Subject: Re: Chicago Doorstep Review
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Date: Fri, 3 Nov 2000 02:42:00 -0800 (PST)

Dear Tim,

Thanks for the info.  We have followed up on all points noted in the first 
review and have found a couple more.  We will want to discuss these on Monday.

I should be able to send you the Doorstep reports for St. Louis and Chicago 
(updated) once David and Bjorn get a chance to review them.

Best regards

Shona

Tim Poullain-Patterson@ECT
11/03/2000 03:22 AM
To: Marcelo Parra/NYC/MGUSA@MGUSA
cc: Mike Jordan/LON/ECT@ECT, Naomi Connell/LON/ECT@ECT, Shona 
Wilson/NA/Enron@Enron, Robert Soeldner/LON/ECT@ECT 

Subject: Re: Chicago Doorstep Review  

Thanks for the update - as you say, hopefully this summary covers all the 
issues. Shona?

Point #2 comes up in Doorstep after Doorstep. It was discussed extensively 
upon being raised in the Singapore Doorstep and Andy Cowx (Telecoms expert 
for Enron Europe) researched potential solutions without success. I can't 
help but feel that as this is a global issue, a global solution/answer needs 
to be found. Shona - can you take this up with either Sally or Ted and find 
someone accountable for coming up with a global answer.

Point #4 per the updated list of Authorised Traders and follow up note to Sam 
Hainsworth defining scope of what Chicago and Montreal may/may not do, any 
residual position that Chicago may "create" is pre-authorised by Sam and is 
an integral part of his global book. I have forwarded the follow up note to 
Shona this morning, and confirmed with Sam that he has communicated the 
contents with his staff in those offices, i.e. no local limits, however 
small, are required!

Point #5 Lou's list of AS400 development needs has been prioritised and 
depending on where on this list the improvements to customer reports are, 
this should be done in the very near future.

Point #10 we considered preserving the Helsinki typewriter in perspex, as a 
reminder to us all, however I am assured it has now been destroyed. Suggest 
that once the forms have been converted, this machine is rendered useless, 
e.g. remove the "e" key or take a spanner to it!

Per the point you make about the timing of moving the scrap business - I will 
assume that the timing is acceptable to Houston unless we hear concerns to 
the contrary.

Thanks and regards,
Tim

Marcelo Parra@MGUSA
02/11/2000 22:46
To: Mike Jordan/LON/ECT@ECT, Tim Poullain-Patterson/LON/ECT@ECT, Naomi 
Connell/LON/ECT@ECT
cc:  

Subject: Chicago Doorstep Review

Please find Derek's report on the visit by the Houston Risk/Controlling 
team.  Assuming that this summary covered all the issues, it seems that we 
are making progress.
  
Point # 1 - The problem with the phones will be addressed when they move to 
the other Enron office.  I agree that the sooner the move takes place the 
better but let's make sure that they are properly set up in the new office 
prior to their move.  The critical part of the move is to assure that 
availability to the AS400 is established, prior to the move.
Point #2 - Using cell phones needs to be addressed.  How are you controlling 
this in London and other offices?
Once we transfer the Scrap business to London (Jan. 2000) we will not have 
position issues in Chicago.  Until that time comes please note that Chicago 
has been instructed not to take any positions.  In the event of an unbalanced 
book, with an agreement from Sam, they will need a small limit..  Tim, Can 
you formalize this with Sam (see point 4 below) for good order sake?
Point # 5 - We need a better customer exposure report from the AS400.  Mike 
Sweeny should  help us on this front.
Point # 10 - "Russia/Bills of Lading/Typewriter"  - Helsinki is still fresh 
in our minds.  What can I say.  I told them to unplug the machine.
Point # 11- Stephanie reporting to Lou is not a problem.  Derek doing 
logistics and assisting the traders is not a problem since we have taken away 
all the middle office functions from his control.

Please let me know if you hear anything different.

Best regards,
Marcelo 
Enron Metals & Commodity Corp.
E-Mail: [email-masked]

----- Forwarded by Marcelo Parra/NYC/MGUSA on 11/02/00 01:20 PM -----

	Derek Van Deusen
	11/02/00 12:29 PM
		 
		 To: Louis Colarusso/NYC/MGUSA@MGUSA, Marcelo Parra/NYC/MGUSA@MGUSA
		 cc: Bob Uxa/CHI/MGUSA@MGUSA, David Rosenblum/CHI/MGUSA@MGUSA
		 Subject: Chicago Doorstep Review

Following is a recap of issues Bob & I discussed yesterday with
Shona Wilson, David Port & Bjorn Hagelmann:

1- We explained how all confirms/pricings/invoices were now sent
directly to counterparties from NY, not Chicago.

2- David Port was very concerned that we were not using taped phones yet
and will push this issue upon return to Houston as reason for us to move
to ENA before Thanksgiving, perhaps as early as next weekend.

3- Discussed problems with confirming business when out of the office (on home
phones, cell phones or external meetings):
a)  Conversations not taped -- suggested that a conference call be made to
a taped line at our office to record the transaction, or that someone from the
office call the counterparty directly to confirm the contract.
b)  They were concerned about fixing prices without a screen.  We explained 
that
mostly we only fix premiums/discounts for later pricing.  When fixing a 
price, the
trader would either call the office or LME broker for a live quote and for 
hedging.

4- We explained that we do not have formal position limits because our book
is more or less fully hedged (as per JR's memo).  David asked if we had any
'informal' limits, to which we suggested +/- 500 MT due to buying & selling 
through
the course of the day, but unhedged positions, if any, would not be left open
unless discussed with & approved by Sam.

5- We agreed that credit functions & reporting should be strengthened, 
especially
to show total exposures by customers, not just limits or receivables.

6- Shona will follow up with Alan Aronowitz to finalize GTCs/Master 
Agreements ASAP.

7- Shona asked about progress with agency agreements.  Lou - please add this 
to
your action plan with Naomi Connell in London as responsible party.

8- Showed them our daily positions & AS400 positions which they agreed were in
good order.  Explained that NY reconciles positions daily and Chicago balances
AS400 vs. daily position periodically as needed.

9- They asked how we track overshipments and undershipments.  Showed them how
traffic dept. uses Access system to highlight late/over/undershipments which 
are
brought to trader for action.  Showed comparable reports in AS400 showing 
late shipments
and undershipments, but explained that overshipments were automatically 
zeroed out by AS400.
I will discuss this further with Sweeney to formalize reporting of 
overshipments for
tracking of position changes & contract overages.

10- Bjorn was very concerned that we use a typewriter to fill out certain 
forms -- most
notably Enron's 5-part carbon-paper insurance certs.  (Apparently Helskinki 
problem
involved using a typewriter to alter Bills of Lading.)  Bjorn will discuss 
with Enron insurance
dept. possibility of converting to electronic forms.

11- They suggested that Stephanie should report directly to Lou instead of 
DVD in order to
maintain front/middle office separation.  Also that DVD should be either 
trading or logistics/ 
administration, not a combination of both (Helsinki again).

12- Showed them daily P&L and trader sign-off procedure.

DVD

Derek Van Deusen
Enron Metals & Commodity Corp.
200 West Madison Street, Suite 2420
Chicago, IL  60606-3416
Tel: 312-407-6060
Fax: 312-407-6069
E-Mail: [email-masked]