Dear Stacey-

What is your view point on this?  It appears to me that what Rod is saying is 
that this is not a valid doorstep finding because of the other controls that 
they have around the process.  However, I would think that commercial having 
a credit watch report would be beneficial at the beginning of each trading 
day (or at least a list of the CP's that are approaching their limits) so 
they know what CP to focus on.  What are thoughts?  Does commercial here get 
a credit watch report daily?  Do they use it?  Please call me to discuss when 
you get a chance.  Thanks, Stacey.  I appreciate your input.

Christy


From: Roderick Nelson/Enron@EUEnronXGate on 06/25/2001 05:55 PM GDT
To: Christy Lobusch/NA/Enron@Enron, Minna Taponen/Enron@EUEnronXGate
cc:  

Subject: RE: Oslo Credit Watch Report

Let,s discuss when Minna returns (next Monday).  Simply providing the 
exposure relative to credit lines does not indicate that the next transaction 
is credit approved ) and I am concerned that this would be construed as 
such.  Because positions are volatile, the tenor and size of the next 
transaction also determine approval.  As well, contractual terms play a role 
in the approval of the next transaction.  For example, with margining rights 
above a contractual level, exposure can be actively managed.  Clearly, a real 
time approach which capture exposure and potential exposure against +soft, 
and contractual lines would be ideal.  Senior management in RAC is aware of 
this objective and efforts are underway to improve systems towards this end.  

Nevertheless, if you think that a CreditWatch list would assist the 
commercial team in managing credit risk in this market, I am sure that some 
report could be generated periodically.  

Rod

 -----Original Message-----
From:  Lobusch, Christy  
Sent: 25 June 2001 17:13
To: Nelson, Roderick; Taponen, Minna
Subject: RE: Oslo Credit Watch Report

Dear Rod/Minna-

Thank you for the response.  I apologize for the confusion.  I understand 
what is being said about the allocation of resources, but how is commercial 
informed when a counterparty is approaching their credit limit?  I think the 
finding is that a real-time credit system would be ideal, but that the 
current IT environment does not support it.  I think that what is being said 
is that commercial should understand where counterparties stand before the 
trading day starts.  Or even if just the report lists those counterparties 
which are approaching their limits.  Is that something that is easily pulled 
together on a daily basis?  Please advise.  Thanks,

Christy Lobusch
---------------------- Forwarded by Christy Lobusch/NA/Enron on 06/25/2001 
11:01 AM ---------------------------
From: Roderick Nelson/Enron@EUEnronXGate on 06/25/2001 12:17 PM GDT
To: Debbie R Brackett/ENRON@enronXgate, Christy Lobusch/NA/Enron@Enron, Minna 
Taponen/Enron@EUEnronXGate, Orjan Agdesteen/Enron@EUEnronXgate
cc:  

Subject: RE: Oslo Credit Watch Report

Christy, Orjan:

I apologize for not responding earlier.  To be perfectly honest, I had 
assumed that Minna Taponen (who manages credit risk for Nordic) was copied on 
the correspondence.  We should probably speak to clarify on issues, but below 
is my initial comment.

Currently, credit is managed on a pre-approval consent basis. No counterparty 
is approved until the commercial team has made such a request and a review is 
performed and lines set.  This is not say that the +rules, are not 
occasionally violated, but the credit approval system is in place.  RAC/CRM 
could generate a CreditWatch list, but this would not necessarily improve the 
process or reduce credit risk.  Minna could produce and maintain such a 
report, but I would require to justify that this is a worthwhile allocation 
of her resource.

Thanks,
Rod


 -----Original Message-----
From:  Brackett, Debbie R.  
Sent: 20 June 2001 16:41
To: Nelson, Roderick
Subject: FW: Oslo Credit Watch Report

Your name is all over this...how would you like me to handle? We can do this 
from a systems perspective easily but I don't think that's the issue.

Let me know.

Deb



 -----Original Message-----
From:  Lobusch, Christy  
Sent: Wednesday, June 20, 2001 10:35 AM
To: Brackett, Debbie R.
Subject: Oslo Credit Watch Report

Dear Debbie-

I don't know if you are the person that I need to talk to, but I was hoping 
you could point me to who I need to talk to about getting a credit watch 
report distributed to the Oslo commercial team.  Also, do you know if the 
issue is really that the report is not prepared and distributed or is it just 
that the report is not distributed.  Please advise.  Thanks, Debbie.

Christy
---------------------- Forwarded by Christy Lobusch/NA/Enron on 06/20/2001 
10:32 AM ---------------------------
From: Beth Apollo/ENRON@enronXgate on 06/19/2001 02:34 PM
To: Christy Lobusch/NA/Enron@Enron
cc:  

Subject: FW: Doorstep review Oslo - May 2001

can you chase this one down

 -----Original Message-----
From:  Horn, Cindy  
Sent: Tuesday, June 19, 2001 3:57 AM
To: Apollo, Beth; Wilson, Shona
Cc: Agdesteen, Orjan; New, James; Jordan, Mike
Subject: FW: Doorstep review Oslo - May 2001

Beth, will your group follow up on this point now that we have sent this to 
you for review?  I am not sure what the process is but I thought your team 
would be the ones to follow up and insure all the action points are addressed 
and resolved.  Let me know if there is anything further we should be doing.  
Thanks Cindy

 -----Original Message-----
From:  Agdesteen, Orjan  
Sent: 19 June 2001 09:51
To: Taponen, Minna
Cc: New, James; Horn, Cindy
Subject: Doorstep review Oslo - May 2001

Her'e sthe comments regardiong Credit from the Oslo review. Could you please 
adress this issue to someone in Credit and give me some feedback?

I've sent it to Rod Nelson several times as I thought he was the right 
person, but he never gave any answer.

Thanks!

_rjan



Observation
No Credit Watch Report is distributed for commercial personnel to reference.

Root cause
Credit support has been managed in London by a RAC resource which has 
prevented a complete set of credit tools from being developed.    


Action step
Agree. Credit limit monitoring should be performed on a real time basis. This 
is being restricted by the current IT environment. In the interim a daily 
report should be prepared and distributed to traders showing counterparty 
limits and current utilisation of those limits.


Responsible
Rod Nelson, Credit