Financial Trading Limits

Gentlemen,

I spoke to Ted Murphy today on the status of our limit and sector approval
request and was told that I do not have your support. I asked Ted if he
thought this was a mistake and he replied that Mike was very direct. In
light of our meeting with Skilling and the feedback I got back, I'm not sure
I understand your direction.

I essentially have no limits for the convertible arbitrage book as
explained in the limit/sector proposal and will be forced to close the
positions ( with out some form of relief ). When we get Enron Metal's
positions in currencies and rates added to my limit structure, I will have
little room to engage in proprietary trading. I need to redefine and expand
the equity sectors and increase risk levels to maintain staff and generate
the level of income we have planned in 2001.

Gary