Bill,

I will be happy to follow up on this.  But I think we at least need to 
consider the ramifications of entering into brokerage agreements with brokers 
who accept non-cash credit from their customers.  If they are willing to 
offer credit to Enron, they are bound to do so with others.  Enron's 
funds/accounts will be pooled with all other customers in the event  of a 
financial crisis at the broker.  To the extent the broker has granted credit 
to unworthy trading partners, Enron could have exposure if those partners 
default, thus causing this financial distress at the broker.

I don't wish to overblow this concern (i.e., focus excessively on low 
probability events), but I think we should at least discuss it a few minutes 
before we proceed.  


   
	
	
	From:  William S Bradford @ ECT                           07/28/2000 07:31 PM
	

To: Paul Radous/Corp/Enron@ENRON
cc: Sara Shackleton/HOU/ECT@ECT 

Subject: Margin leverage and Enron Guarantee

Paul,

Can you work with Sara on this?

Bill

---------------------- Forwarded by William S Bradford/HOU/ECT on 07/28/2000 
07:31 PM ---------------------------
   
	
	
	From:  Sheila Glover                           07/28/2000 01:23 PM
	

To: William S Bradford/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT
cc: Jeff Kinneman/HOU/ECT@ECT, John Greene/HOU/ECT@ECT, Gary 
Hickerson/HOU/ECT@ECT 
Subject: Margin leverage and Enron Guarantee

Bill and Sara,
We have been talking with Goldman Sachs, one of ECT Investment's prime 
brokers,  about ways to reduce our margin requirement and gain greater 
leverage.  Goldman suggested that we may want to consider putting an Enron 
Guaranttee in place.  

We also have a prime broker agreement with Morgan Stanley.  Per the 
documentation that I have... I do not see a guarantte with Morgan Stanley.

1) Can you confirm that no guarantee exists with either Goldman or Morgan?
2) Any comments regarding a Goldman guarantee by Enron Corp for ECT 
Investments Inc.?

Thanks, Sheila
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