Sara-thank you for looking into this issue for us.  Here is a brief
summary of what occured.


UBS and Enron entered into a Sterling-UBS spot transaction on 11-19-01,
which both parties confirmed and settled on 11-21. (UBS pays USD
7,083,500 and receives 5 mio sterling).

On 11-21 UBS and Enron erroneously confirmed the same trade again for
settlement on 11-21. UBS made a second USD 7,083,500 payment to Enron's
account at BA-Dallas on 11-21 (payment reference: FED IMA
1121B1Q8052C001081).

UBS did not receive the Sterling it was expecting and for the next few
days Enron and UBS tried to resolve the non-payment based on a mistaken
assumption that Enron owed 5 mio Sterling to UBS.

On 11-28, UBS realized that the trade was duped and on 11-29 informed
Enron of the nature of the error and requested that the USD payment be
returned. Enron agreed to return the USD payment on 11-29. The returned
payment was never received.

If you need additional information please contact me at 203-719-1141 or
Bryan Murtagh 203-719-8955.  Here are our contacts at Enron who are
aware of this issue.

Laurel Adams - operations - (713-853-7035)

Clara Karrington - operations - (713-853- 9224)





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