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Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: 7bit X-From: Steven J Kean X-To: Gary Hickerson X-cc: X-bcc: X-Folder: \Steven_Kean_June2001_4\Notes Folders\Discussion threads X-Origin: KEAN-S X-FileName: skean.nsf Any interest? ----- Forwarded by Steven J Kean/NA/Enron on 11/01/2000 03:38 PM ----- "Vidar J. Jorgensen" <vidar@worldcongress.com< 10/31/2000 05:27 PM To: "Steve Kean" <skean@enron.com< cc: Subject: GlobalCashExchange can establish Enron with corporate CFOs and treasurers worldwide Dear Steve, ? I am sending this to Jeff Skilling, but?I wanted to send you a copy as well to make sure it got into the right hands.? This is a big idea that Enron is especially well positioned to benefit from.? I will telephone you to follow up. ? Sincerely, ? Vidar J. Jorgensen Global Cash Exchange 500 West Cummings Park Suite 5200 Woburn, MA? 01801 P:? 781-939-2572 F:? 781-939-2574 Cell P:? 781-929-2965 vidar@cbinet.com ? ? ? ? October 31, 2000 Mr. Jeffrey K. Skilling P: 713-853-6161 President & COO F: 713-646-8381 Enron jeff.skilling@enron.com 1400 Smith Street Houston, TX 77002 E-Mail Subject: GlobalCashExchange can establish Enron with corporate CFOs and treasurers worldwide Dear Jeff: I have worked with Ken Lay and others at Enron through the World Economic Development Congress where we brought together ministers of finance and oil immediately prior to the IMF/World Bank Meeting. InfrastructureWorld, of which I am co-founder and vice chairman, has recently received $10 million each in funding from the IFC division of the World Bank and Bechtel. GlobalCashExchange is a separate, but related business. We have the plan, the experienced management team and proven technology, and we will be selecting major financial institution as a partner. At the request of our corporate CFOs we are developing an internet based exchange for foreign exchange, short-term cash and credit that could give Enron a powerful product to sell to corporations worldwide. I have attached and executive summary and a business plan. I would like to discuss this with you at your earliest convenience. Major sources of trade, development and investment friction and inefficiency in large developing countries in particular include the facilitation of foreign exchange, short term cash, credit and working capital transactions. This is a source of high cost and frustration even for major global corporations, and for middle and smaller corporations these are even greater burdens. Today there are no reliable and continuous flowing price sources for softer currencies as there are for hard currencies. Even the larger soft currencies like the Real or Rupee are quoted only 3 to 4 times a day on Reuters, and the only spot quotes are available from traders who are motivated to benefit from a large spread. The GlobalCashExchange will allow buyers to transact at the middle of the interbank spread. There are lots of Internet based foreign exchanges, and none that I have actually seen support buyer to buyer transactions. GlobalCashExchange will develop an Internet based exchange for foreign exchange, short term cash and credit. The goal is to reduce costs of such transactions. Global Cash Exchange can also greatly enhance capital formation and the formation of local capital markets in developing countries. This is a large and complex undertaking where we will need to be partnering with one or a group of major financial institutions like Citibank, Cantor Fitzgerald, State Street Bank, Schwab and the World Bank. As you know, the Foreign Exchange (FX) market is the largest and most participated financial market in the world with over $1.5 trillion exchanges daily throughout the world. There is no central market place for FX transactions: all FX transactions are conducted through a network of banks, dealers and brokers. Approximately 2/3 of FX transactions involve banks dealing directly with each other. The potential market for short term cash and credit --which will ultimately reduce the need for foreign exchange transactions -- is even larger. We are funding this internally and are starting to develop outside investor support. We have established great partnerships with organizations such as Standard & Poor's and Medley Global Advisors (http://www.medleyadvisors.com ), for ratings and content on the site, VMAC (a division of FSA that has patented the concept of providing pooled credit enhancement facilities http://www.fsa.com), for revolving credit enhancement facilities and Gen3Partners (http://www.gen3partners.com), for strategic and technological advice. Transactions that cannot be matched can be cleared through Deerhurst, a leading foreign exchange fund manager who has agreed to provide liquidity from day one. We also know that we can purchase insurance for around $7 billion of annual transactions for just under $1M a year. GCX is now at a point that it has answered most of the questions that we had. We have a commitment from Ashton Technologies for full build out of SEC approved technology in exchange for equity. This technology has been used successfully for more complex securities transactions and allows for many equity market facilities that Forex markets do not currently have such as reserve book, limit order and so forth. A description of the Ashton technology and an executive summary that we use for our corporate clients are attached. We have good corporate support through World Research Advisory (WRA), an affiliated provider of research for corporate treasurers. WRA supplies Gartner and Forrester type subscription research and advisory services to global 2000 companies. The contact list includes the CFO's of the following companies, many of whom have agreed to participate in the Global Cash Exchange: ALCOA ALLSTATE INSURANCE COMPANY AT&T BELLSOUTH CORPORATION CHUBB CORPORATION CNF TRANSPORTATION, INC. COMPAQ CONTINENTAL AIRLINES, INC. DELL DUPONT DYNEGY, INC. EXIDE CORPORATION FDX CORPORATION FEDERAL RESERVE BANK OF CHICAGO FORD MOTOR CORPORATION FPL ENERGY, INC GENZYME CORPORATION GILLETTE COMPANY HALLMARK CARDS INC. HEWLETT-PACKARD INTERNATIONAL PAPER KPMG LOCKHEED MARTIN CORPORATION LITTON INDUSTRIES LUCENT TECHNOLOGIES MASTERCARD MCDONALDS CORPORATION MERCK & COMPANY MERISEL, INC. MICROSOFT CORPORATION MOTOROLA, INC. NORDSON CORPORATION ORACLE CORPORATION PECO ENERGY COMPANY PEOPLESOFT PEPSICO, INC. PHILIP MORRIS COMPANIES INC PPF INDUSTRIES RYDER SYSTEM, INC. SCHOLASTIC CORPORATION SEAGATE TECHNOLOGY, INC. SEALY, INC. SIEMENS SONOCO PRODUCTS CO. SUN MICROSYSTEMS U.S. POSTAL SERVICE WESTINGHOUSE So we have willing and interested contacts at Global 2000 companies. I will telephone you to follow up. I can be reached by telephone at 781-939-2572, by fax at 781-939-2574 and via e-mail at v.jorgensen@worldcongress.com. Sincerely, ? Vidar J. Jorgensen GlobalCashExchange Attachments: 1. IFC World Bank Press Release (00-0926-06) 2. Ashton Technology Product Description (00-1025-03) 3. Executive Summary for prospective corporate clients (00-1018-06) 4. GCX Business Plan cc: Kenneth Lay Chairman and CEO Enron Corporation 1400 Smith Street Houston, Texas 77002 P: 713-853-6088 F: 713-853-3129 Donald Lassere President Enron Broadband Services 1400 Smith Street P: 713-853-6341 F: 713-646-8795 donald_lassere@enron.net 00-1031-03/jm - 00-1031-03.doc - 00-0926-06.doc - 00-1018-06.doc - 00-1025-03.doc - gcxbusinessplan (3).doc
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