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---------------------- Forwarded by Phillip M Love/HOU/ECT on 05/12/2000
12:57 PM ---------------------------

"James Love" <James.Love@msl.redstone.army.mil> on 05/12/2000 12:20:58 PM
To: <Phillip.M.Love@enron.com>
cc:
Subject: Fwd: Excuse Me!

I hope you have a sound card on your computer at work.  If not, send it home.
Date: Fri, 12 May 2000 12:15:48 -0500
From: "Ed Dowling" <Ed.Dowling@msl.redstone.army.mil>
To: "James Love" <James#032#Love@msl.redstone.army.mil>
Subject: Excuse Me!
Mime-Version: 1.0
Content-Type: multipart/mixed; boundary="=_D189F9A1.9AFB9FA9"

Edmund A. Dowling
LTC, AR
Product Manager, ATAS
(256) 876-4800
Beeper (800) 374-4434 Pin # 13050

 - Scuse Me!_1.avi


How about inserting the attached (after the explanation about the
relationship between New Power and Enron)?

	Binky Davidson@EES
	03/15/2001 05:35 PM

		 To: Steven J Kean/NA/Enron@Enron
		 cc:
		 Subject: NewPower Withdrawal Notes

Mark Muller sends the attached for your information and comments.


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Tracy:

Sorry to bother you with this one again -

in 1999 and 2000, what were the revenues and costs associated with the base gas sales - the footnote disclosure indicates $53 million and $34 million in sales but not the cost.  In addition, going forward, how much of the 2001 and 2002 TG&S expense is solely related to this transaction (i.e. expenses that would not be incurred but for this transaction)? My question may be a bit confusing - call me if I am totally off base!


To: Mike Terraso

cc: Jeff Keeler
 Steve Kean
Linda Robertson
 Catherine McKalip-Thompson

From:   Lisa Jacobson

Re: White House Climate Change Task Force

Date:   April 16, 2001

Per your request, here is some preliminary information on the
Administration's climate change task force.  First, there is a White House
climate change task force and it has met at least twice already.  It is
coordinated by the Domestic Policy Council and the National Economic
Council.  Emphasis during the first meetings has been on procedure, education
and review of the key issues.

The task force facilitates the Administration,s ongoing "cabinet level
review" on climate change policy.  They are aiming for as high a level of
participation as possible, but acting and deputy assistant secretaries have
also been attending.  White House staff is being very tight-lipped about the
task force discussions due to political sensitivities and fears of media
leaks.

The task force will solicit input from outside stakeholders (scientists,
industry and environmental groups), but as I understand it, participation on
the task force is limited to government officials.

The task force is set to meet frequently - possibly weekly - over the next
six weeks.  I have heard different descriptions of its objectives.  Some have
said its goal is to develop broad principles, procedures and a strategy in
preparation for the resumed international negotiations in Bonn, Germany this
July (COP-6 II).  Others suggest that the White House intends to release a
specific proposal on climate change, with domestic and international
components, as early as next month.

On the domestic front, Enron has been providing input to the Administration
on our creative ideas for a multi-pollutant air emissions strategy for the
power generation sector.  We have been invited to provide input on
international proposals, with a preferred timeline of this week.

At this stage, each task force meeting is dedicated to covering a different
topic (i.e., science, economic impacts, role of technology, etc.).  The
meetings tend to have an educational angle, as many participants are not
familiar with these specific and technical issues.  The task force has likely
not yet delved into analysis of the market-based mechanisms (emissions
trading or project-based options to reduce greenhouse gas emissions) or other
issues related to the United Nations Framework Convention on Climate
Change/Kyoto Protocol negotiations.

Enron has an excellent relationship with John Howard, the task force
coordinator from the Domestic Policy Council.  Jeff and I plan to meet with
Bob McNally, the National Economic Council coordinator, tomorrow.

Jeff and I also would like to talk with you about strategy and
recommendations for the White House on international proposals.  It would be
valuable for Enron to weigh in supporting:

? Action to reduce greenhouse gas emissions even in the absence of scientific
certainty on climate change
? Continued U.S. engagement in international efforts to reduce greenhouse gas
emissions
? Flexibility for industry to meet emission reduction goals
? Market-based approaches to reduce greenhouse gas emissions - like emissions
trading - that allow reductions to occur at lower costs to consumers,
governments and businesses
? Cooperation with developing countries to ensure their participation in any
treaty to reduce greenhouse gas emissions - however, developed countries
should be encouraged to take action now and work towards solutions

These bullets are consistent with Enron,s current position statement.

I will work to confirm whether the task force has non-government members and
how industry and, more specifically, Ken Lay and Enron could participate and
provide input.

Please let me know if you have any questions.

Lisa Jacobson
Enron
Manager, Environmental Strategies
1775 Eye Street, NW
Suite 800
Washington, DC 20006

Phone: +(202) 466-9176
Fax: +(202) 331-4717


Aloha Charlie:
Gerrit Hoogenboom and Jim Jones will be better position to advise you on
application of crop models in DSSAT for real time forecasting.  I do
recall one individual who wanted information on the crop models for crop
insurance application.  He never got back to us.

Gordon

Gordon Y. Tsuji                        Email: gordont@hawaii.edu
University of Hawaii-Manoa             Phone: (808)956-8858
1955 East West Road, Ag Sci 205        Fax  : (808)956-2711
Honolulu, Hawaii 96822

On Wed, 13 Dec 2000, Wilkens, Paul W. <pwilkens@ifdc.org> wrote:

> Hello, Charlie
>
> I enjoyed talking with you re. your plans to use the DSSAT models in your
> work doing crop forecasting related to commodities trading.  I have copied
> in Gordon Tsuji, Univ. of Hawaii, who may also be able to help you by
> referring you to people who have done similar activities.  Gordon has been
> involved with the IBSNAT/DSSAT/ICASA work for a long time and was part of
> the managing entity of the DSSAT project.
>
> {---------}
>
> Gerrit Hoogenboom
> Professor
> Department of Biological and Agricultural Engineering
> The University of Georgia
> Griffin, Georgia 30223-1797, USA
>
> Phone: 770-229-3438
> Fax:     770-228-7218
> mailto:gerrit@griffin.peachnet.edu
> www.georgiaweather.net
> www.gerrithoogenboom.com
>
> {---------}
>
> James W. Jones
> Distinguished Professor
> Agricultural and Biological Engineering Department
> University of Florida
> Gainesville, FL  32611
>
> Tele:           352-392-8694
> Fax:            352-392-4092
> E-mail: jjones@agen.ufl.edu
>
> {--------}
>
> Joe T. Ritchie, Professor            (517) 353-4702 (voice)
> Homer Nowlin Chair                   (517) 355-0270 (FAX)
> MSU Crop and Soil Sciences
> A570 Plant and Soil Sciences Bldg.
> East Lansing, MI 48824-1325
> E-mail: ritchie@pilot.msu.edu
>
> {---------}
>
> Holiday wishes,
>
> Paul
>
> Paul Wilkens
> International Fertilizer Development Center
> P.O. Box 2040
> Muscle Shoals, Alabama  35662
>
> (256) 381-6600 (Tel)
> (256) 381-7408 (Fax)
>
> pwilkens@IFDC.org
> http://www.ifdc.org/
>
>
>
>
> -----Original Message-----
> From: V.Charles.Weldon@enron.com [mailto:V.Charles.Weldon@enron.com]
> Sent: Wednesday, December 13, 2000 10:47 AM
> To: pwilkens@IFDC.org
> Subject: DSSAT
>
>
> Dr. Wilkens,
>
> Thank you for your time and advice.  I would appreciate if you would be
> able to provide me with contact information for Dr. Jim Jones at the
> University of Florida as well as Dr. Joe Ritchie, per your offer to do so.
>
>
> Thanks again,
>
> Charlie Weldon
>


That's where the James River Paper Mill is I think... I'll check it out

 -----Original Message-----
From: 	Wolfe, Jason
Sent:	Friday, October 26, 2001 1:20 PM
To:	Fuller, Dave
Subject:	NWPL point Camas, Jr

Dave,

What do you know about the NWPL meter 300 (Camas Jr.)? It makes up a fair amount of Portland area load.
It's my understanding that this is industrial, possibly paper mills, but I don't have much more info yet.
If this is a customer you are familiar with, let me know.

Thanks,
Jason


In the past few months much focus has been put on understanding VAR and how
it is calculated (through RisktRAC).  However, everyone should note that the
credit department also receives our information.  Market risk and credit risk
are inherently different, with different requirements.  This memo serves as a
reminder of what some of the key differences are, how the credit system uses
RisktRAC differently from market risk, how this affects us, what some key
problems are in the credit system caused by our data, and changes to be made
by risk management groups.

differences are between credit and market risk - you all know this, but many
of your ba's don't.
when a book is flat it still has an effect on credit.  Flat books must be
officialized
market risk is keyed off positions and curves.  When we make money, market
risk is reduced.  Credit risk is keyed off positions with customers.  When we
make money, credit risk is increased, as people owe us more money.

how the credit system uses RisktRAC differently from market risk
Market risk picks up all officialized books.  If a book is not officialized
it does not pick the book up.
Credit picks up all officalized books.  If a book is not officialized, it
picks up the previous day's position.  Therefore, if positions in book A are
moved to book B, and A is no longer officialized, credit picks up the
previous day's position for book A.  As a result, if a book is no longer
used, please officialize it the first day it is no longer used, so credit
will pick up 0 on a go forward basis.
Market risk is not concerned with counterparty codes and names.
Credit needs correct counterparty codes and names.  In recent months, the
counterparty information has deteriorated.  Enron official counterparty names
need to be used so they flow properly to credit.

what are some key problems in the credit system caused by our data
As referenced above: correct counterparty names and books with 0 positions
not being officialized so credit picks up previous day info.
As a takeaway from this message please ensure only correct counterparty names
are used and that if a book has 0 positions that it is officialized the first
day it has 0 positions.

If you have specific questions about credit, please call Debbie Brackett, at
X35856.


Attached, please find the "West Desk Organizational Chart".  Please note,
this is chart is for "internal use" ONLY!

gngr
713-853-7751
----- Forwarded by Ginger Dernehl/NA/Enron on 06/01/2001 04:03 PM -----

	Alan Comnes/ENRON@enronXgate
	06/01/2001 03:35 PM

		 To: Ginger Dernehl/NA/Enron@Enron
		 cc:
		 Subject: RE:

Ginger,

Can you circulate the attached chart to Government Affairs staff.  The
subject line should read "West Desk Organizational Chart."  Please put in the
cover note that the chart is for internal Enron use only.

Thanks,

Alan Comnes

 -----Original Message-----
From:  Nicolay, Christi
Sent: Thursday, May 24, 2001 6:13 AM
To: Comnes, Alan
Subject: RE:

Alan -- Can you send an email to Ginger Dernehl (for distribution to gov't
affairs) that lists the heads of the various desks in West Power?  I've had
some questions from people wanting a list.  Thanks!
---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 05/24/2001
08:08 AM ---------------------------
From: Debra Davidson/ENRON@enronXgate on 05/23/2001 06:30 PM
To: Christi L Nicolay/HOU/ECT@ECT
cc:

Subject: RE:

No, we have nothing like this for West Power Trading.

 -----Original Message-----
From:  Nicolay, Christi
Sent: Wednesday, May 23, 2001 11:12 AM
To: Davidson, Debra
Subject:

Do you have a similar chart for West Power?  We found this very helpful for
Gov't Affairs people to assist trading better.  Thanks.

 << File: EastPwrOrg_0501.ppt >>


The following are CAL businesses who responded to Ken Lay's first direct mail
package.  These businesses responded by email and/or telephone.  All of the
CEOs identified a point person within their respective organization whom we
should contact directly in order to coordinate.
Paramount Studios
Gap, Inc
Northrup Gruman
AMD (SVMA)
US Borax
Cisco (SVMA)
Commerce One
Raley's

The following were not interested in working with us at this time
Catholic Healthcare West
Intuit

Number of hits to Enron's CAL business website dedicated to the energy crisis
As of April 2nd, our California page had been loaded 16 times from
individuals outside of Enron.  This site was created specifically for the CAL
business direct mail effort.  The 115 businesses who were sent the package
were the only entities that we promoted this site with. **if you are an enron
employee, it's okay to hit the site from within the Enron building.  We can
differentiate between hits from inside and outside of Enron.  If you work for
Enron outside of the EB in Houston.....please do not go to the site.  Our
ability to track hits will then be skewed.  Thanks.**


i thought that you said you were sharing a suite with them.  thanks for the
pics.


Tanya:  Is Lee the right person to approve this change for SITA?  Remember,
SITA is acutally with ECTRIC (nto ENA) and SITA wanted to settle in Euros.
Thanks.  Sara
----- Forwarded by Sara Shackleton/HOU/ECT on 11/30/2000 10:23 AM -----

	Lee Munden
	11/30/2000 09:44 AM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc:
		 Subject: Re: SITA

Sara

Sorry for delayed response.

Tom says below that the invoice is likely to be in French Francs (FF) ,
therefore, I would have thought that having contractual currency as FF (or
Euro as / when it replaces the FF)  is the most sensible.

As the early termination value is likely to be calculated in FF or Euro, I
think that this would not be a problem either.

Please feel free to give me a call if you wish to discuss 207 783 6755

regards

Lee
---------------------- Forwarded by Lee Munden/LON/ECT on 30/11/2000 15:41
---------------------------

	Enron Europe

	From:  Tom Bruce-Jones                           29/11/2000 08:13

To: Lee Munden/LON/ECT@ECT
cc:

Subject: Re: SITA

FF

Lee Munden
27/11/2000 18:04
To: Tom Bruce-Jones/LON/ECT@ECT
cc:

Subject: Re: SITA

Tom

What currency will we invoice in?

Lee

	Enron Europe

	From:  Tom Bruce-Jones                           27/11/2000 16:07

To: Lee Munden/LON/ECT@ECT
cc:

Subject: SITA

Lee
As you are perhaps aware, the Master for this CP has been arranged thru
Houston.  Would you cast your eye over the comments laid out below and revert
to either Sara or Tanya with your comments.
As background, Houston has negotiated all the docs and were intending to
trade out of Houston.  This CP has now been handed over to us and all trades
will be generated from here.
Any help much appreciated.
Tom
---------------------- Forwarded by Tom Bruce-Jones/LON/ECT on 27/11/2000
16:06 ---------------------------
From: Michael Moulton@ENRON COMMUNICATIONS on 27/11/2000 06:57 PST
To: Tom Bruce-Jones/LON/ECT@ECT
cc:

Subject: SITA

----- Forwarded by Michael Moulton/Enron Communications on 11/27/00 06:05 AM
-----

	Sara Shackleton@ECT
	11/22/00 01:41 PM

		 To: Tanya Rohauer/HOU/ECT@ECT
		 cc: Michael Moulton/Enron Communications@Enron Communications
		 Subject: SITA

Tanya:

SITA now insists on having the Termination Currency and the Contractual
Currency, except as otherwise agreed in any Transaction/Confirmation, as the
Euro.  They will not agree to USD.  [By the way, SITA's lawyers had already
agreed to USD]  Effectively, if we agree to this, the trader will need to
confirm each deal in USD (Contractual Currency) but if we early terminate,
the currency will be Euro's (Termination Currency).

What do you want to do?  Other than the Enron Corp. guaranty, we are finished.

Sara


Payables

Inquiry and Reporting Quick Reference Card
*  Need to check if an invoice has been paid?
*  Want to see whether your invoice has been approved?
*  Need to determine if a coder has unresolved invoices?
You can get all of this information and more in iBuyit Payables Inquiry and
Reporting!  To access the Inquiry/Reporting Quick Reference Card, visit the
ISC Document Library:
<http://sap.enron.com/sap_doclib/files/ibuyit_payables/iBuyit%20Payables%20Inq
uiry-Reporting%20Step-By-Step%20Instructions.doc>

New Invoicing Guidelines Communication to Vendor
Many of you have asked for a copy of the communication that was sent to
vendors to inform them about the new PO box and Enron invoicing guidelines.
As a result, we have attached the communication below to help you reinforce
this important message to your vendors:

Remember!  All invoices submitted to AP should indicate the paying company
name and number, contact name, and coder,s EID.

Confused About Who to Call for Help?
ISC Call Center:  (713) 345-4727
*  For help logging into the system
*  For help using the system
*  NOT for invoice payment status
AP Call Center:  (713) 853-7127, or toll free (866) AP ENRON, or at
<mailto:iBuyit.payables@enron.com>
*  For invoice payment status
*  Quick payment status inquiries will be resolved by the AP Call Center
representative
*  Payment status inquiries that require research, will be assigned a ticket
number and escalated to a AP Specialist for resolution
*  Business critical tickets will receive a response within one business
day.  Remember, business critical is defined as items that would impede
operations, incur contractual or regulatory compliance penalties/interest,
affect financial deal closure, or involve risk mitigation activities.
*  Non business critical tickets will receive a response within two business
days

Questions?
For general information about iBuyit, send an e-mail to
<mailto:ibuyit@enron.com>.


Per Cecilia this was done and I just spot checked a few deals and checked ENTERGY in particular and it they were moved to Bankruptcy.
PL

 -----Original Message-----
From: 	Theriot, Kim S.
Sent:	Tuesday, January 29, 2002 3:43 PM
To:	Love, Phillip M.
Subject:	RE: 6 more counterparties to move

Phillip,
Did you receive confirmation from Cecilia that these were indeed moved?  Entergy Koch is one of the entities that Mechelle Stevens is questioning.

Kim

 -----Original Message-----
From: 	Love, Phillip M.
Sent:	Thursday, January 24, 2002 10:47 AM
To:	Cheung, Cecilia; Theriot, Kim S.
Cc:	Gossett, Jeffrey C.; Giron, Darron C.
Subject:	6 more counterparties to move

Please move the following six counterparties from NG-Price to Bankruptcy.  Please move only financial deals.  Please let me know when this is complete.  We need to have it done by the time we calc our books today - no exceptions.  Thanks for your help.

TAGG Short Name:
TRANSWEST
VITOL S.A.
DUKEFSVCMAR
ENCOREACQCOM
ENERGYUSA
ENTERGYKOCTRA

Thanks again.
PL


Many thanks for the update.

-----Original Message-----
From: Tana.Jones@enron.com [mailto:Tana.Jones@enron.com]
Sent: Tuesday, October 10, 2000 1:31 PM
To: Clare.Godson@AllenOvery.com
Subject: RE: FW: Deutsche Bank ISDA Master Agreements

We just received what we hope is a final draft of the documents from
Deutsche Bank, and I hope to respond back to you shortly, once I have had a
chance to confirm they made all the changes.

                    Clare.Godson@Alle

                    nOvery.com               To:     Mark.Taylor@enron.com

                                             cc:     Tana.Jones@enron.com

                    10/10/2000 04:33         Subject:     RE: FW: Deutsche
Bank ISDA Master Agreements
                    AM

Many thanks. Apologies for the error, I obtained Tana's e-mail details from
someone at Enron in London and they had misspelled it for me.

Thanks again for all your help.

Clare

-----Original Message-----
From: Mark.Taylor@enron.com [mailto:Mark.Taylor@enron.com]
Sent: Monday, October 09, 2000 6:00 PM
To: Clare.Godson@AllenOvery.com
Cc: Tana.Jones@enron.com
Subject: Re: FW: Deutsche Bank ISDA Master Agreements

Clare,

Thanks for your note.  Your e-mail trouble is due to the spelling of Tana's
name - should only be one 'n.'  I am forwarding this on to her.

Mark

                    Clare.Godson@Alle

                    nOvery.com               To:     mark.taylor@enron.com

                                             cc:

                    10/09/2000 04:50         Subject:     FW: Deutsche Bank
ISDA Master Agreements
                    AM

Mark,

I am having some problems sending this to Tanna.  her e-mail keeps bouncing
back.  Could you pass this on to her please?

many thanks for your help.

Kind regards,

Clare

>  -----Original Message-----
> From:   Godson, Clare:ICM (LN)
> Sent:   Friday, October 06, 2000 3:16 PM
> To:     'tanna.jones@enron.com'
> Cc:     Markus.Fiala@enron.com; Nicholas.J.Stephan@enron.com;
> Rod.Nelson@enron.com; 'Elaine.Bannerman-Sowah@enron.com';
> edmund.cooper@enron.com; denis.o'connell@enron.com; paul.simons@enron.com
> Subject:     RE: Deutsche Bank ISDA Master Agreements
>
>
> Tanna,
>
> Could you please give me an update on where things stand on the
> finalisation of the Guarantees and Schedule with Deutsche.  I understood
> that the guarantees were with Enron Corp. for final approval and
> signature.  Is the documentation now agreed? As you are aware the
> negotiation of the documentation with EnronCredit.com is dependent upon
> the finalisation of the documentation outstanding with Houston.
>
> Many thanks for your help.
>
> Kind regards,
>
> Clare
>  -----Original Message-----
> From:   Godson, Clare:ICM (LN)
> Sent:   Friday, September 22, 2000 3:06 PM
> To:     'tanna.jones@enron.com'
> Subject:     First Union National Bank (FUNB) ISDA Master Agreements
>
> Tanna,
>
> Thanks for your help on the Goldman Sachs and Deutsche negotiations.  If
> you could keep me posted on the timing of the Deutsche agreements being
> put in place that would be really helpful.  I also have another quick
> request and that relates to the ISDA Master Agreement with FUNB.  I have
> spoken to Delene Travella at FUNB.  They are negotiating an ECTRIC
> Schedule with you in Houston which they want to finalise before
commencing
> EnronCredit.com's negotiation.  Can you give me an update on where this
> negotiation stands and how long before it is likely to be finalised?
>
> Many thanks,
>
> Clare Godson

======================================================================

This email is confidential and may also be privileged.  If you are not the
intended recipient please notify us immediately by telephoning +44 (20)
7330 3000 and requesting the Technology Services Helpdesk. You should not
copy it or use it for any purpose nor disclose its contents to any other
person.

Allen & Overy
One New Change
London
EC4M 9QQ

Tel:+44 (20) 7330 3000
Fax: +44 (20) 7330 9999
General Email: Helpdesk@allenovery.com
www: http://www.allenovery.com

Allen & Overy is a solicitors' partnership.  A list of the names of
partners and their professional qualifications is open to inspection at the
above office.  The partners are either solicitors or registered foreign
lawyers.

======================================================================


I made it back to Houston last night.  Incredible security at the airport in London -- it was a mob scene.  In addition to the usual stuff there was an additional search of all carry-ons by hand at the gate and all passengers were patted down by a guard before entering the gate.  I saw several passengers questioned on the plane about their checked luggage -- I couldn't really hear what it was all about.  We were delayed about two and a half hours but it made it feel a little safer.  The Brits were all very nice of course while I was in London but it sure is good to be home.


Start Date: 1/24/02; HourAhead hour: 17;  No ancillary schedules awarded.  No variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2002012417.txt


Sorry,
Report as of August 24, 2000


FYI.

-----Original Message-----
From: Rich Wong [mailto:rwong@Haas.Berkeley.EDU]
Sent: Monday, September 17, 2001 1:10 PM
To: mba02@haas.berkeley.edu; mfe02@haas.berkeley.edu;
eveningmba@haas.berkeley.edu; hcchtft@haas.berkeley.edu
Subject: CSO - High Tech Recruiting Activities and last reminder to
subscribe

Following are upcoming high tech recruiting activities for graduating
students.
After today, these messages will only be sent through the hcchtft
distribution
list, so if you are interested, please subscribe through majordomo. If you
have
already subscribed, you should be receiving today's message twice.

Resume Drops due tonight at midnight (note description in BearTracks of
revised process vs.last year):
Microsoft (10/15 interviews)
Intel Finance (10/16 interviews)

Presentations (please sign-up on BearTracks)
Siebel Systems (9/25 at 12:30pm)
Inktomi (9/28 at 12:30pm)

Brown-Bag Workshops
Entrepreneurial/Start-up 2nd year panel (9/20 at 12:30pm, sign-ups are full
but feel free to show up and we will accomodate who we can from no-shows and
a few
extra chairs)

Rich

Rich Wong
Account Manager, Technology
MBA Recruiting
Haas School of Business Career Center
545 Student Services Building #1900
Berkeley, CA 94720-1900
ph:  510-643-4211
fax:  510-643-5257
email:rwong@haas.berkeley.edu


See Enron Corp. Board Meeting information below.  Deb

Deb Korkmas
EWS Legal Dept.
1400 Smith Street, Room 3819
Houston, TX  77002
Phone:  713-853-5448
Fax:  713-646-3393
----- Forwarded by Deb Korkmas/HOU/ECT on 04/09/2001 05:14 PM -----

	Rebecca Carter@ENRON
	Sent by: Kelly Johnson@ENRON
	04/09/2001 03:48 PM

		 To: John Ale/HOU/AZURIX@AZURIX, Charles Cheek/Enron@EnronXGate, Mark
Evans/Legal/LON/ECT@ECT, Drew Fossum/Enron@EnronXGate, Mark E
Haedicke/HOU/ECT@ECT, Elizabeth Labanowski/Enron@EnronXGate,
mmanly@newpower@EES, Jordan Mintz/HOU/ECT@ECT, Kristina Mordaunt/Enron
Communications@Enron Communications, Eric Newell/EWC/Enron@ENRON, Janet
Place/NPNG/Enron@ENRON, Rex Rogers/Enron@EnronXGate, Vicki Sharp/HOU/EES@EES,
Stephen Wallace/Enron@EnronXGate, Rob Walls/ENRON@enronXgate, Robert
Eickenroht/Enron@EnronXGate, Jim Armogida/Enron@EnronXGate, Clement
Abrams/Enron@EnronXGate, Melinda Winn/Enron@EnronXGate, Brenda L
Funk/Enron@EnronXGate, Gareth Bahlmann/Enron@EnronXGate
		 cc: Deb Korkmas/HOU/ECT@ECT, Diana Jebousek/HOU/AZURIX@AZURIX, Michelle
Lawless/Enron@EnronXGate, Tracy Foy/LON/ECT@ECT, Betsy
Raybon/Enron@EnronXGate, Darlene C Forsyth/Enron@EnronXGate, Robin
Jordan/Enron Communications@Enron Communications, Elaine
Esparza/EWC/Enron@ENRON, Connie Alvis/NPNG/Enron@ENRON, Sharon
Morgan/Enron@EnronXGate, Leasa Lopez/HOU/EES@EES, Lisa M
Kumbalek/Enron@EnronXGate, Debra Hicks/Enron@EnronXGate, Gina
Karathanos/Enron@EnronXGate, Candy C Willard/Enron@EnronXGate
		 Subject: Board of Directors Meeting - May 1, 2001


---------------------- Forwarded by Maria Sandoval/HOU/ECT on 11/21/2000
01:24 PM ---------------------------

11/21/2000 01:19 PM
Brenda Flores-Cuellar@ENRON
Brenda Flores-Cuellar@ENRON
Brenda Flores-Cuellar@ENRON
11/21/2000 01:19 PM
11/21/2000 01:19 PM
To: Felecia Russell/Corp/Enron@ENRON, "Teresa V. Contreras"
<tvcontreras@yahoo.com>, Melissa Jones/NA/Enron@ENRON, "Ryan M. Matthews"
<RMatthews@cima-energy.com>, alma.navarro@enron.com, Maria
Sandoval/HOU/ECT@ECT, Susan D Trevino/HOU/ECT@ECT@ENRON
cc:
Subject: The Tablecloth

Happy Thanksgiving to all.

> > > THE TABLECLOTH
> > >
> > > The brand new  pastor  and  his  wife,
> > > newly   assigned   to   their    first
> > > ministry,  to  reopen  a   church   in
> > > suburban Brooklyn,  arrived  in  early
> > > October excited about their
> > > opportunities.  When  they  saw  their
> > > church,  it was very run down and
> > > needed much work. They set a goal  to
> > > have everything done in
> > > time to have their  first  service  on
> > > Christmas Eve.
> > >
> > > They  worked  hard,  repairing   pews,
> > > plastering walls, painting,  etc.  and
> > > on Dec 18 were ahead of schedule and
> > > just  about  finished.  On  Dec  19  a
> > > terrible tempest - a driving rainstorm
> > > hit the  area  and  lasted  for  two
> > > days.
> > >
> > > On the 21st, the pastor went  over  to
> > > the church. His heart sank when he saw
> > > that the roof had  leaked,  causing  a
> > > large area of plaster about 20 feet by
> > > 8 feet to fall off the front  wall  of
> > > the sanctuary just behind the  pulpit,
> > > beginning about head high. The  pastor
> > > cleaned up the mess on the floor,  and
> > > not  knowing  what  else  to  do   but
> > > postpone the  Christmas  Eve  service,
> > > headed home. On  the  way  he  noticed
> > > that a local  business  was  having  a
> > > flea market type sale for charity so
> > > he stopped in.
> > >
> > > One of  the  items  was  a  beautiful,
> > > handmade,  ivory  colored,   crocheted
> > > tablecloth with exquisite  work,  fine
> > > colors and a Cross  embroidered  right
> > > in the center. It was just  the  right
> > > size to cover up the hole in the front
> > > wall. He bought it and headed back  to
> > > the church.
> > >
> > > By this time it had started to snow.
> > > An older woman running from the
> > > opposite direction was trying to catch
> > > the bus. She missed it. The pastor
> > > invited her to wait in the warm church
> > > for the next bus 45 minutes later.
> > >
> > > She sat in a pew and paid no attention
> > > to the pastor while he got  a  ladder,
> > > hangers,   etc.,   to   put   up   the
> > > tablecloth as  a  wall  tapestry.  The
> > > pastor  could   hardly   believe   how
> > > beautiful it looked and it covered  up
> > > the entire problem area.
> > >
> > > Then he noticed the woman walking down
> > > the center aisle. Her face was like  a
> > > sheet. "Pastor," she asked, "where did
> > > you get that tablecloth?"  The  pastor
> > > explained.  The  woman  asked  him  to
> > > check the lower right corner to see if
> > > the initials, EBG were crocheted  into
> > > it there. They were.  These  were  the
> > > initials of the  woman,  and  she  had
> > > made this tablecloth 35 years  before,
> > > in Austria.
> > >
> > > The woman could hardly believe  it  as
> > > the pastor told how he had just gotten
> > > the Tablecloth.  The  woman  explained
> > > that  before  the  war  she  and   her
> > > husband  were  well-to-do  people   in
> > > Austria. When the Nazis came, she was
> > >
> > > forced to leave. Her husband was going
> > > to follow her the next week.  She  was
> > > captured, sent to prison and never saw
> > > her husband or her home again.
> > >
> > > The pastor  wanted  to  give  her  the
> > > tablecloth; but she made the pastor
> > > keep it for  the  church.  The  pastor
> > > insisted on driving her home, that was
> > > the least he could do.  She  lived  on
> > > the other side of  Staten  Island  and
> > > was only in Brooklyn for the day for a
> > > housecleaning job.
> > >
> > > What a wonderful service they  had  on
> > > Christmas Eve. The church was
> > > almost full. The music and the  spirit
> > > were great. At the end of the service,
> > > the  pastor  and  his   wife   greeted
> > > everyone at the  door  and  many  said
> > > that they would return. One older man,
> > > whom the pastor  recognized  from  the
> > > neighborhood, continued to sit in  one
> > > of the pews and stare, and the  pastor
> > > wondered why he  wasn't  leaving.  The
> > > man  asked  him  where  he   got   the
> > > tablecloth on the front  wall  because
> > > it was identical to one that his wife
> > > had made years ago when they lived  in
> > > Austria before the war and how could
> > > there  be  two  tablecloths  so   much
> > > alike?
> > >
> > > He told the pastor how the Nazis came,
> > > how he forced his wife to flee
> > > for her safety, and he was supposed to
> > > follow her, but he  was  arrested  and
> > > put in a prison. He never saw his wife
> > > or his home again all the 35 years  in
> > > between.
> > >
> > > The pastor asked him if he would allow
> > > him to take him  for  a  little  ride.
> > > They drove to Staten Island and to the
> > > same house where the
> > > pastor had taken the woman three  days
> > > earlier. He helped the man  climb  the
> > > three flights of stairs to the woman's
> > > apartment, knocked on the door and he
> > > saw the greatest Christmas reunion he
> > > could ever imagine.
> > >
> > >
> > > True Story - submitted by  Pastor  Rob Reid
> > >
> > > Who  says  God  does   not   work   in
> > > mysterious ways. I asked the  Lord  to
> > > bless you as I prayed for  you  today.
> > > To guide you and protect you as you go
> > > along your way....
> > >
> > > His  love  is  always  with  you,  His
> > > promises are true, And  when  we  give
> > > Him all our cares you know He will see
> > > us through.
> > >
> > > So when the road you're  traveling  on
> > > seems difficult at best, Just remember
> > > I'm here praying, and God will do  the rest.
> > >
> > > Pass this on to those you want God  to
> > > bless, and don't forget to send it
> > > back to the one who asked God to bless
> > > you first.


Jeff,

My sister is a Vice President for JPMorgan Chase Bank, and she supervises construction and management of new buildings in Texas. She sent me the following note regarding Enron Energy Services' handling of their utility bills:

"On another note:  Enron handles the utility bills for JPMorganChase Bank on
a national basis, including Texas.  We are building a call center in San
Antonio, and the City of San Antonio (municipal electric) wants to charge
us a $50,000 deposit for new power because 11 out of the last 12 payments
made by Enron have been late, and late fees have been paid.  I am now going
to do an analysis on all of my regions.  I would like a local Enron
contact, if one exists.  Any ideas?"

Whom in Enron should I tell her to contact?

Thanks,

Steve Bailey
Enron Global E&P, Inc.
713-646-7865


Hi Sara,

There were two options terminated on the same date. I faxed you one of the two. The content was my concern.

Thanks for your feedback.

Enjoy your weekend!

Jorge

 -----Original Message-----
From: 	Shackleton, Sara
Sent:	Friday, November 09, 2001 11:52 AM
To:	Garcia, Jorge A.
Cc:	Adams, Laurel
Subject:	Your request for authorization to sign J.Aron & Company  Currency Option Transaction termination ("Termination")

Jorge:

Please read paragraph 2 of the Termination confirmation.

It refers to the terminated transaction having "Reference number 1980816".

The confirmation that you  sent to me (for the terminated transaction) has a Reference number 1980815.  The termination confirmation is referenced as 1980816.

You need to correct paragraph 2 of the Termination confirmation. Then the document can be executed.

Please let me know if you have further questions.

Sara Shackleton
Enron Wholesale Services
1400 Smith Street, EB3801a
Houston, TX  77002
Ph:  (713) 853-5620
Fax: (713) 646-3490


game log attached

_________________________________________________________________
Send and receive Hotmail on your mobile device: http://mobile.msn.com


In reference to this weekend's activity, I contacted Bob Superty as to their plans for nominations and explained that payment must be received today to permit any transportation. My call was returned by Suzanne Calcagno who advised they were not in a position to make payment but hoped to know more next week. I advised that we would require the prepayment and she understood and appreciated our call.

	If any questions arise this weekend, please feel free to contact me.

	My phone numbers are Home - 281-320-2563
                                              Cellular - 281-731-0692

	Regards.


Enron Replaces Andrew Fastow as CFO Amid SEC Inquiry (Update1)
Bloomberg- 10/24/01

Enron Shares Drop for Sixth Day on Stock Downgrades (Update5)
Bloomberg- 10/24/01

Enron, Fincl Chief-2:McMahon Replaces Andrew Fastow
Dow Jones News Service- 10/24/01

STOCKWATCH Enron falls 20 pct on worries deals with LJM will impact earnings
AFX News- 10/24/01
USA: Enron shares take midday battering, off over 20 pct.
Reuters English News Service- 10/24/01
USA: RESEARCH ALERT-Enron stock drops on 'sell' rating.
Reuters English News Service- 10/24/01

Analyst Reports on Enron
CNNfn: Market Coverage- 10/24/01
UK: Credit costs surge on embattled Enron - telcos ease.
Reuters English News Service- 10/24/01
Enron may need several hundred mln usd to meet shortfalls at investment units
AFX News- 10/24/01
Enron shares plummet again
Drop comes on heels of five straight losing sessions
CBS MarketWatch.com- 10/24/01

Enron's Bonds Tell the Tale: Stay Away
RealMoney.com- 10/24/01

Waiting for the Other Shoe to Drop on Enron
RealMoney.com- 10/24/01

Enron's Excuses Sound Familiar
RealMoney.com- 10/24/01

FOOL ON THE HILL
Enron's Disdain for Investors
The Motley Fool.com- 10/24/01

Bonds Of Troubled Enron Quoted In Dollars, Not Spreads
Capital Markets Report- 10/24/01

USA: Group to put corporate directors under microscope.
Reuters English News Service- 10/24/01

Enron Replaces Andrew Fastow as CFO Amid SEC Inquiry (Update1)
2001-10-24 16:43 (New York)

Enron Replaces Andrew Fastow as CFO Amid SEC Inquiry (Update1)

     (Adds statement from Enron's Kenneth Lay in second
paragraph.)

     Houston, Oct. 24 (Bloomberg) -- Enron Corp. ousted Chief
Financial Officer Andrew Fastow amid a Securities and Exchange
Commission inquiry into partnerships he ran that cost the largest
energy trader $35 million.

     Enron named Jeff McMahon, head of its industrial markets
group, as CFO because ``it became clear to me that restoring
investor confidence would require us to replace Andy,'' Chairman
and chief Executive Officer Kenneth Lay said in a statement.
Fastow will take a leave of absence.

     Shares of Enron, based in Houston, fell as much as 22 percent
today after analysts downgraded the stock. The company said on
Monday that the SEC had begun an inquiry into partnerships Fastow
ran.

     Enron fell $3.38, or 17 percent, to $16.41, the sixth
straight day of decline. Earlier, the shares touched $15.51, their
lowest since February 1995. The stock plunged 21 percent on
Monday, after Enron disclosed that the SEC had requested
information on the partnerships.

     The stock fell after Lay failed to ease concerns about the
SEC inquiry or Enron's financial reporting in a conference call
yesterday. Investors have criticized Lay for not disclosing enough
about the workings of investment vehicles such as Fastow's
partnerships. The stock has fallen 57 percent since Oct. 11,
losing more than $15 billion in market value.

Enron Shares Drop for Sixth Day on Stock Downgrades (Update5)
2001-10-24 16:43 (New York)

Enron Shares Drop for Sixth Day on Stock Downgrades (Update5)

      (Updates with closing share price and Fastow on leave of
absence in second paragraph.)

     Houston, Oct. 24 (Bloomberg) -- Shares of Enron Corp. fell 17
percent after several analysts downgraded the stock and the U.S.
Securities and Exchange Commission began an inquiry into
partnerships run by Chief Financial Officer Andrew Fastow.

     Enron fell $3.38 to $17.08, dropping for the sixth day in a
row. It was the biggest percentage decline among stocks in the
Standard & Poor's 500 Index. Earlier, the stock touched $15.51,
the lowest since February 1995. After the close of regular U.S.
trading, Enron said Fastow will take a leave of absence, and Jeff
McMahon was named chief financial officer.

     Chief Executive Officer Kenneth Lay failed to ease concerns
about the SEC inquiry or Enron's financial reporting in a
conference call yesterday. Investors have criticized Lay for not
revealing enough about the workings of investment vehicles such as
Fastow's partnerships. The stock has fallen 57 percent since Oct.
11, losing more than $15 billion in market value.

     ``Enron's conference call began as a methodical review of
current liquidity and deteriorated into an inadequate defense of
the balance sheet,'' Lehman Brothers analyst Richard Gross wrote
in a report. He left his ``strong buy'' rating unchanged.

     Other analysts lowered their ratings, including Carol Coale
at Prudential Securities who downgraded Enron to ``sell'' from
``hold.'' Anatol Feygin of J.P. Morgan dropped his rating to long-
term ``buy'' from ``buy.'' First Albany Corp.'s Robert Christensen
downgraded the stock to ``buy'' from ``strong buy.''

                        Possible Downgrade

     Moody's Investors Service last week placed all $13 billion of
the company's long-term debt securities on watch for possible
downgrade. A reduction in the rating could cut Houston-based Enron
off from the commercial paper market, raising the costs of short-
term debt.

     Enron said earlier this month that dealings with the Fastow
partnerships contributed to $1.01 billion in third-quarter losses.
Enron has at least 18 such partnerships, which were created to
move debt off its books and lower its tax liabilities as well as
dispose of assets.

     An investor has sued Enron saying that Fastow's leadership of
the partnerships, as well as membership on their boards by other
Enron executives, is a conflict of interest. The company has $3.3
billion in potential liabilities attached to such investment
vehicles, the Wall Street Journal reported today.

     ``I don't know that we were aware of everything going on with
Enron,'' said Jim Walline, manager of the Lutheran Brotherhood
Fund, which owned 93,060 shares on Sept. 1. ``We had a lot of
confidence and clearly that has been busted a little.''

Enron, Fincl Chief-2:McMahon Replaces Andrew Fastow

10/24/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
HOUSTON -(Dow Jones)- Enron Corp. (ENE) named Jeff McMahon chief financial officer, effective immediately.
In a press release Wednesday, the energy-trading company said McMahon, 40, will replace Andrew Fastow, who will be on a leave of absence.
Enron said McMahon had been serving as chairman and chief executive of its Industrial Markets group.
Company Web site: http://www.enron.com
-Beth M. Mantz; Dow Jones Newswires; 201-938-5400

STOCKWATCH Enron falls 20 pct on worries deals with LJM will impact earnings

10/24/2001
AFX News
(c) 2001 by AFP-Extel News Ltd
NEW YORK (AFX) - Shares of Enron Corp were sharply lower in afternoon trade, falling over 20 pct, as investors sold the stock a third day running on concerns that financial transactions made with related party LJM could negatively impact future earnings, dealers said.
At 2.15 pm, Enron was down 4.06 usd, or 20.52 pct, at 15.73.
The DJIA was up 9.76 points at 9,349.77, and the S&P 500 composite index was up 0.92 at 1,085.70, while the Nasdaq composite fell 22.42 to 1,726.96.
The company confirmed yesterday that the Securities and Exchange Commission requested the company to provide information on certain related-party transactions.
Many analysts responded by cutting the shares ratings on concerns that dealings with the related LJM partnership could affect future earnings, after two class actions were filed against the company yesterday.
The two lawsuits claim that Enron issued statements which failed to disclose that the company was experiencing a declining demand for bandwidth and that its efforts to create a trading market for bandwidth failed because many market participants were not credit worthy.
The company's operating results were also "materially overstated as result of the company failure to timely write down the value of its investments with certain limited partnerships" managed by the company's CFO.
The suit additionally alleged that Enron failed to write down impaired assets on a timely basis in accordance with GAAP (generally accepted accounting principles).
In its third-quarter results last week, Enron announced a charge of 1.01 bln usd, or 1.11 usd per share, and an incremental 1.2 bln usd reduction in stockholders' equity, related to the unwinding of investments with the LJM partnerships.
JP Morgan analyst Anatol Feygin said he has downgraded the stock to a 'long-term buy' from a 'buy' in "the wake of lingering concerns regarding the company's credit situation and management disclosure of liabilities stemming from off-balance sheet financing vehicles."
The stock has been removed from JP Morgan's "focus list".
Feygin also said that "management's conference call yesterday morning was a missed opportunity to disclose the necessary information to assuage investor concerns."
Goldman Sachs analyst, David Fleischer also agreed that Enron's disclosure was "modest" and "management did not resolve concerns."
However, credit concerns and questions about potential liabilities are "very much exaggerated," he said
"The real issue will turn out to be huge debt that Enron was placing in these entities."
The shares' value have fallen by more than 40 pct since Enron reported charges related to investments with LJM last week, but Fleischer said he sees no recovery until management fully answers investor questions and restores credibility, an outcome he expects in future weeks.
blms/gc For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

USA: Enron shares take midday battering, off over 20 pct.
By Janet McGurty

10/24/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Oct 24 (Reuters) - Shares of Enron Corp. plunged further in midday trade on Wednesday, hugging the top spot on the list of biggest losers on the New York Stock Exchange, on concerns whether financial deals made by North America's largest buyer and seller of electricity and natural gas could negatively affect earnings going ahead.
Shares were trading down 20.87 percent, or $4.13, to $15.66 in midday trade, capping over a 75 percent decline this year in share price. As of Tuesday, the company has lost more than $10 billion in value in the past week.
Some analysts cut ratings or expressed concerns about the former high flyer's lack of forthrightness in discussing business deals, unimpressed by management's attempts on Tuesday to pacify investor concerns about transactions involving Enron, its chief financial officer, and two limited partnerships - all of which are being looked into by the Securities and Exchange Commission (SEC).
Enron on Tuesday rejected suggestions the transactions were a conflict of interest, saying the deals were disclosed in SEC filings and approved by its board and internal and external auditors.
Enron, which reported a loss and a $1.01 billion in charges for bad investments in the third-quarter, failed to mention a $1.2 billion reduction in shareholder value, and was less than forthcoming during a call with analysts and investors the next day.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
USA: RESEARCH ALERT-Enron stock drops on 'sell' rating.

10/24/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Oct 24 (Reuters) - Enron Corp.'s stock slumped further on Wednesday after Prudential Securities cut its rating on the energy trader to "sell" on concern management is not being forthright about the onetime high flyer.
After an hour of trading, Enron stock was the biggest percentage loser on the New York Stock Exchange. The shares plunged $3.99, or 20.2 percent, to $15.80 - the lowest price paid for the stock since August 1995.
Enron has tumbled since last week it announced it's first quarterly loss in more than four years and said it would take $1.01 billion in charges on ill-fated investments. The stock closed at $33.84 on Oct. 16, when its results were announced.
Prudential analyst Carol Coale said the rating cut from "hold" was not made "because of things that we know but because of things that we potentially don't know about the company."

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

Business
Analyst Reports on Enron
Christine Romans, Barry Hyman

10/24/2001
CNNfn: Market Coverage - Morning
(c) Copyright Federal Document Clearing House. All Rights Reserved.
CHRISTINE ROMANS, CNNfn ANCHOR, MARKET CALL: Now, joining us by phone to talk about his move on Enron (URL: http://.www.enron.com/) is Anatol Feygin, energy analyst at JP Morgan. Thank you for joining us.
ANATOL FEYGIN, JP MORGAN: Thanks for having me.
ROMANS: OK. Enron, last week, these shares lost some 28 or 29 percent of their value, continued to fall yesterday, and Monday. What`s going on here why you`re downgrade - how concerned are you about in visibility management in the issues that we`re talking about here?
FEYGIN: Well, extremely concerned and until Thursday of last week, I felt that a lot the information coming out was old news and was not critical to the fundamentals of the company. On Friday of last week the credit market started to really get jittery and spreads on Enron`s credit started to blow out and that could threaten the fundamental business. Yesterday management had a opportunity to set the record straight on a conference call. I think that was a big opportunity missed. And until management comes out and reassures the credit markets, primarily, and then the equities markets, there is risk to the fundamental business which I still consider to be the premiere energy marketing and trading franchise that`s functioning well today, but it at risk because of credit issues.
BARRY HYMAN, EHRENKRANTZ KING NUSSBAUM: Anatol, what exactly are these off balance sheets financing vehicle, that is of concern here, that management been reluctant to talk about?
FEYGIN: There are two transaction still left. One called Marlin and one called White Wing or Osprey. In Marlin, it`s basically a 1/3 ownership of a U.K water utility that Enron acquired in the October of `98. Part of that taken public and `99. That was bought back in by Enron this year. And problem is that entity, the assets of Zurichs, which has this Wessex water business in the U.K., are not enough to payoff the creditors in Marlin. So, Enron is on the hook for a portion of the equity that has back stopped this investment by Marlin. And we estimate that to be in the hundreds of millions not in the billion dollar range, which I think the market fears.
White Wing is a very similar structure, less transparent because that`s a collection of assets. Things like, roughly half of Enron`s investment in Brazil, its European power plants and et cetera and it`s difficult to reconcile of what value of those asset is. And there is a possibly that Enron have issue up to 2.4 billion in equity to make whole the investors in White Wing.
ROMANS: OK, Anatol Feygin, JP Morgan, thank you very much. Lots of other analysts saying that the conference call with the company didn`t really clear up some of the questions they had.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

UK: Credit costs surge on embattled Enron - telcos ease.
By Tom Burroughes

10/24/2001
Reuters English News Service
(C) Reuters Limited 2001.
LONDON, Oct 24 (Reuters) - The cost of protection surged on the debt of U.S. energy titan Enron Corp on reports of potential shortfalls in some of its investment vehicles, days after it said U.S. regulators were looking at some of its deals.
"An investigation hanging over you can never be a good thing. The market is very angry with them (Enron) at the moment," a European bank dealer said.
Adding to the pressure, the online edition of the Wall Street Journal on Wednesday cited Enron Treasurer Ben Glisan outlining contingency plans for repaying about $3.3 billion in guaranteed notes falling due during the next 20 months.
In the credit derivatives market, Enron five-year default swaps were last seen trading on a bid/offer spread of 500/600 basis points (bps), up about 200 bps from late last week, a dealer for a European bank said.
Default swaps are insurance-type tools giving investors the ability to hedge or gain the risk of an issuer defaulting on a loan or bond. The protection buyer pays the seller an annual premium, measured in a basis points.
The dealer added that the cost of five-year protection on the debt of Enron traded as low as 150 bps back in August.
On Monday Enron said it was cooperating with the U.S. Securities Exchange Commission, which was looking into some of its deals. The SEC and Enron have declined to give details, although the Wall Street Journal said the transactions raised "conflict-of-interest" issues.
Investor confidence in Enron has been hit by recent reports about transactions and two limited partnerships that were run until recently by Enron's chief financial officer, Andrew Fastow.
The company has been under pressure over the past year. Last week it reported its first quarterly loss in more than four years.
TELECOMS COME DOWN
In contrast, five-year credit protection slipped on European telecoms, which benefitted from stronger equity prices and some selling pressure on default swaps connected to portfolio deals, traders said.
Telecom Italia was cited by traders at 180/220 bps, down about 20 bps from Monday. Five-year protection on Italian telecoms giant Olivetti was shown at 300/400 bps, about 50 bps down on a week ago, another European bank trader said.
British Telecom was quoted five basis points tighter from Tuesday at 100/110 bps; France Telecom was unchanged from Tuesday at 180/195 bps, and Deutsche Telecom was down about 10 bps at 140/150 bps, traders added. Vodafone was quoted two basis points lower from late Tuesday at 83/93 bps, with Telefonica put at 100/110 bps in five-year default swaps, about five basis points lower.
Stronger equity prices helped alleviate some concerns about the telecom sector's financial health, although problems remain for many firms labouring under heavy debt burdens, a dealer for a European bank said.
He added that some default swap selling pressure was coming from players arranging synthetic portfolio products such as collateralised debt obligations (CDOs) before the end of the year. CDOs are portfolios of bonds and other debt obligations. The arranger issues bonds, secured by the underlying assets to fund the deal. In a synthetic CDO, the arranger sells default swaps on groups of debt in one hit to mimic the asset pool.
Elsewhere, dealers saw small declines in protection costs on the debt of carmakers, with U.S.-German giant DaimlerChrysler trading several times.
A U.S. bank dealer nonethless saw it little changed on the day in five-year default swaps at 190/200 bps.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

Enron may need several hundred mln usd to meet shortfalls at investment units

10/24/2001
AFX News
(c) 2001 by AFP-Extel News Ltd
LONDON (AFX) - Enron Corp might have to come up with several hundred million dollars or more in the next 20 months to cover potential shortfalls in investment vehicles it created, the Wall Street Journal reported, citing an interview with Enron Treasurer Ben Glisan.
Covering such shortfalls could involve issuing additional Enron shares, diluting the position of current shareholders, the paper said.
However, Glisan said the company believes it can repay about 3.3 bln usd in notes that were sold by those investment vehicles without having to resort to issuing more stock.
The notes were sold to investors during recent years by several entities -- known as the Marlin Water Trust II, the Marlin Water Capital Corp II, the Osprey Trust and Osprey I Inc. The notes are coming due during the next 20 months.
Glisan said assets from the entities could be sold to pay off some of the notes. Also, Enron is selling other assets. Proceeds from those transactions also could go toward repaying the notes, which ultimately are guaranteed by Enron.
He said it appears that asset sales will raise at least 2.2 bln usd by the end of next year. This amount includes cash proceeds of 1.55 bln usd from the previously announced sale of Enron's Portland General Electric utility unit.
"There are a number of other assets we believe will raise sufficient proceeds" to repay the notes, Glisan was quoted as saying. "But if we are wrong, we will issue equity."
Glisan said a worst-case scenario would involve issuing as much as 1 bln usd in stock. Enron said it has about 850 mln shares outstanding.
Making up any shortfall with equity has become more expensive because of the drop in Enron's share price. During the past week, shares of the energy-trading giant have dropped more than 40 pct.
shw/jlw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron shares plummet again
Drop comes on heels of five straight losing sessions
CBS MarketWatch.com
Lisa Sanders
10/24/01
NEW YORK (CBS.MW) -- Enron shares plunged Wednesday, one day after the energy merchant attempted to restore investor confidence following a series of negative developments at the company.
Shares of Enron fell to an intraday low of $15.51, eclipsing a low of $15.81 set in March and August of 1995. Enron stock was last at $15.69, down $4.10, or 20.7 percent. Volume was extremely heavy at 49 million shares.
Several Wall Street firms cut their ratings on Enron shares Wednesday, including Prudential Securities. The firm advised clients to sell the stock, a rare recommendation. Prudential had rated the company's shares a "hold."
"After much consideration, we are lowering our rating ... not because of things we know but because of things we potentially don't know about the company," wrote Prudential analyst Carol Coale in a note.
Enron has been under fire since last week as questions have surfaced about its accounting practices, especially in regard to two limited partnerships created by the company in 1999 and since dissolved.
On Monday, Enron announced that related-party transactions within the limited partnerships are under review by the Securities and Exchange Commission. Several shareholder lawsuits have been filed as a result.
"Management used the SEC inquiry as a shield to avoid elaboration on the issue at hand, the LJM transactions," Coale said in reference to Tuesday's conference call with the investment community.
J.P. Morgan's Anatol Feygin downgraded his rating to "long-term buy" from "buy," saying an upgrade is precluded until the company provides more information about its liabilities.
"Management's conference call yesterday was a missed opportunity to disclose the necessary information to assuage investor concerns," Feygin wrote.
The Wall Street Journal reported Tuesday that Enron might have to issue stock to cover notes coming due on various investment vehicles created by the company. Currently, Enron expects to use proceeds from asset sales to meet the obligations.
Merrill Lynch analyst Donato Eassey noted Wednesday that if Enron isn't able to maintain its investment-grade ratings -- the company's debt is on watch for a potential downgrade by Moody's Investors Service -- issuing new equity would be one course of action, though with the potential to reduce earnings-per-share. Enron on Tuesday held with its forecast of $1.80 a share for 2001.
"New equity would potentially dilute our EPS estimates 5 to 10 percent," Eassey wrote in a follow-up to the conference call.
But Eassey believes that cash flow from operations -- expected to exceed $3 billion in 2002 -- along with asset sales, should be enough to "insulate" the company's credit ratings.
Lisa Sanders is a Dallas-based reporter for CBS.MarketWatch.com.

Enron's Bonds Tell the Tale: Stay Away
By Herb Greenberg <<mailto:hgreenberg@thestreet.com>>
Senior Columnist
RealMoney.com
10/24/2001 03:40 PM EDT
URL: <<http://www.thestreet.com/p/rmoney/herbonthestreet-rm/10002953.html>>

Updated from 2:47 p.m. EDT
If you ever have questions about whether a battered stock is cheap, check out its bonds. Bond analysts almost always know best because they're looking at the guts of a company -- the ability of a company to service its debt. If it can't service the debt, stockholders are at a greater risk of getting pummeled because debtholders always come before stockholders when it comes to getting paid.
Which brings us to Enron (ENE:NYSE - news - commentary) . The only reason to mention it is that some analysts are really reiterating buys based on its low multiple. (Low, fellas, is relative to reality!) Cramer today talks about his hunch that the stock is vulnerable because, as he says, "accounting irregularities = sell."
Good point. Now let's back that up with the bond market's view, which can be seen in the so-called "swap spread," which is bond-traderspeak for the spread between the LIBOR interest rate and the interest rate for comparable paper, or swaps. It's a benchmark bond traders use to determine risk. Tuesday, that spread on Enron's five-year notes was 650 basis points, or about 6.5 percentage points. Today, it's 1,000 points, or 10 percentage points. As one bond trader told me today, anybody would be crazy to pay that much. Another bond trader told another friend the same thing.
Why? As of June 30, Enron had cash of just $847 million and debt of nearly $13 billion.
And this observation: Those five-year notes currently yield more than 11%. That's a junk-bond yield for what is still rated as an investment-grade debt; anything more than 9% is considered ultra-high risk. So while you can make 11%, that's still not enough "where the accounting is questionable," one bond trader says. "You're not being adequately compensated for the fact that the company could default. You have to worry about your recovery value."
Not the kind of risk/reward an investor wants to see when the company in question still has a market cap of about $12.5 billion with a capital B.
Speaking of bonds and stocks: Even with its stock at about $1.16, Global Crossing (GX:NYSE - news - commentary) still has a market cap that exceeds $1 billion. But while its stock has rallied, its bank debt has stayed relatively flat at around 50 cents to 53 cents on the dollar. Similar stories can be told for XO Communications (XOXO:Nasdaq - news - commentary) , with a market cap of about $473 million and bank debt trading at around 52 cents on the dollar; Level 3 Communications (LVLT:Nasdaq - news - commentary) , with a market cap of $1.2 billion and bank debt trading at 66 cents; and McLeodUSA (MCLD:Nasdaq - news - commentary) , with a market cap of $462 million and debt that trades at 53 cents.
Where are opportunistic bond investors, who should be hopping on such cheap debt -- especially bank debt, which is at the top of the getting-paid-back food chain? They're nowhere to be seen, for the same reasons they're not jumping to buy Enron's bonds: Too much risk, because when companies like those go bad, their assets trade for less than the bonds are currently trading. (Try telling that to "hope-springs-eternal" stock investors!)
Providian pratfalls: Turns out an item here back in May was more fortuitous than it appeared. The item noted how institutional bond investors, who often pony up a slight premium to LIBOR to buy so-called credit default-protection insurance, couldn't find any at any price for Providian (PVN:NYSE - news - commentary) . The insurance is sold by investment banks such as J.P. Morgan Chase and typically involves a complex hedge of stocks and options that requires an investor to take the other side of the trade. If nobody'll take the other side of the trade -- or will charge a ridiculously high price to do so -- investors should beware. Which brings us back to Enron: It is possible to buy credit insurance, but at more than a whopping 1,000 basis points over LIBOR. Hardly a vote of confidence.

Waiting for the Other Shoe to Drop on Enron
By James J. Cramer <<mailto:jjcletters@thestreet.com>>

RealMoney.com
10/24/2001 10:33 AM EDT
URL: <<http://www.thestreet.com/p/rmoney/jamesjcramer/10002911.html>>

Accounting irregularities = sell. Those three words and an equals sign have always served me well. They remain squarely posted on the base of my quote machine, always in view. They have never let me down. When I have deviated from them I have had to pay severely, as I did when I ignored the accounting irregularities in Cendant (CD:NYSE - news - commentary) initially or when, because of my four-month holding period, I couldn't sell Qwest (Q:NYSE - news - commentary) .
Which is why I came in with guns blazing on this Enron (ENE:NYSE - news - commentary) , telling you to sell it. The stock has now lost half its value and all I can say is, I still can't see why you have to tempt fate and own this one. The notion that the businesses are fundamentally sound, that it has a great core business, is just hokum. Who the heck knows? Who has any idea of what this company can really earn? Who knows what it did earn?
All I know is that soon the drumbeat will be on from the Democrats that the Justice Department is playing political favorites by not pursuing Enron (noted Republican-giving company) for alleged fraud.
When that happens, when that shoe drops, wherever Enron is, then maybe it is worth some scrutiny.
But I bet I still won't like it.

Enron's Excuses Sound Familiar
By James J. Cramer <<mailto:jjcletters@thestreet.com>>

RealMoney.com
10/23/2001 01:43 PM EDT
URL: <<http://www.thestreet.com/p/rmoney/jamesjcramer/10002874.html>>
If you disclose something that is wrong, and you get accountants to check off that wrong deed, and outside lawyers to check off on that wrong deed, is it therefore right?
That's what Enron (ENE:NYSE - news - commentary) is asking us to believe. By telling us that its ridiculous dealings with the chief financial officer and his private partnership were all sanctioned by outside professionals, they have simply compounded the error. Next they will tell us that Janus, the largest shareholder, knew and wanted those partnerships to generate upside surprises!
What they are doing at Enron is, well, positively -- here we go -- '80s! In the '80s, you had all of these savings-and-loan jokers pleading that the outside accountants and lawyers checked off on massive chicanery. Somehow it was supposed to make the chicanery kosher.
Nope.
What it ended up doing was getting the lawyers and accountants in trouble. The government ended up going after them, too, for abetting the travesties.
Enron didn't use taxpayers' money, so it is arguably not as clear-cut. But the more we probe this Enron, the more we check it out, the more we know it really stinks and that Jeffrey Skilling didn't leave because the stock got hammered, or some other authentic Wall Street gibberish, but because of this nasty, unseemly situation.
We don't want an SEC probe here. We want a Justice Department probe. This isn't about unclear disclosure. This could end up being about fraud.
In the meantime, I wouldn't touch this stock with a 10-foot pole. This one's gonna get real nasty before it gets nice. If it ever does.

FOOL ON THE HILL
Enron's Disdain for Investors
The Motley Fool.com
10/24/01
While recent coverage of Enron centers on the CFO's past partnerships, a smaller -- and more obvious -- omission is what should really make individual investors turn the heat up on this company. Not only does it not release its cash flow statement during each quarter's conference call and press release, something we don't like but is prevalent, it also doesn't release its balance sheet. The company must think we're idiots. They're wrong.
By Tom Jacobs <<http://www.fool.com/About/staff/tomj.htm>> (TMF Tom9)
October 24, 2001
Enron's (NYSE: ENE) <<http://quote.fool.com/uberdata.asp?symbols=ENE>> troubles just don't stop. On Monday, the company announced <<http://www.enron.com/corp/pressroom/releases/2001/ene/70-LJMfinalltr.html>> that the Securities and Exchange Commission (SEC) had requested information on "certain related party transactions <<http://www.fool.com/specials/2001/sp010802e.htm>>." That was a veiled reference to partnerships until recently organized and directed by Enron CFO Andrew Fastow. There has been a flurry -- a hailstorm -- of financial media attention to this. There are only three possibilities, and none is palatable:
The company's board allowed this deal in order to -- using corporate speak -- "incentivize" the CFO, and it was not legal;
It was legal, but unethical; or
Enron has been less than forthcoming, perpetuating a pattern of disdain for investors and keeping them in the dark.
The accounting machinations involve mind-numbing terms and obfuscation, making a simple explanation of what is being alleged above my capacity to provide. The New York Times' Floyd Norris calls them "some of the most opaque transactions with insiders ever seen." That leads me to one conclusion when I think about burying myself with the company's SEC filings, accounting texts, my high-speed Web connection, and some beer: that of Shakespeare's King Lear -- "that way madness lies."
On the one hand, I know that pulling all this apart might teach me useful things about accounting, reading financial statements, and finding trouble. (To read what this is all about, check the "Certain Transactions" section of the company's latest proxy statement <<http://quote.fool.com/sec/sec.asp?date=03/27/2001&currTicker=ene&symbols=ene&guid=%7B5D0F1D1D%2D5DB7%2D4F4E%2D9BD9%2DFA154603F662%7D>>.) I fully intend to do that -- someday. For now, though, all I need to know about Enron as an investment is that the company has not made these issues transparent.
What's worse, though, is that Enron has made it a habit to keep investors in the dark, and not only about the potentially troublesome CFO issue. The company goes out of its way to hide its true financials. That really cheeses me off.
The quarterly call and press release parade
Most companies hold quarterly conference calls and simultaneously spew press releases (for which the companies pay good money to Business Wire and PR Newswire for dissemination) that allegedly state their latest quarter's numbers and talk about the business. Sometimes, when they have cleaned off their glasses enough for visibility and run it by their lawyers, execs will even venture to speak about the business climate ahead. At least thanks to Regulation Fair Disclosure <<http://www.fool.com/Specials/2001/sp010418.htm>> -- "Reg. FD" -- analysts don't get a secret call with the "real" numbers at another time than the public. We like that.
Perhaps in a world of pro forma numbers <<http://aol.fool.com/portfolios/rulemaker/2001/rulemaker010815.htm>> and EBITDA <<http://aol.fool.com/portfolios/rulemaker/2001/rulemaker010906.htm>> -- both of which Phil Weiss has skewered appropriately in past columns -- the calls and press releases could never be expected to be that substantive. That makes individual investors increasingly correct to greet such information with cries of "bullfeathers!" It only takes a few reviews of earnings press releases to make anyone a skeptic. The PR department carefully dresses them with spin, leaving the details for the fine print. Headline: "Earnings up!" (Revenues down 40%.) Headline: "Revenues up!" (Earnings down 40%.) The skullduggery of spin and pro forma mangles earnings to meaninglessness <<http://www.fool.com/news/foth/2001/foth010504.htm>>.
At least the conference calls themselves allow you a sense of managers as people and potentially some information about the business, but the financials are not helpful. Why?
Hiding the cash flow statement
Because almost every company gives up only part of the financial picture at call and press release time. If the income statement is increasingly unhelpful, at least the balance sheet tells you whether the company has increased or decreased cash, right? Well, not quite.
You really need the cash flow statement -- the best measure of how the company's business actually performs. Even then, you may need to make further adjustments <<http://aol.fool.com/portfolios/rulemaker/2001/rulemaker010906.htm>>. Yet the overwhelming majority of companies do not provide the cash flow statement at the call and press release time.
Check the companies you own. If they don't release cash flow statements with their earnings -- or, at least, prior to SEC filings, you should write and otherwise hound investor relations to push management to do so. Encourage your fellow investors to do so too, and tell the company that The Motley Fool sent ya. They will maintain that the numbers aren't ready at earnings time. Tell them to wait until they are. The numbers are certainly ready in time for the SEC deadline, and wouldn't we be happy to wait a week or two for the complete picture? Or, hey, why not do two releases -- one when the earnings are ready and another for the cash flow?
If not releasing the cash flow statement were Enron's only sin, it wouldn't be that big a deal. It has plenty of company. But this pre-Halloween < <http://www.fool.com/specials/2001/sp011024.htm>> scary tale gets worse. Unfortunately for Enron investors, the company does the hide-the-cash-flow-statement gig one better.
Hiding the balance sheet
For at least the last three quarters that I checked, Enron hides the balance sheet until SEC filing time. That's right: Not just the cash flow statement, but the balance sheet too. All they release is the income statement -- though, in truth, it does provide pages of income statement information for its many businesses. But why fail to release the balance sheet?
The only conclusion can be that management doesn't want to show its cash balances until it can slip them into SEC filings it thinks people won't bother to read. When questioners on a conference call earlier this year urged former Enron CEO Jeffrey Skilling to provide a balance sheet at earnings release, Skilling reportedly "called the questioner a common vulgarity that surprised many listeners."
Off his meds that day? Or a symptom of the company's attitude towards shareholders? Looks like the latter: Skilling's gone, but the practice hasn't changed.
It's about management
We don't depend on management for the numbers during the quarterly public calls and releases. A publicly traded company's financials will appear a few weeks later through its SEC filings available through our Quotes & Data page <<http://quote.fool.com/>>. No investor should be buying -- or holding -- stock in companies if they don't read their filings carefully. It's hard enough to discern what's going on in a business without doing so, and even in those filings -- such as with options grants to management -- the real meat is buried in footnotes. Not reading 10-Qs and 10-Ks is like getting married without dating, or buying a car by paint color only.
What Enron's failure to release this information says is that its management and corporate governance are sub-par. It says management is willing to hold these events, but it'll be darned if it'll present anything meaningful or make it easy for individual investors to find out anything other than management's spin. In Enron's case, its former CEO heaped abuse on someone who dared ask for a change. Does that make Enron's earnings releases circuses? Draw your own conclusion.
Is management listening? Perhaps. It hastily pulled together a conference call yesterday. TMF community member emschulze took notes <<http://boards.fool.com/Message.asp?mid=15974151>>:
"On call, analyst asks why no balance sheet with recent earnings release given company's previous claim that it will work to offer investors greater transparency in measuring its performance... response was that balance sheet doesn't normally come together until the week after its earnings release and that it will be included in 10-Q to be filed by Nov. 14... CEO indicates that it will do a better job of improving timing of release of earnings and balance sheet in future, implying that investors won't have to wait all the way until 10-Q filing deadlines to see balance sheet."
That's a good sign. But until the company makes an unambiguous commitment to provide the balance sheet at earnings time, Enron should be in the doghouse.
Good corporate governance means companies release all their quarterly financial statements and discuss them at the same time because today's income statements and pro forma numbers are borderline useless. If it means a delay or a second release to get the numbers together, what's the problem? Shareholders should demand no less. When a company trumpets an income statement, as Enron has, no one should be surprised when smoke appears. And perhaps much more.
Tom Jacobs (TMF Tom9) would like to improve his own cash flow statement. At press time, he owned no shares of Enron. To see his stock holdings, view his profile <<http://boards.fool.com/Profile.asp?uid=633241>>, and check out The Motley Fool's disclosure policy. <<http://www.fool.com/help/disclosure.htm>>

Bonds Of Troubled Enron Quoted In Dollars, Not Spreads
By Michael C. Barr

10/24/2001
Capital Markets Report
(Copyright (c) 2001, Dow Jones & Company, Inc.)
Of DOWJONES NEWSWIRES

NEW YORK -(Dow Jones)- The bonds of embattled Enron Corp. (ENE) are trading on a dollar basis and not on a yield margin or spread to Treasurys - another sign of increasing investor skittishness about the once high flying energy trader.
The bonds, which carry investment-grade ratings, "started trading with a dollar price two days ago," said Gary Brown, managing director and head of corporate trading, Wachovia Securities, Charlotte, N.C.
Bonds are being offered at dollar prices in the high 80's to low 90's, say traders.
Investment grade bonds typically trade on a spread margin over comparable Treasury issues. "Credit bonds," which have questions about their quality, are traded in dollar quotes, said one analyst.
Moody's Investors Service rates the company's senior unsecured debt Baa1, but recently placed the debt on review for downgrade. Both Standard & Poor's Corp. and Fitch rate the debt triple-B-plus.
But the company "may be going into the double-B (non-investment grade) sector, " said Harold Rivkin, principal of H. Rivkin & Co., a distressed debt brokerage firm, Princeton, N.J.
"I am starting to get inquiry from investment grade holders about the market for Enron bonds," Rivkin said, noting that some high-grade portfolios can't have paper below investment-grade.
Houston-based Enron, the nation's biggest energy trader, recently announced a large third-quarter loss and an investigation by the Securities and Exchange Commission into a partnership arrangement that involves the company's chief financial officer, Andrew S. Fastow.
Enron has approached Citicorp (C) about obtaining a possible $750 million loan, according to a source close to the bank. But the source indicated Tuesday that nothing has proceeded past the preliminary inquiry.
The company's stock, while once a favorite of the investment community, has taken a pounding. It traded early this year at more than $80 a share. Late Wednesday, it was at $15.70 a share.
And, in a reflection of current investor sentiment, for the second time this week analyst Carol Coale of Prudential Securities downgraded the company to a sell recommendation from a hold. Her concern is "not because of the things we know but because of the things that we potentially don't know."

-By Michael C. Barr, Dow Jones Newswires; 201-938-2008; michael.barr@dowjones.com
(David Feldheim contributed to this article.)

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

USA: Group to put corporate directors under microscope.
By Kevin Drawbaugh

10/24/2001
Reuters English News Service
(C) Reuters Limited 2001.
WASHINGTON, Oct 24 (Reuters) - Directors of corporations will be graded according to their performance by a service expected to be launched soon by business research group The Corporate Library, the group's cofounder said on Wednesday.
In a move that could cause some sweaty palms in boardrooms across the country, long-time shareholder activist Nell Minow said directors will be awarded grades of A, B, C and lower, based on meeting attendance and other benchmarks.
"It's always been my dream to rate individual directors like bonds. Directors have not had the scrutiny they deserve," said Minow, who said the service will be called Board Analyst.
Planned as an added feature on an existing Web site, thecorporatelibrary.com, Board Analyst is still in testing stages but is expected to launch next year, she said.
Only directors of U.S. companies will initially be evaluated. Non-U.S. directors may be added later.
Minow and partner Robert Monks have written several books on corporate governance and shareholder rights. They formerly managed the Washington-based shareholder activist Lens Fund, which they sold last year to British fund management group Hermes.
Their latest venture may find a receptive audience on the institutional buy-side, said industry spokespersons.
"There's been growing interest within our membership in board membership, in general, and individual directors, in particular. I definitely think there would be interest in more information on individual directors," said Ann Yerger, spokeswoman for the Council of Institutional Investors, which represents America's large pension funds.
The corporate governance movement since its beginnings in the 1970s has focused on making directors more accountable and responsible. Many companies have responded by requiring more outside directors and more meaningful stock ownership among directors. But examples of lax board oversight still abound.
One example would be Enron Corp. , whose stock has plunged in recent days since the company said the Securities and Exchange Commission was investigating transactions involving certain outside partnerships and the company's chief financial officer, Minow said.
"Where was the Enron board in all of this?" she asked. "Boards and outside consultants are supposed to vet ideas for partnerships like these. That apparently didn't happen here."
Taking the corporate governance argument a step further, Minow argued that effective board membership is more than a theoretical question. It should be an issue for investors to evaluate when they consider buying stock in a company.
"This isn't just a corporate governance thing. This is part of investment analysis," she said.
Institutional investors routinely examine corporate management when analyzing stocks. Whether they will begin to examine directors, as well, remained an open question.
"Nell and Bob Monks have been shareholder activists for a long time and have moved corporate governance in a positive direction," said Peter Gleason, vice president of research and development at the National Association of Corporate Directors, which represents more than 3,000 corporate directors.
Surveys by the association recently showed that corporate directors rank self-evaluation high on their list of concerns. "More and more directors are saying this is something we should be doing," Gleason said.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.