Enron Sues Bank Of America

Milwaukee Journal Sentinel reports that Enron has now filed a lawsuit against Bank of America which claims that the bank acted improperly when it seized $123m from the failed energy giant's account three days before the company filed for bankruptcy.

The lawsuit claims that officials at Bank of America seized the monies from an Enron account which the energy company wanted to transfer to Citibank. The bank's action, it is claimed, gave it preferred status over other Enron creditors.

The lawsuit claims that 'Bank of America engaged in malicious and inequitable conduct and took grossly unfair advantage of Enron to benefit itself at the expense of Enron's other creditors'.

A spokesman for the bank confirmed that the lawsuit would be defended 'vigorously' and that it denied the implications of the allegations. Enron seeks the return of the money, plus interest.

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