Arnold's Enron Connection


| August 2003


Arnold Schwarzenegger isn't talking. The Hollywood action-film star and GOP gubernatorial candidate in the California recall election has been unusually silent about his plans for running the Golden State. He hasn't yet offered up a solution for the state's $38 billion budget deficit, an issue that largely got more than a million people to sign a petition to recall Gov. Gray Davis.

More important, however, Schwarzenegger still won't respond to questions about why he was at the Peninsula Hotel in Beverly Hills two years ago where he, former Los Angeles Mayor Richard Riordan and junk-bond king Michael Milken met secretly with former Enron chairman Kenneth Lay, who was touting a plan for solving the state's energy crisis. Other luminaries who were invited but didn't attend the May 24, 2001 meeting included former Los Angeles Laker Earvin "Magic" Johnson and supermarket magnate Ron Burkle.