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Enron Mail |
A quick heads-up. Our initial VAR calculations from Bjorn suggest a current
increase in John's VAR from $8.3MM to $11.5MM in total. Bjorn is still working with Scott Earnest in regard to position limits. A few other facts from Rick Causey's meeting yesterday with Mike Patrick and Rodney Faldyn. Rick asked questions regarding (1) how EGM would manage these positions, (2) how we would manage the securities law issue of short-swing profits (Section 16 in the SEC 1934 Act) regarding the FAS 140 and the restructure of the subordinated units in 3Q on which corporate development is working, (3) disclosure of the transaction and sensitivities due to the affiliated parties and (4) whether or not the FAS 125/140 structure makes the most sense versus other EWS earnings. I may need to ask you guys to call Rick on #4 to let him know how important this is for EGM and that Stan and Rod are comfortable with the FAS 125/140 deal. John and I will follow-up with Rick on #1. We are working on structuring around issue #2 and we will be working with Koenig's group next week regarding issue #3. We are currently in discussions with AA regarding their recommendation concerning disclosure which will be the input for which Rex Rogers and Mark Koenig will be looking. Thanks. -Larry- Larry Lawyer Enron Global Markets Finance & Structuring Work# 713-853-5513 Cell# 281-541-4296 Fax# 713-646-3203 Assistant: Kristy Armstrong 713-853-9937
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