Message-ID: <1341787.1075855880140.JavaMail.evans@thyme> Date: Thu, 9 Nov 2000 07:27:00 -0800 (PST) From: tim.poullain-patterson@enron.com To: david.port@enron.com Subject: Re: Authorised Traders : Montreal & Chicago Cc: andrew.cornfield@enron.com, bjorn.hagelmann@enron.com, sally.beck@enron.com, ted.murphy@enron.com, shona.wilson@enron.com, mike.jordan@enron.com, robert.soeldner@enron.com, lloyd.fleming@enron.com, marcelo.parra@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: andrew.cornfield@enron.com, bjorn.hagelmann@enron.com, sally.beck@enron.com, ted.murphy@enron.com, shona.wilson@enron.com, mike.jordan@enron.com, robert.soeldner@enron.com, lloyd.fleming@enron.com, marcelo.parra@enron.com X-From: Tim Poullain-Patterson X-To: David Port X-cc: Andrew Cornfield, Bjorn Hagelmann, Sally Beck, Ted Murphy, Shona Wilson, Mike Jordan, Robert Soeldner, Lloyd Fleming, Marcelo Parra X-bcc: X-Folder: \Sally_Beck_Dec2000\Notes Folders\Mg X-Origin: Beck-S X-FileName: sbeck.nsf David, The business model you outline is actually the one we are implementing with one big difference - the Head Trader in London (Sam Hainsworth) calls the sales person each day to tell him what to do before they speak to any customers. As you point out, these conversations are recorded so if the sales person does anything other than what is agreed at the outset of each day, then they will be red carded. I refer you back to the memo supplementing the updated list of authorised traders that I sent out and which Marcelo and Sam have discussed with Commercial staff in both these offices (Shona and Bjorn have this memo), as well as Marcelo's operational plan. Clarification point - when Andy says "internally" he means that Commercial (Rob Soeldner) is taking a lead in resolving Joe Robertson's concerns. Regards, Tim From: David Port @ ENRON 09/11/2000 13:52 To: Andrew Cornfield/LON/ECT@ECT cc: Bjorn Hagelmann/HOU/ECT@ECT, Sally Beck/HOU/ECT@ECT, Ted Murphy/HOU/ECT@ECT, Shona Wilson/NA/Enron@Enron, Mike Jordan/LON/ECT@ECT, Robert Soeldner/LON/ECT@ECT, Tim Poullain-Patterson/LON/ECT@ECT, Lloyd Fleming/LON/ECT@ECT Subject: Re: Authorised Traders : Montreal & Chicago How about this for a business model for an origination and trading outfit. salesperson talks to customer customer agrees to trade salesperson phones trading desk and gets price (trading desk is London or NY - NB: all lines are taped) salesperson tell customer customers says ok salesperson says "done" to customer and trading desk trading desk books deal, middle and back office processes kicks in, sends out and chases up confirm etc accounting process identifies value added by salesperson and gives them a piece of the price as a credit no bank accounts or signing authority in sales office no accountants, middle office people or other similar humans in the sales office, just sales people all hedging and risk taking resident in trading books in NY or London Can we not make this work ? DP To: Bjorn Hagelmann/HOU/ECT@ECT cc: Sally Beck/HOU/ECT@ECT, Ted Murphy/HOU/ECT@ECT, Shona Wilson/NA/Enron@Enron, David Port/Market Risk/Corp/Enron@ENRON, Mike Jordan/LON/ECT@ECT, Robert Soeldner/LON/ECT@ECT, Tim Poullain-Patterson/LON/ECT@ECT Subject: Re: Authorised Traders : Montreal & Chicago Bjorn As discussed, given Joe's comments below, a note to confirm that this being dealt with internally. Rob Soeldner has made it clear to Joe that: Enron places great importance on trading controls. These are non-negotiatable. The suggested course of action is not an option We aren't seeking to close any of the Agency offices given implemetation of these controls. Joe is not in yet - Rob will be discussing with him further when the US gets in. Of note - Joe is on the commercial side, Marcelo Parra who is responsible for the operational side is fully onboard for the operational changes made. Regards Andy ---------------------- Forwarded by Andrew Cornfield/LON/ECT on 09/11/2000 11:07 --------------------------- Joe Robertson@MGUSA 08/11/2000 20:38 To: Tim Poullain-Patterson/LON/ECT@ECT cc: Andrew Cornfield/LON/ECT@ECT, Lloyd Fleming/LON/ECT@ECT, Marcelo Parra/NYC/MGUSA@MGUSA, Michael Farmer/EU/Enron@ENRON@ECT, Naomi Connell/LON/ECT@ECT, Robert Soeldner/LON/ECT@ECT, Sam Hainsworth/EU/Enron@Enron@ECT Subject: Re: Authorized Traders : Montreal & Chicago As a practical matter the procedures outlined are not workable. We need to find a way to go forward that works and can satisfy all concerned. Either the people in these offices can be entrusted to transact and execute business or we should consider closing these offices and relocating some of the people which I do not believe makes any sense at all. Joseph E. Robertson, Jr. Enron Metals & Commodity Corp. 520 Madison Avenue 28th Floor New York, NY 10022 Tel: 212.715.5254 Fax: 212.715-2357 E-mail: joe.robertson@enron.com