Message-ID: <16734304.1075844927201.JavaMail.evans@thyme> Date: Fri, 18 May 2001 02:28:00 -0700 (PDT) From: sara.shackleton@enron.com To: jorge.garcia@enron.com Subject: RE: ENA credit derivative transaction Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Sara Shackleton X-To: Jorge A Garcia X-cc: X-bcc: X-Folder: \Sara_Shackleton_Dec2000_June2001_2\Notes Folders\Sent X-Origin: SHACKLETON-S X-FileName: sshackle.nsf Sara Shackleton Enron North America Corp. 1400 Smith Street, EB 3801a Houston, Texas 77002 713-853-5620 (phone) 713-646-3490 (fax) sara.shackleton@enron.com ----- Forwarded by Sara Shackleton/HOU/ECT on 05/18/2001 09:27 AM ----- Guenther Klar/Enron@EUEnronXGate 05/18/2001 07:17 AM To: Sara Shackleton/HOU/ECT@ECT cc: Janine Juggins/ENRON@EUEnronXGate Subject: RE: ENA credit derivative transaction Sara Not sure how much I can add on this other than a little background, of which you may already be aware. Enron Credit has a trader in Houston. His name is Seung-Taek Oh. In respect of two of Enron Credit's counterparties, First Union and Swiss Re, Seung-Taek trades in the name of ENA, because ENA has ISDAs with these counterparties. I had always understood that this was a intended to be a temporary fix while Enron Credit Inc was concluding its own ISDAs with these counterparties. No other traders, and in particular no London-based traders, trade with these counterparties in the name of ENA. The particular trade you mention was executed in Houston by Seung-Taek. I had always understood that Seung-Taek had authority to trade in ENA's name. It may be worth following up with Jeff Kinneman on this point. In terms of giving you the full picture, the following may be useful. Enron Credit is sending a new trader out to Houston. His name is Nick Stephan. I imagine he will want to trade with First Union and Swiss Re in the name of ENA until Enron Credit Inc's ISDAs are concluded. Denis O'Connell and I have been talking about drafting an ISDA borrowing agreement between ENA and Enron Credit Inc. We'll send a draft through to you. Enron Credit's originator in New York, Bridget Fraser, is talking to a few counterparties that want to trade both credit derivatives and commodities. The issue we're having to deal with is which Enron entity should face counterparties for multi-product ISDAs. Barrick Gold is the only live one. I've been keeping Steve Douglas in the loop on the ENA tax side. Ed Cooper has been involved on the Enron Credit legal side - you may want to contact him. Trust this is of use - feel free to give me a call. Kind regards Guenther -----Original Message----- From: Juggins, Janine Sent: 17 May 2001 18:08 To: Klar, Guenther Cc: Shackleton, Sara Subject: FW: ENA credit derivative transaction Sara, I think Guenther may have been involved in this transaction. He is out of the office today but back tomorrow and will follow up with you directly. I will be in Houston next week so may stop by to say hello. Regards Janine -----Original Message----- From: Shackleton, Sara Sent: 17 May 2001 17:21 To: Juggins, Janine Subject: ENA credit derivative transaction Janine: First Union National Bank ("FUNB") entered into a credit derivative trade with ENA effective 20 April 2001 (our trader was a London trader). Although ENA has a Master ISDA Agreement with FUNB (the "ISDA"), this does not appear to be the impetus for the booking since the confirm didn't reference the ISDA. Is ENA alright confirming trades in this manner? Sara Shackleton Enron North America Corp. 1400 Smith Street, EB 3801a Houston, Texas 77002 713-853-5620 (phone) 713-646-3490 (fax) sara.shackleton@enron.com