I think this is a call Sally might be interested in being in on.  Can you 
make sure she is aware it is taking place?
---------------------- Forwarded by Shona Wilson/NA/Enron on 09/19/2000 01:04 
PM ---------------------------


Tim Poullain-Patterson@ECT
09/19/2000 12:39 PM
To: Shona Wilson/NA/Enron@Enron
cc:  

Subject: FYI: Trading v Origination to be resolved


---------------------- Forwarded by Tim Poullain-Patterson/LON/ECT on 
19/09/2000 18:41 ---------------------------


Richard Sage
19/09/2000 18:13
To: Mike Jordan/LON/ECT@ECT, Tim Poullain-Patterson/LON/ECT@ECT, Naomi 
Connell/LON/ECT@ECT
cc: Phil Redman/LON/ECT@ECT, Robert Soeldner/LON/ECT@ECT 

Subject: FYI: Trading v Origination to be resolved


---------------------- Forwarded by Richard Sage/LON/ECT on 19/09/2000 18:15 
---------------------------


Nicole Scott
19/09/2000 17:20
To: Richard Sage/LON/ECT@ECT, Sharron Westbrook/Corp/Enron@ENRON, Jo 
Corbitt/NA/Enron@Enron
cc:  

Subject: Conference call

I would like to confirm the following conference call for Thursday 21st 
September at 10am Houston time, 4pm London time

Attendees Rick Causey, Rick Buy, Richard Sage & Fernley Dyson

Fernley will be calling into Rick Causey's number.

Thanks  

Niki 
---------------------- Forwarded by Nicole Scott/LON/ECT on 19/09/2000 17:17 
---------------------------


Richard Sage
19/09/2000 00:02
To: Nicole Scott/LON/ECT@ECT
cc: Kathryn Thomas/LON/ECT@ECT 

Subject: Conference call

Niki,
Can you arrange a conference call with Rick Causey and Rick Buy for Fernley 
and myself some time soon to discuss the below.

Many thanks,
Richard 
---------------------- Forwarded by Richard Sage/LON/ECT on 19/09/2000 00:04 
---------------------------
To: Richard Causey/Corp/Enron@ENRON, Rick Buy/HOU/ECT@ECT
cc: John Sherriff/LON/ECT@ECT, Michael R Brown/LON/ECT@ECT, Fernley 
Dyson/LON/ECT@ECT, Sally Beck/HOU/ECT@ECT, Ted Murphy/HOU/ECT@ECT, Brent A 
Price/HOU/ECT@ECT 

Subject: 

Rick, Rick,

There are three MG offices in North America outside New York which, previous 
to the acquisition by Enron, acted much as trading offices. They are very 
small.
We have worked with the people in Metals to put in place extra controls so 
that they are not trading offices, for example having a trader in a 
designated Trading Office own each book and sign off on profit daily.
This process has highlighted the fact that our non-trading offices are not 
all the same, and cannot reasonably all be the same.
Some offices organise logistics things to happen on the ground, some 
originate (get a price from a Trading Office for every deal), and some 
execute for Trading Offices (are given a range within which they can execute 
trades).

 is a suggestion for how we can make this division explicit.
Tab 'Office Models' shows which functions are performed in which type of 
office
Tab 'Office List' shows the actual offices involved 
We propose to re-examine this methodology in 6 months' time.
Buy-in has been obtained from the cc list and the people on the ground.

It is worth noting that this approach would have caught Helsinki, except for 
the Contract-in-a-bottom-drawer, but no system of control can reliably catch 
that, as was evidenced by EOTT.

Are you both happy with this approach?
Are there any extra controls you would like to see in place?

Thanks,
Richard