FW: UBS FX payment

Please review for accuracy. Thanks. Sara

-----Original Message-----
From: Ellen.Schubert@ubsw.com@ENRON
Sent: Thursday, December 06, 2001 12:53 PM
To: Shackleton, Sara
Cc: Bryan.Murtagh@ubsw.com; Stephen.Thatcher@ubsw.com
Subject: UBS FX payment

Sara-thank you for looking into this issue for us. Here is a brief
summary of what occured.

UBS and Enron entered into a Sterling-UBS spot transaction on 11-19-01,
which both parties confirmed and settled on 11-21. (UBS pays USD
7,083,500 and receives 5 mio sterling).

On 11-21 UBS and Enron erroneously confirmed the same trade again for
settlement on 11-21. UBS made a second USD 7,083,500 payment to Enron's
account at BA-Dallas on 11-21 (payment reference: FED IMA
1121B1Q8052C001081).

UBS did not receive the Sterling it was expecting and for the next few
days Enron and UBS tried to resolve the non-payment based on a mistaken
assumption that Enron owed 5 mio Sterling to UBS.

On 11-28, UBS realized that the trade was duped and on 11-29 informed
Enron of the nature of the error and requested that the USD payment be
returned. Enron agreed to return the USD payment on 11-29. The returned
payment was never received.

If you need additional information please contact me at 203-719-1141 or
Bryan Murtagh 203-719-8955. Here are our contacts at Enron who are
aware of this issue.

Laurel Adams - operations - (713-853-7035)

Clara Karrington - operations - (713-853- 9224)

Visit our website at http://www.ubswarburg.com

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