But Ken Lay had known all along

about the risks that were taken.

He had seen the reports warning him

about the traders' behavior.

Since the fall of Enron, Ken Lay has said that

he can't be responsible for things

he didn't know about.

Sounds like what he said about Valhalla.

Do you believe that he didn't know?"

I can answer only for one. I can answer for Valhalla

because Ken Lay did in fact know about this thing.

Because I had told him myself.

The auditors adamantly told Mr. Ken Lay

that the two rogue traders should be fired.

Lay read the report and he read his budget

and estimated how much they, the two rogue executives made

and if they were fired what he could lose.

My conclusion was that this guy is a guy who puts earnings

before scruples rather than reacting

to the dishonesty right in front of him.