Adjectives suitable for use on corporate email fail me in attempting to
describe this individual, whose animus, in my view clearly is at such a
level that it cannot possibly be disinterested.

   _____

 <http://www.thestreet.com>  <http://www.thestreet.com>
<http://ad.doubleclick.net/jump/thestreet.com/markets;abr=!ie;mkts=detox;pti
le=1;sz=468x60;ord=080112?>
  <http://www.thestreet.com/tsc/c.gif> 	 <http://www.thestreet.com>
TheStreet.com	  <http://www.realmoney.com> RealMoney.com
<http://www.thestreet.com/tsc/hedgefund_show/tsc_pp_land.html> Professional
Products	   <http://www.thestreet.com/tsc/c.gif>
<http://www.thestreet.com/tsc/rmlanding/realmoneysub_full_land.html>
Subscribe Now!	  <http://www.thestreet.com/tilex/pages/specialoffers.html>
Special Offers	  <http://www.thestreet.com/tsc/help.html> Help!
<http://www.thestreet.com/tsc/c.gif>
  <http://www.thestreet.com/tsc/c.gif>
<http://www.thestreet.com/tsc/c.gif>
<http://www.thestreet.com/tsc/c.gif>
<http://www.thestreet.com/tsc/c.gif>
<http://www.thestreet.com/tsc/c.gif>
<http://www.thestreet.com/tsc/c.gif>
  <http://www.thestreet.com/tsc/c.gif>


 Quotes & Search <http://images.thestreet.com/tsc/left_nav/qs_left_nav.gif>

  <http://www.thestreet.com/tsc/c.gif>
  <http://www.thestreet.com/tsc/c.gif>

Quotes

  <http://www.thestreet.com/tsc/c.gif>

 Search Site

  <http://www.thestreet.com/tsc/c.gif>

<http://ad.doubleclick.net/jump/thestreet.com/homepage;hmpge=toolsquotes;sz=
120x33;ord=?>
  <http://www.thestreet.com/tsc/c.gif>
  <http://www.thestreet.com/tsc/c.gif>
  <http://images.thestreet.com/tsc/left_nav/grey_bot.gif>
 <http://www.thestreet.com/br/> Hot News
  <http://www.thestreet.com/tsc/c.gif>
<http://www.thestreet.com/tsc/c.gif> 	Market Briefing
<http://www.thestreet.com/br/>
Market
<http://find.thestreet.com/cgi-bin/texis/latestfind/results.html?st=T1001640
&nh=50&sec=Today's+Market+Movers> Movers
Analyst  <http://www.thestreet.com/briefing/iupdown.html?tkr=&Funds=1>
Actions
Latest Wire  <http://tscquote.thestreet.com/AllWireNews.jhtml> Stories
Latest TSC Stories <http://www.thestreet.com/now/>
  <http://www.thestreet.com/tsc/c.gif>
<http://www.thestreet.com/tsc/c.gif>
  <http://images.thestreet.com/tsc/left_nav/blue_bot.gif>
 <http://www.thestreet.com/stocks/> News and Analysis
  <http://www.thestreet.com/tsc/c.gif>
<http://www.thestreet.com/tsc/c.gif> 	Tech Stocks
<http://www.thestreet.com/tech/>
Markets <http://www.thestreet.com/markets/>
Commentary <http://www.thestreet.com/comment/>
Personal  <http://www.thestreet.com/funds/> Finance
Company News <http://www.thestreet.com/stocks/>
  <http://www.thestreet.com/tsc/c.gif>
<http://www.thestreet.com/tsc/c.gif>
  <http://images.thestreet.com/tsc/left_nav/blue_bot.gif>
 Calendars <http://images.thestreet.com/tsc/left_nav/cal_left_nav.gif>
  <http://www.thestreet.com/tsc/c.gif>
<http://www.thestreet.com/tsc/c.gif> 	Earnings
<http://thestreet.ccbn.com/earning.asp?client=thestreet> Reports
Conference  <http://thestreet.ccbn.com/conferencecall.asp?client=thestreet>
Calls
Economic  <http://www.thestreet.com/markets/databank/10002634.html> Calendar
IPO Calendar <http://tscquote.thestreet.com/tsc/ipo/>
Stock  <http://www.thestreet.com/briefing/isplits.html?tkr=&Funds=1> Splits
  <http://www.thestreet.com/tsc/c.gif>
<http://www.thestreet.com/tsc/c.gif>
  <http://images.thestreet.com/tsc/left_nav/blue_bot.gif>
 <http://tscquote.thestreet.com/> Tools
  <http://www.thestreet.com/tsc/c.gif>
<http://www.thestreet.com/tsc/c.gif> 	TSC
<http://www.thestreet.com/tsc/wireless.html> Wireless
RealTime  <http://www.thestreet.com/tsc/moneynetland.html> Portfolio Tracker
Risk  <http://www.riskgrades.com/clients/thestreet/index.cgi?NAVTSC>
Analysis Tools
Glossary <http://www.thestreet.com/tsc/glossary.html>
TheStreet  <http://www.thestreet.com/tsc/streetnotes/> Notes
Stock  <http://thestreet.spyonit.com/thestreet/Home> Alerts
  <http://www.thestreet.com/tsc/c.gif>
<http://www.thestreet.com/tsc/c.gif>
  <http://images.thestreet.com/tsc/left_nav/blue_bot.gif>
 <http://www.thestreet.com/tilex/pages/specialoffers.html> Featured Offers

  <http://www.thestreet.com/tsc/c.gif>
<http://www.thestreet.com/tsc/c.gif> 	RealMoney
<http://offers.thestreet.com/cgi-bin/set.cgi?code=rmft> Free Trial
Era  <http://sub.thestreet.com/c/K/show/HT/XVAL/pf/XVAL1?Distributor=XVAL>
of Value
The  <http://sub.thestreet.com/c/K/show/HT/XGBS/home/XGBS1?Distributor=XGBS>
Chartman's Top Stocks
Action
<http://sub.thestreet.com/c/K/show/HT/XAAP/pf/XAAP1?Distributor=XTSM> Alerts
PLUS
Equity
<http://www.multexinvestor.com/redirect.asp?geid=21145&url=http://thestreet.
multexinvestor.com/search.asp?target=/stocks/analystresearch/home> Research
TSC  <http://www.thestreet.com/tsc/tsc_confcenter.html> Conferences
  <http://www.thestreet.com/tsc/c.gif>
<http://www.thestreet.com/tsc/c.gif>
  <http://images.thestreet.com/tsc/left_nav/blue_bot.gif>
  <http://chart.bigcharts.com/custom/thestreet-com/threequote-djia.gifquote>


<http://ad.doubleclick.net/jump/thestreet.com/homepage;hmpge=ticker;sz=88x31
;ord=080112?>

 <http://www.thestreet.com/pf/markets/detox/10002964.html>


 <http://www.thestreet.com/markets/> Markets : Detox
  <http://www.thestreet.com/tsc/common/images/storytitle_line.gif>


  <http://images.thestreet.com/tsc/common/images/icons/1002980.gif>
<http://www.thestreet.com/tsc/c.gif> 	Shell-Shocked Enron Parts With CFO
  <http://www.thestreet.com/tsc/c.gif>
By Peter  <mailto:peavis@thestreet.com> Eavis
Senior Columnist
10/24/2001 06:40 PM EDT

Enron's ( ENE <http://tscquote.thestreet.com/StockQuotes.jhtml?tkr=ENE>
:NYSE - news <http://tscquote.thestreet.com/BBNews.jhtml?tkr=ENE>  -
commentary
<http://find.thestreet.com/cgi-bin/texis/cmttkrfind/results.html?tkr=ENE&sit
e=tsc>  - research
<http://thestreet.multexinvestor.com/search.asp?Ticker=ENE>  - analysis)
<http://www.riskgrades.com/clients/thestreet/index.cgi?tickers=ENE>
problems won't go out the door with Andrew Fastow.


The finance chief, who was replaced Wednesday, came under scrutiny as the
executive who orchestrated and profited from a hedging deal that went sour,
saddling Enron with a $1.2 billion charge to equity. As details of this
deal, and  <http://www.thestreet.com/markets/detox/10002702.html> others,
have emerged over the past two weeks, Enron stock has collapsed, falling 54%
in just seven days.



  <http://www.thestreet.com/tsc/c.gif>
<http://ad.doubleclick.net/jump/thestreet.com/markets;abr=!ie;mkts=detox;pti
le=2;sz=336x280;ord=080112?>  border=0 height="280" width="336">
<http://www.thestreet.com/tsc/c.gif>

Wednesday, the stock fell a further 17% on enormous volume, signifying that
once-faithful mutual fund holders were bailing. Also Wednesday, a raft of
once-friendly analysts downgraded the stock. Faced with betrayal on that
scale, Enron management at last felt compelled to act; a press release says
Fastow is taking a leave of absence. He's been replaced by Jeffrey McMahon,
formerly CEO of Enron's industrial markets group.


How might the Enron bulls spin this? Likely, they will point to McMahon's
alleged opposition to Fastow's role in the big hedging deal, called LJM2, to
show that the "Fastow era" is over. The Wall Street Journal, citing
anonymous sources, reported Tuesday that as treasurer at Enron McMahon
complained about Fastow's possible conflict of interest. Probably, the fear
was that Fastow couldn't serve Enron and LJM2 equally, especially as he was
allegedly making a lot of money from LJM2.


Clearly, if McMahon turns out to be a new broom, that's a positive for
Enron. An Enron spokeswoman declined to comment on whether The Journal's
account of McMahon's stance on LJM2 was correct.



Plunging
Investors not liking Enron here

  <http://images.thestreet.com/markets/detox/1425.gif>

Not much else is encouraging, however. Fastow's departure shows that it took
massive drops in Enron stock to force senior management into action. On a
difficult  <http://www.thestreet.com/markets/detox/10002864.html> conference
call Tuesday, CEO Ken Lay gave Fastow resounding backing. It took
Wednesday's plunge to get Lay to sign off on a new CFO. In other words, Lay
listens only when the market screams and hollers. How much further does the
stock have to fall to bring further much-needed reforms at the company?

The spokeswoman responds that Lay had discussions with analysts Tuesday and
Wednesday that led him to the conclusion that Fastow's replacement was
necessary to rebuild investor confidence.


Enron culture is thick with financial sorcery. People got upset by one
shadowy deal, but no one knows exactly how the company's core energy trading
business makes money. It's hard to believe the LJM2 deals were done in
isolation and without the knowledge of the board.


In fact, the chatter is that Fastow and Skilling proposed the LJM2
transactions to the board after it was reluctant to enter the broadband
business. The board apparently feared the volatility that might come from
being in broadband, so Fastow allegedly proposed LJM2 as a way to hedge that
volatility away. This meant LJM2 entered agreements that gave it access to
increases in the value of broadband assets but protected Enron from the
downside. Should the whole board be on the hook, too? The spokeswoman
responds that the board would not have entered the LJM2 transaction if it
had not thought it would benefit Enron and its shareholders.


Lay has shown himself to be woefully out of touch with the market's views.
Arguably, that's downright reckless for a trading company that is dependent
on potentially skittish short-term financing. Letting things get this bad
has risked good faith among Enron counterparties and bankers. It shows an
unhealthy reluctance to address key problems until they're unavoidable. The
spokeswoman responds that the company is now working hard to improve
transparency.


Any efforts in that direction will be much appreciated, but is it any wonder
people compare this lot to Long Term Capital Management?






   _____


Know any companies that the market may be misvaluing? Detox would like to
hear about them. Please send all feedback to peavis@thestreet.com
<mailto:peavis@thestreet.com> .

In keeping with TSC's editorial policy, Peter Eavis doesn't own or short
individual stocks. He also doesn't invest in hedge funds or other private
investment partnerships.
   _____

Read our conflicts and  <http://www.thestreet.com/tsc/disclosure.html>
disclosure policy.
Order reprints <http://www.thestreet.com/about/reprints.html>  of TSC
articles.	 Top
   _____

 <http://finance.yahoo.com> Back to Yahoo







 <http://www.thestreet.com/tsc/shopping/online_invest.html>
<http://www.scottrade.com/index.asp?supbid=3663>

<http://ad.doubleclick.net/clk;2640182;4639705;i?http://mds.centrport.net/md
sefc?a20250041;MDLJ101C1540P29225B30088S0;B30088;1> Apply now for a
CSFBdirect account
<http://images.thestreet.com/tsc/common/images/marketplacemod/arrow.gif>
ONLINE INVESTING
Get
<http://ad.doubleclick.net/clk;2640235;4639705;h?http://mds.centrport.net/md
sefc?a27250041;MDLJ101C1540P29225B31579S0;B31579;1> a FREE Handspring(tm)
Visor(tm) from CSFBdirect.
<http://ad.doubleclick.net/ad/thestreet.com/markets_module;sz=1x1;stile=1;or
d=>

<http://ad.doubleclick.net/clk;3080541;4639705;g?http://ad.doubleclick.net/c
lk;3076416;6112422;w?http://www.netbank.com/promotion/online.htm>
<http://images.thestreet.com/tsc/common/images/marketplacemod/arrow.gif>
BANKING
Get
<http://ad.doubleclick.net/clk;3080541;4639705;g?http://ad.doubleclick.net/c
lk;3076416;6112422;w?http://www.netbank.com/promotion/online.htm> a $50
bonus from NetBank.

   _____




  <http://www.thestreet.com/tsc/c.gif>

Home <http://www.thestreet.com/>   |   Top  |   Welcome / TSC Network
<http://www.thestreet.com/tsc/about/> Tour  |   Site
<http://www.thestreet.com/tsc/about/sitemap.html> Map  |   Who
<http://www.thestreet.com/tsc/about/whoswho.html> 's Who  |   Reader
<http://www.thestreet.com/tsc/about/2cents.html> Feedback  |   Jobs
<http://www.thestreet.com/tsc/about/jobs.html>
  <http://www.thestreet.com/tsc/c.gif>
Terms  <http://www.thestreet.com/tsc/about/browser.html> of Use  |   Privacy
<http://www.thestreet.com/tsc/about/privacy.html> Policy  |   Conflicts
<http://www.thestreet.com/tsc/about/disclosure.html> Policy  |   Advertise
<http://www.thestreet.com/tsc/onlinekit/index.html>   |   Investor
<http://www.thestreet.com/tsc/ir/> Relations


  <http://www.thestreet.com/tsc/c.gif> ? 1996-2001 TheStreet.com, Inc. All
rights reserved.



<http://ad.doubleclick.net/ad/thestreet.com/contextual_unit;sz=1x1;ord=08011
2?>
<http://ad.doubleclick.net/jump/thestreet.com/markets;mkts=detoxpp;sz=1x1;or
d=080112?>
<http://ad.doubleclick.net/ad/thestreet.com/contextual_unit;sz=1x1;ord=08011
2?>
<http://ad.doubleclick.net/jump/thestreet.com/markets;mkts=detoxpp;sz=1x1;or
d=080112?>

                                         ++++++CONFIDENTIALITY NOTICE+++++
The information in this email may be confidential and/or privileged.  This
email is intended to be reviewed by only the individual or organization
named above.  If you are not the intended recipient or an authorized
representative of the intended recipient, you are hereby notified that any
review, dissemination or copying of this email and its attachments, if any,
or the information contained herein is prohibited.  If you have received
this email in error, please immediately notify the sender by return email
and delete this email from your system.  Thank You