Understand.  Enron has been Man's biggest account for years and during that time we have paid them a lot in commissions.  They approached us on Wednesday to try to increase the margin required, even though we were below the credit threshold that had been established in the contracts written 5+ years ago.  I refused to agree to change the margin calculations.  It became clear that Man was uncomfortable with the exposure to such a big account given that Man is a relatively small shop.  I agreed to xpit some positions such that they would get more comfortable with the outstanding risk in the account.  At the same time I told them I was transacting business as usual and if they couldnt handle/didnt want the clearing business I would clear somebody else but that was a permanent decision for them to make.  Clear our business always, or clear it never.  Paribas has stuck with us throughout and I intend to clear the majority of future biz with Paribas.  I agreed during hours of phone calls wednesday that we would xpit specific futures positions on thursday, which we did, but the rest of the position would stay there.  They agreed.  We specifically stated the rest of the positions and the options would stay and we would work out those positions over time.  &!@$ them if they are trying to go back on that.  

 -----Original Message-----
From: 	Wesner-Soong, Sarah  
Sent:	Friday, November 02, 2001 8:42 AM
To:	Arnold, John; Quigley, Dutch
Subject:	Credit from brokers

ENE is in a severe liquidity crisis.  Even if EDF makes mistakes we have to be careful how we treat them because Enron's cash position is very precarious.  It's good to insist that EDF give us what's owed especially since they seem to be wrong in this case but as far as lines of credit go, ENE is in a much worse position than ever before.  

I am going to get a guarantee to Fimat today from Enron Corp with respect to ENA trades.  We have never had to do this before but if I do not get it Fimat will keep their trade line at $11 million.  Soc Gen (extends credit under Fimat line) is being a big pain but having spoken to our bank people we have no choice but to be grateful we are getting credit these days.  

Please keep this bad cash/credit situation confidential.