From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Mon, 12 Nov 2001 15:46:42 -0800 (PST)

Greg,

Our P&L losses over the last few days have been due to four things primarily.

1)  We have been short crude, and are still short, in a $2.00 up move.  (today the market was down)
2)  We are liquidating many of our portfolios, and are paying large bid/offers.  We are also abandoning some of our P+ options with Koch since credit has indicated our inability to access cash will completely hamper our ability to exercise puts. 
3)  As a company we are short vol, and vol has been extremely strong, and continues to move against us.
4)  being long physical inventories in europe in a falling market.  In addition, none of our counterparts/customers/competitors are willing to take the product from us.

We will continue to work out of positions.