Wakeham's losses may be modest

LORD Wakeham's exposure as a director at collapsed power giant Enron could be modest, so long as he has taken out personal insurance cover.

If so, a back-up policy from Enron will cover him for damages of £25m for any wrongful act. If not, the back-up protection drops to $1m (£709,000) per claim.

In two lawsuits filed in Texas, Wakeham is accused of three counts: breach of fiduciary duty; violation of disclosure requirements; and knowing participation in breach of fiduciary duty.

If found guilty of the first two, Wakeham, or his insurers, could pay compensatory damages to plaintiffs. The charges do not carry penalty payments on top. 'Damages are fairly limited because you only have to make them whole,' says a US lawyer.

If found guilty of the third count, the damages would treble. Insurers' first targets may include auditors Andersen.