I will call you in the am.  I am free until 11:30 NYT. What works for you?
Do you want a business person like Scott Talento on the line with us?

> -----Original Message-----
> From: Sara.Shackleton@enron.com [SMTP:Sara.Shackleton@enron.com]
> Sent: Wednesday, February 07, 2001 2:44 PM
> To: schernick@bear.com
> Subject: Re: enhanced stock loan
>
>
> Sharon:
>
> I'm on my way out of the office for an appointment but will be back around
> 4 or 4:30 Houston time.  I'd like a quick chat this evening or tomorrow
> morning (before 11 am Houston, if possible).  I understand that the
> dynamics of this deal were discussed by Russ and Jeff Kinneman/Sheila
> Glover.  The Enron party is Enron North America Corp. ("ENA", formerly
> named "ECT") and the $25million Enron Corp. guaranty is for the purpose of
> securing payment of the 20%plus margin requirement for  illiquid
> securities
> held by ENA in its Bear account ("stock loan account").  I'm not sure if
> other agreements are necessary and I was hoping that we could discuss.
>
> Feel free to email or call.  Thanks for your help.
>
> Sara Shackleton
> Enron North America Corp.
> 1400 Smith Street, EB 3801a
> Houston, Texas  77002
> 713-853-5620 (phone)
> 713-646-3490 (fax)
> sara.shackleton@enron.com
>
>
>
>
>                     "Chernick,
>
>                     Sharon               To:
> "'sara.shackleton@enron.com'" <sara.shackleton@enron.com>
>                     Confidential         cc:     "Talento, Scott
> (Exchange)" <STALENTO@bear.com>, "Miron, Russel
>                     Memo-Counsel         (Exchange)" <rmiron@bear.com>
>
>                     (Exchange)"          Subject:     enhanced stock loan
>
>                     <schernick@be
>
>                     ar.com>
>
>
>
>                     02/07/2001
>
>                     01:17 PM
>
>
>
>
>
>
>
>
>
> Sara:
>
> I have made some inquiry and verified that the Bear Stearns Stock Loan
> enhanced leveraged product is indeed what is under consideration.
>
> As promised, I have a brief step-by-step  explanation of such a stock loan
> transaction, which is appended to this message.  There are actually two
> possible scenarios: one where cash collateral is used for the stock loan,
> the other where actual securities are used as collateral.  We understand
> that, at least initially, you will be using bonds as collateral.
>
> The Stock Loan Agreement is used in connection with our current form of
> Institutional Account Agreement which ECT may not have signed.  I
> therefore
> also append that agreement to this message.
>
> I expect you waill wnat to review these attachments before we speak again.
> Again, as a reminder, I will be on vacation from Friday the 16th through
> the
> following week.  If you would like to speak before hand, or if you have
> any
> questions regarding any of the documents, please let me know.
>
> Regards,
>
> Sharon
>
>  <<Enhanced Stock Loan-explained.doc>>
>
>  <<IAA_ 9-8-00rev_clean.doc>>
>
> (See attached file: Enhanced Stock Loan-explained.doc)
> (See attached file: IAA_ 9-8-00rev_clean.doc)
> ***********************************************************************
> Bear Stearns is not responsible for any recommendation, solicitation,
> offer or agreement or any information about any transaction, customer
> account or account activity contained in this communication.
> ***********************************************************************
>
>  << File: Enhanced Stock Loan-explained.doc >>  << File: IAA_
> 9-8-00rev_clean.doc >>


***********************************************************************
Bear Stearns is not responsible for any recommendation, solicitation,
offer or agreement or any information about any transaction, customer
account or account activity contained in this communication.
***********************************************************************