Enron banks under fire in class-action lawsuit

Nine investment banks financed lucrative schemes that helped Enron, the failed US energy giant, appear to be a profit powerhouse up to its collapse, said lawyers who plan to add the banks to a shareholder lawsuit today.

William Lerach, who is leading the class-action case in Houston, Texas, said the banks’ knowledge of Enron’s questionable partnerships and financial vehicles gave them an inside view of the company’s workings.