|
|
Enron Mail |
Bill,
I will be happy to follow up on this. But I think we at least need to consider the ramifications of entering into brokerage agreements with brokers who accept non-cash credit from their customers. If they are willing to offer credit to Enron, they are bound to do so with others. Enron's funds/accounts will be pooled with all other customers in the event of a financial crisis at the broker. To the extent the broker has granted credit to unworthy trading partners, Enron could have exposure if those partners default, thus causing this financial distress at the broker. I don't wish to overblow this concern (i.e., focus excessively on low probability events), but I think we should at least discuss it a few minutes before we proceed. From: William S Bradford @ ECT 07/28/2000 07:31 PM To: Paul Radous/Corp/Enron@ENRON cc: Sara Shackleton/HOU/ECT@ECT Subject: Margin leverage and Enron Guarantee Paul, Can you work with Sara on this? Bill ---------------------- Forwarded by William S Bradford/HOU/ECT on 07/28/2000 07:31 PM --------------------------- From: Sheila Glover 07/28/2000 01:23 PM To: William S Bradford/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT cc: Jeff Kinneman/HOU/ECT@ECT, John Greene/HOU/ECT@ECT, Gary Hickerson/HOU/ECT@ECT Subject: Margin leverage and Enron Guarantee Bill and Sara, We have been talking with Goldman Sachs, one of ECT Investment's prime brokers, about ways to reduce our margin requirement and gain greater leverage. Goldman suggested that we may want to consider putting an Enron Guaranttee in place. We also have a prime broker agreement with Morgan Stanley. Per the documentation that I have... I do not see a guarantte with Morgan Stanley. 1) Can you confirm that no guarantee exists with either Goldman or Morgan? 2) Any comments regarding a Goldman guarantee by Enron Corp for ECT Investments Inc.? Thanks, Sheila
|