FYI, the email i sent to Nowlan.  
---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 09/21/2000 
10:01 AM ---------------------------
   
	
	
	From:  Jeffrey A Shankman                           09/21/2000 09:35 AM
	

To: John L Nowlan/HOU/ECT@ECT
cc:  
Subject: 

John, 

you and I have spoken of this issue before, and I hope you understand how 
important this is now.  I understand 
about the endemic risk from J Block, etc.  but I need details on how much 
those portfolios add to our var.  
Last night you guys blew var by 3.1 million by adding 4.7 million var.  As a 
result, I am not prepared to go to the board and ask for more.
The best way to approach this problem is by managing the var and making sure 
we have no violations, coming up with detailed reports
indicating exposure by product and trader, etc.  While we have been working 
on this with Brent Price, we are not there yet. 

A violation like this one today after our string of many is particularly 
troubling, esp since we are not keeping the money made over the last two 
weeks.  The MTD P&L, being reported as a little over one million this month 
doesn't help us really.  

I am now going to give out specific position limits to certain traders who 
have had big var swings without the resultant P&L.