Controls needed to ensure cashflows are received by Infinity

Shona, Brent and Sally,
This morning, the cash flows from approximately 75 books were not received by
Infinity from the ERMS system. We normally get 375 books and only got 296
this morning.

Per conversation with Joyce Kuo and Mike Moscoso, Susan Trevino, Risk
Controls, and Christian, RAC, changed the book heirarchy on Friday, moving
global products books, including the prepays, out of the ECT group and into
another group. We have had discussions in the past verifying with Risk
Controls that the ECT group is the only group which automatically sends its
cash flows to Infinity. Other cash flows from books are included only by
being listed in a script. This was not done when the books were moved from
the ECT Group on Friday.

Obviously, the Rate & Currency is not able to hedge Enron's cash flows when
so much has been omitted. At this time we are about one hour away from a
good Hedging report for the trading desk. This report is due the desk daily
by 7:30 am.

Mike and I discussed the need for controls and sign-off by him or Shona for
changes in book heirarchy.
Sheila