|
|
Enron Mail |
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: Marcelo.Parra@enron.com ----- 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: derek.van.deusen@enron.com
|