Boss of shamed Andersen quits

The chief executive of the beleaguered accounting group Arthur Andersen, Joseph Berardino, resigned last night in what appeared a last attempt to save the company by persuading the US Justice Department to withdraw the criminal indictment against it.

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Mr Berardino's announcement came four days after the former Federal Reserve chairman Paul Volcker urged top management to step down. Mr Volcker proposed that a new independent board, under him, could lead a revamped Andersen out of the disgrace caused by its role in the collapse of the Enron energy group in December. Earlier this month, after all efforts to reach a plea bargain failed, the federal government unsealed a one-count indictment against Andersen for obstruction of justice, arising from its shredding of documents relating to Enron.

Andersen has denounced the indictment as a gross abuse of government power and says it will plead not guilty. A trial is due to begin in Houston, Enron's home town, on 6 May.

Mr Berardino, who has been with Andersen since 1972, said last night: "I felt I had to take this step to put an exclamation point behind the voices of our people. We are a serious firm that deserves to continue."

Andersen says top management knew nothing of what was happening at Enron, and that wrongdoing was limited to a small group of employees in Houston.