Both of these below trades are trades that Credit should have approved.  

However, our exposure with IP is over $21mm and we don't have a signed ISDA contract.  I think the analyst (Darren Vanek) was trying to get the attention of Craig Breslau to make it a priority to get the document finalized.  This is an ongoing discussion with Craig and we are seeing little progress.  I can't believe this would have an impact on our relationship with the customer.

The USX trade should have been approved but Darren was probably swayed by our position on an EIM prepay transaction with US Steel where we are requiring the risk to be pre-syndicated.

Darren is a young aggressive analyst which I believe is doing a good job trying to support Fred's team but with more experience will learn where to be more flexible.  

Fred's team likes to push the envelope on Credit. In isolation we will probably be okay but in the context of the growing portfolio of deals it will be increasingly harder to manage our risks.

I think this issue has already been resolved.  Let me know if you would like to discuss.
Bill






 -----Original Message-----
From: 	Kitchen, Louise  
Sent:	Tuesday, September 04, 2001 2:28 PM
To:	Bradford, William S.
Subject:	Credit

All of a sudden (and without prompting - before you ask) I am hearing a lot of noise surrounding Jay Williams and Darren Vanek (?) including a couple of transactions (small but big customers - like International Paper) where the customer is getting very upset as we have refused to do one month deals with them.  Also USX felt the same and we are persuing deals with them too.  Can you look into this for me?  It may be OK but it might be a little over zealous.


Noise from East Gas and Lagrasta's groups

Thanks

Louise

Louise Kitchen
Chief Operating Officer
Enron Americas
Tel:  713 853 3488
Fax: 713 646 2308