Gabriel,

I'm not sure if Binh sent an email to you and to Controls to explain the 
Canadian origination variance.  You may already be aware, but on the Orig 
Sched the originations are converted to $US using the spot rate for the day.  
However when the originations are calculated for the Report tab the rate 
applied is the average rate for the month.  Therefore these values will never 
be the same.  Nicole is going to talk to Kathy when she gets back to Canada 
on Monday.  Nicole says she has found a way to modify their spreadsheet so 
that both values are calculated using the daily spot rate.   If you haven't 
recieved an email from Binh explaining this issue you might want to forward 
the attached message from Nicole to Michael and Chris.  

Thanks,
Robin

PS The Bench by trader tied out for the 23rd.  I'll be in a little early 
tomorrow to tie it out for the 24th.  Bye.
---------------------- Forwarded by Robin Rodrigue/HOU/ECT on 08/24/2000 
11:43 PM ---------------------------


Nicole LaPorte
08/24/2000 01:20 PM
To: Robin Rodrigue/HOU/ECT@ECT
cc:  
Subject: Origination Problem

Robin,
I spoke with Kathy regarding the problem we are having with origination. Her 
explanation is as follows:
This is an fx issue. Because origination is denominated in a currency (USD) 
which is different than our functional currency (CAD), origination expense 
will be comprised of not only origination but also currency gains and losses 
on origination. Everyday orig. is retranslated in C$ using the current rate 
and any fx gains or losses relating to that is added to origination.  
Therefore, the total origination as per the "origination" tab will NOT equal 
the origination as per the "report" tab. Robin should add in the translation 
gains/losses to get it to reconcile. 
I hope this explanation makes sense and is acceptable. I know you're used to 
the two numbers reconciling but since we were asked to denominate our 
origination in US dollars (about 2 months ago) these two numbers will never 
again be the same.
Please call if you have any questions,
Nicole