Message-ID: <835120.1075853769416.JavaMail.evans@thyme> Date: Wed, 6 Sep 2000 11:56:00 -0700 (PDT) From: victor.lamadrid@enron.com To: robert.allwein@enron.com, beverly.beaty@enron.com, tricia.bowen@enron.com, joe.casas@enron.com, clarissa.garcia@enron.com, meredith.mitchell@enron.com, cindy.vachuska@enron.com, victoria.versen@enron.com, jesse.villarreal@enron.com, joann.collins@enron.com, angie.zeman@enron.com, cynthia.franklin@enron.com, alvin.thompson@enron.com, scott.loving@enron.com, lia.halstead@enron.com, christina.sanchez@enron.com, steve.gillespie@enron.com, sabra.dinari@enron.com Subject: EOL Deals with Non-performance & Payback Cc: scott.neal@enron.com, dick.jenkins@enron.com, robin.barbe@enron.com, scott.hendrickson@enron.com, dan.junek@enron.com, chris.germany@enron.com, scott.goodell@enron.com, andrea.ring@enron.com, susan.pereira@enron.com, jared.kaiser@enron.com, tammi.depaolis@enron.com, judy.townsend@enron.com, john.taylor@enron.com, sandra.brawner@enron.com, sarah.mulholland@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: scott.neal@enron.com, dick.jenkins@enron.com, robin.barbe@enron.com, scott.hendrickson@enron.com, dan.junek@enron.com, chris.germany@enron.com, scott.goodell@enron.com, andrea.ring@enron.com, susan.pereira@enron.com, jared.kaiser@enron.com, tammi.depaolis@enron.com, judy.townsend@enron.com, john.taylor@enron.com, sandra.brawner@enron.com, sarah.mulholland@enron.com X-From: Victor Lamadrid X-To: Robert Allwein, Beverly Beaty, Tricia Bowen, Joe A Casas, Clarissa Garcia, Meredith Mitchell, Cindy Vachuska, Victoria Versen, Jesse Villarreal, Joann Collins, Angie Zeman, Cynthia Franklin, Alvin Thompson, Scott Loving, Lia Halstead, Christina Sanchez, Steve Gillespie, Sabra L Dinari X-cc: Scott Neal, Dick Jenkins, Robin Barbe, Scott Hendrickson, Dan Junek, Chris Germany, Scott Goodell, Andrea Ring, Susan W Pereira, Jared Kaiser, Tammi DePaolis, Judy Townsend, John Craig Taylor, Sandra F Brawner, Sarah Mulholland X-bcc: X-Folder: \Chris_Germany_Dec2000\Notes Folders\Discussion threads X-Origin: Germany-C X-FileName: cgerman.nsf fyi ---------------------- Forwarded by Victor Lamadrid/HOU/ECT on 09/06/2000 06:39 PM --------------------------- Robert Superty 09/05/2000 01:36 PM To: Edward Terry/HOU/ECT@ECT, Victor Lamadrid/HOU/ECT@ECT, George Smith/HOU/ECT@ECT, Patti Sullivan/HOU/ECT@ECT, Randall L Gay/HOU/ECT@ECT, Diane H Cook/HOU/ECT@ECT, Donna Greif/HOU/ECT@ECT, Pat Clynes/Corp/Enron@ENRON cc: Subject: EOL Deals with Non-performance & Payback FYI - Please make sure your teams are all aware of these procedures for EOL deals. Tks - Bob ---------------------- Forwarded by Robert Superty/HOU/ECT on 09/05/2000 01:25 PM --------------------------- From: Jennifer deBoisblanc Denny 09/05/2000 11:18 AM To: Jeffrey C Gossett/HOU/ECT@ECT, William Kelly/HOU/ECT@ECT, Kam Keiser/HOU/ECT@ECT, Steve Venturatos/HOU/ECT@ECT, Steve Jackson/HOU/ECT@ECT cc: Scott Mills/HOU/ECT@ECT, Elizabeth L Hernandez/HOU/ECT@ECT, Karie Hastings/HOU/ECT@ECT, Sheri Thomas/HOU/ECT@ECT, Torrey Moorer/HOU/ECT@ECT, Tara Sweitzer/HOU/ECT@ECT, Leslie Reeves/HOU/ECT@ECT, Robert Superty/HOU/ECT@ECT, Bob M Hall/NA/Enron@Enron Subject: EOL Deals with Non-performance & Payback fyi....this is how EnronOnline deals with non-performance issues will be handled (see below). Please discuss with your traders/desk heads, as Bob Superty suggested, to ensure there aren't any issues with this. Thanks for your cooperation. Jennifer ---------------------- Forwarded by Jennifer deBoisblanc Denny/HOU/ECT on 09/05/2000 11:08 AM --------------------------- Robert Superty 09/01/2000 04:09 PM To: Edward Terry/HOU/ECT@ECT, Victor Lamadrid/HOU/ECT@ECT, Patti Sullivan/HOU/ECT@ECT, Randall L Gay/HOU/ECT@ECT, Pat Clynes/Corp/Enron@ENRON cc: Jennifer deBoisblanc Denny/HOU/ECT@ECT, Bob M Hall/NA/Enron@Enron Subject: Re: Sitara Deal 377626 Please read Jennifer's note below and let me know how you are currently dealing with EOL deals that have flow outside the original range of the deal. The way the Central desk is handling it is the way we want to across all desks. Basically, the original Sitara deal is adjusted to add the additional day/days that are agreed to by the traders and the counterparty to meet the full commitment and comments need to be added to reflect the same. Jennifer, I suggest letting all involved know that this is the way these will be handled (traders, desk heads, risk etc.) to ensure the consistency you mention is achieved. As you can see I'm only reaching a limited audience. Bob Superty ---------------------- Forwarded by Robert Superty/HOU/ECT on 09/01/2000 03:25 PM --------------------------- From: Jennifer deBoisblanc Denny 09/01/2000 03:23 PM To: George Smith/HOU/ECT@ECT, Mark L Schrab/HOU/ECT@ECT, Robert Superty/HOU/ECT@ECT, Bob M Hall/NA/Enron@Enron, Elizabeth L Hernandez/HOU/ECT@ECT, Karie Hastings/HOU/ECT@ECT, Tara Sweitzer/HOU/ECT@ECT, Sheri Thomas/HOU/ECT@ECT, Scott Mills/HOU/ECT@ECT cc: Subject: Re: Sitara Deal 377626 George, thanks for your explanation. I reviewed the transaction in EnronOnline (#385131) & Sitara (#377626) and found similar treatment in the following deals for the month of August on the Central Desk. Sitara # EOL# ----------- ------------- 365957 363168 366026 363271 377650 385194 369869 370402 I agree with the way George & his group are handling these non-performance and payback transactions as far as keeping them "connected". However, I think it is beneficial to put comments in Sitara as to what is happenning. As we know, all EnronOnline deals are FIRM. If trader agees how to handle this on the phone, it is recorded plus it is documented in Sitara. I think this is a good audit trail and good record-keeping. Everyday, Elizabeth is doing a reconciliation that identifies any changes to EnronOnline transactions. If she read the comments documenting as above, this "alarm" would be eliminated. Since we have not seen this on other desks, I wonder how they are handling non-performances. I think there should consistency in the downstream systems. Bob, can you find out how East, West, and Texas do this? Thanks for your help. Jennifer To: Jennifer deBoisblanc Denny/HOU/ECT@ECT cc: Mark L Schrab/HOU/ECT@ECT, Robert Superty/HOU/ECT@ECT, Bob M Hall/NA/Enron@Enron, Elizabeth L Hernandez/HOU/ECT@ECT, Karie Hastings/HOU/ECT@ECT, Tara Sweitzer/HOU/ECT@ECT Subject: Re: Sitara Deal 377626 These deals are not being "retraded". These are instances where the counterparty has not performed and trading has made the decision to allow payback. The only way we have to schedule that payback is to add an additional day to the deal. We could create a new ticket but I think this would create a "disconnect" between the EOL deal and the payback deal. I would appreciate your thoughts as to how we handle this in future.