RE: Credit from brokers

Understand. Enron has been Man's biggest account for years and during that=
time we have paid them a lot in commissions. They approached us on Wednes=
day to try to increase the margin required, even though we were below the c=
redit threshold that had been established in the contracts written 5+ years=
ago. I refused to agree to change the margin calculations. It became cle=
ar that Man was uncomfortable with the exposure to such a big account given=
that Man is a relatively small shop. I agreed to xpit some positions such=
that they would get more comfortable with the outstanding risk in the acco=
unt. At the same time I told them I was transacting business as usual and =
if they couldnt handle/didnt want the clearing business I would clear someb=
ody else but that was a permanent decision for them to make. Clear our bus=
iness always, or clear it never. Paribas has stuck with us throughout and =
I intend to clear the majority of future biz with Paribas. I agreed during=
hours of phone calls wednesday that we would xpit specific futures positio=
ns on thursday, which we did, but the rest of the position would stay there=
. They agreed. We specifically stated the rest of the positions and the o=
ptions would stay and we would work out those positions over time. &!@$ th=
em if they are trying to go back on that. =20

-----Original Message-----
From: =09Wesner-Soong, Sarah =20
Sent:=09Friday, November 02, 2001 8:42 AM
To:=09Arnold, John; Quigley, Dutch
Subject:=09Credit from brokers

ENE is in a severe liquidity crisis. Even if EDF makes mistakes we have to=
be careful how we treat them because Enron's cash position is very precari=
ous. It's good to insist that EDF give us what's owed especially since the=
y seem to be wrong in this case but as far as lines of credit go, ENE is in=
a much worse position than ever before. =20

I am going to get a guarantee to Fimat today from Enron Corp with respect t=
o ENA trades. We have never had to do this before but if I do not get it F=
imat will keep their trade line at $11 million. Soc Gen (extends credit un=
der Fimat line) is being a big pain but having spoken to our bank people we=
have no choice but to be grateful we are getting credit these days. =20

Please keep this bad cash/credit situation confidential.