Ken Lay blamed Fastow, short-sellers, and journalists in his opening testimony yesterday. (see Houston Chronicle here) The defense is  – "no knowledge."  The argument will be that he is a busy CEO who did not know everything of what might be going on within the company.  He called what happened a "classic run on the bank."

Ken Lay is a very different witness from Jeff Skilling. With his strong defense, his credibility will be  tested when the prosecution goes to cross-examine him.

(esp)