Sara

Not sure how much I can add on this other than a little background, of which 
you may already be aware.

Enron Credit has a trader in Houston.  His name is Seung-Taek Oh.  In respect 
of two of Enron Credit's counterparties, First Union and Swiss Re, Seung-Taek 
trades in the name of ENA, because ENA has ISDAs with these counterparties.  
I had always understood that this was a intended to be a temporary fix while 
Enron Credit Inc was concluding its own ISDAs with these counterparties.  No 
other traders, and in particular no London-based traders, trade with these 
counterparties in the name of ENA.

The particular trade you mention was executed in Houston by Seung-Taek.  I 
had always understood that Seung-Taek had authority to trade in ENA's name.  
It may be worth following up with Jeff Kinneman on this point.

In terms of giving you the full picture, the following may be useful.

Enron Credit is sending a new trader out to Houston.  His name is Nick 
Stephan.  I imagine he will want to trade with First Union and Swiss Re in 
the name of ENA until Enron Credit Inc's ISDAs are concluded.

Denis O'Connell and I have been talking about drafting an ISDA borrowing 
agreement between ENA and Enron Credit Inc.  We'll send a draft through to 
you.

Enron Credit's originator in New York, Bridget Fraser, is talking to a few 
counterparties that want to trade both credit derivatives and commodities.  
The issue we're having to deal with is which Enron entity should face 
counterparties for multi-product ISDAs.  Barrick Gold is the only live one.  
I've been keeping Steve Douglas in the loop on the ENA tax side.  Ed Cooper 
has been involved on the Enron Credit legal side - you may want to contact 
him.

Trust this is of use - feel free to give me a call.

Kind regards

Guenther

 -----Original Message-----
From:  Juggins, Janine  
Sent: 17 May 2001 18:08
To: Klar, Guenther
Cc: Shackleton, Sara
Subject: FW: ENA credit derivative transaction


Sara, 
I think Guenther may have been involved in this transaction. He is out of the 
office today but back tomorrow and will follow up with you directly. I will 
be in Houston next week so may stop by to say hello.
Regards
Janine
 -----Original Message-----
From:  Shackleton, Sara  
Sent: 17 May 2001 17:21
To: Juggins, Janine
Subject: ENA credit derivative transaction

Janine:

First Union National Bank ("FUNB") entered into a credit derivative trade 
with ENA effective 20 April 2001 (our trader was a London trader).  Although 
ENA has a Master ISDA Agreement  with FUNB (the "ISDA"), this does not appear 
to be the impetus for the booking since the confirm didn't reference the ISDA.

Is ENA alright confirming trades in this manner?

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