Thanks for note. Sounds like good progress on people side. It seems, like many things, that a huge effort is followed by a period of nothing, but eventually the balls that have been rolling generate enuf  "mo" to make a difference. Rick

 -----Original Message-----
From: 	Murphy, Ted  
Sent:	Wednesday, July 18, 2001 2:59 AM
To:	Buy, Rick
Subject:	Get Better!

Rick,
The reports I am getting regarding you are quite encouraging.  Hope you continue to make progress without too much pain.  Don't talk unless you have to.  Could you imagine if I ever have that operation, there'd be blood everywhere!

I do not have anything in particular that would compel me to make you talk.  It is good to hear that you will be back in the office, because I am concerned that the Board stuff needs direction.  Not that people aren't working on stuff, but your perspective is needed.  We had what I think was an excellent meeting with Jeff Skilling - I chimed in by conference call.  He spent about an hour and 1/2 with David, Cassandra and me.  Had some interesting perspectives.  He did make the comment that, if he could get the same returns on incremental VaR, he would rather increase our limit to $250MM than do more of those asset deals!!

Things are generally the same around here, there are some deals, but none that would require you to step in.    Michael is trying to push to get some things closed in July because he is concerned that August will be dead.  It looks very likely that we are trying to dress up Encom for sale without making big commitments. 
There have been a few problems that may come across your radar scope - there were some personell issues in the Henry Bath warehousing business that have been dealt with and some personell changes in metals, basically a few people let go in NY and London and a re-configuration of the commercial staff - merging of physical and financial.
It seems to be moving on the right track from a control perspective.  It remains to be seen on the commercial front.  EBS has gotten gutted here.  I have spoken to Steve.  Apparently, he is going back soon, but he is in the fortunate state of having a few decent offers to weigh internally. He hasn't told me his final decision.

We have lost a 2 more people to resignation on the credit side - Anna Reich and Karolina Moran.  I would have liked to have kept Karolina but she has been here 2 years and seems a little too bitter from the management changes and the lack of substantive change to refresh herself.  Anna was going to have to be replaced anyway.
On the positive side of the ledger, an ex-JP morgan ISDA Collateral Annex expert - Christine Stanchus - has joined yesterday, Pat Cini has been doing a good job, Rudi Z. plans to start on 8/15, Tracy Ngo is here looking around and thinking about early september, 3 from the outside have accepted and we have 4/5 other real prospects. There are also a few other internal transfers (one which we ought to discuss). We have reviewed hundreds of resumes, spoken to tons of agencies, put in 2 newpaper adds and interviewed maybe a hundred people.  Finally, we are starting to see some reasonable quality - a little more expensive, but much better.  Most hires/offers have been in the middle range - sr. Specialist - junior director.  We need to fill in the other ends of the spectrum.  It is possible that we have turned the corner....

I am hoping that when the days begin to get shorter (September 5th?), I will be in a position to actually start to make an impact around here.

Take care and let me know if there is anything personal or professional that I can do to reduce your stress.

Ted