enron's financial statements."

"The Subcommittee's investigation has revealed that certain financial institutions knowingly participated in, and indeed facilitated, transactions that Enron officials used to hide debt and, thereby, make the company's financial position appear stronger than it actually was," Collins said. "Enron enjoyed many complicated relationships with financial institutions that allowed the company ultimately to benefit in ways that were, or should be, improper. These hearings will allow us to explore in depth the ways in which the financial community played a role in Enron's demise."

The hearings will focus on the role of major financial institutions in structuring transactions that had significant impact on Enron's financial statements. Witnesses will include representatives from major financial institutions, accounting and financial experts, and investigators from the Permanent Subcommittee on Investigations.

Chairman Levin has issued over 60 subpoenas to members of the Board of Directors and officers of Enron as well as to the Enron Corporation, Arthur Andersen and a number of financial institutions. In addition, PSI staff members have reviewed over one million pages of documents as part of their investigation into the collapse of Enron.

The Subcommittee held a hearing in May on the role of the Enron Board of Directors in the company's implosion and heard testimony from five current and former Enron Board members. On July 7, the Subcommittee issued its report, The Role of the Board of Directors in Enron's Collapse, which concludes that the Board saw but ignored numerous questionable practices by Enron management to the detriment of Enron shareholders, employees and business associates and contributed to the company's bankruptcy. The Subcommittee report is available online at http://govt-aff.senate.gov/psi.htm.