Re:

Jeff, as we talked earlier we need to get what you want ASAP because in these
energy markets , which I think we both agree are not going to settle down any
time soon, coupled with the growth you and Mike want to see we are operating
under ridiculously small limits. 8 million VAR for a group our size , with
our turnover and number of traders just doesn't work. We have 15 to 20
million of structured deals, primarlily coming from Don S that at this time
we would have to walk away from. We can not go out and recruit more and
better traders to have them sit at their desk and not trade do to limits
which in no way are reflective of the size and risk Enron should be willing
to take if they truly have bought into this being a significant global
business. I suggest they should have raised them already as a reflection of
where they want to take the business and thought this through prior to the
move to Global Markets. You wouldn't be handed a Model T and asked to go out
and win the Indy 500. We need the tools to make the money and VAR is just as
important a componenet as leadership, people, vol limits, systems
,reporting, etc.
We have shut down positions today, which will cost us significantly, due to
the VAR issue. All we seem to be doing now is trading and worrying about VAR
and NOT doing what we think is right with our positions. This definitely,
like today, has had a negative impact on P/L.We will get a chance to visit
this issue with Chris and John on your visit here next week.