Tuesday afternoon, Barone told jurors about a couple of meetings regarding Enron in October 2001.

In August 2001, Standard & Poors gave the company had a BBB+ credit rating with a stable outlook.

But during an October 4, 2001 meeting, Barone said, his agency became concerned about a massive, previously unknown write-down of $1.2 billion.

"We were very surprised to hear about this $1.2 billion dollars accounting adjustment," Barone testified. "I think we were quite uncertain as to the details behind it. It was just the sheer dollar amount. $1.2 billion was a lot of money."

Though worried, Enron reassured S&P it was a one-time only event.

Eight days later, on October 12, 2001, S&P met to reconsider its rating in light of this news. That same morning, Barone said, he got a call from Ken Lay's assistant who asked if the two could speak later that afternoon.

During a break, Barone took Ken Lay's call in his office at 3:30pm.

"Mr. Lay informed me that he was aware of our concerns over their deteriorating financial position," Barone remembered, "and that he was committed to credit quality and that he would take the necessary steps... to right the ship. Those were his words, not mine."

Barone went on to say Lay told him the company would consider selling major assets like the pipeline if it had to, to raise money.

"He said the accountants had scrubbed the books," Barone said about the Lay phone call, "again those were his words, not mine. And that he didn't expect any additional write-downs forthcoming."

The committee reconvened later that day and voted to keep Enron's credit ratings where it was at BBB+.

A few days later, Barone discussed the Lay phone call with Mr. Samson, a managing director and chief quality officer for S&P at the time.

Barone told Samson: "I also asked him if we should expect more funky financing structures put in place [at Enron]."

Barone said Lay wanted the company to be more transparent but liked the creativity his employees were using.

Samson responded to Barone saying "Thanks. Keep him on a short leash."