In somewhat of an irony, Enron Corp. this week filed a complaint against six of its former banks and investment institutions, claiming that they gave the bankrupt company bad financial advice, which in turn contributed to its demise in late 2001.

The 280-page filing on Wednesday in U.S. Bankruptcy Court in New York alleges that Citigroup Inc., J.P. Morgan Chase & Co., Merrill Lynch & Co., Deutsche Bank AG, Barclays PLC and Canadian Imperial Bank of Commerce, and various subsidiaries and affiliates of those companies “bear substantial responsibility” by participating “with a small group of senior officers and managers of Enron in a multiyear scheme to manipulate and misstate Enron’s financial condition.”

The complaint states that the banks assisted Enron insiders by designing structured finance transactions “knowing” that the insiders were improperly accounting for the transactions. Enron claims the banks were motivated by “the irresistible temptation of enormous fees and other revenue.”

The complaint seeks recovery of an unspecified amount through the recovery of payments made to the banks, by subordinating some claims made by the banks against the Enron estate and through damages.

Enron’s lawsuit is an attempt to recoup as much as possible for its creditors, even though it is accused of fraud, according to bankruptcy experts. A report earlier this year by court-appointed trustee Neal Batson focused on the banks named in Enron’s lawsuit. The banks, in turn, are claiming they are owned billions of dollars.

Mediation sessions with Enron shareholders and financial institutions are scheduled to begin Monday before U.S. District Judge William C. Conner in New York.

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