Andersen Chief Quits in Enron Crisis

Joseph Berardino, chief executive of the global accounting firm, Andersen, resigned yesterday in the wake of criminal charges and loss of clients because of its involvement in the bankrupt energy trading company, Enron.

Mr Berardino yesterday denied any top management involvement in the shredding of Enron documents by its auditors in Texas. He described his resignation as a "sacrifice" intended to save the careers of Andersen employees.

The chief executive, who joined the company in 1972, said he would stay on for "a few days" while the board chooses a replacement.

His announcement came four days after a former Federal Reserve chairman, Paul Volcker, urged senior Andersen executives to step aside to allow the appointment of a new, independent board.

The company hopes that the appointment of a new board together with full cooperation would persuade the US justice department to drop its indictment of the firm, which threatens Andersen with bankruptcy.

Speaking to CNN, Mr Berardino said: "We're in deep straits. There's no question about it. I can't begin to predict what the justice depart ment will do. I wouldn't have thought they would have indicted us, given the fact that we self-reported, we were so forthcoming.

"I'm speaking out in the loudest way I know how to with my resignation, saying we can be a positive force in this market, if people let us."

Asked whether the accounting firm would go bankrupt, he said: "We've got a US management team that's looking at every option in terms of how we might go forward. And clearly that has to be included as an alternative, but it's certainly not where we want to go."