New York (March 25, 2002) -- Former Federal Reserve chairman Paul Volcker, chairman of the oversight board charged with restoring embattled Andersen's reputation, proposed a seven-member governing board takeover the struggling firm, provided that the Department of Justice dismiss without prejudice its indictment against the firm and certain other conditions are met.
At a press conference late Friday, Volcker said a seven-man board, led by him, would take the reigns at the troubled firm and rebuild it with a focus primarily on auditing. In addition to the dismissal of the indictment, which is perhaps the highest hurdle the plan faces, Volcker said a commitment to the effort by a "critical mass" of Andersen's senior partners, and settlement of the class action lawsuits and Securities and Exchange Commission actions against the firm are required for the to work.
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