Subject: Plan Questions
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Wed, 22 Nov 2000 07:10:00 -0800 (PST)

Tim, sorry for the delay - lets talk if you think it is warranted.  I can see 
a lot of positives to take this path. However,  there are a) pr issues and b) 
we have hoards of on-going litigation that cost us a bundle.  We should make 
this decision very carefully.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 11/22/2000 
03:06 PM ---------------------------

	
	From:  Tim Belden                           11/13/2000 07:22 PM

To: David W Delainey/HOU/ECT@ECT
cc: Christopher F Calger/PDX/ECT@ECT 
Subject: Plan Questions

The total depreciation plan number for west trading is $278,000.  Here is the 
general breakdown

    Net Book Value  Planned Amount  Depreciation Period
Floor Buildouts   $462,000  $135,000   3 to 5 years
PC's and Monitors  $214,000  $50,000    3 years
Large Plasma Screens  $77,000   $46,000    3 years
Other    $25,000   $7,000    3 years
2001 Increase      $40,000 

Total    $778,000  $278,000

Here is the headcount breakdown:

   Current   2001 Plan  Change  Realistically
Trading   41   48   +7  +5   (2 RT, 2 analysts on desk, 1 admin.)
Mid Mkt & Svcs  9   12   +3  +1 or +2  (increase coverage)
Fundamentals  7   9   +2  +1   (supply person with hydro knowledge)
Structuring  0   0   0  +2   (group is 4 -- Chris planned half, I need to 
plan for half)

Totals   57   69   +12  +9 or +10

It looks like my number is two or three too high.  We also had a mixup on 
planning for the existing structuring group.  Let me know if you have any 
questions.

Also,  I need to talk to you about the City of Vernon.  I want to sue them.  
Several months ago they flaked on a purchase that has cost us about 
$10,000,0000.  Richard Sanders has done the basic legwork and it looks like 
we have a decent case.  I talked to Chris about it, and we both agree that it 
doesn't hurt the west business if we poke them in the eye.  They are not well 
liked in the muni community out here, so the collateral damage should be 
minimal.  The big question is how will this appear in the face of all of the 
ongoing investigations?  Perhaps we should set up a call with me, you, Lavo, 
Sanders, Calger, and Kean?  Let me know your thoughts.

Tim
503-464-3820