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Enron Mail |
Thanks for the update. What you point out in your email is exactly what we
need to be doing. Also, I'll be happy to meet with you regarding rotations when you are ready. Jeff David P Dupre 02/26/2001 06:53 AM To: Jeffrey A Shankman/HOU/ECT@ECT cc: Subject: Update I am pleased that Jason Fischer is doing a fine job as he took my place in the role of checking out NYMEX trades and formulating new relationships with brokers. One of the key aspects of this job was moving trades to brokerage houses with credit financing available at no cost. Basically, the brokerage houses want to capture the brokerage fees, in volume, and believe that they are able to not worry about charging for the credit lines. I'd like to meet you with about this. An contact of mine in accounting and I developed a spreadsheet (see attached: Xpit analysis) to measure how much we are able to save by these movements. Also, according to the accomplishments list, you'll notice that because of our actions on Fri Oct 13 directed by John Wilson in Products, only for CL, HO, and HU, we were able to see an instantaneous change from paying out millions each day to the numerous brokers to having millions of dollars wired to us by the brokers. One of the critical functions of my former job was to manage the positions of all futures and options for all commodities. From my experience in working closely with the traders, we discovered, especially on Friday, October 13, that moving positions to brokerage houses with credit financing dramatically reduced our margin expenses thus increasing our daily cashflow in our wired brokerage accounts. Most of September and the week of Oct 9 had negative cashflows. In addition, I worked with our global finance group, (Sarah Wesner) , to increase existing lines and open other lines of credit at other brokerage houses. This action, provided we monitor this vigilantly and remind the traders on a frequent basis to stay focused on clearing trades with houses that have financing, will save Enron millions of dollars everyday. Our treasury group, (Mary Perkins), is pleased with this type of financing approach as we are using the additional money to reduce Enron's short term debt. I have informed my former group (esp. Jason Fischer) of the tremendous value which my prior function may add to Enron's financial well-being. It is this type of proactive thinking and creative financing that I hope to generate in my next rotations. Currently, I am in EnronCredit.com. Furthermore, now that I am in the analyst program, I'd like to discuss with you in the late summer/early fall for rotation opportunities. Thanks David 3-3528
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