----- Forwarded by Tom Briggs/NA/Enron on 10/25/2000 08:01 AM -----

	RAISLERK@sullcrom.com
	10/25/2000 07:51 AM
		 
		 To: tom.briggs@enron.com
		 cc: 
		 Subject: Fwd: CEA Update Bad News


Senator Gramm's staff presented to the Senate Ag Committee Republican and
Democratic staff and the Democratic staff of the Senate Banking Committee,
Gramm's proposed changes to the CEA bill. This proposal is quite lengthy,
and includes many amendments most of which were previously discussed with
the House Agriculture Committee, some of which were included in House
Agriculture Committee Saturday Night Draft of 10/8/00. Because of the length
of the document we have only attached the summary that the Gramm staff
provided. In separate e-mails to follow we will send only the pages of the
House-passed bill that were changed by the Gramm proposal. As you know  some 
of these provisions include matters objectionable to
Treasury, SEC, CFTC, Chicago and New York Exchanges. Essentially the Gramm
staff has included proposals which would allow retail and agency
transactions as well as language designed to solve the Blackbird problem.
As you also know the view of the Agencies and the Ag Comm is that  some of
these exclusions create loopholes which can allow some market participants
to avoid the new Single Stock Futures regulatory design, the CFTC oversight
of the energy market, and go far beyond the recommendations of the
President's Working Group.
The staffs of the Banking and Agriculture Committees have agreed to meet
tomorrow late morning. We believe at that time the Agriculture Committee
will propose a counter-offer which while addressing the Gramm major concerns
will not adopt his proposal but instead rely on the Treasury proposals. If
Senator Gramm is willing to work off this alternative a negotiation may
result, otherwise it is unlikely that any agreement with Gramm will be
reached. The Agriculture Committee is disinclined to repeat the debates held
in the House Agriculture Comm. consideration of the bill. We welcome your 
reaction to the proposal. If you have questions or comments
please do not hesitate to call Mary (973-5907), or George (973-5920). <<Gramm 
Summary.pdf>>



----------------------------------

This e-mail is sent by a law firm and contains information
that may be privileged and confidential. If you are not the
intended recipient, please delete the e-mail and notify us
immediately.

 - Gramm Summary.pdf