The financial collapse of Enron, and reports that the firm's workers lost millions in their retirement plans when the company declared bankruptcy, has spawned a spate of recent legislative measures designed to protect 401(k) investors. But many of the initiatives are facing criticism from industry officials who say that lawmakers should be cautious in reacting to the Enron debacle.

Lawmakers and some observers suspect many Enron workers were encouraged to over-allocate their pensions in Enron stock. In addition, they think those employees were denied the ability to abandon their financial positions because of a prolonged period during which they could not access their plans.

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