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27,725 | clyde drexler on espeak today ! join clyde drexler on espeak at ethink . enron . com , wednesday , june 14 at 10
a . m . houston time . clyde , an nba legend , will conduct an " open mike " session
to answer whatever questions you have for him .
are you at a remote location or can ' t make the event ? go into espeak now and
pre - submit your question ( s ) for clyde to answer during the scheduled event .
we want to answer everyone ' s questions , but due to the high volume of
questions we anticipate on this session , it would be helpful if you can keep
your questions short and simple . this will increase the opportunity for your
question to be answered .
ethink : invest your mind | 0 | ham | clyde drexler on espeak today ! | join clyde drexler on espeak at ethink . enron . com , wednesday , june 14 at 10
a . m . houston time . clyde , an nba legend , will conduct an " open mike " session
to answer whatever questions you have for him .
are you at a remote location or can ' t make the event ? go into espeak now and
pre - submit your question ( s ) for clyde to answer during the scheduled event .
we want to answer everyone ' s questions , but due to the high volume of
questions we anticipate on this session , it would be helpful if you can keep
your questions short and simple . this will increase the opportunity for your
question to be answered .
ethink : invest your mind | 2000-06-13T00:00:00 |
13,387 | trading track ( ena ) all ,
we have 16 internal and 8 external candidates been interviewed for the ena trading track november lst . please advise if you would like to make any final recommendations on internal candidates to be interviewed .
internal candidates :
benke terrell
burt , bart
freeman , scott
giron , gustavo
hamlin mason
huang jason
hull bryan
jennaro jason
lenart kirk
lieskovsky jozef
ordway chris
pan steve
royed jeff
saavas leonidas
schlesenger laura
sell , max
total : 16
external candidates :
fred baloutch
randy hebert
ferando leija
agustin leon
zoya raynes
carl zavattieri
eric moncada
gabe weinart
total : 8
nb : awaiting feedback from 3 traders on 6 remaining external candidates . | 0 | ham | trading track ( ena ) | all ,
we have 16 internal and 8 external candidates been interviewed for the ena trading track november lst . please advise if you would like to make any final recommendations on internal candidates to be interviewed .
internal candidates :
benke terrell
burt , bart
freeman , scott
giron , gustavo
hamlin mason
huang jason
hull bryan
jennaro jason
lenart kirk
lieskovsky jozef
ordway chris
pan steve
royed jeff
saavas leonidas
schlesenger laura
sell , max
total : 16
external candidates :
fred baloutch
randy hebert
ferando leija
agustin leon
zoya raynes
carl zavattieri
eric moncada
gabe weinart
total : 8
nb : awaiting feedback from 3 traders on 6 remaining external candidates . | 2001-10-22T00:00:00 |
14,228 | re : tammie schoppe
enron americas - office of the chair
assistant to louise kitchen
713 . 853 . 4220 office
713 . 646 . 8562 fax
713 . 253 . 2131 mobile
- - - - - original message - - - - -
from : kitchen , louise
sent : sunday , december 02 , 2001 7 : 29 pm
to : schoppe , tammie
subject :
tammie - can you please add the groups to east power trading & origination >
louise kitchen
chief operating officer
enron americas
tel : 713 853 3488
fax : 713 646 2308 | 0 | ham | re : | tammie schoppe
enron americas - office of the chair
assistant to louise kitchen
713 . 853 . 4220 office
713 . 646 . 8562 fax
713 . 253 . 2131 mobile
- - - - - original message - - - - -
from : kitchen , louise
sent : sunday , december 02 , 2001 7 : 29 pm
to : schoppe , tammie
subject :
tammie - can you please add the groups to east power trading & origination >
louise kitchen
chief operating officer
enron americas
tel : 713 853 3488
fax : 713 646 2308 | 2001-12-02T00:00:00 |
5,090 | horny babes want to get laid as redactor , quite is byword but circumlocution cutesy is
syntax not pernicious swath try swamp squad when
basis and amateur auctioneer .
it nitrite , nigger poultice and shelley . no , thousandfold
they . the potboil warrior curran isn ' t historic perimeter .
nothanks | 1 | spam | horny babes want to get laid | as redactor , quite is byword but circumlocution cutesy is
syntax not pernicious swath try swamp squad when
basis and amateur auctioneer .
it nitrite , nigger poultice and shelley . no , thousandfold
they . the potboil warrior curran isn ' t historic perimeter .
nothanks
| 2005-07-23T00:00:00 |
487 | - - - - - - - - - - - - - - - - - - - - - - forwarded by ami chokshi / corp / enron on 03 / 21 / 2000 11 : 18 am - - - - - - - - - - - - - - - - - - - - - - - - - - -
royal _ b _ edmondson @ reliantenergy . com on 03 / 21 / 2000 11 : 12 : 40 am
to : ami _ chokshi @ enron . com , ggrant @ enron . com
cc :
subject :
( see attached file : egmnom - mar . xls ) ( see attached file : hpl - mar . xls )
- egmnom - mar . xls
- hpl - mar . xls | 0 | ham | - - - - - - - - - - - - - - - - - - - - - - forwarded by ami chokshi / corp / enron on 03 / 21 / 2000 | 11 : 18 am - - - - - - - - - - - - - - - - - - - - - - - - - - -
royal _ b _ edmondson @ reliantenergy . com on 03 / 21 / 2000 11 : 12 : 40 am
to : ami _ chokshi @ enron . com , ggrant @ enron . com
cc :
subject :
( see attached file : egmnom - mar . xls ) ( see attached file : hpl - mar . xls )
- egmnom - mar . xls
- hpl - mar . xls | 2000-03-21T00:00:00 |
7,102 | risk systems enhancements meeting 9 / 29 / 00 - 11 : 30 - 1 : 00 p . m . eb 2868 tanya :
fyi . this is the meeting you will be attending for vince tomorrow .
thanks !
shirley
- - - - - - - - - - - - - - - - - - - - - - forwarded by shirley crenshaw / hou / ect on 09 / 28 / 2000
10 : 09 am - - - - - - - - - - - - - - - - - - - - - - - - - - -
dorothy youngblood
09 / 28 / 2000 09 : 11 am
to : karen k heathman / hou / ect @ ect , jo corbitt / na / enron @ enron , rita
hennessy / na / enron @ enron , cherylene r westbrook / hou / ect @ ect , shirley
crenshaw / hou / ect @ ect , peggy mccurley / hou / ect @ ect , patti thompson / hou / ect @ ect ,
giselle james / corp / enron @ enron
cc :
subject : risk systems enhancements meeting 9 / 29 / 00 - 11 : 30 - 1 : 00 p . m . eb 2868
ladies ,
good morning ,
just a reminder of the above referenced meeting will be held tomorrow
9 / 29 / 2000 @ 11 : 30 a . m . - 1 : 00 p . m . lunch will be served .
attendees :
rick buy
sally beck
philippe bibi ( or representative from his group )
bill bradford
debbie brackett
vince kaminski ( or representative from his group )
ted murphy
beth perlman
david port
stephen stock
thank you in advance . .
dorothy
3 - 6114
- - - - - - - - - - - - - - - - - - - - - - forwarded by dorothy youngblood / hou / ect on 09 / 28 / 2000
08 : 37 am - - - - - - - - - - - - - - - - - - - - - - - - - - -
dorothy youngblood
09 / 21 / 2000 11 : 41 am
to : karen k heathman / hou / ect @ ect , jo corbitt / na / enron @ enron , rita
hennessy / na / enron @ enron , cherylene r westbrook / hou / ect @ ect , shirley
crenshaw / hou / ect @ ect , peggy mccurley / hou / ect @ ect , patti thompson / hou / ect @ ect ,
giselle james / corp / enron @ enron
cc :
subject : risk systems enhancements meeting 9 / 22 / 00 - 11 : 30 - 1 : 00 p . m . eb 2868
ladies ,
just a quick reminder about the meeting tomorrow . lunch will be served - - so
each of your bosses or their representatives will be served . so they do not
have to worry about bringing their lunches . yeah ! ! ! ! !
attendees :
rick buy
sally beck
philippe bibi ( or representative from his group )
bill bradford
debbie brackett
vince kaminski ( or representative from his group )
ted murphy
beth perlman
david port
stephen stock
please see below :
menu
blackened chicken
fettuccine
fresh seasonal vegetables
ceasar salad w / assorted dressings
fresh baked rolls w / butter
bottled water
assorted drinks
cookies ( assorted )
thank you very much in advance .
thanks . . dy
- - - - - - - - - - - - - - - - - - - - - - forwarded by dorothy youngblood / hou / ect on 09 / 21 / 2000
10 : 59 am - - - - - - - - - - - - - - - - - - - - - - - - - - -
dorothy youngblood
09 / 19 / 2000 12 : 52 pm
to : karen k heathman / hou / ect @ ect , jo corbitt / na / enron @ enron , rita
hennessy / na / enron @ enron , cherylene r westbrook / hou / ect @ ect , shirley
crenshaw / hou / ect @ ect , peggy mccurley / hou / ect @ ect , patti thompson / hou / ect @ ect ,
giselle james / corp / enron @ enron
cc :
subject : risk systems enhancements meeting
ladies
rick buy would like to have the above meeting on a weekly basis . debbie
brackett asked that i send an email to invite your bosses . the meeting will
be from 11 : 30 a . m . - 1 : 00 p . m . this meeting will be held each friday - room
eb 2868 for the rest of the year .
attendees :
rick buy
bill bradford
debbie brackett
philippe bibi
ted murphy
david port
stephen stock
vince kaminski
beth perlman
sally beck
thank you
dorothy
3 - 6114
- - - - - - - - - - - - - - - - - - - - - - forwarded by dorothy youngblood / hou / ect on 09 / 19 / 2000
12 : 29 pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
from : debbie r brackett
09 / 11 / 2000 10 : 09 am
to : dorothy youngblood / hou / ect @ ect
cc :
subject : rac it improvement projects
- - - - - - - - - - - - - - - - - - - - - - forwarded by debbie r brackett / hou / ect on 09 / 11 / 2000
10 : 09 am - - - - - - - - - - - - - - - - - - - - - - - - - - -
rick buy @ enron
09 / 07 / 2000 04 : 35 pm
sent by : jo corbitt @ enron
to : sally beck / hou / ect @ ect , philippe a bibi / hou / ect @ ect , debbie r
brackett / hou / ect @ ect , william s bradford / hou / ect @ ect , mike
jordan / lon / ect @ ect , vince j kaminski / hou / ect @ ect , ted murphy / hou / ect @ ect
cc : john j lavorato / corp / enron @ enron , mike mcconnell / hou / ect @ ect , john
sherriff / lon / ect @ ect
subject : rac it improvement projects | 0 | ham | risk systems enhancements meeting 9 / 29 / 00 - 11 : 30 - 1 : 00 p . m . eb 2868 | tanya :
fyi . this is the meeting you will be attending for vince tomorrow .
thanks !
shirley
- - - - - - - - - - - - - - - - - - - - - - forwarded by shirley crenshaw / hou / ect on 09 / 28 / 2000
10 : 09 am - - - - - - - - - - - - - - - - - - - - - - - - - - -
dorothy youngblood
09 / 28 / 2000 09 : 11 am
to : karen k heathman / hou / ect @ ect , jo corbitt / na / enron @ enron , rita
hennessy / na / enron @ enron , cherylene r westbrook / hou / ect @ ect , shirley
crenshaw / hou / ect @ ect , peggy mccurley / hou / ect @ ect , patti thompson / hou / ect @ ect ,
giselle james / corp / enron @ enron
cc :
subject : risk systems enhancements meeting 9 / 29 / 00 - 11 : 30 - 1 : 00 p . m . eb 2868
ladies ,
good morning ,
just a reminder of the above referenced meeting will be held tomorrow
9 / 29 / 2000 @ 11 : 30 a . m . - 1 : 00 p . m . lunch will be served .
attendees :
rick buy
sally beck
philippe bibi ( or representative from his group )
bill bradford
debbie brackett
vince kaminski ( or representative from his group )
ted murphy
beth perlman
david port
stephen stock
thank you in advance . .
dorothy
3 - 6114
- - - - - - - - - - - - - - - - - - - - - - forwarded by dorothy youngblood / hou / ect on 09 / 28 / 2000
08 : 37 am - - - - - - - - - - - - - - - - - - - - - - - - - - -
dorothy youngblood
09 / 21 / 2000 11 : 41 am
to : karen k heathman / hou / ect @ ect , jo corbitt / na / enron @ enron , rita
hennessy / na / enron @ enron , cherylene r westbrook / hou / ect @ ect , shirley
crenshaw / hou / ect @ ect , peggy mccurley / hou / ect @ ect , patti thompson / hou / ect @ ect ,
giselle james / corp / enron @ enron
cc :
subject : risk systems enhancements meeting 9 / 22 / 00 - 11 : 30 - 1 : 00 p . m . eb 2868
ladies ,
just a quick reminder about the meeting tomorrow . lunch will be served - - so
each of your bosses or their representatives will be served . so they do not
have to worry about bringing their lunches . yeah ! ! ! ! !
attendees :
rick buy
sally beck
philippe bibi ( or representative from his group )
bill bradford
debbie brackett
vince kaminski ( or representative from his group )
ted murphy
beth perlman
david port
stephen stock
please see below :
menu
blackened chicken
fettuccine
fresh seasonal vegetables
ceasar salad w / assorted dressings
fresh baked rolls w / butter
bottled water
assorted drinks
cookies ( assorted )
thank you very much in advance .
thanks . . dy
- - - - - - - - - - - - - - - - - - - - - - forwarded by dorothy youngblood / hou / ect on 09 / 21 / 2000
10 : 59 am - - - - - - - - - - - - - - - - - - - - - - - - - - -
dorothy youngblood
09 / 19 / 2000 12 : 52 pm
to : karen k heathman / hou / ect @ ect , jo corbitt / na / enron @ enron , rita
hennessy / na / enron @ enron , cherylene r westbrook / hou / ect @ ect , shirley
crenshaw / hou / ect @ ect , peggy mccurley / hou / ect @ ect , patti thompson / hou / ect @ ect ,
giselle james / corp / enron @ enron
cc :
subject : risk systems enhancements meeting
ladies
rick buy would like to have the above meeting on a weekly basis . debbie
brackett asked that i send an email to invite your bosses . the meeting will
be from 11 : 30 a . m . - 1 : 00 p . m . this meeting will be held each friday - room
eb 2868 for the rest of the year .
attendees :
rick buy
bill bradford
debbie brackett
philippe bibi
ted murphy
david port
stephen stock
vince kaminski
beth perlman
sally beck
thank you
dorothy
3 - 6114
- - - - - - - - - - - - - - - - - - - - - - forwarded by dorothy youngblood / hou / ect on 09 / 19 / 2000
12 : 29 pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
from : debbie r brackett
09 / 11 / 2000 10 : 09 am
to : dorothy youngblood / hou / ect @ ect
cc :
subject : rac it improvement projects
- - - - - - - - - - - - - - - - - - - - - - forwarded by debbie r brackett / hou / ect on 09 / 11 / 2000
10 : 09 am - - - - - - - - - - - - - - - - - - - - - - - - - - -
rick buy @ enron
09 / 07 / 2000 04 : 35 pm
sent by : jo corbitt @ enron
to : sally beck / hou / ect @ ect , philippe a bibi / hou / ect @ ect , debbie r
brackett / hou / ect @ ect , william s bradford / hou / ect @ ect , mike
jordan / lon / ect @ ect , vince j kaminski / hou / ect @ ect , ted murphy / hou / ect @ ect
cc : john j lavorato / corp / enron @ enron , mike mcconnell / hou / ect @ ect , john
sherriff / lon / ect @ ect
subject : rac it improvement projects | 2000-09-28T00:00:00 |
7,203 | review of paper by titman , et al resending . . .
vasant
- - - - - - - - - - - - - - - - - - - - - - forwarded by vasant shanbhogue / hou / ect on 10 / 10 / 2000
11 : 58 am - - - - - - - - - - - - - - - - - - - - - - - - - - -
vasant shanbhogue
10 / 02 / 2000 02 : 04 pm
to : vince j kaminski / hou / ect @ ect
cc :
subject : review of paper by titman , et al | 0 | ham | review of paper by titman , et al | resending . . .
vasant
- - - - - - - - - - - - - - - - - - - - - - forwarded by vasant shanbhogue / hou / ect on 10 / 10 / 2000
11 : 58 am - - - - - - - - - - - - - - - - - - - - - - - - - - -
vasant shanbhogue
10 / 02 / 2000 02 : 04 pm
to : vince j kaminski / hou / ect @ ect
cc :
subject : review of paper by titman , et al | 2000-10-10T00:00:00 |
19,138 | sheee wiiiiill saay it ' s too loooooong hi kirk ,
dooooooon ' t getteeed buuuuurneed .
geeeet viiiaaaagraaaaaaa .
thanks ,
marianne schafer
nooooo mooooreeeee heeeeereeeeee
http : / / www . bossanovaltd . info
auerbach calibre cloven candace jacksonian firehouse biotic freeway poinsettia diachronic degeneracy lutz draft do stifle godsend broach covariate firearm impenetrable heuser acton eyebrow hansel dysentery defect laurentian inauspicious spiritual arden countersunk loss .
accelerometer cochineal duress adhesive compulsion islamic contention peafowl bullish hangmen superficial offhand ladyfern ankle ferry arrogant eave bespeak aristocrat wheeze denture canaan hospice malay alison consent blaine capricorn pocket kane mohr kapok crony hammock mammal .
mccann woodcarver parapsychology conversion angle robbin yale eisenhower conform tarantara labia segregant crash disciplinary brook presbyterian fling .
betelgeuse maggie cloven witty patrician standard cobol westinghouse eddy commandant mcgill stench burton cookie umlaut statute southpaw extolling demean quanta bordello incapable arbitrate pasadena jo .
auberge coerce chowder foyer quilt apply anti mantrap extricate quadriceps permissible kingpin dwight afghanistan elsie impenetrable welsh wildlife bolivar abstain accretion game collectible catalpa potato vertebral malraux goes possession precede tout alger blackfeet patricia yuh .
tinge strive syndrome skillful telex ashen stater punish applicable creedal pitch toccata asinine lutetium sparge catatonia cling matriarch attenuate alice forth dateline nash cotillion perusal .
funereal muezzin pigroot adjoin hurl persist thumb homage preoccupy engine gambol stiffen revelatory sentence appraise .
freedman annul sloven lisle stonewall dutchman crossarm stephen dusseldorf laud .
ansi stringy syria caddy gauguin plaintiff refusal planetarium pfennig basil brawl clay transgress azimuth daddy flask dangle astral principia andesine cationic helene heroes tegucigalpa bolt whistleable knotty .
filamentary fisherman consolation imperturbable deacon rd desperate hospital hundredfold diaphanous pessimum .
beauregard onetime unidimensional crosspoint consanguine maitre ballerina aggression pigskin donnelly pub credential client form edition aau cadaverous mummy bernard sometime credenza complacent demerit passenger suppose coarse willard european puddingstone .
pioneer snippy aliphatic debrief dairymen bindle house dominate klystron canis ftc inexcusable buckaroo throng tv duct nv beaux .
radiotherapy baleful venus bedraggle large lucas northland lumbermen vote this ho hysteric decontrol ephemeral .
cinnabar cube dissemble acm desire attend cameron inflater rudy shreveport . | 1 | spam | sheee wiiiiill saay it ' s too loooooong | hi kirk ,
dooooooon ' t getteeed buuuuurneed .
geeeet viiiaaaagraaaaaaa .
thanks ,
marianne schafer
nooooo mooooreeeee heeeeereeeeee
http : / / www . bossanovaltd . info
auerbach calibre cloven candace jacksonian firehouse biotic freeway poinsettia diachronic degeneracy lutz draft do stifle godsend broach covariate firearm impenetrable heuser acton eyebrow hansel dysentery defect laurentian inauspicious spiritual arden countersunk loss .
accelerometer cochineal duress adhesive compulsion islamic contention peafowl bullish hangmen superficial offhand ladyfern ankle ferry arrogant eave bespeak aristocrat wheeze denture canaan hospice malay alison consent blaine capricorn pocket kane mohr kapok crony hammock mammal .
mccann woodcarver parapsychology conversion angle robbin yale eisenhower conform tarantara labia segregant crash disciplinary brook presbyterian fling .
betelgeuse maggie cloven witty patrician standard cobol westinghouse eddy commandant mcgill stench burton cookie umlaut statute southpaw extolling demean quanta bordello incapable arbitrate pasadena jo .
auberge coerce chowder foyer quilt apply anti mantrap extricate quadriceps permissible kingpin dwight afghanistan elsie impenetrable welsh wildlife bolivar abstain accretion game collectible catalpa potato vertebral malraux goes possession precede tout alger blackfeet patricia yuh .
tinge strive syndrome skillful telex ashen stater punish applicable creedal pitch toccata asinine lutetium sparge catatonia cling matriarch attenuate alice forth dateline nash cotillion perusal .
funereal muezzin pigroot adjoin hurl persist thumb homage preoccupy engine gambol stiffen revelatory sentence appraise .
freedman annul sloven lisle stonewall dutchman crossarm stephen dusseldorf laud .
ansi stringy syria caddy gauguin plaintiff refusal planetarium pfennig basil brawl clay transgress azimuth daddy flask dangle astral principia andesine cationic helene heroes tegucigalpa bolt whistleable knotty .
filamentary fisherman consolation imperturbable deacon rd desperate hospital hundredfold diaphanous pessimum .
beauregard onetime unidimensional crosspoint consanguine maitre ballerina aggression pigskin donnelly pub credential client form edition aau cadaverous mummy bernard sometime credenza complacent demerit passenger suppose coarse willard european puddingstone .
pioneer snippy aliphatic debrief dairymen bindle house dominate klystron canis ftc inexcusable buckaroo throng tv duct nv beaux .
radiotherapy baleful venus bedraggle large lucas northland lumbermen vote this ho hysteric decontrol ephemeral .
cinnabar cube dissemble acm desire attend cameron inflater rudy shreveport .
| 2004-06-15T00:00:00 |
32,562 | tracking could you tell me if your system would be used for
sending out unsolicited e - mails ? | 1 | spam | tracking | could you tell me if your system would be used for
sending out unsolicited e - mails ? | 2005-04-19T00:00:00 |
22,645 | japanese power market thank you for letting me read our market overview and business model for
japan .
when i went to the exotic energy derivatives conference in december , i met
masayuki fujita , who studies the japanese power market for the mitsubishi
research institute . we chatted about deregulation of the industry and about
the entry of foreign companies into the market .
the japanese understand the need to deregulate the industry , but want to
avoid the pain that may be associated with it . this process is very
unfamiliar and uncomfortable for the japanese . they see power as a matter of
national security ( like agriculture ) , so foreign entrants into the market
will have to tread with care , understanding , and sophistication .
fujita is working on a report for the institute . he has agreed to let me
have copies of the non - confidential portions when it is finished . in the
interim , he sent me a copy of a presentation that i thought you might find
interesting .
regards ,
eugenio | 0 | ham | japanese power market | thank you for letting me read our market overview and business model for
japan .
when i went to the exotic energy derivatives conference in december , i met
masayuki fujita , who studies the japanese power market for the mitsubishi
research institute . we chatted about deregulation of the industry and about
the entry of foreign companies into the market .
the japanese understand the need to deregulate the industry , but want to
avoid the pain that may be associated with it . this process is very
unfamiliar and uncomfortable for the japanese . they see power as a matter of
national security ( like agriculture ) , so foreign entrants into the market
will have to tread with care , understanding , and sophistication .
fujita is working on a report for the institute . he has agreed to let me
have copies of the non - confidential portions when it is finished . in the
interim , he sent me a copy of a presentation that i thought you might find
interesting .
regards ,
eugenio | 2000-02-25T00:00:00 |
13,242 | re : eix and eme no material current exposure , but we are continuing to review the bny deal . the cro from eme indicated to me that he and the cfo were doing a road show to communicate the current position and direction for the company and said they include enron . i am still trying to schedule .
i ' ll keep you informed .
- - - - - original message - - - - -
from : seyfried , bryan
sent : wednesday , october 10 , 2001 9 : 12 am
to : kitchen , louise ; bradford , william s .
cc : lee , derek ; fiala , markus
subject : eix and eme
given recent events , we are looking to cover our long protection ( $ 15 mm ) in edison mission energy . will keep the position if you are still interested or can sell it to ena . bonds have rallied in , still looking for a market in the default swaps . pls . let me know if you have any interest . | 0 | ham | re : eix and eme | no material current exposure , but we are continuing to review the bny deal . the cro from eme indicated to me that he and the cfo were doing a road show to communicate the current position and direction for the company and said they include enron . i am still trying to schedule .
i ' ll keep you informed .
- - - - - original message - - - - -
from : seyfried , bryan
sent : wednesday , october 10 , 2001 9 : 12 am
to : kitchen , louise ; bradford , william s .
cc : lee , derek ; fiala , markus
subject : eix and eme
given recent events , we are looking to cover our long protection ( $ 15 mm ) in edison mission energy . will keep the position if you are still interested or can sell it to ena . bonds have rallied in , still looking for a market in the default swaps . pls . let me know if you have any interest . | 2001-10-10T00:00:00 |
28,133 | wefa report on future of gas turbines for power note : wefa has made some interesting points in their conclusions of this
study .
gas turbines headed for a 50 % meltdown
high natural gas prices , performance issues and higher than expected
maintenance costs , a general economic slowdown and several other key factors
will combine to create a " near - term meltdown in the gas turbine market , "
according to a report by wefa , inc .
reporting on a study about to be published by the analysis and consulting
firm based in eddystone , pa , one of its authors predicted " a substantial
short - term correction in the gas turbine market . . which could render 50 % of
current north american projects uneconomic . " jason makansi , principal of
makansi
fuel - switching is not living up to its advance billing ; units may not perform
as well at high ambient temperatures ; overhauls are required more frequently
than had been expected ; maintenance costs also are exceeding expectations ;
and fuel quality is becoming an issue .
" variable o engineering consultant jeffrey j . fassett ; and kemm farney ,
vice president , wefa electric power service . for more information go to
www . wefa . com . | 0 | ham | wefa report on future of gas turbines for power | note : wefa has made some interesting points in their conclusions of this
study .
gas turbines headed for a 50 % meltdown
high natural gas prices , performance issues and higher than expected
maintenance costs , a general economic slowdown and several other key factors
will combine to create a " near - term meltdown in the gas turbine market , "
according to a report by wefa , inc .
reporting on a study about to be published by the analysis and consulting
firm based in eddystone , pa , one of its authors predicted " a substantial
short - term correction in the gas turbine market . . which could render 50 % of
current north american projects uneconomic . " jason makansi , principal of
makansi
fuel - switching is not living up to its advance billing ; units may not perform
as well at high ambient temperatures ; overhauls are required more frequently
than had been expected ; maintenance costs also are exceeding expectations ;
and fuel quality is becoming an issue .
" variable o engineering consultant jeffrey j . fassett ; and kemm farney ,
vice president , wefa electric power service . for more information go to
www . wefa . com . | 2000-11-01T00:00:00 |
17,731 | start date : 1 / 15 / 02 ; hourahead hour : 8 ; start date : 1 / 15 / 02 ; hourahead hour : 8 ; no ancillary schedules awarded . no variances detected .
log messages :
parsing file - - > > o : \ portland \ westdesk \ california scheduling \ iso final schedules \ 2002011508 . txt | 0 | ham | start date : 1 / 15 / 02 ; hourahead hour : 8 ; | start date : 1 / 15 / 02 ; hourahead hour : 8 ; no ancillary schedules awarded . no variances detected .
log messages :
parsing file - - > > o : \ portland \ westdesk \ california scheduling \ iso final schedules \ 2002011508 . txt | 2002-01-15T00:00:00 |
13,261 | fw : - - - - - original message - - - - -
from : delainey , david
sent : fri 10 / 12 / 2001 2 : 52 pm
to : lavorato , john
cc :
subject :
john , as a follow up to greg ' s call , i would like to provide equity value , in recognition of the huge effort on the ees issues plus key player on the team going forward , to the following people from ees :
options equity total
rogers herndon $ 250 k $ 250 k $ 500 k
don black $ 250 k $ 250 k $ 500 k
jeff richter $ 100 k $ 100 k $ 200 k
bernie aucoin $ 100 k $ 100 k $ 200 k
i assume that you have tim and kevin managed .
views ?
when are we going to get back together to finalize our discussions ?
regards
delainey | 0 | ham | fw : | - - - - - original message - - - - -
from : delainey , david
sent : fri 10 / 12 / 2001 2 : 52 pm
to : lavorato , john
cc :
subject :
john , as a follow up to greg ' s call , i would like to provide equity value , in recognition of the huge effort on the ees issues plus key player on the team going forward , to the following people from ees :
options equity total
rogers herndon $ 250 k $ 250 k $ 500 k
don black $ 250 k $ 250 k $ 500 k
jeff richter $ 100 k $ 100 k $ 200 k
bernie aucoin $ 100 k $ 100 k $ 200 k
i assume that you have tim and kevin managed .
views ?
when are we going to get back together to finalize our discussions ?
regards
delainey | 2001-10-13T00:00:00 |
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| 2004-01-08T00:00:00 |
25,765 | save your money buy getting this thing here you have not tried cialls yet ?
than you cannot even imagine what it is like to be a real man in bed !
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| 2005-06-27T00:00:00 |
5,768 | re : time keeping hi brad :
i am it for our group ! however , it might be a good idea to train sam smith
also .
please let us know .
thanks !
shirley
3 - 5290
from : brad mcsherry on 03 / 20 / 2000 05 : 38 pm
to : lydia cannon / hou / ect @ ect , rosalinda resendez / hou / ect @ ect , donna
baker / hou / ect @ ect , shirley crenshaw / hou / ect @ ect
cc :
subject : time keeping
lydia / rosie / donna / shirley ,
we are looking to implement sap hr by 7 / 1 / 00 . there is a time keeping module
in the program . please send me a list of the time keepers for your groups .
do not forget to send your own name if you keep time . time keepers will be
contacted in the near future for training on the new system .
thank you for your help ,
brad | 0 | ham | re : time keeping | hi brad :
i am it for our group ! however , it might be a good idea to train sam smith
also .
please let us know .
thanks !
shirley
3 - 5290
from : brad mcsherry on 03 / 20 / 2000 05 : 38 pm
to : lydia cannon / hou / ect @ ect , rosalinda resendez / hou / ect @ ect , donna
baker / hou / ect @ ect , shirley crenshaw / hou / ect @ ect
cc :
subject : time keeping
lydia / rosie / donna / shirley ,
we are looking to implement sap hr by 7 / 1 / 00 . there is a time keeping module
in the program . please send me a list of the time keepers for your groups .
do not forget to send your own name if you keep time . time keepers will be
contacted in the near future for training on the new system .
thank you for your help ,
brad | 2000-03-20T00:00:00 |
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your future is waiting click here ! ! !
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numerology
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this email is not sent unsolicited . you are opted in with cnn - si . you are receiving it because you requested receive this email by opting - in with our marketing partner . you will receive notices of exciting offers , products , and other options ! however , we are committed to only sending to those people that desire these offers . if you do not wish to receive such offers
click here . or paste the following into any browser : http : / / 65 . 162 . 84 . 5 / perl / unsubscribe . pl ? s = to remove your email name from our list . you may contact our company by mail at 1323 s . e . 17 th street , suite number 345 , ft . lauderdale , fl 33316
| 2002-05-13T00:00:00 |
28,134 | raymond james gas price forecast for 2001 note : raymond james and associates is predicting gas prices to average $ 4 . 50
in 2001 . consensus first call estimates
are now averaging $ 3 . 85 for 2001 . read on to hear what the brokerage houses
are predicting . lorna
raymond james sends chills up gas buyers ' spines
raymond james and associates gave gas buyers a halloween shriek yesterday
that could be producing chills all the way through next april , perhaps even
all of next year . the firm released a chilly forecast of double digit gas
prices this winter and said it expects prices to average $ 4 . 50 / mmbtu in 2001 .
" regardless of a potentially warm winter , it is highly likely that the united
states will experience regional shortfalls in gas supply , " raymond james said
in its latest energy report . " in other words , gas storage should test
all - time low levels this winter regardless of weather .
" the situation should get worse , not better , next year . if we end the winter
at all - time low storage levels and we cannot inject more gas next summer than
we did this summer , then we should enter next winter with dangerously low
levels of natural gas , " raymond james added .
" we believe that the united states will see gas demand increase by about 9
bcf / d ( or 15 % ) by the end of 2002 as new gas fired electric generation plants
come on line . unfortunately , even if every drilling rig is working , u . s . gas
supply is likely to increase by less than 4 bcf / d by the end of 2002 . this
means that gas prices must rise sufficiently to crimp over 5 bcf / d of demand
out of the gas supply / demand equation by 2002 . at $ 5 / mcf , only about 1 . 5
bcf / d of demand has been reduced so far . that means that gas prices must go
higher over the next several years . "
however , raymond james ' bullish predictions are a far cry above the crowd on
wall street . plenty of other analysts have upped their forecasts recently to
hair - raising levels . the first call consensus for 2001 now is up to
$ 3 . 85 / mmbtu . but that ' s still 65 cents less than the raymond james ' s
prediction .
not everyone wants to scare the daylights out of buyers , however . deutsche
bank believes analysts and the futures market participants at nymex " are
getting bold and in our view maybe too bold . "
" with the natural gas rig count approaching 850 , it is hard to believe that
there will not be a fairly substantial supply response in 2001 , " deutsche
bank said in its energy wire on friday . " analysts at the u . s . energy
information administration are expecting dry gas production to rise to 18 . 94
tcf ( 51 . 9 bcf / d ) in 2001 , after being stuck at near 18 . 7 tcf ( 51 . 2 bcf / d ) for
several years . our own estimate for 2001 looks for 19 . 1 tcf ( 52 . 3 bcf / d ) and
we have seen credible forecasts reaching as high as 19 . 7 tcf ( 54 bcf / d ) . in
general we think the eia is way too conservative and that our own number is
more likely to be adjusted higher rather than lower . a gain in domestic
production of 2 bcf / d to 53 . 2 bcf / d could be doable . imports appear likely to
be up 0 . 5 bcf / d . if demand rises by 2 . 5 % , that would account for about a 1 . 5
bcf / d gain . all other things equal , this implies that storage can refill and
suggests that prices are going to come under some downward pressure . "
- - | 0 | ham | raymond james gas price forecast for 2001 | note : raymond james and associates is predicting gas prices to average $ 4 . 50
in 2001 . consensus first call estimates
are now averaging $ 3 . 85 for 2001 . read on to hear what the brokerage houses
are predicting . lorna
raymond james sends chills up gas buyers ' spines
raymond james and associates gave gas buyers a halloween shriek yesterday
that could be producing chills all the way through next april , perhaps even
all of next year . the firm released a chilly forecast of double digit gas
prices this winter and said it expects prices to average $ 4 . 50 / mmbtu in 2001 .
" regardless of a potentially warm winter , it is highly likely that the united
states will experience regional shortfalls in gas supply , " raymond james said
in its latest energy report . " in other words , gas storage should test
all - time low levels this winter regardless of weather .
" the situation should get worse , not better , next year . if we end the winter
at all - time low storage levels and we cannot inject more gas next summer than
we did this summer , then we should enter next winter with dangerously low
levels of natural gas , " raymond james added .
" we believe that the united states will see gas demand increase by about 9
bcf / d ( or 15 % ) by the end of 2002 as new gas fired electric generation plants
come on line . unfortunately , even if every drilling rig is working , u . s . gas
supply is likely to increase by less than 4 bcf / d by the end of 2002 . this
means that gas prices must rise sufficiently to crimp over 5 bcf / d of demand
out of the gas supply / demand equation by 2002 . at $ 5 / mcf , only about 1 . 5
bcf / d of demand has been reduced so far . that means that gas prices must go
higher over the next several years . "
however , raymond james ' bullish predictions are a far cry above the crowd on
wall street . plenty of other analysts have upped their forecasts recently to
hair - raising levels . the first call consensus for 2001 now is up to
$ 3 . 85 / mmbtu . but that ' s still 65 cents less than the raymond james ' s
prediction .
not everyone wants to scare the daylights out of buyers , however . deutsche
bank believes analysts and the futures market participants at nymex " are
getting bold and in our view maybe too bold . "
" with the natural gas rig count approaching 850 , it is hard to believe that
there will not be a fairly substantial supply response in 2001 , " deutsche
bank said in its energy wire on friday . " analysts at the u . s . energy
information administration are expecting dry gas production to rise to 18 . 94
tcf ( 51 . 9 bcf / d ) in 2001 , after being stuck at near 18 . 7 tcf ( 51 . 2 bcf / d ) for
several years . our own estimate for 2001 looks for 19 . 1 tcf ( 52 . 3 bcf / d ) and
we have seen credible forecasts reaching as high as 19 . 7 tcf ( 54 bcf / d ) . in
general we think the eia is way too conservative and that our own number is
more likely to be adjusted higher rather than lower . a gain in domestic
production of 2 bcf / d to 53 . 2 bcf / d could be doable . imports appear likely to
be up 0 . 5 bcf / d . if demand rises by 2 . 5 % , that would account for about a 1 . 5
bcf / d gain . all other things equal , this implies that storage can refill and
suggests that prices are going to come under some downward pressure . "
- - | 2000-11-01T00:00:00 |
6,816 | fw : chapter 3 revisions hi grant ,
?
chris is travelling at the moment , so i ' m contacting you on his behalf with
regards to the status of ? the completion of the chapter . ? we are dependent
on receiving this as soon as possible , since all the chapters have been
typeset and are now in the final stages of the edit process . ?
?
please let us know when you can send this over . ?
?
also , let us know if we can do anything .
?
sincerely ,
julie brennan
?
lacima group
?
- - - - - original message - - - - -
from : chris strickland
to : grant masson
cc : julie
sent : friday , august 11 , 2000 8 : 49 am
subject : re : chapter 3 revisions
hi grant ,
thanks for that . sorry for he delay but i ' ve been away for a few days .
timely executon would be good - we have just got the proofs back for all the
other chapters from the typesetters .
best regards .
chris .
- - - - - original message - - - - -
from : grant masson
to : chris strickland
sent : wednesday , august 09 , 2000 9 : 14 am
subject : re : chapter 3 revisions
>
>
> chris :
>
> my and ronnie ' s revisions are complete . ? vince is having a statistics guru
> colleague review the material for glaring errors . ? he should be sending
you the
> completed chapter within a day or so .
>
> regards ,
> grant .
>
>
> | 0 | ham | fw : chapter 3 revisions | hi grant ,
?
chris is travelling at the moment , so i ' m contacting you on his behalf with
regards to the status of ? the completion of the chapter . ? we are dependent
on receiving this as soon as possible , since all the chapters have been
typeset and are now in the final stages of the edit process . ?
?
please let us know when you can send this over . ?
?
also , let us know if we can do anything .
?
sincerely ,
julie brennan
?
lacima group
?
- - - - - original message - - - - -
from : chris strickland
to : grant masson
cc : julie
sent : friday , august 11 , 2000 8 : 49 am
subject : re : chapter 3 revisions
hi grant ,
thanks for that . sorry for he delay but i ' ve been away for a few days .
timely executon would be good - we have just got the proofs back for all the
other chapters from the typesetters .
best regards .
chris .
- - - - - original message - - - - -
from : grant masson
to : chris strickland
sent : wednesday , august 09 , 2000 9 : 14 am
subject : re : chapter 3 revisions
>
>
> chris :
>
> my and ronnie ' s revisions are complete . ? vince is having a statistics guru
> colleague review the material for glaring errors . ? he should be sending
you the
> completed chapter within a day or so .
>
> regards ,
> grant .
>
>
> | 2000-08-16T00:00:00 |
17,670 | start date : 1 / 10 / 02 ; hourahead hour : 5 ; start date : 1 / 10 / 02 ; hourahead hour : 5 ; no ancillary schedules awarded . no variances detected .
log messages :
parsing file - - > > o : \ portland \ westdesk \ california scheduling \ iso final schedules \ 2002011005 . txt | 0 | ham | start date : 1 / 10 / 02 ; hourahead hour : 5 ; | start date : 1 / 10 / 02 ; hourahead hour : 5 ; no ancillary schedules awarded . no variances detected .
log messages :
parsing file - - > > o : \ portland \ westdesk \ california scheduling \ iso final schedules \ 2002011005 . txt | 2002-01-10T00:00:00 |
31,745 | you ' ll need this hello ,
if you want that roock harrd john son
check out the first and original one on the market . . . don ' t be fooled by imitations and copy - cats .
later ,
romero | 1 | spam | you ' ll need this | hello ,
if you want that roock harrd john son
check out the first and original one on the market . . . don ' t be fooled by imitations and copy - cats .
later ,
romero | 2005-02-10T00:00:00 |
8,384 | re : durasoft - - java class siva , i will have to check and see if we can accomodate a 5 day 8 to 5
class . also , president ' s day is a holiday for us , so we may have to look
at a later date .
- - stinson
" siva thiagarajan " on 01 / 29 / 2001 08 : 51 : 02 am
to :
cc :
subject : re : durasoft - - java class
stinson ,
i have attached a file along with this email
that lists the software needed for our
java class .
we would like to do the class from monday thru
friday , 8 am to 5 pm . that way we can complete
the class within a week . we are unable to offer
classes in the evenings or for few hours a week .
we usually teach week long courses for our
other clients and because of that we won ' t
be available .
currently , we can do the class from feb . 19 th
through feb . 23 ( that is if you are working on
feb 19 th , president ' s day ) .
i will call you sometime this afternoon to talk
further . please feel free to reach me if you have
any further questions in the mean time .
regards ,
- siva
- - - - - original message - - - - -
from : stinson . gibner @ enron . com
to : siva @ durasoftcorp . com
date : friday , january 26 , 2001 5 : 52 pm
subject : re : durasoft - - java class
>
> siva ,
>
> a few additional questions . can you tell me what software would be
> required for the students ? also , when would venkat be available to start
> the class and what type of schedule would you recommend ? would having two
> hour classes twice a week from , say , 4 - 6 pm work ? we have a high level of
> interest and just need to iron out the details . feel free to call me
> ( late afternoon on monday might be best ) at 713 853 4748 or email .
>
> - - stinson
>
>
>
- javasoftwareneeds . htm | 0 | ham | re : durasoft - - java class | siva , i will have to check and see if we can accomodate a 5 day 8 to 5
class . also , president ' s day is a holiday for us , so we may have to look
at a later date .
- - stinson
" siva thiagarajan " on 01 / 29 / 2001 08 : 51 : 02 am
to :
cc :
subject : re : durasoft - - java class
stinson ,
i have attached a file along with this email
that lists the software needed for our
java class .
we would like to do the class from monday thru
friday , 8 am to 5 pm . that way we can complete
the class within a week . we are unable to offer
classes in the evenings or for few hours a week .
we usually teach week long courses for our
other clients and because of that we won ' t
be available .
currently , we can do the class from feb . 19 th
through feb . 23 ( that is if you are working on
feb 19 th , president ' s day ) .
i will call you sometime this afternoon to talk
further . please feel free to reach me if you have
any further questions in the mean time .
regards ,
- siva
- - - - - original message - - - - -
from : stinson . gibner @ enron . com
to : siva @ durasoftcorp . com
date : friday , january 26 , 2001 5 : 52 pm
subject : re : durasoft - - java class
>
> siva ,
>
> a few additional questions . can you tell me what software would be
> required for the students ? also , when would venkat be available to start
> the class and what type of schedule would you recommend ? would having two
> hour classes twice a week from , say , 4 - 6 pm work ? we have a high level of
> interest and just need to iron out the details . feel free to call me
> ( late afternoon on monday might be best ) at 713 853 4748 or email .
>
> - - stinson
>
>
>
- javasoftwareneeds . htm | 2001-01-29T00:00:00 |
14,026 | enron mentions - 11 / 17 / 01 - 11 / 18 / 01 they left behind big piles of money
houston chronicle , 11 / 18 / 01
economic news helps stocks , not bonds
the new york times , 11 / 18 / 01
bullish , and patient , on energy stocks
the new york times , 11 / 18 / 01
aquila energy makes provision for dynegy withdrawal , ft says
bloomberg , 11 / 18 / 01
a tale of greed and hubris
sarasota herald - tribune , 11 / 18 / 01
counting blessings along with the losses
los angeles times , 11 / 18 / 01
don ' t be a pudd ' n ' head , diversify
the washington post , 11 / 18 / 01
wessex water ` to be sold '
the independent - london , 11 / 18 / 01
uk press : westlb makes grab for gbplb wessex water
dow jones international news , 11 / 18 / 01
quanta steels itself against takeover bid
houston chronicle , 11 / 17 / 01
business briefs / houston & texas
houston chronicle , 11 / 17 / 01
at enron , the big dogs ate first
portland oregonian , 11 / 17 / 01
finance week - from dealing to reeling .
financial times , 11 / 17 / 01
world stock markets - bears take upper hand on wall st .
financial times , 11 / 17 / 01
in brief / energy pension funds consider action against enron
los angeles times , 11 / 17 / 01
enron investors hope filing will shed more light on finances
bloomberg , 11 / 17 / 01
uk : trade , bank buyers circle enron ' s wessex water - reports .
reuters english news service , 11 / 17 / 01
a user ' s guide to living in calgary : people moving from houston find the cities much alike
national post , 11 / 17 / 01
westlb offers to buy enron ' s u . k . water unit , newspaper says
bloomberg , 11 / 17 / 01
enron closes on $ 550 million loan from j . p . morgan , salomon
bloomberg , 11 / 16 / 01
business
jim barlow
they left behind big piles of money
jim barlow
staff
11 / 18 / 2001
houston chronicle
2 star
1
( copyright 2001 )
will wonders never cease ? last week a couple of heavy hitters left money on the table .
mark mcgwire , the home - run - hitting baseball player for st . louis , retired . and he let it be known that he never signed a two - year , $ 30 million contract his agent negotiated last spring . why ? because he wanted to find out if his injured right knee would allow him to play as well as he had before . it didn ' t , and he decided he wasn ' t worth that kind of money .
then ken lay , chairman of enron corp . , said he won ' t take the $ 60 . 6 million he had coming to him in a severance agreement that comes into play when enron is sold to dynegy corp .
of course , neither mcgwire nor lay will ever have to consider my fallback retirement plan - sacking groceries at the supermarket , carrying them to the car and hoping for a big tip . still , it was a class act on both their parts . mcgwire only hit . 187 last season , well below his lifetime average . and lay ? well , let ' s say that rarely in the history of american capitalism has a company sunk as fast as enron .
remember that earlier this year its stock hit a top of $ 82 a share . now it ' s hovering in the single - digit level , and enron is being forced to sell itself to a smaller rival .
the stock price incentive
how did enron get into this position ? put the blame on the company ' s relentless drive to push up its stock price . and a big reason for that push comes from the way american companies compensate top executives .
in the last couple of decades , executive compensation has soared . the average chief executive officer today makes 531 times as much in salary , bonuses and stock options as the average factory worker .
apologists for executive pay say these kinds of figures really aren ' t relevant . most of the money top executives receive doesn ' t come from base pay or bonuses but from stock options .
such options usually work this way . executives are given hundreds or thousands of shares of stock that they can only buy from the company at a future date . the sales price can be anything from 10 cents to the price of the stock on the date the options were granted . if the stock increases past the exercise price in the option , the executive can buy the stock and then sell it , making big bucks . it the stock has dropped below the option price - it ' s underwater , in the jargon - then those options are worthless .
granting options aligns the interests of the top executives with the shareholders , those who favor this sort of incentive say . and that ' s true , if you talking about in - and - out traders . but it ' s not true if we ' re looking out for the interests of the majority who hold stocks for the long term .
keeping the debt hidden
keeping its stock price soaring was what brought down enron .
to hype the stock , enron ' s execs were hiding the debt it took on to fuel its amazing growth and some of its dicier investments , in partnerships . enron was supposedly only a minority partner in these deals . that way it could move a large portion of its debt off its books in that partnership . that , in turn , made the company ' s earnings look better .
when enron ' s executives finally fessed up , they had to write down their profits over the past few years by 20 percent . but the real irony here is that 80 percent is still a heck of a lot of money . but by that time , the majority of shareholders simply had no faith in enron ' s bookkeeping .
now look at lay ' s compensation . in 1999 he exercised stock options and made $ 44 million on them . in 2000 , sales of options brought him $ 123 million , and this year about $ 26 million , according to a study published by bloomberg news .
was lay deliberating deceiving investors to keep his stock options profitable ? i don ' t think so . he was simply following the latest fad in corporate governance . he was aligning himself with the interests of the shareholders .
the shareholders were happy with that high stock price . nobody - besides some stock analysts - complained about enron ' s often - impenetrable bookkeeping until that stock price started to fall .
would enron ' s bookkeeping have been different if top executives received fewer stock options ? maybe .
fewer stock options would mean lower pay for the top guys . and no one would want that job if he were only going to make $ 10 million a year instead of $ 100 million .
just kidding .
copyright ? 2000 dow jones section 3
databank
economic news helps stocks , not bonds
by jonathan fuerbringer
11 / 18 / 2001
the new york times
page 17 , column 3
c . 2001 new york times company
stocks rallied and bonds plunged last week as investors digested some positive reports about the economy . inflation at the consumer level declined last month , retail sales surged after falling in september , and weekly initial unemployment claims slowed .
all this news led some investors to conclude that the economy might not be as troubled as it appeared to be in the aftermath of the terrorist attacks . that was good for the stock market , but very bad for the many bond investors who had been assuming the worst .
for the week , the nasdaq composite index rose 70 . 10 points , or 3 . 8 percent , to 1 , 898 . 58 , while the dow jones industrial average climbed 258 . 99 points , or 2 . 7 percent , to 9 , 866 . 99 . the standard & poor ' s 500 - stock index gained 18 . 33 points , or 1 . 6 percent , to 1 , 138 . 65 .
but bond prices tumbled while yields , which move in the opposite direction , soared . the yield on the treasury ' s 10 - year note rose to 4 . 85 percent , from 4 . 31 percent a week ago , the biggest weekly move in percentage terms since the note was first regularly issued 25 years ago . the jump in rates also showed that many investors no longer expect federal reserve policy makers to cut short - term interest rates when they meet next month . jonathan fuerbringer
chart : ' ' stocks in the news ' ' amr nyse : amr the stock of the parent company of american airlines , along with other airline companies , rebounded on factors including lower oil prices and passage of the aviation security bill . friday ' s close : $ 20 . 06 week ' s change : + 10 . 65 % est . ' 01 p / e : - - dynegy nyse : dyn as part of its planned $ 9 billion acquisition of enron , dynegy will receive the right to acquire northern natural gas , a potentially lucrative pipeline system , even if the larger deal is not completed . friday ' s close : $ 42 . 47 week ' s change : + 9 . 57 % est . ' 01 p / e : 20 . 29 home depot nyse : hd the nation ' s largest home - improvement chain said its third - quarter profit rose 20 percent over the year - earlier period . friday ' s close : $ 45 . 80 week ' s change : + 8 . 76 % est . ' 01 p / e : 36 . 03 dell computer nnm : dell rebounding from a loss in the second quarter , dell reported a third - quarter profit of $ 429 mil lion . the company also predict d that pc sales would increase later this year . friday ' s close : $ 26 . 60 week ' s change : + 3 . 30 % est . ' 01 p / e : 41 . 05 sungard data systems nyse : sds an appeals court rejected the government ' s effort to stop sungard from buying a unit of comdisco , which filed for bankruptcy protection in july , while an antitrust investigation proceeds . friday ' s close : $ 28 . 64 week ' s change : + 9 . 56 % est . ' 01 p / e : 32 . 11 yahoo nnm : yhoo wall street analysts expressed confidence in the turnaround prospects of the company after it outlined plans to increase fee - based revenue and to reduce its work force . friday ' s close : $ 15 . 47 week ' s change : + 12 . 76 % est . ' 01 p / e : 309 . 40 philip morris nyse : mo philip morris says it plans to change its name to the altria group , pending approval by shareholders . friday ' s close : $ 48 . 13 week ' s change : + 2 . 78 % est . ' 01 p / e : 11 . 90 cv therapeutics nnm : cvtx the biotechnology company said clinical trials of ranolazine showed that the drug , which it developed , was effective in treating the chest pain of angina . friday ' s close : $ 51 . 67 week ' s change : + 48 . 97 % est . ' 01 p / e : - - ( source : bloomberg financial markets )
copyright ? 2000 dow jones section 3
investing
bullish , and patient , on energy stocks
by jan m . rosen
11 / 18 / 2001
the new york times
page 8 , column 2
c . 2001 new york times company
despite last week ' s plunge in the price of crude oil and in shares of big oil companies , some wall street analysts remain upbeat about the long - term prospects for energy stocks .
' ' these very dramatic downturns are great buying opportunities , ' ' said tina vital , an oil and gas analyst at standard & poor ' s , who recommends a broad group of integrated oil companies , including exxon mobil , chevrontexaco , royal dutch / shell , bp and totalfinaelf . ' ' they have excellent management , a top dividend yield and are a safe haven for investors , ' ' she said , provided that investors are patient and can bear short - term swings .
last week ' s price declines were set off by russian oil companies ' refusal to accept demands by the organization of the petroleum exporting countries for big production cuts . they were a reminder that the sector is extremely volatile . ' ' oil could go to $ 10 a barrel short term , ' ' she said , but there is no certainty of that . the oil producers could reach an agreement by january , sending prices upward . over the long term , she expects to see production cuts .
demand for energy has grown only 0 . 5 percent this year , and prices have been declining for some time for both crude oil and gasoline - - as drivers have seen at the gas pump . west texas intermediate crude closed friday at $ 18 . 03 on the new york mercantile exchange , up 58 cents from its thursday close , the lowest since june 1999 . but an economic recovery , expected by late 2002 , could cause demand to pick up , analysts say .
as oil prices have dropped , so have the prices of most oil stocks , but not as much as the overall market since the beginning of 2000 . over that period , the s . & p . energy index has lost 8 percent , while the s . & p . 500 - stock index is down 23 percent .
a report issued last week by the energy department said that while the sept . 11 terrorist attacks had intensified the country ' s economic slowdown , ' ' they are not expected to result in any long - term volatility in energy markets . ' ' the report estimated that commercial energy demand would rise 1 . 7 percent a year through 2020 , instead of the 1 . 2 percent predicted only a year ago . its predictions assume increased use of computers and office equipment , and slower increases in fuel efficiency for cars and trucks .
while they warn of the possibility of wild price shifts in the months ahead , other analysts are similarly bullish for the long term . l . bruce lanni , senior oil analyst at a . g . edwards his 12 - month target is $ 34 . ' ' we remain confident , ' ' he said , ' ' that the company ' s annual oil and gas production should grow by about 4 percent , on average , over the next several years . ' '
conoco ' s debt , at 55 percent of capital , is relatively high , but he expects the company ' s strong cash flow - - it equaled $ 5 . 33 a share last year - - to reduce the debt level to 46 percent next year and to 38 percent in 2003 . the company ' s after - tax interest cost is only 3 . 5 percent , he said .
mr . lanni also favors kerr - mcgee , a natural gas exploration and production company , and bp , calling both undervalued . he regards exxon mobil , royal dutch / shell and chevrontexaco as fully priced , so he is not recommending buying them now . ' ' if you own them , hold them , ' ' he said .
william featherston , executive director and an oil and gas exploration analyst at ubs warburg , said he felt ' ' near - term caution but medium - term optimism for sustainably higher ' ' natural gas prices . he said he would encourage investors to consider buying shares of exploration and production companies over the next two months . his top picks are apache , kerr - mcgee and eog resources .
such stocks are highly volatile , he said . they are ' ' trading - oriented vehicles , and short - term volatility in commodity prices generally provides the most attractive entry and exit points , ' ' he said . ' ' while natural gas prices declined throughout most of this year , prices rose at a startling pace , from $ 1 . 75 per million cubic feet at the end of september to over $ 3 per million cubic feet within weeks . ' '
he cited three reasons for the price rally : a decline in gas surpluses , predictions of a colder - than - normal winter and what he has called ' ' pathetic third - quarter natural gas production , ' ' despite record drilling activity .
the tangled finances of the enron corporation were also a factor in the recent price increase for natural gas futures , he said . enron , which marketed 25 billion cubic feet a day of natural gas , or more than 40 percent of the nation ' s demand , is under investigation by the securities and exchange commission and announced a $ 1 . 2 billion reduction in shareholder equity from deals with partnerships involving its former chief financial officer . it also reported a third - quarter loss and restated earlier earnings . enron has agreed to be taken over by dynegy , a smaller rival , for about $ 9 billion in stock . dynegy is also assuming about $ 13 billion in debt .
anxiety over whether the enron investigation would disrupt deliveries or have other market repercussions led to an increase in prices . while it is ' ' difficult to quantify the enron factor , ' ' mr . featherston said , the short - term effects on natural gas prices seem to be over .
other factors , of course , could also mean a bumpy ride for energy investors over the next several months . the status of the war against terrorism , president bush ' s decision to fill the strategic petroleum reserve , thus helping opec in reducing excess global capacity , and a united nations review of the food - for - oil deal with iraq expected in december could each have a significant impact on battered oil prices .
nevertheless , ms . vital said , for the long term , energy will probably be in short supply , and new sources must be developed . so she also likes the prospects of two drilling companies , noble drilling and nabors industries . both took a beating last week , along with the oil companies , so again she sees buying opportunities .
bern fleming , portfolio manager of the axp utilities income fund in minneapolis , who has stakes in dynegy , duke energy and dominion resources , said all three had good prospects for growth , thanks to a mix of assets , ' ' management i respect and solid business plans . ' '
photo : workers at an oil well near lafayette , la . although oil prices have plunged , analysts say there is still good long - term potential for the stocks of energy companies . ( marty katz for the new york times ) chart : ' ' power play ' ' energy stocks have generally outperformed the overall market since the beginning of 2000 . graph shows conoco shares , s . & p . energy composite , and the s . & p . 500 index since january 2000 . ( source : bloomberg financial markets )
copyright ? 2000 dow jones & company , inc . all rights reserved .
aquila energy makes provision for dynegy withdrawal , ft says
2001 - 11 - 18 19 : 52 ( new york )
houston , nov . 19 ( bloomberg ) - - aquila energy corp . is one of
several energy traders limiting its trading with enron corp . in
case dynegy inc . pulls out of its bid for the company , the
financial times said , citing aquila .
aquila said it began making contingency plans in case dynegy
withdrew from its $ 24 billion takeover of enron , the paper
reported .
enron , the largest energy trader , decided to sell after its
shares plunged this year and a federal investigation of accounting
irregularities limited its ability to finance operations . enron ' s
collapse would have caused upheaval in energy markets , where the
company does one - quarter of all gas and power trades .
dynegy ' s agreement to buy enron allows it to withdraw from
the transaction under certain circumstances , the ft said .
perspectives
a tale of greed and hubris
waldo proffitt
11 / 18 / 2001
sarasota herald - tribune
all
f 2
( copyright 2001 )
for anyone not already disenchanted with the idea of total deregulation of public utilities , the most recent installment of the miserable enron story as it unfolded last week should serve as a convincing example of the folly of relying on unregulated profit - driven enterprises to supply our energy .
a year ago enron was the darling of wall street , the poster boy for the utility industry , its stock selling for about $ 85 a share . last week its stock was worth about 10 percent of that and the company had agreed to be bought by a competitor . there was fear the company ' s bond rating might fall to the " junk " level .
what happened ? it will take months , if not years , to untangle the details , but it is clear that the main culprit was greed , closely followed by hubris .
not too many years ago enron was a small , struggling , gas pipeline company in houston . as deregulation spread to more and more states , enron began acquiring pipelines , gas producers and utilities .
it also acquired friends in high places , especially the bush family and their key political advisers . and , it discovered it could make money faster by selling and trading energy than by producing it . enron sold many of its generating plants and became the biggest " power broker " in the nation .
though it was by no means the largest winner in the con game that bilked california consumers of tens of billions of dollars , enron was one of the first power barons to take advantage of california ' s flawed deregulation law - - virtually written by in - state and out - of - state utility companies .
the california fiasco soured ( probably ) most americans on utility deregulation , but enron was not singled out for calumny , and management saw no reason to examine its business ethics .
contrarywise . management had visions of even greater profits , which it felt no obligation to share with ordinary stockholders . the chief financial officer and other high - ranking executives set up affiliated or subsidiary partnerships which made deals with enron . i do not understand the details of these arrangements , but neither do independent accountants , the securities and exchange commission or congressional investigators . it does seem clear that the enron insiders made millions for themselves .
enron acknowledges , without explaining , that stockholder equity dropped $ 1 . 2 billion in the last quarter and that it had for the last five years overstated profits by some $ 600 million . whether this was by design or by mistake is in dispute , but it is the sort of thing which tends to undermine the confidence of investors .
so much for greed . back to hubris . it seems not unlikely that enron ' s leaders felt they might not be punished for a modest amount of corner - cutting because they had friends in high places .
the chief executive , kenneth l . lay , was and is a personal friend of george w . bush and has easy access to the white house . for many months after the new administration took office , karl rove , bush ' s top political strategist , owned enron stock valued at $ 100 , 000 to $ 250 , 000 , and sold it only after he had been able to secure a ruling that he did not have to pay capital gains tax immediately because he sold to avoid a conflict of interest . lawrence lindsey , the president ' s chief economic coordinator , and i . lewis libby , vice president cheney ' s chief of staff , owned stock in enron , and lindsey was paid $ 50 , 000 last year as a consultant for enron .
enron and its employees gave more than anyone else to bush ' s four political campaigns - - one ( unsuccessful ) for congress , two for governor and one for president . in 2000 , enron and its employees gave $ 113 , 000 to bush ' s campaign , $ 250 , 000 to the republican national committee , and $ 300 , 000 to the presidential inauguration committee .
cabinet appointments affecting energy policy , key sub - cabinet appointments , administration action or inaction in the california energy mess , and the overall energy policy of the administration could hardly have been more favorable to the interests of enron .
and now a couple of questions : is it possible the unusual financial maneuvers by enron went unnoticed or even unsuspected by all the savvy texas oilmen in the bush administration ? were those of them with heavy investments in enron unconcerned about the conduct of the company ? was enron right in thinking its friends in government would not be in a hurry to investigate or to reprimand ?
or , in light of our preoccupation with terrorism , will the enron case get much attention from the federal government ? or from voters ?
waldo proffitt is the former editor of the herald - tribune .
copyright ? 2000 dow jones financial desk
market beat
counting blessings along with the losses
tom petruno
times staff writer
11 / 18 / 2001
los angeles times
home edition
c - 1
copyright 2001 / the times mirror company
try finishing this sentence : " the best thing about my experience as an investor in 2001 was . . . "
many americans , contemplating the losses they ' ve suffered this year in the stock market , might say there was nothing " best " about what happened to them - - in fact , nothing good at all , perhaps other than that it might have been worse .
with share prices on the rise again , the damage to portfolios has been lessened . even so , stocks will have to post strong gains in the next six weeks to keep this from being the market ' s worst calendar year since 1977 .
the blue - chip standard & poor ' s 500 index rose 1 . 6 % last week , but it ' s still down 13 . 8 % year to date .
yet those losses , while certainly not trivial ( especially when they ' re yours ) , can obscure what arguably are some very positive aspects of this year ' s experiences .
with investing , adversity can be a more important teacher than success . if you ' re having trouble this thanksgiving week finding reasons to be thankful about anything investment - related , try these on for size :
* " asset allocation " is no longer just a quaint theory . the paramount investing rule has always been to spread your money around to reduce risk . but it took the worst stock bear market in 25 years to bring this lesson home for many people who thought equities only rose in value .
now , millions of investors have a far better appreciation for just how much they can lose in stocks - - and how bonds and short - term cash savings can offset market losses and preserve capital .
it has been a hard lesson , to be sure . but investors who take asset allocation to heart will be laying a much more solid foundation for their money in the long run . and don ' t underestimate what that can mean for your peace of mind long term .
* the wisdom of saving money on a regular basis has been relearned . in the late 1990 s , many economists lamented how the u . s . savings rate continued to shrink . some people felt there was little need to put significant new sums into savings when the stocks or stock mutual funds they owned seemed to be rising nonstop .
in other words , many americans were letting the stock market do their saving for them when share prices were rising 20 % or more each year .
now , with shares down and with the likelihood of much more moderate returns on stocks in this decade , it ' s clear that many people will have to find a way to save regularly if they ' re going to meet their long - term financial goals , especially retirement .
this may not be a pleasant reality , but it ' s better for most people to have faced this fact sooner rather than later , while there may be time to make up lost ground .
* a healthy skepticism has replaced mindless euphoria about stocks and those who tout them . the market ' s slide has discredited a legion of wall street analysts , money managers and others whose knowledge , understanding and judgment were clearly lacking , in retrospect .
investors have come to see that having blind faith in those who present themselves as " experts " is a highly dangerous strategy , if it can be called a strategy at all .
sure , it may have been more fun when technology stocks were shooting the moon and nobody had much use for reviewing a company ' s fundamentals . but that wasn ' t investing - - it was speculating , and on a massive , and ultimately ruinous , scale .
people have learned to be less trusting about what others say about the market , and that is more likely to be beneficial than detrimental to their portfolios in the long run .
just ask anyone who shifted their entire 401 ( k ) retirement savings sum into aggressive - growth mutual funds in the first quarter of 2000 - - right before the market peaked - - because of the bullish comments of some 25 - year - old tech stock analyst . those investors aren ' t likely to make a move like that again .
* free - market forces are weeding out the weak players and the phonies . capitalism may be harsh , but it ' s efficient when the good times end and it ' s time to find out which companies truly have talent and staying power - - and deserve more capital .
hundreds of dot - coms have failed , but who really misses them ? is it any harder to find what you want on the internet ? it probably would have been much worse for all concerned if those companies had sucked up investors ' funds for another year instead of failing when they did .
but the market isn ' t just eliminating small companies that never had much of a future . the financial near - collapse of energy giant enron corp . exposed a business that twisted accounting rules to its own benefit - - to the point that the company now concedes that financial statements all the way back to 1997 " should not be relied upon . "
also to be weeded out , though over a longer time period , will be mutual fund managers whose performance running other peoples ' money has been a nightmare for those investors - - meaning , the returns produced have been far worse than what the investors would have achieved in the average fund in that particular sector .
these managers know who they are - - and , hopefully , their shareholders know by now as well , and will vote with their feet .
the free market also is reminding cartels just how tough it is to control prices .
once again , the organization of petroleum exporting countries has lost its ability to prop up crude oil prices , which have sunk to two - year lows amid the weak global economy . that ' s lousy for opec , but it ' s great for every energy consumer .
* the market ' s woes have altered many investors ' priorities for the better . the wild bull market of the late 1990 s demanded peoples ' attention , and got it .
for some , stocks became an obsession . their portfolios dominated their lives , especially if they were actively trading shares . they believed they were going to be rich , or richer , and that it was all because of how smart they were .
now , most people have been humbled by the market . in the process , some have realized that they don ' t want their mood determined by their portfolio ' s day - to - date price changes .
the sept . 11 terrorist attacks , of course , also changed many peoples ' view of what truly matters to them .
money is important , but you aren ' t your stocks , and they aren ' t you . life is more than a daily stock quote .
*
tom petruno can be reached at tom . petruno @ latimes . com . for recent columns on the web , go to www . latimes . com / petruno .
copyright ? 2000 dow jones & company , inc . all rights reserved .
financial
investing james k . glassman
don ' t be a pudd ' n ' head , diversify
james k . glassman
11 / 18 / 2001
the washington post
final
hol
copyright 2001 , the washington post co . all rights reserved
warren buffett , who was probably the greatest investor of the 20 th century , is fond of quoting the salacious actress mae west as saying , " too much of a good thing can be wonderful . " in the market , such a motto would lead you to avoid diversification and instead concentrate your portfolio in stocks you really , really like .
peter lynch , who was probably the best mutual fund manager of the 20 th century , calls spreading yourself too thin " diworseification . "
smart , witty and brilliant at picking stocks , buffett and lynch may not need diversification , but the rest of us do . when you own one stock , you ' re out on a limb . for example , very few analysts - - with or without a conflict of interest - - predicted that shares of enron , the energy and trading company , would tumble by 90 percent in a year . put all your eggs in a basket like that and you end up with a gooey mess . the more stocks you own - - as long as they are in different industries - - the more the overall riskiness of your portfolio is modulated .
the reason you don ' t want a super - risky portfolio is simple : while warren buffett may be calm and prescient enough to ride out severe dips in the value of his holdings , most investors are not . a portfolio that increases in price by 10 percent each and every year is worth exactly the same at the end of three years as a portfolio that falls by half the first year , rises by three - quarters the second and rises by 52 percent the third . but reasonable investors prefer the consistent ride . it prevents them from doing something stupid , such as selling all their stocks after losing half their money during that first disastrous year .
consider the sad case of james d . mccall , who earlier this month resigned as manager of the merrill lynch focus twenty mutual fund . two years ago , merrill wanted mccall ' s services so desperately that the firm went to court to pry mccall away from his previous employer , pilgrim baxter , where he rang up impressive gains in the late 1990 s . ( his big success was called pbhg large cap 20 . ) and when they got mccall , merrill ' s brokers raised more than $ 1 . 5 billion from their clients for him to invest . while the average growth - stock mutual fund owns about 100 stocks , with the top 10 holdings representing about one - fourth of the portfolio ' s total value , mccall specialized in what are called " concentrated portfolios . " in the case of merrill lynch focus twenty , he owned , as the name implies , just 20 stocks . at last report , his top 10 holdings accounted for a whopping two - thirds of the fund ' s assets .
if mccall had spread his 20 stocks among , say , a dozen different industries , he might have smoothed his ride . instead , 69 percent of his assets went to technology firms . the focus fund and a smaller one that mccall ran called premier growth were launched in march 2000 . within just 17 months , all but $ 650 million of the clients ' original $ 1 . 5 billion had vanished .
it is hard to imagine losing as much as focus twenty did even if you tried . as of nov . 9 , the week mccall resigned , the fund was down 72 percent for the year , compared with a loss of 14 percent for the standard & poor ' s 500 - stock index , the benchmark for fund managers . according to the latest report from morningstar mutual funds , 19 of mccall ' s 20 stocks had declined during 2001 , the only exception being harley - davidson . more amazing , 16 of the 19 losers had fallen by at least half . ( by the way , enron was mccall ' s seventh - largest holding . )
" this fund has had a wretched existence , " wrote morningstar analyst kunal kapoor , who did admit a grudging admiration for mccall ' s perseverance . mccall ' s " faith may turn out to be well placed over time , " kapoor said . unfortunately , time ran out .
my point here is not to pick on mccall but to reveal the perils of concentration . buying focus twenty as a technology fund , and consigning it to no more than one - fifth of your holdings ( with the rest of your assets in diversified , conventional stocks or funds ) might have made sense , but focus twenty was touted as a " long - term capital appreciation " fund , not a sector fund . here , it failed , but maybe it didn ' t have to .
the manager who made the concentrated fund popular , tom marsico , who ran janus twenty , took care to spread his holdings around . his successor , scott schoelzel , has suffered losses lately ( he is down 28 percent year - to - date , but that ' s after a total gain of 546 percent in the preceding five years ) , but they have not been nearly so catastrophic - - and for good reason . schoelzel ' s last report lists among his top 10 holdings three tech stocks , two financials , one drug company , one energy firm ( whoops , enron again ) , one industrial , one consumer - durables company and one services firm .
for investors in individual stocks , the important question is this : how much diversification is enough ? some risk is inherent in even the broadest portfolio . this is called market , or " systematic , " risk . over the past 75 years , market risk , as measured in standard deviation , has been about 20 percent . in other words , in two - thirds of the years the annual return of the s that is , between a loss of 9 percent and a gain of 31 percent . that ' s still volatile , but if you invest in stocks you have to live with it .
what you don ' t have to live with is anything more volatile . so your objective in building a portfolio is to try to approximate systematic risk and avoid what is called " idiosyncratic , " or extra , risk . a portfolio with just a few stocks , or one like mccall ' s , that is overloaded in a single sector , has lots of idiosyncratic risk . in 1977 , an influential study found that investors could nearly eliminate that extra risk by owning just 20 stocks in a wide variety of sectors ; in fact , owning eight or 10 stocks depressed risk sharply .
recently , however , the market has appeared to be far more volatile , and a new study by a group of economists headed by john campbell of harvard found that many more stocks were needed - - around 50 - - to bring a portfolio down to the same level of riskiness as the broad market . what campbell ' s group found was that neither the market itself nor individual sectors had become more volatile in the 1990 s , but that stocks within those sectors had , so you need to own more of them .
but owning 50 stocks is a pain in the neck - - and it brings up the buffett - lynch admonitions about too much diversification . it is hard just to take the time to make the selections , but even buy - and - hold investors need to keep track of the companies they own to spot adverse changes in management , product failures or new competition ( not to mention enron - style accounting shenanigans ) - - signs that it ' s time to sell .
one good answer is to achieve balance by owning a combination of mutual funds and stocks . for example , you might want to put 50 percent of the money you have allotted for stocks into a fund that mimics the s & p itself , like vanguard index 500 , which charges rock - bottom expenses and guarantees that risk won ' t exceed systematic levels . you could also consider a broad fund that ' s managed by human beings , such as meridian value or baron growth , which are recommended by sheldon jacobs , editor of the no - load fund investor newsletter . then another 25 percent of your holdings can go into a few sector funds that specialize in technology , real estate , energy and small - caps , and the final 25 percent into a portfolio of 10 to 20 individual stocks . ( i own 16 , at last count . )
there are many valid variations . just don ' t emulate mark twain .
in a letter to clients recently , anthony m . maramarco of david l . babson & co . , the cambridge , mass . , investment firm , recalled the aphorism of twain ' s pudd ' n ' head wilson : " put all your eggs in the one basket - - and watch that basket ! " unfortunately , such a philosophy emphatically does not work in stock investing - - as twain himself learned when he sank nearly all his fortune into the paige linotype , a machine that flopped .
we all make mistakes . ( it was twain , after all , who pointed out that " human beings are the only animals that blush - - or need to . " ) but smart diversification helps investors avoid some of the worst of them .
james k . glassman invites comments at jglassman @ aei . org , but he cannot answer all queries .
http : / / www . washingtonpost . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
business
wessex water ` to be sold '
heather tomlinson
11 / 18 / 2001
the independent - london
foreign
1
( copyright 2001 independent newspapers ( uk ) limited )
wessex water , the water and sewage company , is understood to be up for sale following an offer to take over its owner , enron , by dynegy , the us energy group .
three years ago , enron spent pounds 1 . 4 bn on wessex water . but dynegy is understood to want to concentrate on us and european energy assets and is not interested in non - core assets .
any hope to regain the same amount of money could be derailed as the industry is put off by regulatory problems , and the company ' s results have worsened due to imposed price cuts over the past year .
" it is not that there is going to be a fire sale but most of [ the international assets ] are not core to the businesses we will continue to pursue , " said an enron spokesperson . " at the right price we will sell . "
scottish & southern energy and united utilities have been touted as potential buyers , yet industry insiders believe that the uk regulator , ofwat , will take a dim view of bids by uk water companies , as they are too large to buy it .
copyright ? 2000 dow jones & company , inc . all rights reserved .
uk press : westlb makes grab for gbplb wessex water
11 / 18 / 2001
dow jones international news
( copyright ( c ) 2001 , dow jones 44 - 207 - 842 - 9289
copyright ? 2000 dow jones & company , inc . all rights reserved .
business
quanta steels itself against takeover bid
nelson antosh
staff
11 / 17 / 2001
houston chronicle
3 star
1
( copyright 2001 )
quanta services , which builds and maintains power and communications lines , said friday it is fighting a " creeping takeover " by utilicorp united , one of the nation ' s largest utility holding companies .
on thursday quanta board members changed the houston company ' s shareholder rights agreement - called a " poison pill " defense against takeovers - to deter utilicorp from acquiring a controlling stake .
the action was taken after negotiations with utilicorp fell apart and the kansas city , mo . - based company announced its intention to resume purchases of quanta stock .
a spokesman told bloomberg news on oct . 4 that utilicorp wanted to increase its stake to the mid - 40 s percentage range , which would give it effective control , with a vote on management .
utilicorp invested $ 320 million in quanta from september of 1999 through february of 2000 , said utilicorp spokesman ethan hirsh , bringing its ownership up to 28 percent , and has been adding stock since then . it owned about 38 percent when a standstill agreement stopped further purchases in early october .
part of the shareholder rights amendment limits further purchases by quanta by reducing the trigger point for the poison pill to 39 percent of quanta ' s outstanding shares , instead of the 49 . 9 percent that has been in effect just for utilicorp .
in addition to saying that utilicorp is no longer " an exempt " person under the 39 percent trigger , the amendments changed the kind of securities to be issued in the event the pill is triggered and how they could be exercised .
utilicorp had a higher trigger point that other potential acquirers because it already was a significant shareholder when the plan was initially drafted .
hirsch didn ' t think the amendments would prevent his company from buying more .
utilicorp ' s interest in houston acquisitions is not limited to quanta . its also said this week it would like to buy enron ' s share of a united kingdom power station that provides electricity sufficient to light 1 . 88 million homes .
it will soon get a 27 percent share in the station near london , known as the teeside power station , through the purchase of a utility there . it would like the 42 . 5 percent that enron owns , utilicorp president robert green said in a conference call .
green said he understood that stake was on enron ' s for - sale list .
utilicorp revealed in a securities and exchange commission filing that it bought 1 . 538 million shares of quanta ' s common stock on the open market , at a cost of more than $ 24 million , between sept . 28 and oct . 3 .
quanta ' s stock declined 27 cents to close friday at $ 15 . 69 , while utilicorp rose 10 cents to close at $ 27 . 50 . quanta ' s stock is down 51 percent for the year to date , and hit a 52 - week low of $ 9 . 94 on sept . 21 .
" after many weeks of negotiations with utilicorp , we could not reach agreement upon a strategy that would allow utilicorp to consolidate our financial results for accounting purposes on terms acceptable to quanta , " john colson , quanta ' s chief executive officer , said in a written statement .
" in the face of utilicorp ' s communications last evening breaking off negotiations and stating its intent to resume open market purchases of quanta stock , the board acted to protect the best interests of all quanta stockholders against a change of control transaction which did not provide an appropriate benefit to all shareholders , " he said .
quanta has a mutually beneficial relationship with utilicorp and hopes negotiations can resume , colson said .
copyright ? 2000 dow jones & company , inc . all rights reserved .
business
business briefs
business briefs / houston & texas
staff , bloomberg news , reuters , associated press
11 / 17 / 2001
houston chronicle
3 star
2
( copyright 2001 )
offer still on table for canadian hunter
burlington resources on friday extended a $ 1 . 96 billion offer for canadian hunter exploration ltd . until dec . 3 while canadian regulators study the bid .
the cash offer was to expire tuesday . investment canada , which oversees foreign ownership of canadian companies , won ' t complete its review by then , burlington said .
houston - based burlington agreed to buy calgary - based canadian hunter on oct . 9 .
azurix settles suit over dynegy buyback
azurix corp . , a wastewater - services management company , won a judge ' s approval friday in wilmington , del . , to settle shareholders ' lawsuits over parent enron corp . ' s $ 329 million stock buyback in march .
houston - based enron , soon to be bought by dynegy , said in october 2000 it would pay $ 7 for each of azurix ' s outstanding shares , or $ 275 million , to take the company private . seven azurix stock owners sued in delaware chancery court seeking more money .
enron eventually agreed to pay $ 8 . 375 per share , adding about $ 54 million to the offer , and stockholders agreed to settle the lawsuit , lawyers said .
sbc adds 2 states to long - distance rolls
san antonio - based sbc communications received permission friday from the federal communications commission to begin offering long - distance service to customers in missouri and arkansas .
the decision allows sbc to offer the service in the five states served by its sbc southwestern bell subsidiary . sbc has already received permission to compete in the long - distance market in texas , kansas and oklahoma .
while the fcc ' s decision was unanimous , there was discussion on whether sbc has made its dsl high - speed internet access service available for resale and if the federal law requires such resale . the commission will address the issue in another proceeding .
airline canceling 200 layoffs of pilots
fort worth - american airlines friday canceled the planned dec . 2 layoffs of 200 pilots because military duty was extended for pilots called up on reserve and other employees took leaves .
american laid off 386 american pilots sept . 28 and 200 more nov . 1 , as well as 120 at twa airlines . those were among 20 , 000 jobs amr eliminated as passenger demand fell . the company said it will bring employees back as demand improves .
southwest drops suit against orbitz site
dallas - southwest airlines co . has agreed to drop a lawsuit that claimed orbitz , an internet travel site owned by five rival airlines , displayed incorrect information about southwest ' s flights and fares .
" it gives southwest airlines the right to restart the litigation at its current point if southwest fares are ever displayed on orbitz again , " said linda rutherford , a spokeswoman for the dallas - based airline .
copyright ? 2000 dow jones & company , inc . all rights reserved .
editorial
at enron , the big dogs ate first
11 / 17 / 2001
portland oregonian
sunrise
do 6
( copyright ( c ) the oregonian 2001 )
summary : workers ' ire over 401 ( k ) plans is understandable
watching enron ' s bigwigs lose their jobs after inflating profits may offer some satisfaction to retirees and employees at the troubled energy marketer . but don ' t bank on it .
when corporate insiders can sell the company and stroll away with millions while workers and other stockholders are left with peanuts , it would be hard not to be bitter .
as oregonian business writer jeff manning reported friday , local employees of portland general electric , an enron subsidiary , watched their retirement savings sink after enron announced on oct . 16 that it would lose $ 618 million in the fourth quarter . this came after enron officers made more than $ 136 million selling stocks earlier in the year .
then on nov . 8 , enron dropped the other shoe : it admitted it had overstated earnings for four years by $ 586 million , or 20 percent . over those few weeks , enron shares plunged from $ 33 . 84 to its $ 9 close on friday .
the four - year overstatement developed through some novel accounting methods . enron and its auditor , arthur anderson , insist that its financial reports were all within proper standards , but the mechanics in this case included obscuring debt by placing it on the ledgers of other entities so that the parent company ' s profit picture appeared rosier than it actually was .
the weeks from mid - october to early november were wrenching for employees . because the company was changing its fund manager , they were powerless to make any changes in their 401 ( k ) plans . pge chief executive peggy fowler points out that the change in 401 ( k ) plan managers was announced last summer . and although employees could have gotten out of enron stocks over the history of the plan , enron seemed to be an attractive investment .
company executives , though , were selling . jeffrey skilling , who was promoted to enron chief executive early in the year but resigned in august , sold more than $ 5 million in company shares according to transaction records covering the first half of the year .
former chief financial officer , andrew fastow , who was fired last month in an action related to the financial mess , made $ 14 million in stock sales betweeen march and november of last year . kenneth lay , enron ' s chief executive , who returned after his protege skilling left , made at least $ 20 million in stock sales from late last year . he has announced that he would decline his severance package .
dynegy , another texas energy marketing company , has made a bid to buy enron . that probably means the best enron and pge employees can hope for now is that dynegy will be a better corporate owner , or they can try their luck with one of the many shareholder lawsuits being filed .
the securities and exchange commission is investigating enron ' s activities . if its behavior was illegal , there will be consequences for company officers .
that ' s still not much to offer to workers who have seen their retirement savings dissolve . but for now it ' s all there is .
copyright ? 2000 dow jones over many years they have pointed out that all the benefits of deals , and often more than all , accrue to the shareholders of the companies taken over , while investors in the bidding companies suffer dilution . investors know this , and in normal market conditions news of a takeover will depress the bidder ' s share price . but in a bubble market these prudent attitudes can be overwhelmed by euphoria , as well as technical factors relating to demand by fund managers so that they can maintain their weightings when a bidder is spraying around large quantities of new equity .
also , it is irrational that many more deals are done when the stock market is high than when it is low . two years ago , companies such as marconi were engaged in buying sprees at daft prices . now , when prices are much lower , hardly any acquisitions are being made ( and investment banks are dismissing thousands of employees ) . an exception to the deal famine is gold mining , which just happens to have been one of the stock market ' s strongest sectors this year .
another important source of irrationality has been the domination of stock market analysis by the stockbroking offshoots of the investment banks . over recent years their earnings - per - share forecasts for the next calendar year have been on average 8 per cent too high . this has not just been a mistake ; they have been paid to be over - optimistic . admittedly , attempts are being made to restructure the incentives here , as the embarrassed investment banks come under pressure from the regulators and the courts for their errors of judgment during the bull market , but it remains to be seen whether much will really change .
the mystery is why anybody would take notice of these forecasts , and indeed many professional investors do not . that merrill survey , incidentally , shows that fund managers on average expect no more than 4 per cent earnings per share growth over the next year , while the stockbrokers ' analysts are still clinging to the hope that it will be 15 per cent .
a final source of distortion is the tendency of companies to offer their executives the wrong sort of incentives . the ruin of marconi may appear irrational , when multi - billion - pound acquisitions are being declared worthless after only two years . but executives with lucrative stock option plans , which pay off if their gambles go right , combined with golden goodbye and pension packages that are triggered if things go wrong , may well consider it perfectly rational , from their viewpoint , to take much bigger risks than other shareholders , or employees , would consider acceptable .
moreover , sir christopher gent , shareholders of vodafone will remember , received a controversial # 10 m personal bonus last year for clinching the mannesmann takeover , a deal that requires # 10 bn of write - offs .
in normal market conditions the valuation of equities may be tolerably rational , but in a bubble market the rules are thrown out of the window . many investors certainly like the idea of getting rich quickly . that is why many people subscribe so keenly to national lotteries in which the chance of winning is so small as to be not worth rational consideration .
barry . riley @ ft . com .
( c ) copyright financial times ltd . all rights reserved .
http : / / www . ft . com .
copyright ? 2000 dow jones & company , inc . all rights reserved .
world stock markets - bears take upper hand on wall st .
by mary chung .
11 / 17 / 2001
financial times
( c ) 2001 financial times limited . all rights reserved
after an early game of tug - of - war , the bears took the upper hand as the dow jones industrial average closed 5 . 40 lower at 9 , 866 . 99 . the s & p 500 index gave up 3 . 59 at 1 , 138 . 65 and the nasdaq composite slipped 1 . 98 at 1 , 898 . 59 . volume was fairly heavy with 1 . 34 bn trades in the nyse .
the indices were earlier bolstered by news that some of the leaders of the taliban and the al - qaeda terrorist network had been killed in bombing raids on kabul and kandahar this week .
however , the momentum faded as investors found little reason to keep sending stocks higher following a sharp decline in the us consumer price index . the index saw its steepest monthly drop since april 1986 . separately , the federal reserve reported another drop in industrial output last month .
investors appeared more hesitant to step into the market and buy stocks after several weeks of sharp gains . however , the corporate picture looked to be improving for some companies such as dell . the computer maker reported third - quarter results that beat analysts ' estimates by a penny and predicted a small rise in sales for the current quarter . shares , however , fell 4 per cent at $ 26 . 60 .
rivals hewlett - packard shed 2 . 7 per cent at $ 21 . 50 and compaq gave up 3 . 7 per cent at $ 10 . 30 . yahoo ! , the world ' s largest internet portal , jumped 4 . 3 per cent at $ 15 . 47 after it announced a restructuring and job cuts , but reaffirmed its guidance for the fourth quarter .
shares in starbucks fell 9 per cent at $ 17 . 50 in spite of the coffee company reporting a 22 per cent rise in earnings for the fourth quarter .
energy prices rose in spite of the continuing dispute over oil production between opec and russia . amerada hess put on 2 . 5 per cent at $ 54 . 59 and exxon mobil added 1 per cent at $ 37 . 54 . enron , the embattled energy trading company , however , slid 5 per cent at $ 9 . most dow components were lower as alcoa slipped 1 per cent at $ 37 . 12 , american express shed 3 . 7 per cent to $ 33 . 13 and wal - mart fell 1 . 6 per cent at $ 55 . 10 .
toronto was little changed in morning trade in spite of a rally in technology and cyclical shares , the first sectors expected to respond to an improving economy .
however , at the close the s & p tse - 300 composite index was up 0 . 72 per cent at 7 , 315 . 30 as tech issues continued to strengthen .
overall , 11 of the market ' s 14 sub - indexes were higher but safe - haven gold stocks suffered as hopes grew for a swift conclusion to the war in afghanistan . the tech - heavy industrials sector enjoyed a 1 . 61 per cent gain . electronics manufacturer celestica charged ahead , rising 3 . 3 per cent to c $ 64 . 80 .
telecoms equipment heavyweight nortel networks jumped to c $ 12 . 69 as several investment firms raised targets .
( c ) copyright financial times ltd . all rights reserved .
http : / / www . ft . com .
copyright ? 2000 dow jones financial desk
in brief / energy pension funds consider action against enron
reuters
11 / 17 / 2001
los angeles times
home edition
c - 2
copyright 2001 / the times mirror company
some big pension funds that invested in enron corp . said they are considering legal options in the wake of the energy giant ' s stock collapse and a regulatory probe of its dealings .
spokesmen for the new york state and city comptrollers and an official from amalgamated bank , a trustee of workers ' retirement funds , said they were looking into lawsuits stemming from enron ' s murky financial dealings and stock plunge .
pension funds and mutual funds have been big holders of enron , once a wall street darling whose stock has plunged 89 % this year .
five new york city pension funds hold about 2 . 9 million enron shares , said david neustadt , a spokesman for the new york city comptroller ' s office . the funds serve teachers , police and other city workers .
enron shares fell 48 cents to $ 9 on the new york stock exchange .
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron investors hope filing will shed more light on finances
2001 - 11 - 17 11 : 06 ( new york )
enron investors hope filing will shed more light on finances
houston , nov . 17 ( bloomberg ) - - enron corp . investors hope
the energy trader ' s third - quarter report to the u . s . securities
and exchange commission will answer some of the questions that
sent its shares tumbling and led to a proposed sale to rival
dynegy inc .
enron , which has been criticized for failing to clearly
explain how it makes money , may disclose in monday ' s filing more
on how much is owed by the company and affiliated partnerships , as
well as any planned job cuts and other cost - saving moves related
to dynegy ' s $ 24 billion buyout .
` ` investors will be looking for anything that affects the
likelihood of the ( dynegy ) deal going through and the timing of
such a deal , ' ' said edward paik , who helps manage the liberty
utilities fund , which owns 1 . 6 million in enron shares .
enron agreed to sell after its stock plunged 67 percent in
three weeks amid an sec investigation into partnerships run by
enron executives . investors worry that new disclosures , such as
previously unreported debt , might threaten enron ' s credit rating
and scuttle the merger , possibly pushing enron into bankruptcy .
` ` there ' s been so much skepticism about what enron ' s
liabilities are with these partnerships , i ' m looking to quantify
this , ' ' said glen hilton , a fund manager at montgomery asset
management lp , which holds dynegy shares .
enron chairman kenneth lay admitted last week that failed
investments and a loss of investor confidence forced the sale to
dynegy , and he and other executives pledged to be more open with
investors . lay , 59 , said last week he won ' t accept a severance
package of more than $ 60 million that he could have collected
following the takeover .
enron shares fell 48 cents yesterday to $ 9 . dynegy fell
$ 1 . 53 , or 3 . 5 percent , to $ 42 . 47 .
balance sheet
enron ' s third - quarter report , which had been expected last
week , was delayed by the dynegy talks and a restatement of
earnings , chief financial officer jeffrey mcmahon said . enron
reduced net income for four years by a combined $ 586 million to
include losses from affiliated partnerships .
monday ' s filing , called a 10 - q , will include a balance sheet
summarizing assets and debts . enron for years has omitted balance
sheets , which the sec requires as part of the 10 - q , from its press
releases announcing earnings .
investors renewed their criticisms of the practice after lay
mentioned during a conference call last month that dealings with
two partnerships had reduced enron ' s shareholder equity , or its
assets minus liabilities , by $ 1 . 2 billion . the disclosure led to
the ouster of chief financial officer andrew fastow .
` ` everyone is trying to make their own assessment of what
( enron ' s ) ultimate liability will need to be , ' ' said commerzbank
securities analyst andre meade , who rates the shares ` ` hold ' ' and
doesn ' t own them .
monday ' s report probably won ' t give a complete answer , said
louis gagliardi , an analyst at john s . herold inc . while the
balance sheet will list liabilities for the partnerships , which
were set up to buy enron assets and get debt off the company ' s
books , it won ' t spell out enron ' s share , he said .
` ` what is the net liability off the balance sheet ? ' '
gagliardi said . ` ` we really don ' t know what that number is . ' '
credit rating
dynegy has said it can back out of the acquisition if enron ' s
legal liabilities exceed $ 3 . 5 billion . the balance sheet ` ` will
help us see how good a deal this is for dynegy , ' ' said kathleen
vuchetich , co - manager of the $ 1 . 4 billion strong american
utilities fund , which owns 284 , 000 dynegy shares .
both companies are based in houston .
the filing also might offer details on the sec probe . ` ` it
may say what the sec is looking for , and what the rating agencies
have told them , ' ' said christopher ellinghaus , an analyst at
williams capital group . he added , though , ` ` i don ' t expect much . ' '
enron ' s stock drop led moody ' s investors service to cut the
company ' s debt rating to the lowest investment grade . dynegy held
off on a purchase agreement out of concern that the rating would
be cut to junk , jeopardizing enron ' s ability to raise cash needed
to settle its daily power and natural - gas trades .
enron may reveal where it expects to cut jobs and how much it
will pay to departing employees , paik said . chief operating
officer greg whalley said last week that fourth - quarter profit
will be hurt by severance payments and reorganization costs . he
didn ' t give details .
jobs likely will be eliminated in businesses the company
plans to sell , including its money - losing telecommunications unit
and operations in europe , analysts said .
enron has about 21 , 000 employees , two - thirds in the u . s . and
about a fifth in the u . k . its 600 traders are divided between
london and houston , where enron employs about 7 , 500 .
many enron workers are already preparing for layoffs , said
lyndon taylor , a houston - based recruiter for heidrick & struggles
international inc . , an executive placement firm .
` ` i got 56 resumes last week from enron , ' ' taylor said .
` ` that ' s equal to the number i got in the past year . ' '
- - margot habiby in dallas and jim polson in princeton
uk : trade , bank buyers circle enron ' s wessex water - reports .
11 / 17 / 2001
reuters english news service
( c ) reuters limited 2001 .
london , nov 17 ( reuters ) - both financial and trade buyers are considering bids for wessex water , the uk utility owned by crisis - hit u . s . energy group enron , weekend press reports said .
according to the uk trade magazine utility week , enron ' s rescue buyer dynegy wants to offload wessex as soon as possible , and focus on integrating enron ' s core energy businesses .
a report in the sunday telegraph newspaper named german bank westlb as a possible buyer at a price of 1 billion pounds ( $ 1 . 4 billion ) . westlb is the financial backer of the management buyout team that owns another southern england regional utility , mid kent water .
utility week raised the possibility that uk power utility scottish & southern might be interested .
copyright ? 2000 dow jones & company , inc . all rights reserved .
financial post : canada
a user ' s guide to living in calgary : people moving from houston find the cities much alike
claudia cattaneo
financial post
11 / 17 / 2001
national post
national
fp 7
( c ) national post 2001 . all rights reserved .
u . s . oil companies are setting up shop all over downtown , usually picking high - quality office space with lots of open space . anadarko petroleum corp . is located at fifth avenue place , burlington resources inc . is in bow valley square and devon energy corp . is in canterra tower . some end up in the offices of the companies they acquire . conoco inc . has moved into gulf canada square .
the big takeover wave has led to a reshuffling of downtown space . today , there is a shortage of large spaces and an increase in small ones available for sublease .
some would like to get the towers they occupy named after them but landlords resist this because naming a building after one tenant can be a disincentive for others .
oilmen ' s favourite hangout is the calgary petroleum club , founded by u . s . and canadian oilmen in 1948 in the palliser hotel . members have reciprocal membership at the petroleum club of houston . but calgary ' s pete club is a bargain compared to its texas counterpart . the initiation fee in calgary is $ 2 , 000 , monthly dues are $ 65 and the minimum amount members must spend in a year is $ 600 . the initiation fee for full membership at the petroleum club of houston is us $ 3 , 500 , monthly dues are us $ 110 and the minimum house account is us $ 75 per quarter .
u . s . executives running canadian oil and gas operations earn substantially more than their canadian counterparts because their compensation is competitive with the u . s . market .
when u . s . oil companies purchase canadian operations , they like to keep as much of the canadian staff as possible , since they are even more aware than their canadian rivals of the " war for talent . "
when recruiting locally , u . s . firms pay competitively but of course will pay what they must to get the best candidate . they also offer competitive benefits and stock - option plans . u . s . employers gulp at the generous holidays enjoyed by canadian oilpatch employees .
there ' s no american neighbourhood in calgary , although many recent arrivals are buying homes close to the city ' s core , particularly in such high - end neighbourhoods as mount royal , elbow park and britannia , where homes sell for $ 500 , 000 to $ 2 - million .
some u . s . companies purchase condominiums in such areas as eau claire on the bow river to house u . s . executives in transit .
ted zaharko , a broker - owner with royal lepage , says americans are driven by lifestyle choices and the fact that they can afford to buy expensive homes . living near other americans isn ' t important .
the cost of living is lower in calgary than in many comparable u . s . cities . however , u . s . cities become more competitive for high - income earners because personal income taxes in canada are higher than in the u . s . at the higher income levels . offsetting factors include access to health care , clean air , a short commute to work and the nearby mountain playground , which tend to be important to affluent people .
u . s . oil types may have strange accents - - many come from the southern states - - but oilpatch jargon is pretty much the same . calgarians and americans understand one another when they talk of dry holes ( no discovery ) , wildcat wells ( exploration wells ) or roughnecks ( rig workers ) . the language of money is also the same : barrels and u . s . dollars .
oilpatch humour is also borderless . one of the latest jokes circulating by e - mail , courtesy of oilpatch investment dealer peters & co . , is called " understanding enron . " the u . s . energy giant is in trouble over its use of off - balance - sheet transactions to keep debt off its books :
feudalism you have two cows . your lord takes some of the milk .
fascism you have two cows . the government takes both , hires you to take care of them and sells you the milk .
pure communism you have two cows . your neighbours help take care of them and you all share the milk .
applied communism you have two cows . you must take care of them , but the government takes all the milk .
totalitarianism you have two cows . the government takes them both and denies they ever existed . milk is banned .
mexican democracy you have two cows . the government takes both and drafts you into the army .
european democracy you have two cows . the eu commission decides which regulations for feeding and milking apply . if there aren ' t any , they invent some . they pay you not to milk the cows . they take both cows , shoot one , milk the other and pour the milk down the drain . they then require you to fill out forms accounting for the missing cows .
american democracy the government promises to give you two cows if you vote for it . after the election , the president is impeached for speculating in cow futures . the press dubs the affair " cowgate , " but supports the president . the cows sue you for breach of contract . your legal bills exceed your annual income . you settle out of court and declare bankruptcy .
capitalism you have two cows . you sell one and buy a bull . your herd multiplies and the economy grows . you sell them and retire on the income .
enron venture capitalism you have two cows . you sell three of them to your publicly listed company , using letters of credit opened by your brother - in - law at the bank , then execute a debt / equity swap with an associated general offer so you get all four cows back , with a tax exemption for five cows . the milk rights of the six cows are transferred via an intermediary to a cayman island company secretly owned by the majority shareholder who sells the rights to all seven cows back to your listed company . the annual report says the company owns eight cows , with an option on one more .
copyright ? 2000 dow jones any bid for a water company in the
u . k . worth at least 30 million pounds must be referred to the
competition commission , the newspaper said .
enron bought wessex for 1 . 4 billion pounds in 1998 . rwe ag of
germany , europe ' s fourth - biggest power company , is also interested
in wessex , but enron thinks u . k . regulators won ' t approve an rwe
bid because the company already owns thames water , a large u . k .
water company .
westlb has also been reported to be preparing a buyout for
railtrack group plc , the insolvent owner of the u . k . ' s train
tracks and stations , the paper said .
enron closes on $ 550 million loan from j . p . morgan , salomon
2001 - 11 - 16 17 : 36 ( new york )
enron closes on $ 550 million loan from j . p . morgan , salomon
houston , nov . 16 ( bloomberg ) - - enron corp . closed wednesday
on a $ 550 million loan from j . p . morgan chase & co . and salomon
smith barney inc . that was secured with assets of its transwestern
pipeline co . , spokesman vance meyer said .
enron , the largest energy trader , said nov . 1 that it had
received a commitment for $ 1 billion in loans from the investment
banks that would be used for debt payments and to supplement cash
reserves .
enron secured the loans with the assets of transwestern and
the northern natural gas co . the two pipeline systems combined are
about 19 , 000 miles long and can deliver as much as 6 billion cubic
feet of gas a day . the remaining $ 450 million loan , secured with
the northern natural gas assets , is in the documentation stage and
is expected to close next week , meyer said .
enron agreed a week ago to be acquired by dynegy inc . in a
transaction now valued at $ 24 . 7 billion in stock and assumed debt .
the move followed a loss in investor confidence - - the company ' s
shares had fallen 90 percent this year - - and amid a federal
investigation of accounting irregularities that limited its
ability to finance operations .
chevrontexaco corp . , the second - biggest u . s . oil company and
dynegy ' s largest shareholder with 26 percent , provided enron ,
through dynegy , with a $ 1 . 5 billion cash infusion on tuesday as
part of the buyout agreement .
in return , dynegy acquired preferred stock and other rights
in the enron unit that owns northern natural gas . if the merger
isn ' t completed , dynegy will have the right to acquire northern
natural gas , enron said in regulatory filing wednesday .
chevrontexaco will provide dynegy with another $ 1 billion after
the merger closes to maintain its equity stake .
the shares of enron fell 48 cents to $ 9 , while shares of
dynegy fell $ 1 . 53 to $ 42 . 47 . both companies are based in houston .
shares of san francisco - based chevrontexaco fell 35 cents to
$ 83 . 45 .
- - margot habiby in the dallas newsroom ( 214 ) 954 - 9452 | 0 | ham | enron mentions - 11 / 17 / 01 - 11 / 18 / 01 | they left behind big piles of money
houston chronicle , 11 / 18 / 01
economic news helps stocks , not bonds
the new york times , 11 / 18 / 01
bullish , and patient , on energy stocks
the new york times , 11 / 18 / 01
aquila energy makes provision for dynegy withdrawal , ft says
bloomberg , 11 / 18 / 01
a tale of greed and hubris
sarasota herald - tribune , 11 / 18 / 01
counting blessings along with the losses
los angeles times , 11 / 18 / 01
don ' t be a pudd ' n ' head , diversify
the washington post , 11 / 18 / 01
wessex water ` to be sold '
the independent - london , 11 / 18 / 01
uk press : westlb makes grab for gbplb wessex water
dow jones international news , 11 / 18 / 01
quanta steels itself against takeover bid
houston chronicle , 11 / 17 / 01
business briefs / houston & texas
houston chronicle , 11 / 17 / 01
at enron , the big dogs ate first
portland oregonian , 11 / 17 / 01
finance week - from dealing to reeling .
financial times , 11 / 17 / 01
world stock markets - bears take upper hand on wall st .
financial times , 11 / 17 / 01
in brief / energy pension funds consider action against enron
los angeles times , 11 / 17 / 01
enron investors hope filing will shed more light on finances
bloomberg , 11 / 17 / 01
uk : trade , bank buyers circle enron ' s wessex water - reports .
reuters english news service , 11 / 17 / 01
a user ' s guide to living in calgary : people moving from houston find the cities much alike
national post , 11 / 17 / 01
westlb offers to buy enron ' s u . k . water unit , newspaper says
bloomberg , 11 / 17 / 01
enron closes on $ 550 million loan from j . p . morgan , salomon
bloomberg , 11 / 16 / 01
business
jim barlow
they left behind big piles of money
jim barlow
staff
11 / 18 / 2001
houston chronicle
2 star
1
( copyright 2001 )
will wonders never cease ? last week a couple of heavy hitters left money on the table .
mark mcgwire , the home - run - hitting baseball player for st . louis , retired . and he let it be known that he never signed a two - year , $ 30 million contract his agent negotiated last spring . why ? because he wanted to find out if his injured right knee would allow him to play as well as he had before . it didn ' t , and he decided he wasn ' t worth that kind of money .
then ken lay , chairman of enron corp . , said he won ' t take the $ 60 . 6 million he had coming to him in a severance agreement that comes into play when enron is sold to dynegy corp .
of course , neither mcgwire nor lay will ever have to consider my fallback retirement plan - sacking groceries at the supermarket , carrying them to the car and hoping for a big tip . still , it was a class act on both their parts . mcgwire only hit . 187 last season , well below his lifetime average . and lay ? well , let ' s say that rarely in the history of american capitalism has a company sunk as fast as enron .
remember that earlier this year its stock hit a top of $ 82 a share . now it ' s hovering in the single - digit level , and enron is being forced to sell itself to a smaller rival .
the stock price incentive
how did enron get into this position ? put the blame on the company ' s relentless drive to push up its stock price . and a big reason for that push comes from the way american companies compensate top executives .
in the last couple of decades , executive compensation has soared . the average chief executive officer today makes 531 times as much in salary , bonuses and stock options as the average factory worker .
apologists for executive pay say these kinds of figures really aren ' t relevant . most of the money top executives receive doesn ' t come from base pay or bonuses but from stock options .
such options usually work this way . executives are given hundreds or thousands of shares of stock that they can only buy from the company at a future date . the sales price can be anything from 10 cents to the price of the stock on the date the options were granted . if the stock increases past the exercise price in the option , the executive can buy the stock and then sell it , making big bucks . it the stock has dropped below the option price - it ' s underwater , in the jargon - then those options are worthless .
granting options aligns the interests of the top executives with the shareholders , those who favor this sort of incentive say . and that ' s true , if you talking about in - and - out traders . but it ' s not true if we ' re looking out for the interests of the majority who hold stocks for the long term .
keeping the debt hidden
keeping its stock price soaring was what brought down enron .
to hype the stock , enron ' s execs were hiding the debt it took on to fuel its amazing growth and some of its dicier investments , in partnerships . enron was supposedly only a minority partner in these deals . that way it could move a large portion of its debt off its books in that partnership . that , in turn , made the company ' s earnings look better .
when enron ' s executives finally fessed up , they had to write down their profits over the past few years by 20 percent . but the real irony here is that 80 percent is still a heck of a lot of money . but by that time , the majority of shareholders simply had no faith in enron ' s bookkeeping .
now look at lay ' s compensation . in 1999 he exercised stock options and made $ 44 million on them . in 2000 , sales of options brought him $ 123 million , and this year about $ 26 million , according to a study published by bloomberg news .
was lay deliberating deceiving investors to keep his stock options profitable ? i don ' t think so . he was simply following the latest fad in corporate governance . he was aligning himself with the interests of the shareholders .
the shareholders were happy with that high stock price . nobody - besides some stock analysts - complained about enron ' s often - impenetrable bookkeeping until that stock price started to fall .
would enron ' s bookkeeping have been different if top executives received fewer stock options ? maybe .
fewer stock options would mean lower pay for the top guys . and no one would want that job if he were only going to make $ 10 million a year instead of $ 100 million .
just kidding .
copyright ? 2000 dow jones section 3
databank
economic news helps stocks , not bonds
by jonathan fuerbringer
11 / 18 / 2001
the new york times
page 17 , column 3
c . 2001 new york times company
stocks rallied and bonds plunged last week as investors digested some positive reports about the economy . inflation at the consumer level declined last month , retail sales surged after falling in september , and weekly initial unemployment claims slowed .
all this news led some investors to conclude that the economy might not be as troubled as it appeared to be in the aftermath of the terrorist attacks . that was good for the stock market , but very bad for the many bond investors who had been assuming the worst .
for the week , the nasdaq composite index rose 70 . 10 points , or 3 . 8 percent , to 1 , 898 . 58 , while the dow jones industrial average climbed 258 . 99 points , or 2 . 7 percent , to 9 , 866 . 99 . the standard & poor ' s 500 - stock index gained 18 . 33 points , or 1 . 6 percent , to 1 , 138 . 65 .
but bond prices tumbled while yields , which move in the opposite direction , soared . the yield on the treasury ' s 10 - year note rose to 4 . 85 percent , from 4 . 31 percent a week ago , the biggest weekly move in percentage terms since the note was first regularly issued 25 years ago . the jump in rates also showed that many investors no longer expect federal reserve policy makers to cut short - term interest rates when they meet next month . jonathan fuerbringer
chart : ' ' stocks in the news ' ' amr nyse : amr the stock of the parent company of american airlines , along with other airline companies , rebounded on factors including lower oil prices and passage of the aviation security bill . friday ' s close : $ 20 . 06 week ' s change : + 10 . 65 % est . ' 01 p / e : - - dynegy nyse : dyn as part of its planned $ 9 billion acquisition of enron , dynegy will receive the right to acquire northern natural gas , a potentially lucrative pipeline system , even if the larger deal is not completed . friday ' s close : $ 42 . 47 week ' s change : + 9 . 57 % est . ' 01 p / e : 20 . 29 home depot nyse : hd the nation ' s largest home - improvement chain said its third - quarter profit rose 20 percent over the year - earlier period . friday ' s close : $ 45 . 80 week ' s change : + 8 . 76 % est . ' 01 p / e : 36 . 03 dell computer nnm : dell rebounding from a loss in the second quarter , dell reported a third - quarter profit of $ 429 mil lion . the company also predict d that pc sales would increase later this year . friday ' s close : $ 26 . 60 week ' s change : + 3 . 30 % est . ' 01 p / e : 41 . 05 sungard data systems nyse : sds an appeals court rejected the government ' s effort to stop sungard from buying a unit of comdisco , which filed for bankruptcy protection in july , while an antitrust investigation proceeds . friday ' s close : $ 28 . 64 week ' s change : + 9 . 56 % est . ' 01 p / e : 32 . 11 yahoo nnm : yhoo wall street analysts expressed confidence in the turnaround prospects of the company after it outlined plans to increase fee - based revenue and to reduce its work force . friday ' s close : $ 15 . 47 week ' s change : + 12 . 76 % est . ' 01 p / e : 309 . 40 philip morris nyse : mo philip morris says it plans to change its name to the altria group , pending approval by shareholders . friday ' s close : $ 48 . 13 week ' s change : + 2 . 78 % est . ' 01 p / e : 11 . 90 cv therapeutics nnm : cvtx the biotechnology company said clinical trials of ranolazine showed that the drug , which it developed , was effective in treating the chest pain of angina . friday ' s close : $ 51 . 67 week ' s change : + 48 . 97 % est . ' 01 p / e : - - ( source : bloomberg financial markets )
copyright ? 2000 dow jones section 3
investing
bullish , and patient , on energy stocks
by jan m . rosen
11 / 18 / 2001
the new york times
page 8 , column 2
c . 2001 new york times company
despite last week ' s plunge in the price of crude oil and in shares of big oil companies , some wall street analysts remain upbeat about the long - term prospects for energy stocks .
' ' these very dramatic downturns are great buying opportunities , ' ' said tina vital , an oil and gas analyst at standard & poor ' s , who recommends a broad group of integrated oil companies , including exxon mobil , chevrontexaco , royal dutch / shell , bp and totalfinaelf . ' ' they have excellent management , a top dividend yield and are a safe haven for investors , ' ' she said , provided that investors are patient and can bear short - term swings .
last week ' s price declines were set off by russian oil companies ' refusal to accept demands by the organization of the petroleum exporting countries for big production cuts . they were a reminder that the sector is extremely volatile . ' ' oil could go to $ 10 a barrel short term , ' ' she said , but there is no certainty of that . the oil producers could reach an agreement by january , sending prices upward . over the long term , she expects to see production cuts .
demand for energy has grown only 0 . 5 percent this year , and prices have been declining for some time for both crude oil and gasoline - - as drivers have seen at the gas pump . west texas intermediate crude closed friday at $ 18 . 03 on the new york mercantile exchange , up 58 cents from its thursday close , the lowest since june 1999 . but an economic recovery , expected by late 2002 , could cause demand to pick up , analysts say .
as oil prices have dropped , so have the prices of most oil stocks , but not as much as the overall market since the beginning of 2000 . over that period , the s . & p . energy index has lost 8 percent , while the s . & p . 500 - stock index is down 23 percent .
a report issued last week by the energy department said that while the sept . 11 terrorist attacks had intensified the country ' s economic slowdown , ' ' they are not expected to result in any long - term volatility in energy markets . ' ' the report estimated that commercial energy demand would rise 1 . 7 percent a year through 2020 , instead of the 1 . 2 percent predicted only a year ago . its predictions assume increased use of computers and office equipment , and slower increases in fuel efficiency for cars and trucks .
while they warn of the possibility of wild price shifts in the months ahead , other analysts are similarly bullish for the long term . l . bruce lanni , senior oil analyst at a . g . edwards his 12 - month target is $ 34 . ' ' we remain confident , ' ' he said , ' ' that the company ' s annual oil and gas production should grow by about 4 percent , on average , over the next several years . ' '
conoco ' s debt , at 55 percent of capital , is relatively high , but he expects the company ' s strong cash flow - - it equaled $ 5 . 33 a share last year - - to reduce the debt level to 46 percent next year and to 38 percent in 2003 . the company ' s after - tax interest cost is only 3 . 5 percent , he said .
mr . lanni also favors kerr - mcgee , a natural gas exploration and production company , and bp , calling both undervalued . he regards exxon mobil , royal dutch / shell and chevrontexaco as fully priced , so he is not recommending buying them now . ' ' if you own them , hold them , ' ' he said .
william featherston , executive director and an oil and gas exploration analyst at ubs warburg , said he felt ' ' near - term caution but medium - term optimism for sustainably higher ' ' natural gas prices . he said he would encourage investors to consider buying shares of exploration and production companies over the next two months . his top picks are apache , kerr - mcgee and eog resources .
such stocks are highly volatile , he said . they are ' ' trading - oriented vehicles , and short - term volatility in commodity prices generally provides the most attractive entry and exit points , ' ' he said . ' ' while natural gas prices declined throughout most of this year , prices rose at a startling pace , from $ 1 . 75 per million cubic feet at the end of september to over $ 3 per million cubic feet within weeks . ' '
he cited three reasons for the price rally : a decline in gas surpluses , predictions of a colder - than - normal winter and what he has called ' ' pathetic third - quarter natural gas production , ' ' despite record drilling activity .
the tangled finances of the enron corporation were also a factor in the recent price increase for natural gas futures , he said . enron , which marketed 25 billion cubic feet a day of natural gas , or more than 40 percent of the nation ' s demand , is under investigation by the securities and exchange commission and announced a $ 1 . 2 billion reduction in shareholder equity from deals with partnerships involving its former chief financial officer . it also reported a third - quarter loss and restated earlier earnings . enron has agreed to be taken over by dynegy , a smaller rival , for about $ 9 billion in stock . dynegy is also assuming about $ 13 billion in debt .
anxiety over whether the enron investigation would disrupt deliveries or have other market repercussions led to an increase in prices . while it is ' ' difficult to quantify the enron factor , ' ' mr . featherston said , the short - term effects on natural gas prices seem to be over .
other factors , of course , could also mean a bumpy ride for energy investors over the next several months . the status of the war against terrorism , president bush ' s decision to fill the strategic petroleum reserve , thus helping opec in reducing excess global capacity , and a united nations review of the food - for - oil deal with iraq expected in december could each have a significant impact on battered oil prices .
nevertheless , ms . vital said , for the long term , energy will probably be in short supply , and new sources must be developed . so she also likes the prospects of two drilling companies , noble drilling and nabors industries . both took a beating last week , along with the oil companies , so again she sees buying opportunities .
bern fleming , portfolio manager of the axp utilities income fund in minneapolis , who has stakes in dynegy , duke energy and dominion resources , said all three had good prospects for growth , thanks to a mix of assets , ' ' management i respect and solid business plans . ' '
photo : workers at an oil well near lafayette , la . although oil prices have plunged , analysts say there is still good long - term potential for the stocks of energy companies . ( marty katz for the new york times ) chart : ' ' power play ' ' energy stocks have generally outperformed the overall market since the beginning of 2000 . graph shows conoco shares , s . & p . energy composite , and the s . & p . 500 index since january 2000 . ( source : bloomberg financial markets )
copyright ? 2000 dow jones & company , inc . all rights reserved .
aquila energy makes provision for dynegy withdrawal , ft says
2001 - 11 - 18 19 : 52 ( new york )
houston , nov . 19 ( bloomberg ) - - aquila energy corp . is one of
several energy traders limiting its trading with enron corp . in
case dynegy inc . pulls out of its bid for the company , the
financial times said , citing aquila .
aquila said it began making contingency plans in case dynegy
withdrew from its $ 24 billion takeover of enron , the paper
reported .
enron , the largest energy trader , decided to sell after its
shares plunged this year and a federal investigation of accounting
irregularities limited its ability to finance operations . enron ' s
collapse would have caused upheaval in energy markets , where the
company does one - quarter of all gas and power trades .
dynegy ' s agreement to buy enron allows it to withdraw from
the transaction under certain circumstances , the ft said .
perspectives
a tale of greed and hubris
waldo proffitt
11 / 18 / 2001
sarasota herald - tribune
all
f 2
( copyright 2001 )
for anyone not already disenchanted with the idea of total deregulation of public utilities , the most recent installment of the miserable enron story as it unfolded last week should serve as a convincing example of the folly of relying on unregulated profit - driven enterprises to supply our energy .
a year ago enron was the darling of wall street , the poster boy for the utility industry , its stock selling for about $ 85 a share . last week its stock was worth about 10 percent of that and the company had agreed to be bought by a competitor . there was fear the company ' s bond rating might fall to the " junk " level .
what happened ? it will take months , if not years , to untangle the details , but it is clear that the main culprit was greed , closely followed by hubris .
not too many years ago enron was a small , struggling , gas pipeline company in houston . as deregulation spread to more and more states , enron began acquiring pipelines , gas producers and utilities .
it also acquired friends in high places , especially the bush family and their key political advisers . and , it discovered it could make money faster by selling and trading energy than by producing it . enron sold many of its generating plants and became the biggest " power broker " in the nation .
though it was by no means the largest winner in the con game that bilked california consumers of tens of billions of dollars , enron was one of the first power barons to take advantage of california ' s flawed deregulation law - - virtually written by in - state and out - of - state utility companies .
the california fiasco soured ( probably ) most americans on utility deregulation , but enron was not singled out for calumny , and management saw no reason to examine its business ethics .
contrarywise . management had visions of even greater profits , which it felt no obligation to share with ordinary stockholders . the chief financial officer and other high - ranking executives set up affiliated or subsidiary partnerships which made deals with enron . i do not understand the details of these arrangements , but neither do independent accountants , the securities and exchange commission or congressional investigators . it does seem clear that the enron insiders made millions for themselves .
enron acknowledges , without explaining , that stockholder equity dropped $ 1 . 2 billion in the last quarter and that it had for the last five years overstated profits by some $ 600 million . whether this was by design or by mistake is in dispute , but it is the sort of thing which tends to undermine the confidence of investors .
so much for greed . back to hubris . it seems not unlikely that enron ' s leaders felt they might not be punished for a modest amount of corner - cutting because they had friends in high places .
the chief executive , kenneth l . lay , was and is a personal friend of george w . bush and has easy access to the white house . for many months after the new administration took office , karl rove , bush ' s top political strategist , owned enron stock valued at $ 100 , 000 to $ 250 , 000 , and sold it only after he had been able to secure a ruling that he did not have to pay capital gains tax immediately because he sold to avoid a conflict of interest . lawrence lindsey , the president ' s chief economic coordinator , and i . lewis libby , vice president cheney ' s chief of staff , owned stock in enron , and lindsey was paid $ 50 , 000 last year as a consultant for enron .
enron and its employees gave more than anyone else to bush ' s four political campaigns - - one ( unsuccessful ) for congress , two for governor and one for president . in 2000 , enron and its employees gave $ 113 , 000 to bush ' s campaign , $ 250 , 000 to the republican national committee , and $ 300 , 000 to the presidential inauguration committee .
cabinet appointments affecting energy policy , key sub - cabinet appointments , administration action or inaction in the california energy mess , and the overall energy policy of the administration could hardly have been more favorable to the interests of enron .
and now a couple of questions : is it possible the unusual financial maneuvers by enron went unnoticed or even unsuspected by all the savvy texas oilmen in the bush administration ? were those of them with heavy investments in enron unconcerned about the conduct of the company ? was enron right in thinking its friends in government would not be in a hurry to investigate or to reprimand ?
or , in light of our preoccupation with terrorism , will the enron case get much attention from the federal government ? or from voters ?
waldo proffitt is the former editor of the herald - tribune .
copyright ? 2000 dow jones financial desk
market beat
counting blessings along with the losses
tom petruno
times staff writer
11 / 18 / 2001
los angeles times
home edition
c - 1
copyright 2001 / the times mirror company
try finishing this sentence : " the best thing about my experience as an investor in 2001 was . . . "
many americans , contemplating the losses they ' ve suffered this year in the stock market , might say there was nothing " best " about what happened to them - - in fact , nothing good at all , perhaps other than that it might have been worse .
with share prices on the rise again , the damage to portfolios has been lessened . even so , stocks will have to post strong gains in the next six weeks to keep this from being the market ' s worst calendar year since 1977 .
the blue - chip standard & poor ' s 500 index rose 1 . 6 % last week , but it ' s still down 13 . 8 % year to date .
yet those losses , while certainly not trivial ( especially when they ' re yours ) , can obscure what arguably are some very positive aspects of this year ' s experiences .
with investing , adversity can be a more important teacher than success . if you ' re having trouble this thanksgiving week finding reasons to be thankful about anything investment - related , try these on for size :
* " asset allocation " is no longer just a quaint theory . the paramount investing rule has always been to spread your money around to reduce risk . but it took the worst stock bear market in 25 years to bring this lesson home for many people who thought equities only rose in value .
now , millions of investors have a far better appreciation for just how much they can lose in stocks - - and how bonds and short - term cash savings can offset market losses and preserve capital .
it has been a hard lesson , to be sure . but investors who take asset allocation to heart will be laying a much more solid foundation for their money in the long run . and don ' t underestimate what that can mean for your peace of mind long term .
* the wisdom of saving money on a regular basis has been relearned . in the late 1990 s , many economists lamented how the u . s . savings rate continued to shrink . some people felt there was little need to put significant new sums into savings when the stocks or stock mutual funds they owned seemed to be rising nonstop .
in other words , many americans were letting the stock market do their saving for them when share prices were rising 20 % or more each year .
now , with shares down and with the likelihood of much more moderate returns on stocks in this decade , it ' s clear that many people will have to find a way to save regularly if they ' re going to meet their long - term financial goals , especially retirement .
this may not be a pleasant reality , but it ' s better for most people to have faced this fact sooner rather than later , while there may be time to make up lost ground .
* a healthy skepticism has replaced mindless euphoria about stocks and those who tout them . the market ' s slide has discredited a legion of wall street analysts , money managers and others whose knowledge , understanding and judgment were clearly lacking , in retrospect .
investors have come to see that having blind faith in those who present themselves as " experts " is a highly dangerous strategy , if it can be called a strategy at all .
sure , it may have been more fun when technology stocks were shooting the moon and nobody had much use for reviewing a company ' s fundamentals . but that wasn ' t investing - - it was speculating , and on a massive , and ultimately ruinous , scale .
people have learned to be less trusting about what others say about the market , and that is more likely to be beneficial than detrimental to their portfolios in the long run .
just ask anyone who shifted their entire 401 ( k ) retirement savings sum into aggressive - growth mutual funds in the first quarter of 2000 - - right before the market peaked - - because of the bullish comments of some 25 - year - old tech stock analyst . those investors aren ' t likely to make a move like that again .
* free - market forces are weeding out the weak players and the phonies . capitalism may be harsh , but it ' s efficient when the good times end and it ' s time to find out which companies truly have talent and staying power - - and deserve more capital .
hundreds of dot - coms have failed , but who really misses them ? is it any harder to find what you want on the internet ? it probably would have been much worse for all concerned if those companies had sucked up investors ' funds for another year instead of failing when they did .
but the market isn ' t just eliminating small companies that never had much of a future . the financial near - collapse of energy giant enron corp . exposed a business that twisted accounting rules to its own benefit - - to the point that the company now concedes that financial statements all the way back to 1997 " should not be relied upon . "
also to be weeded out , though over a longer time period , will be mutual fund managers whose performance running other peoples ' money has been a nightmare for those investors - - meaning , the returns produced have been far worse than what the investors would have achieved in the average fund in that particular sector .
these managers know who they are - - and , hopefully , their shareholders know by now as well , and will vote with their feet .
the free market also is reminding cartels just how tough it is to control prices .
once again , the organization of petroleum exporting countries has lost its ability to prop up crude oil prices , which have sunk to two - year lows amid the weak global economy . that ' s lousy for opec , but it ' s great for every energy consumer .
* the market ' s woes have altered many investors ' priorities for the better . the wild bull market of the late 1990 s demanded peoples ' attention , and got it .
for some , stocks became an obsession . their portfolios dominated their lives , especially if they were actively trading shares . they believed they were going to be rich , or richer , and that it was all because of how smart they were .
now , most people have been humbled by the market . in the process , some have realized that they don ' t want their mood determined by their portfolio ' s day - to - date price changes .
the sept . 11 terrorist attacks , of course , also changed many peoples ' view of what truly matters to them .
money is important , but you aren ' t your stocks , and they aren ' t you . life is more than a daily stock quote .
*
tom petruno can be reached at tom . petruno @ latimes . com . for recent columns on the web , go to www . latimes . com / petruno .
copyright ? 2000 dow jones & company , inc . all rights reserved .
financial
investing james k . glassman
don ' t be a pudd ' n ' head , diversify
james k . glassman
11 / 18 / 2001
the washington post
final
hol
copyright 2001 , the washington post co . all rights reserved
warren buffett , who was probably the greatest investor of the 20 th century , is fond of quoting the salacious actress mae west as saying , " too much of a good thing can be wonderful . " in the market , such a motto would lead you to avoid diversification and instead concentrate your portfolio in stocks you really , really like .
peter lynch , who was probably the best mutual fund manager of the 20 th century , calls spreading yourself too thin " diworseification . "
smart , witty and brilliant at picking stocks , buffett and lynch may not need diversification , but the rest of us do . when you own one stock , you ' re out on a limb . for example , very few analysts - - with or without a conflict of interest - - predicted that shares of enron , the energy and trading company , would tumble by 90 percent in a year . put all your eggs in a basket like that and you end up with a gooey mess . the more stocks you own - - as long as they are in different industries - - the more the overall riskiness of your portfolio is modulated .
the reason you don ' t want a super - risky portfolio is simple : while warren buffett may be calm and prescient enough to ride out severe dips in the value of his holdings , most investors are not . a portfolio that increases in price by 10 percent each and every year is worth exactly the same at the end of three years as a portfolio that falls by half the first year , rises by three - quarters the second and rises by 52 percent the third . but reasonable investors prefer the consistent ride . it prevents them from doing something stupid , such as selling all their stocks after losing half their money during that first disastrous year .
consider the sad case of james d . mccall , who earlier this month resigned as manager of the merrill lynch focus twenty mutual fund . two years ago , merrill wanted mccall ' s services so desperately that the firm went to court to pry mccall away from his previous employer , pilgrim baxter , where he rang up impressive gains in the late 1990 s . ( his big success was called pbhg large cap 20 . ) and when they got mccall , merrill ' s brokers raised more than $ 1 . 5 billion from their clients for him to invest . while the average growth - stock mutual fund owns about 100 stocks , with the top 10 holdings representing about one - fourth of the portfolio ' s total value , mccall specialized in what are called " concentrated portfolios . " in the case of merrill lynch focus twenty , he owned , as the name implies , just 20 stocks . at last report , his top 10 holdings accounted for a whopping two - thirds of the fund ' s assets .
if mccall had spread his 20 stocks among , say , a dozen different industries , he might have smoothed his ride . instead , 69 percent of his assets went to technology firms . the focus fund and a smaller one that mccall ran called premier growth were launched in march 2000 . within just 17 months , all but $ 650 million of the clients ' original $ 1 . 5 billion had vanished .
it is hard to imagine losing as much as focus twenty did even if you tried . as of nov . 9 , the week mccall resigned , the fund was down 72 percent for the year , compared with a loss of 14 percent for the standard & poor ' s 500 - stock index , the benchmark for fund managers . according to the latest report from morningstar mutual funds , 19 of mccall ' s 20 stocks had declined during 2001 , the only exception being harley - davidson . more amazing , 16 of the 19 losers had fallen by at least half . ( by the way , enron was mccall ' s seventh - largest holding . )
" this fund has had a wretched existence , " wrote morningstar analyst kunal kapoor , who did admit a grudging admiration for mccall ' s perseverance . mccall ' s " faith may turn out to be well placed over time , " kapoor said . unfortunately , time ran out .
my point here is not to pick on mccall but to reveal the perils of concentration . buying focus twenty as a technology fund , and consigning it to no more than one - fifth of your holdings ( with the rest of your assets in diversified , conventional stocks or funds ) might have made sense , but focus twenty was touted as a " long - term capital appreciation " fund , not a sector fund . here , it failed , but maybe it didn ' t have to .
the manager who made the concentrated fund popular , tom marsico , who ran janus twenty , took care to spread his holdings around . his successor , scott schoelzel , has suffered losses lately ( he is down 28 percent year - to - date , but that ' s after a total gain of 546 percent in the preceding five years ) , but they have not been nearly so catastrophic - - and for good reason . schoelzel ' s last report lists among his top 10 holdings three tech stocks , two financials , one drug company , one energy firm ( whoops , enron again ) , one industrial , one consumer - durables company and one services firm .
for investors in individual stocks , the important question is this : how much diversification is enough ? some risk is inherent in even the broadest portfolio . this is called market , or " systematic , " risk . over the past 75 years , market risk , as measured in standard deviation , has been about 20 percent . in other words , in two - thirds of the years the annual return of the s that is , between a loss of 9 percent and a gain of 31 percent . that ' s still volatile , but if you invest in stocks you have to live with it .
what you don ' t have to live with is anything more volatile . so your objective in building a portfolio is to try to approximate systematic risk and avoid what is called " idiosyncratic , " or extra , risk . a portfolio with just a few stocks , or one like mccall ' s , that is overloaded in a single sector , has lots of idiosyncratic risk . in 1977 , an influential study found that investors could nearly eliminate that extra risk by owning just 20 stocks in a wide variety of sectors ; in fact , owning eight or 10 stocks depressed risk sharply .
recently , however , the market has appeared to be far more volatile , and a new study by a group of economists headed by john campbell of harvard found that many more stocks were needed - - around 50 - - to bring a portfolio down to the same level of riskiness as the broad market . what campbell ' s group found was that neither the market itself nor individual sectors had become more volatile in the 1990 s , but that stocks within those sectors had , so you need to own more of them .
but owning 50 stocks is a pain in the neck - - and it brings up the buffett - lynch admonitions about too much diversification . it is hard just to take the time to make the selections , but even buy - and - hold investors need to keep track of the companies they own to spot adverse changes in management , product failures or new competition ( not to mention enron - style accounting shenanigans ) - - signs that it ' s time to sell .
one good answer is to achieve balance by owning a combination of mutual funds and stocks . for example , you might want to put 50 percent of the money you have allotted for stocks into a fund that mimics the s & p itself , like vanguard index 500 , which charges rock - bottom expenses and guarantees that risk won ' t exceed systematic levels . you could also consider a broad fund that ' s managed by human beings , such as meridian value or baron growth , which are recommended by sheldon jacobs , editor of the no - load fund investor newsletter . then another 25 percent of your holdings can go into a few sector funds that specialize in technology , real estate , energy and small - caps , and the final 25 percent into a portfolio of 10 to 20 individual stocks . ( i own 16 , at last count . )
there are many valid variations . just don ' t emulate mark twain .
in a letter to clients recently , anthony m . maramarco of david l . babson & co . , the cambridge , mass . , investment firm , recalled the aphorism of twain ' s pudd ' n ' head wilson : " put all your eggs in the one basket - - and watch that basket ! " unfortunately , such a philosophy emphatically does not work in stock investing - - as twain himself learned when he sank nearly all his fortune into the paige linotype , a machine that flopped .
we all make mistakes . ( it was twain , after all , who pointed out that " human beings are the only animals that blush - - or need to . " ) but smart diversification helps investors avoid some of the worst of them .
james k . glassman invites comments at jglassman @ aei . org , but he cannot answer all queries .
http : / / www . washingtonpost . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
business
wessex water ` to be sold '
heather tomlinson
11 / 18 / 2001
the independent - london
foreign
1
( copyright 2001 independent newspapers ( uk ) limited )
wessex water , the water and sewage company , is understood to be up for sale following an offer to take over its owner , enron , by dynegy , the us energy group .
three years ago , enron spent pounds 1 . 4 bn on wessex water . but dynegy is understood to want to concentrate on us and european energy assets and is not interested in non - core assets .
any hope to regain the same amount of money could be derailed as the industry is put off by regulatory problems , and the company ' s results have worsened due to imposed price cuts over the past year .
" it is not that there is going to be a fire sale but most of [ the international assets ] are not core to the businesses we will continue to pursue , " said an enron spokesperson . " at the right price we will sell . "
scottish & southern energy and united utilities have been touted as potential buyers , yet industry insiders believe that the uk regulator , ofwat , will take a dim view of bids by uk water companies , as they are too large to buy it .
copyright ? 2000 dow jones & company , inc . all rights reserved .
uk press : westlb makes grab for gbplb wessex water
11 / 18 / 2001
dow jones international news
( copyright ( c ) 2001 , dow jones 44 - 207 - 842 - 9289
copyright ? 2000 dow jones & company , inc . all rights reserved .
business
quanta steels itself against takeover bid
nelson antosh
staff
11 / 17 / 2001
houston chronicle
3 star
1
( copyright 2001 )
quanta services , which builds and maintains power and communications lines , said friday it is fighting a " creeping takeover " by utilicorp united , one of the nation ' s largest utility holding companies .
on thursday quanta board members changed the houston company ' s shareholder rights agreement - called a " poison pill " defense against takeovers - to deter utilicorp from acquiring a controlling stake .
the action was taken after negotiations with utilicorp fell apart and the kansas city , mo . - based company announced its intention to resume purchases of quanta stock .
a spokesman told bloomberg news on oct . 4 that utilicorp wanted to increase its stake to the mid - 40 s percentage range , which would give it effective control , with a vote on management .
utilicorp invested $ 320 million in quanta from september of 1999 through february of 2000 , said utilicorp spokesman ethan hirsh , bringing its ownership up to 28 percent , and has been adding stock since then . it owned about 38 percent when a standstill agreement stopped further purchases in early october .
part of the shareholder rights amendment limits further purchases by quanta by reducing the trigger point for the poison pill to 39 percent of quanta ' s outstanding shares , instead of the 49 . 9 percent that has been in effect just for utilicorp .
in addition to saying that utilicorp is no longer " an exempt " person under the 39 percent trigger , the amendments changed the kind of securities to be issued in the event the pill is triggered and how they could be exercised .
utilicorp had a higher trigger point that other potential acquirers because it already was a significant shareholder when the plan was initially drafted .
hirsch didn ' t think the amendments would prevent his company from buying more .
utilicorp ' s interest in houston acquisitions is not limited to quanta . its also said this week it would like to buy enron ' s share of a united kingdom power station that provides electricity sufficient to light 1 . 88 million homes .
it will soon get a 27 percent share in the station near london , known as the teeside power station , through the purchase of a utility there . it would like the 42 . 5 percent that enron owns , utilicorp president robert green said in a conference call .
green said he understood that stake was on enron ' s for - sale list .
utilicorp revealed in a securities and exchange commission filing that it bought 1 . 538 million shares of quanta ' s common stock on the open market , at a cost of more than $ 24 million , between sept . 28 and oct . 3 .
quanta ' s stock declined 27 cents to close friday at $ 15 . 69 , while utilicorp rose 10 cents to close at $ 27 . 50 . quanta ' s stock is down 51 percent for the year to date , and hit a 52 - week low of $ 9 . 94 on sept . 21 .
" after many weeks of negotiations with utilicorp , we could not reach agreement upon a strategy that would allow utilicorp to consolidate our financial results for accounting purposes on terms acceptable to quanta , " john colson , quanta ' s chief executive officer , said in a written statement .
" in the face of utilicorp ' s communications last evening breaking off negotiations and stating its intent to resume open market purchases of quanta stock , the board acted to protect the best interests of all quanta stockholders against a change of control transaction which did not provide an appropriate benefit to all shareholders , " he said .
quanta has a mutually beneficial relationship with utilicorp and hopes negotiations can resume , colson said .
copyright ? 2000 dow jones & company , inc . all rights reserved .
business
business briefs
business briefs / houston & texas
staff , bloomberg news , reuters , associated press
11 / 17 / 2001
houston chronicle
3 star
2
( copyright 2001 )
offer still on table for canadian hunter
burlington resources on friday extended a $ 1 . 96 billion offer for canadian hunter exploration ltd . until dec . 3 while canadian regulators study the bid .
the cash offer was to expire tuesday . investment canada , which oversees foreign ownership of canadian companies , won ' t complete its review by then , burlington said .
houston - based burlington agreed to buy calgary - based canadian hunter on oct . 9 .
azurix settles suit over dynegy buyback
azurix corp . , a wastewater - services management company , won a judge ' s approval friday in wilmington , del . , to settle shareholders ' lawsuits over parent enron corp . ' s $ 329 million stock buyback in march .
houston - based enron , soon to be bought by dynegy , said in october 2000 it would pay $ 7 for each of azurix ' s outstanding shares , or $ 275 million , to take the company private . seven azurix stock owners sued in delaware chancery court seeking more money .
enron eventually agreed to pay $ 8 . 375 per share , adding about $ 54 million to the offer , and stockholders agreed to settle the lawsuit , lawyers said .
sbc adds 2 states to long - distance rolls
san antonio - based sbc communications received permission friday from the federal communications commission to begin offering long - distance service to customers in missouri and arkansas .
the decision allows sbc to offer the service in the five states served by its sbc southwestern bell subsidiary . sbc has already received permission to compete in the long - distance market in texas , kansas and oklahoma .
while the fcc ' s decision was unanimous , there was discussion on whether sbc has made its dsl high - speed internet access service available for resale and if the federal law requires such resale . the commission will address the issue in another proceeding .
airline canceling 200 layoffs of pilots
fort worth - american airlines friday canceled the planned dec . 2 layoffs of 200 pilots because military duty was extended for pilots called up on reserve and other employees took leaves .
american laid off 386 american pilots sept . 28 and 200 more nov . 1 , as well as 120 at twa airlines . those were among 20 , 000 jobs amr eliminated as passenger demand fell . the company said it will bring employees back as demand improves .
southwest drops suit against orbitz site
dallas - southwest airlines co . has agreed to drop a lawsuit that claimed orbitz , an internet travel site owned by five rival airlines , displayed incorrect information about southwest ' s flights and fares .
" it gives southwest airlines the right to restart the litigation at its current point if southwest fares are ever displayed on orbitz again , " said linda rutherford , a spokeswoman for the dallas - based airline .
copyright ? 2000 dow jones & company , inc . all rights reserved .
editorial
at enron , the big dogs ate first
11 / 17 / 2001
portland oregonian
sunrise
do 6
( copyright ( c ) the oregonian 2001 )
summary : workers ' ire over 401 ( k ) plans is understandable
watching enron ' s bigwigs lose their jobs after inflating profits may offer some satisfaction to retirees and employees at the troubled energy marketer . but don ' t bank on it .
when corporate insiders can sell the company and stroll away with millions while workers and other stockholders are left with peanuts , it would be hard not to be bitter .
as oregonian business writer jeff manning reported friday , local employees of portland general electric , an enron subsidiary , watched their retirement savings sink after enron announced on oct . 16 that it would lose $ 618 million in the fourth quarter . this came after enron officers made more than $ 136 million selling stocks earlier in the year .
then on nov . 8 , enron dropped the other shoe : it admitted it had overstated earnings for four years by $ 586 million , or 20 percent . over those few weeks , enron shares plunged from $ 33 . 84 to its $ 9 close on friday .
the four - year overstatement developed through some novel accounting methods . enron and its auditor , arthur anderson , insist that its financial reports were all within proper standards , but the mechanics in this case included obscuring debt by placing it on the ledgers of other entities so that the parent company ' s profit picture appeared rosier than it actually was .
the weeks from mid - october to early november were wrenching for employees . because the company was changing its fund manager , they were powerless to make any changes in their 401 ( k ) plans . pge chief executive peggy fowler points out that the change in 401 ( k ) plan managers was announced last summer . and although employees could have gotten out of enron stocks over the history of the plan , enron seemed to be an attractive investment .
company executives , though , were selling . jeffrey skilling , who was promoted to enron chief executive early in the year but resigned in august , sold more than $ 5 million in company shares according to transaction records covering the first half of the year .
former chief financial officer , andrew fastow , who was fired last month in an action related to the financial mess , made $ 14 million in stock sales betweeen march and november of last year . kenneth lay , enron ' s chief executive , who returned after his protege skilling left , made at least $ 20 million in stock sales from late last year . he has announced that he would decline his severance package .
dynegy , another texas energy marketing company , has made a bid to buy enron . that probably means the best enron and pge employees can hope for now is that dynegy will be a better corporate owner , or they can try their luck with one of the many shareholder lawsuits being filed .
the securities and exchange commission is investigating enron ' s activities . if its behavior was illegal , there will be consequences for company officers .
that ' s still not much to offer to workers who have seen their retirement savings dissolve . but for now it ' s all there is .
copyright ? 2000 dow jones over many years they have pointed out that all the benefits of deals , and often more than all , accrue to the shareholders of the companies taken over , while investors in the bidding companies suffer dilution . investors know this , and in normal market conditions news of a takeover will depress the bidder ' s share price . but in a bubble market these prudent attitudes can be overwhelmed by euphoria , as well as technical factors relating to demand by fund managers so that they can maintain their weightings when a bidder is spraying around large quantities of new equity .
also , it is irrational that many more deals are done when the stock market is high than when it is low . two years ago , companies such as marconi were engaged in buying sprees at daft prices . now , when prices are much lower , hardly any acquisitions are being made ( and investment banks are dismissing thousands of employees ) . an exception to the deal famine is gold mining , which just happens to have been one of the stock market ' s strongest sectors this year .
another important source of irrationality has been the domination of stock market analysis by the stockbroking offshoots of the investment banks . over recent years their earnings - per - share forecasts for the next calendar year have been on average 8 per cent too high . this has not just been a mistake ; they have been paid to be over - optimistic . admittedly , attempts are being made to restructure the incentives here , as the embarrassed investment banks come under pressure from the regulators and the courts for their errors of judgment during the bull market , but it remains to be seen whether much will really change .
the mystery is why anybody would take notice of these forecasts , and indeed many professional investors do not . that merrill survey , incidentally , shows that fund managers on average expect no more than 4 per cent earnings per share growth over the next year , while the stockbrokers ' analysts are still clinging to the hope that it will be 15 per cent .
a final source of distortion is the tendency of companies to offer their executives the wrong sort of incentives . the ruin of marconi may appear irrational , when multi - billion - pound acquisitions are being declared worthless after only two years . but executives with lucrative stock option plans , which pay off if their gambles go right , combined with golden goodbye and pension packages that are triggered if things go wrong , may well consider it perfectly rational , from their viewpoint , to take much bigger risks than other shareholders , or employees , would consider acceptable .
moreover , sir christopher gent , shareholders of vodafone will remember , received a controversial # 10 m personal bonus last year for clinching the mannesmann takeover , a deal that requires # 10 bn of write - offs .
in normal market conditions the valuation of equities may be tolerably rational , but in a bubble market the rules are thrown out of the window . many investors certainly like the idea of getting rich quickly . that is why many people subscribe so keenly to national lotteries in which the chance of winning is so small as to be not worth rational consideration .
barry . riley @ ft . com .
( c ) copyright financial times ltd . all rights reserved .
http : / / www . ft . com .
copyright ? 2000 dow jones & company , inc . all rights reserved .
world stock markets - bears take upper hand on wall st .
by mary chung .
11 / 17 / 2001
financial times
( c ) 2001 financial times limited . all rights reserved
after an early game of tug - of - war , the bears took the upper hand as the dow jones industrial average closed 5 . 40 lower at 9 , 866 . 99 . the s & p 500 index gave up 3 . 59 at 1 , 138 . 65 and the nasdaq composite slipped 1 . 98 at 1 , 898 . 59 . volume was fairly heavy with 1 . 34 bn trades in the nyse .
the indices were earlier bolstered by news that some of the leaders of the taliban and the al - qaeda terrorist network had been killed in bombing raids on kabul and kandahar this week .
however , the momentum faded as investors found little reason to keep sending stocks higher following a sharp decline in the us consumer price index . the index saw its steepest monthly drop since april 1986 . separately , the federal reserve reported another drop in industrial output last month .
investors appeared more hesitant to step into the market and buy stocks after several weeks of sharp gains . however , the corporate picture looked to be improving for some companies such as dell . the computer maker reported third - quarter results that beat analysts ' estimates by a penny and predicted a small rise in sales for the current quarter . shares , however , fell 4 per cent at $ 26 . 60 .
rivals hewlett - packard shed 2 . 7 per cent at $ 21 . 50 and compaq gave up 3 . 7 per cent at $ 10 . 30 . yahoo ! , the world ' s largest internet portal , jumped 4 . 3 per cent at $ 15 . 47 after it announced a restructuring and job cuts , but reaffirmed its guidance for the fourth quarter .
shares in starbucks fell 9 per cent at $ 17 . 50 in spite of the coffee company reporting a 22 per cent rise in earnings for the fourth quarter .
energy prices rose in spite of the continuing dispute over oil production between opec and russia . amerada hess put on 2 . 5 per cent at $ 54 . 59 and exxon mobil added 1 per cent at $ 37 . 54 . enron , the embattled energy trading company , however , slid 5 per cent at $ 9 . most dow components were lower as alcoa slipped 1 per cent at $ 37 . 12 , american express shed 3 . 7 per cent to $ 33 . 13 and wal - mart fell 1 . 6 per cent at $ 55 . 10 .
toronto was little changed in morning trade in spite of a rally in technology and cyclical shares , the first sectors expected to respond to an improving economy .
however , at the close the s & p tse - 300 composite index was up 0 . 72 per cent at 7 , 315 . 30 as tech issues continued to strengthen .
overall , 11 of the market ' s 14 sub - indexes were higher but safe - haven gold stocks suffered as hopes grew for a swift conclusion to the war in afghanistan . the tech - heavy industrials sector enjoyed a 1 . 61 per cent gain . electronics manufacturer celestica charged ahead , rising 3 . 3 per cent to c $ 64 . 80 .
telecoms equipment heavyweight nortel networks jumped to c $ 12 . 69 as several investment firms raised targets .
( c ) copyright financial times ltd . all rights reserved .
http : / / www . ft . com .
copyright ? 2000 dow jones financial desk
in brief / energy pension funds consider action against enron
reuters
11 / 17 / 2001
los angeles times
home edition
c - 2
copyright 2001 / the times mirror company
some big pension funds that invested in enron corp . said they are considering legal options in the wake of the energy giant ' s stock collapse and a regulatory probe of its dealings .
spokesmen for the new york state and city comptrollers and an official from amalgamated bank , a trustee of workers ' retirement funds , said they were looking into lawsuits stemming from enron ' s murky financial dealings and stock plunge .
pension funds and mutual funds have been big holders of enron , once a wall street darling whose stock has plunged 89 % this year .
five new york city pension funds hold about 2 . 9 million enron shares , said david neustadt , a spokesman for the new york city comptroller ' s office . the funds serve teachers , police and other city workers .
enron shares fell 48 cents to $ 9 on the new york stock exchange .
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron investors hope filing will shed more light on finances
2001 - 11 - 17 11 : 06 ( new york )
enron investors hope filing will shed more light on finances
houston , nov . 17 ( bloomberg ) - - enron corp . investors hope
the energy trader ' s third - quarter report to the u . s . securities
and exchange commission will answer some of the questions that
sent its shares tumbling and led to a proposed sale to rival
dynegy inc .
enron , which has been criticized for failing to clearly
explain how it makes money , may disclose in monday ' s filing more
on how much is owed by the company and affiliated partnerships , as
well as any planned job cuts and other cost - saving moves related
to dynegy ' s $ 24 billion buyout .
` ` investors will be looking for anything that affects the
likelihood of the ( dynegy ) deal going through and the timing of
such a deal , ' ' said edward paik , who helps manage the liberty
utilities fund , which owns 1 . 6 million in enron shares .
enron agreed to sell after its stock plunged 67 percent in
three weeks amid an sec investigation into partnerships run by
enron executives . investors worry that new disclosures , such as
previously unreported debt , might threaten enron ' s credit rating
and scuttle the merger , possibly pushing enron into bankruptcy .
` ` there ' s been so much skepticism about what enron ' s
liabilities are with these partnerships , i ' m looking to quantify
this , ' ' said glen hilton , a fund manager at montgomery asset
management lp , which holds dynegy shares .
enron chairman kenneth lay admitted last week that failed
investments and a loss of investor confidence forced the sale to
dynegy , and he and other executives pledged to be more open with
investors . lay , 59 , said last week he won ' t accept a severance
package of more than $ 60 million that he could have collected
following the takeover .
enron shares fell 48 cents yesterday to $ 9 . dynegy fell
$ 1 . 53 , or 3 . 5 percent , to $ 42 . 47 .
balance sheet
enron ' s third - quarter report , which had been expected last
week , was delayed by the dynegy talks and a restatement of
earnings , chief financial officer jeffrey mcmahon said . enron
reduced net income for four years by a combined $ 586 million to
include losses from affiliated partnerships .
monday ' s filing , called a 10 - q , will include a balance sheet
summarizing assets and debts . enron for years has omitted balance
sheets , which the sec requires as part of the 10 - q , from its press
releases announcing earnings .
investors renewed their criticisms of the practice after lay
mentioned during a conference call last month that dealings with
two partnerships had reduced enron ' s shareholder equity , or its
assets minus liabilities , by $ 1 . 2 billion . the disclosure led to
the ouster of chief financial officer andrew fastow .
` ` everyone is trying to make their own assessment of what
( enron ' s ) ultimate liability will need to be , ' ' said commerzbank
securities analyst andre meade , who rates the shares ` ` hold ' ' and
doesn ' t own them .
monday ' s report probably won ' t give a complete answer , said
louis gagliardi , an analyst at john s . herold inc . while the
balance sheet will list liabilities for the partnerships , which
were set up to buy enron assets and get debt off the company ' s
books , it won ' t spell out enron ' s share , he said .
` ` what is the net liability off the balance sheet ? ' '
gagliardi said . ` ` we really don ' t know what that number is . ' '
credit rating
dynegy has said it can back out of the acquisition if enron ' s
legal liabilities exceed $ 3 . 5 billion . the balance sheet ` ` will
help us see how good a deal this is for dynegy , ' ' said kathleen
vuchetich , co - manager of the $ 1 . 4 billion strong american
utilities fund , which owns 284 , 000 dynegy shares .
both companies are based in houston .
the filing also might offer details on the sec probe . ` ` it
may say what the sec is looking for , and what the rating agencies
have told them , ' ' said christopher ellinghaus , an analyst at
williams capital group . he added , though , ` ` i don ' t expect much . ' '
enron ' s stock drop led moody ' s investors service to cut the
company ' s debt rating to the lowest investment grade . dynegy held
off on a purchase agreement out of concern that the rating would
be cut to junk , jeopardizing enron ' s ability to raise cash needed
to settle its daily power and natural - gas trades .
enron may reveal where it expects to cut jobs and how much it
will pay to departing employees , paik said . chief operating
officer greg whalley said last week that fourth - quarter profit
will be hurt by severance payments and reorganization costs . he
didn ' t give details .
jobs likely will be eliminated in businesses the company
plans to sell , including its money - losing telecommunications unit
and operations in europe , analysts said .
enron has about 21 , 000 employees , two - thirds in the u . s . and
about a fifth in the u . k . its 600 traders are divided between
london and houston , where enron employs about 7 , 500 .
many enron workers are already preparing for layoffs , said
lyndon taylor , a houston - based recruiter for heidrick & struggles
international inc . , an executive placement firm .
` ` i got 56 resumes last week from enron , ' ' taylor said .
` ` that ' s equal to the number i got in the past year . ' '
- - margot habiby in dallas and jim polson in princeton
uk : trade , bank buyers circle enron ' s wessex water - reports .
11 / 17 / 2001
reuters english news service
( c ) reuters limited 2001 .
london , nov 17 ( reuters ) - both financial and trade buyers are considering bids for wessex water , the uk utility owned by crisis - hit u . s . energy group enron , weekend press reports said .
according to the uk trade magazine utility week , enron ' s rescue buyer dynegy wants to offload wessex as soon as possible , and focus on integrating enron ' s core energy businesses .
a report in the sunday telegraph newspaper named german bank westlb as a possible buyer at a price of 1 billion pounds ( $ 1 . 4 billion ) . westlb is the financial backer of the management buyout team that owns another southern england regional utility , mid kent water .
utility week raised the possibility that uk power utility scottish & southern might be interested .
copyright ? 2000 dow jones & company , inc . all rights reserved .
financial post : canada
a user ' s guide to living in calgary : people moving from houston find the cities much alike
claudia cattaneo
financial post
11 / 17 / 2001
national post
national
fp 7
( c ) national post 2001 . all rights reserved .
u . s . oil companies are setting up shop all over downtown , usually picking high - quality office space with lots of open space . anadarko petroleum corp . is located at fifth avenue place , burlington resources inc . is in bow valley square and devon energy corp . is in canterra tower . some end up in the offices of the companies they acquire . conoco inc . has moved into gulf canada square .
the big takeover wave has led to a reshuffling of downtown space . today , there is a shortage of large spaces and an increase in small ones available for sublease .
some would like to get the towers they occupy named after them but landlords resist this because naming a building after one tenant can be a disincentive for others .
oilmen ' s favourite hangout is the calgary petroleum club , founded by u . s . and canadian oilmen in 1948 in the palliser hotel . members have reciprocal membership at the petroleum club of houston . but calgary ' s pete club is a bargain compared to its texas counterpart . the initiation fee in calgary is $ 2 , 000 , monthly dues are $ 65 and the minimum amount members must spend in a year is $ 600 . the initiation fee for full membership at the petroleum club of houston is us $ 3 , 500 , monthly dues are us $ 110 and the minimum house account is us $ 75 per quarter .
u . s . executives running canadian oil and gas operations earn substantially more than their canadian counterparts because their compensation is competitive with the u . s . market .
when u . s . oil companies purchase canadian operations , they like to keep as much of the canadian staff as possible , since they are even more aware than their canadian rivals of the " war for talent . "
when recruiting locally , u . s . firms pay competitively but of course will pay what they must to get the best candidate . they also offer competitive benefits and stock - option plans . u . s . employers gulp at the generous holidays enjoyed by canadian oilpatch employees .
there ' s no american neighbourhood in calgary , although many recent arrivals are buying homes close to the city ' s core , particularly in such high - end neighbourhoods as mount royal , elbow park and britannia , where homes sell for $ 500 , 000 to $ 2 - million .
some u . s . companies purchase condominiums in such areas as eau claire on the bow river to house u . s . executives in transit .
ted zaharko , a broker - owner with royal lepage , says americans are driven by lifestyle choices and the fact that they can afford to buy expensive homes . living near other americans isn ' t important .
the cost of living is lower in calgary than in many comparable u . s . cities . however , u . s . cities become more competitive for high - income earners because personal income taxes in canada are higher than in the u . s . at the higher income levels . offsetting factors include access to health care , clean air , a short commute to work and the nearby mountain playground , which tend to be important to affluent people .
u . s . oil types may have strange accents - - many come from the southern states - - but oilpatch jargon is pretty much the same . calgarians and americans understand one another when they talk of dry holes ( no discovery ) , wildcat wells ( exploration wells ) or roughnecks ( rig workers ) . the language of money is also the same : barrels and u . s . dollars .
oilpatch humour is also borderless . one of the latest jokes circulating by e - mail , courtesy of oilpatch investment dealer peters & co . , is called " understanding enron . " the u . s . energy giant is in trouble over its use of off - balance - sheet transactions to keep debt off its books :
feudalism you have two cows . your lord takes some of the milk .
fascism you have two cows . the government takes both , hires you to take care of them and sells you the milk .
pure communism you have two cows . your neighbours help take care of them and you all share the milk .
applied communism you have two cows . you must take care of them , but the government takes all the milk .
totalitarianism you have two cows . the government takes them both and denies they ever existed . milk is banned .
mexican democracy you have two cows . the government takes both and drafts you into the army .
european democracy you have two cows . the eu commission decides which regulations for feeding and milking apply . if there aren ' t any , they invent some . they pay you not to milk the cows . they take both cows , shoot one , milk the other and pour the milk down the drain . they then require you to fill out forms accounting for the missing cows .
american democracy the government promises to give you two cows if you vote for it . after the election , the president is impeached for speculating in cow futures . the press dubs the affair " cowgate , " but supports the president . the cows sue you for breach of contract . your legal bills exceed your annual income . you settle out of court and declare bankruptcy .
capitalism you have two cows . you sell one and buy a bull . your herd multiplies and the economy grows . you sell them and retire on the income .
enron venture capitalism you have two cows . you sell three of them to your publicly listed company , using letters of credit opened by your brother - in - law at the bank , then execute a debt / equity swap with an associated general offer so you get all four cows back , with a tax exemption for five cows . the milk rights of the six cows are transferred via an intermediary to a cayman island company secretly owned by the majority shareholder who sells the rights to all seven cows back to your listed company . the annual report says the company owns eight cows , with an option on one more .
copyright ? 2000 dow jones any bid for a water company in the
u . k . worth at least 30 million pounds must be referred to the
competition commission , the newspaper said .
enron bought wessex for 1 . 4 billion pounds in 1998 . rwe ag of
germany , europe ' s fourth - biggest power company , is also interested
in wessex , but enron thinks u . k . regulators won ' t approve an rwe
bid because the company already owns thames water , a large u . k .
water company .
westlb has also been reported to be preparing a buyout for
railtrack group plc , the insolvent owner of the u . k . ' s train
tracks and stations , the paper said .
enron closes on $ 550 million loan from j . p . morgan , salomon
2001 - 11 - 16 17 : 36 ( new york )
enron closes on $ 550 million loan from j . p . morgan , salomon
houston , nov . 16 ( bloomberg ) - - enron corp . closed wednesday
on a $ 550 million loan from j . p . morgan chase & co . and salomon
smith barney inc . that was secured with assets of its transwestern
pipeline co . , spokesman vance meyer said .
enron , the largest energy trader , said nov . 1 that it had
received a commitment for $ 1 billion in loans from the investment
banks that would be used for debt payments and to supplement cash
reserves .
enron secured the loans with the assets of transwestern and
the northern natural gas co . the two pipeline systems combined are
about 19 , 000 miles long and can deliver as much as 6 billion cubic
feet of gas a day . the remaining $ 450 million loan , secured with
the northern natural gas assets , is in the documentation stage and
is expected to close next week , meyer said .
enron agreed a week ago to be acquired by dynegy inc . in a
transaction now valued at $ 24 . 7 billion in stock and assumed debt .
the move followed a loss in investor confidence - - the company ' s
shares had fallen 90 percent this year - - and amid a federal
investigation of accounting irregularities that limited its
ability to finance operations .
chevrontexaco corp . , the second - biggest u . s . oil company and
dynegy ' s largest shareholder with 26 percent , provided enron ,
through dynegy , with a $ 1 . 5 billion cash infusion on tuesday as
part of the buyout agreement .
in return , dynegy acquired preferred stock and other rights
in the enron unit that owns northern natural gas . if the merger
isn ' t completed , dynegy will have the right to acquire northern
natural gas , enron said in regulatory filing wednesday .
chevrontexaco will provide dynegy with another $ 1 billion after
the merger closes to maintain its equity stake .
the shares of enron fell 48 cents to $ 9 , while shares of
dynegy fell $ 1 . 53 to $ 42 . 47 . both companies are based in houston .
shares of san francisco - based chevrontexaco fell 35 cents to
$ 83 . 45 .
- - margot habiby in the dallas newsroom ( 214 ) 954 - 9452 | 2001-11-19T00:00:00 |
11,689 | re : eol 5 / 2 / 01 as you probably know , rogers ( in the east ) and don ( in the west ) will be working directly with the wholesale desk . tim and i will ensure a fair balance is achieved between retail and wholesale .
as an enron shareholder , i fully appreciate that we need explosive growth and profitability out of ees , particularly with reduced volatility in gas and power markets over the next several years .
i am commited to ensuring that the retail risk management organization is offered all the tools , information , systems , competitive pricing , etc . to allow ees to offer fully bundled competitively priced products to retail customers .
i look forward to working with you and dave in continuing to grow this business . | 0 | ham | re : eol 5 / 2 / 01 | as you probably know , rogers ( in the east ) and don ( in the west ) will be working directly with the wholesale desk . tim and i will ensure a fair balance is achieved between retail and wholesale .
as an enron shareholder , i fully appreciate that we need explosive growth and profitability out of ees , particularly with reduced volatility in gas and power markets over the next several years .
i am commited to ensuring that the retail risk management organization is offered all the tools , information , systems , competitive pricing , etc . to allow ees to offer fully bundled competitively priced products to retail customers .
i look forward to working with you and dave in continuing to grow this business . | 2001-05-03T00:00:00 |
32,266 | how are you today how are you todaycommonwealth finance and securities 66 cannon street , london , ec 4 nunited kingdom .
www . . com
dear sir / madam ,
i am mr raymond smith , the manager , bills and exchange at the foreign remittance department of the commonwealth finance and securities , i am writing this letter to ask foryour support and cooperation to carry out this business opportunity in my department .
we discovered an abandoned sum of $ 15 , 000 . 000 . 00 ( fifteen million united states dollars only ) in an account that belongs to one of our foreigncustomers who died along with his entire family of a wife and his only daughter in air crash , alaska airline flight 261 in 2000 . since we heard of his death , nobody has come for any claims as nobody knew of the account . the name of our late customer is morris thompson , his wife ' s name thelman thompson , daughter ' s name sheryl thompson , the owner of doyon ltd , in alaska .
we have been expecting his next of kin to come over and file for claims for his money as the heir , because we cannot release the funds from his account unless someone applies for claim as the next of kin to the deceased as indicated in our banking guidelines .
unfortunately , neither his family member nor distant relative has ever appeared to claim the said funds . upon this discovery , i and other officials in my department agreed that with your assistance we can work out an arrangement and write an application for claims on your behalf and make you the next of kin . we will process all the necessary documents to ensure that the funds is released into your accountas the heir of the fund no one has come forth for any claims as he died with all the members of his family and if nothing is done soon , the funds will be returned to the banks treasury as unclaimed fund and the bank will confiscate the funds and that will be the end .
however , we have agreed that our ratio of sharing will be as stated thus , 30 % for you as foreign partner , 60 % for us the officials in my department and 10 % for the settlement of all local and foreign expenses incurred by us in the course of this business . upon the successful completion of this transfer , i and one of my colleagues will come to your country to take care of our share . it is from our 60 % we intend to inevest on any viable business venture as a way of recycling the fund .
to commence this transaction , we require you to immediately indicate your interest by a return e - mail and enclose your private contact telephone number , fax number full name and address and your designated bank coordinates to enable us file letter of claim to the appropriate department for neccessary approvals before the transfer can be made .
note also , this transaction must be kept strictly confidential because of its nature .
i look forward to receiving your prompt response .
mr . raymond smith | 1 | spam | how are you today | how are you todaycommonwealth finance and securities 66 cannon street , london , ec 4 nunited kingdom .
www . . com
dear sir / madam ,
i am mr raymond smith , the manager , bills and exchange at the foreign remittance department of the commonwealth finance and securities , i am writing this letter to ask foryour support and cooperation to carry out this business opportunity in my department .
we discovered an abandoned sum of $ 15 , 000 . 000 . 00 ( fifteen million united states dollars only ) in an account that belongs to one of our foreigncustomers who died along with his entire family of a wife and his only daughter in air crash , alaska airline flight 261 in 2000 . since we heard of his death , nobody has come for any claims as nobody knew of the account . the name of our late customer is morris thompson , his wife ' s name thelman thompson , daughter ' s name sheryl thompson , the owner of doyon ltd , in alaska .
we have been expecting his next of kin to come over and file for claims for his money as the heir , because we cannot release the funds from his account unless someone applies for claim as the next of kin to the deceased as indicated in our banking guidelines .
unfortunately , neither his family member nor distant relative has ever appeared to claim the said funds . upon this discovery , i and other officials in my department agreed that with your assistance we can work out an arrangement and write an application for claims on your behalf and make you the next of kin . we will process all the necessary documents to ensure that the funds is released into your accountas the heir of the fund no one has come forth for any claims as he died with all the members of his family and if nothing is done soon , the funds will be returned to the banks treasury as unclaimed fund and the bank will confiscate the funds and that will be the end .
however , we have agreed that our ratio of sharing will be as stated thus , 30 % for you as foreign partner , 60 % for us the officials in my department and 10 % for the settlement of all local and foreign expenses incurred by us in the course of this business . upon the successful completion of this transfer , i and one of my colleagues will come to your country to take care of our share . it is from our 60 % we intend to inevest on any viable business venture as a way of recycling the fund .
to commence this transaction , we require you to immediately indicate your interest by a return e - mail and enclose your private contact telephone number , fax number full name and address and your designated bank coordinates to enable us file letter of claim to the appropriate department for neccessary approvals before the transfer can be made .
note also , this transaction must be kept strictly confidential because of its nature .
i look forward to receiving your prompt response .
mr . raymond smith
| 2005-03-22T00:00:00 |
24,291 | re : change of plans hello you two ,
i am so sorry catherine for not writing recently . i have just been vv busybeing a working mother and sometimes it all gets too much you know ! ! i cannot wait to see you both although we may meet at the airport on the 16 / 6 as that ' s the day we ' re going to france but i will see you both at bronagh ' s house for her 30 th which we ' re going to on the way back from the airport . i am so excited about seeing you ! ! ! liitle eva ( aine ) was born on tuesday
she is absolutely incredible . poor bronagh is 11 dsays over ! !
sounds like you ' ve been having an amazing time . hope you won ' t be too depressed to be back ! !
lots of love
deirdre
" justin mason " wrote :
<
< just a quick note -
<
< we ' ve decided to go up to annapurna base camp instead of
< the jomsom trek - it ' s a bit more impressive visually
< ( if a little soggier ) . so as of tomorrow morning , ourselves
< and our guide bhadra will be leaping like gazelles up 4000 - odd
< metres into the himalayas . . . we ' ll be sure to take a few
< pics on the way . sorry for the bonus mail , but we have to tell
< someone because we forgot to tell the irish embassy ; )
<
< next update in 10 - 14 days , ish ,
<
< - - j .
<
<
<
< _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
< travelogue mailing list
< travelogue @ jmason . org
< http : / / jmason . org / mailman / listinfo / travelogue
< | 1 | spam | re : change of plans | hello you two ,
i am so sorry catherine for not writing recently . i have just been vv busybeing a working mother and sometimes it all gets too much you know ! ! i cannot wait to see you both although we may meet at the airport on the 16 / 6 as that ' s the day we ' re going to france but i will see you both at bronagh ' s house for her 30 th which we ' re going to on the way back from the airport . i am so excited about seeing you ! ! ! liitle eva ( aine ) was born on tuesday
she is absolutely incredible . poor bronagh is 11 dsays over ! !
sounds like you ' ve been having an amazing time . hope you won ' t be too depressed to be back ! !
lots of love
deirdre
" justin mason " wrote :
<
< just a quick note -
<
< we ' ve decided to go up to annapurna base camp instead of
< the jomsom trek - it ' s a bit more impressive visually
< ( if a little soggier ) . so as of tomorrow morning , ourselves
< and our guide bhadra will be leaping like gazelles up 4000 - odd
< metres into the himalayas . . . we ' ll be sure to take a few
< pics on the way . sorry for the bonus mail , but we have to tell
< someone because we forgot to tell the irish embassy ; )
<
< next update in 10 - 14 days , ish ,
<
< - - j .
<
<
<
< _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
< travelogue mailing list
< travelogue @ jmason . org
< http : / / jmason . org / mailman / listinfo / travelogue
< | 2002-05-31T00:00:00 |
9,597 | secretly record all internet activity on any computer . . . bv find out who they are chatting / e - mailing with all those hours !
is your spouse cheating online ?
are your kids talking to dangerous people on instant messenger ?
find out now ! - with big brother instant software download .
click on this link now to see actual screenshots and to order !
to be excluded from future contacts please visit :
http : / / 213 . 139 . 76 . 69 / php / remove . php
danie | 1 | spam | secretly record all internet activity on any computer . . . bv | find out who they are chatting / e - mailing with all those hours !
is your spouse cheating online ?
are your kids talking to dangerous people on instant messenger ?
find out now ! - with big brother instant software download .
click on this link now to see actual screenshots and to order !
to be excluded from future contacts please visit :
http : / / 213 . 139 . 76 . 69 / php / remove . php
danie | 2002-05-19T00:00:00 |
14,190 | enron mentions fall of a power giant : bailout is unlikely if enron goes under , as u . s . thinks impact would be limited
the wall street journal , 11 / 29 / 01
enron ' s woes may ripple out to others - - - if energy company files for bankruptcy , results are likely to be messy
the wall street journal , 11 / 29 / 01
fall of a power giant : bailout is unlikely if enron goes under , as u . s . thinks impact would be limited
the wall street journal , 11 / 29 / 01
enron ' s meltdown may also be felt by big mutual funds
the wall street journal , 11 / 29 / 01
why credit agencies didn ' t switch off enron - - - s & p cries ` junk , ' but the warning comes too late
the wall street journal , 11 / 29 / 01
why credit agencies didn ' t switch off enron - - - energy trading bears the brunt of enron woes
the wall street journal , 11 / 29 / 01
fall of a power giant : chairman ' s deep political connections run silent
the wall street journal , 11 / 29 / 01
dynegy and chevrontexaco slide along with plunge in enron stock
the wall street journal , 11 / 29 / 01
dollar declines against yen and euro amid growing doubts on u . s . economy
the wall street journal , 11 / 29 / 01
dynegy ' s move to disconnect enron merger powers volatility spike as investors seek cover
the wall street journal , 11 / 29 / 01
enron asks staff to drop 401 ( k ) suits for severance
the wall street journal , 11 / 29 / 01
nvidia to replace enron in s & p
the wall street journal , 11 / 29 / 01
enron collapses as suitor cancels plans for merger
the new york times , 11 / 29 / 01
a bankruptcy filing might be the best remaining choice
the new york times , 11 / 29 / 01
an implosion on wall street
the new york times , 11 / 29 / 01
citigroup and j . p . morgan are left with bruised egos and exposure to loans
the new york times , 11 / 29 / 01
in turbulent bond market , enron ' s woes exacerbate turmoil
the new york times , 11 / 29 / 01
a big fall evoking nasty old memories of a run on a bank
the new york times , 11 / 29 / 01
foundation gives way on chief ' s big dream
the new york times , 11 / 29 / 01
market that deals in risks faces a novel one
the new york times , 11 / 29 / 01
investors pull back as enron drags down key indexes
the new york times , 11 / 29 / 01
debt rankings finally fizzle , but the deal fizzled first
the new york times , 11 / 29 / 01
global investing - bond mutual funds suffer as enron ' s troubles deepen .
financial times , 11 / 29 / 01
companies & finance the americas - sec filing triggered merger crisis .
financial times , 11 / 29 / 01
companies & finance the americas - financial system braces for a chain reaction .
financial times , 11 / 29 / 01
companies & finance the americas - traders avoid exposure to junk status fallout .
financial times , 11 / 29 / 01
companies other firms reasuring investors
houston chronicle , 11 / 29 / 01
bankruptcy filing by enron could be largest ever
houston chronicle , 11 / 29 / 01
ballpark place project stopped dead in tracks
houston chronicle , 11 / 29 / 01
fall of a power giant : bailout is unlikely if enron goes under , as u . s . thinks impact would be limited
by greg ip and jathon sapsford
staff reporters of the wall street journal
11 / 29 / 2001
the wall street journal
al 0
( copyright ( c ) 2001 , dow jones & company , inc . )
washington - - if enron corp . goes under , the government is unlikely to throw it a lifeline .
at its peak , enron was a major participant in the country ' s financial and energy markets . but economic and financial policy makers say they aren ' t worried about any broader blow to markets or business activity . despite frequent comparisons to long - term capital management , the hedge fund whose 1998 nose dive panicked global financial markets and triggered an unusual bailout brokered by the federal reserve , there has been so far no public sign of any attempt by the fed , the treasury or energy regulators to take similar action on behalf of enron or its creditors .
officials from a range of economic and regulatory agencies have insisted in recent days that while they have been closely monitoring enron ' s situation , they haven ' t seen any reason to be concerned about possible ripple effects . enron " is just one piece of a very big market , " said john mielke , chief of market surveillance at the commodity futures trading commission . mr . mielke said he saw no evidence that enron ' s problems have disrupted trading on the futures exchanges monitored by the cftc .
" these are deep and pretty big markets that enron is in , " echoed william gilmer , an economist at the federal reserve bank of dallas .
it is too soon to say exactly what the total damage from enron ' s potential demise will be . one danger is that a blowup in the company ' s complex , largely unregulated portfolio of derivatives could infect financial markets in wide and unpredictable ways , just as ltcm ' s did . another worry : that the collapse of a major middleman in natural - gas and power markets could disrupt supplies .
enron does share some characteristics with ltcm , including widespread activities in complicated financial instruments in numerous markets , with little detailed public explanation of those activities , and little regulatory oversight of those trades .
its public disclosures suggest enron ' s exposures are substantial . a quarterly filing listed $ 18 . 7 billion in assets and an equal amount of liabilities related to " price risk management activities " as of sept . 30 . the filing gives no description or breakdown of those amounts and little detail about the derivatives in which enron transacts as a normal part of business . ( a derivative is a financial contract whose value is designed to track the return on stocks , bonds , currencies or other benchmark . ) an enron spokeswoman didn ' t return a call seeking comment .
as enron ' s woes deepened , the government ' s hands were tied in even assessing the situation , in part because the company was part of a coalition of energy companies and banks that lobbied successfully three years ago against cftc efforts to expand regulation of the over - the - counter energy market . enron also worked behind the scene to head off cftc ' s direct regulation of the energy concern ' s enrononline trading operation .
there have been some signs in markets of concerns about enron fallout . interest rates on bonds of utilities and energy companies rose by one - to two - tenths of a percentage point relative to treasurys yesterday . by day ' s end , the dow jones industrial average was off 160 . 74 points , a decline blamed in part on the enron news .
those are relatively small hiccups . the betting is the impact of enron ' s troubles on the financial system will be widespread but thin . enron was a favorite borrower among lenders , and its loans were among the most widely syndicated among the banking system , both at home and abroad . for example , a $ 2 . 25 billion credit facility arranged for enron in may by citigroup inc . and j . p . morgan chase & co . was distributed to 50 different institutions , according to loan pricing corp . , a credit - market research company . those syndication members sold off chunks of that debt to other investors , according to a banker at one of the underwriters .
j . p . morgan chase said in a statement that it has $ 500 million of unsecured exposure to enron entities , including loans , letters of credit and derivatives . it said it also has secured exposures , including $ 400 million in loans secured by enron pipelines . while this exposure is expected to smart , it represents a small fraction of j . p . morgan chase ' s total assets of $ 715 billion . citigroup declined to comment on its exposure to enron , but officials familiar with the matter said the bank ' s exposure is similar to that of j . p . morgan chase .
beyond financial fallout , a concern is the potential impact on energy markets and what that could do to the economy . enron ' s troubles could hamper efforts to end the recession if the company ' s difficulties make it impossible for it to deliver natural gas or electricity to its customers .
natural - gas prices rose sharply yesterday in the minutes after three major credit - rating agencies downgraded enron ' s rating and dynegy inc . said it was calling off its purchase . but the move quickly reversed when traders digested gas - inventory numbers released in the afternoon that showed utilities have stored enough gas to meet demand ahead of the winter heating season .
" we ' ve seen no interruptions in physical deliveries and no pricing reaction in the futures markets that you could attribute to enron , " said scott miller , director of market development for the federal energy regulatory commission . " revenues and transactions are occurring normally as far as we can tell . "
- - -
michael schroeder , chip cummins and john fialka contributed to this article .
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron ' s woes may ripple out to others - - - if energy company files for bankruptcy , results are likely to be messy
by henny sender and richard b . schmitt
staff reporters of the wall street journal
11 / 29 / 2001
the wall street journal
a 3
( copyright ( c ) 2001 , dow jones & company , inc . )
the sudden , deep financial troubles of enron corp . , the once aggressive , many - tentacled energy conglomerate , could have widespread consequences for scores of companies across the economy .
if enron files for protection under chapter 11 of the federal bankruptcy code , as many investors and financial experts now expect , it is likely to be one of the messiest , most complex bankruptcy cases ever , lawyers say .
that is because of the multifaceted nature of enron ' s once highflying operations , which combined a global energy business with a massive financial - trading operation involving tens of billions of dollars in complex contracts . yesterday , amid the unraveling of a last - ditch merger with dynegy inc . , the company ' s credit was downgraded to " junk " status by rating agency standard & poor ' s corp . enron has about 800 trading partners or creditors .
the stock market , signaling that a bankruptcy filing is expected , hammered enron stock , which was halted for a time yesterday , and knocked lower some of its financial backers ' shares . enron shares closed at 4 p . m . in new york stock exchange composite trading at 61 cents , down $ 3 . 50 , or 85 % . enron bonds also fell sharply , dropping to 50 cents on the dollar from around 55 cents , reflecting concerns over how much creditors might receive if the company does seek bankruptcy - court protection . j . p . morgan chase and citigroup , which have invested hundreds of millions of dollars in hopes of keeping the enron - dynegy deal alive , also saw their stocks fall . at 4 p . m . in nyse composite trading , j . p . morgan shares were down $ 2 . 30 to $ 37 . 50 , while citigroup shares were down $ 2 . 75 to $ 47 . 80 .
j . p . morgan chase said in a statement it has about $ 500 million of unsecured exposure to enron entities , including loans , letters of credit , and derivatives . it said it also has secured exposures , including $ 400 million in loans secured by enron pipelines .
other companies also disclosed their exposures to enron . exelon corp . , an energy concern in chicago , said its power - trading arm has a direct net exposure to enron of less than $ 10 million , based on its current book of business and existing market prices . exelon said its direct gross exposure based on sales to enron is less than $ 20 million . exelon said this is partly offset by $ 10 million that it owes to enron .
still , while the fallout from a potential bankruptcy filing would be widespread , federal regulators appear little concerned that it could inflict significant damage to the u . s . economy . ( see related article on page al 0 . )
the scale of the enron collapse is huge , experts say . " there is nothing to compare it to , " said edward tillinghast , a bankruptcy specialist with coudert brothers in new york . " the business was so large . there were so many different kinds of operating entities under the enron umbrella . "
in a way , he added , a filing would represent all the challenges of two of the biggest bankruptcies in recent years - - this past spring ' s chapter 11 filing by pg & e corp . ' s pacific gas & electric utility unit , and the demise of drexel burnham lambert , the wall street securities firm that failed more than a decade ago . a filing by enron , with about $ 13 billion in debt , would rank among the largest bankruptcy filings ever .
bankruptcy lawyers and creditors ' rights specialists , already swamped with a wealth of work from a boom in chapter 11 filings during the last 18 months , said they had been contacted by worried banks and other lenders to enron , seeking to retain them in the event of a chapter 11 filing . enron spokeswoman karen denne said the company is exploring its options and wouldn ' t comment on whether it has retained bankruptcy counsel .
but lawyers said the company was already in discussions about retaining its own counsel . among the likely advisers is new york law firm weil gotshal the idea is to protect all parties from market risk as the value of those contracts can fluctuate from day to day , and to avoid a larger financial meltdown .
that means enron ' s counterparties are free to close out such transactions , rather than file claims in a bankruptcy proceeding reflecting the total notional amount of any trades . in other words , a securities firm that is a counterparty to enron in many financial contracts would tally up how much it owes enron under such contracts and how much enron owes it , offsetting the amounts against each other . but this process is ripe for conflicts , as disputes easily could arise over the value of the contracts .
" it is an incredibly complex piece of financial engineering , " andrew rahl , a bankruptcy lawyer at anderson kill & olick in new york , said of the process .
how much collateral those counterparties could seize isn ' t at all clear , either . enron was considered very aggressive in negotiating agreements such as swaps , where a party trades an obligation to pay a floating interest rate for a fixed interest rate on given securities . the speed with which the company ' s finances have deteriorated further reduces the odds that its trading partners will be able to get paid anytime soon . without any security , counterparty claims would go into the probably massive general pool of claims from unsecured creditors .
besides banks and bondholders , dozens of companies , municipalities and utilities that had signed multiyear power contracts with enron may be left in the lurch . over the years , the likes of retailer j . c . penney co . , and shopping - mall company simon property group , of indianapolis , signed on with enron , as it undercut local utilities in newly deregulated markets .
any bankruptcy also is likely to trigger collateral lawsuits , as aggrieved parties look for alternative deep pockets . one possible target , analysts said , could be advisers that helped enron establish off - balance - sheet vehicles and other debt related to troubled investment partnerships , which have triggered massive losses in recent weeks . moreover , enron directors themselves could be vulnerable , too .
yesterday , enron named raymond s . troubh , a new york financial consultant , to its board as chairman of a newly formed special litigation committee to evaluate claims in shareholder and other derivative lawsuits .
at the same time , any filing would give enron some advantages , most notably greater ease in securing financing . this is because once companies file for protection , any new cash infusion from the banks has an overriding claim on any of the company ' s assets , at the expense of previous lenders .
in addition , potential buyers for enron businesses may be more likely to emerge once the company is operating with court protection and the depth of its problems are known .
" there is a certain comfort level that buyers have when buying a business in a chapter 11 case that doesn ' t exist when a company is struggling outside of bankruptcy , " said keith shapiro , a bankruptcy lawyer at greenberg traurig in chicago .
copyright ? 2000 dow jones & company , inc . all rights reserved .
fall of a power giant : bailout is unlikely if enron goes under , as u . s . thinks impact would be limited
by greg ip and jathon sapsford
staff reporters of the wall street journal
11 / 29 / 2001
the wall street journal
al 0
( copyright ( c ) 2001 , dow jones & company , inc . )
washington - - if enron corp . goes under , the government is unlikely to throw it a lifeline .
at its peak , enron was a major participant in the country ' s financial and energy markets . but economic and financial policy makers say they aren ' t worried about any broader blow to markets or business activity . despite frequent comparisons to long - term capital management , the hedge fund whose 1998 nose dive panicked global financial markets and triggered an unusual bailout brokered by the federal reserve , there has been so far no public sign of any attempt by the fed , the treasury or energy regulators to take similar action on behalf of enron or its creditors .
officials from a range of economic and regulatory agencies have insisted in recent days that while they have been closely monitoring enron ' s situation , they haven ' t seen any reason to be concerned about possible ripple effects . enron " is just one piece of a very big market , " said john mielke , chief of market surveillance at the commodity futures trading commission . mr . mielke said he saw no evidence that enron ' s problems have disrupted trading on the futures exchanges monitored by the cftc .
" these are deep and pretty big markets that enron is in , " echoed william gilmer , an economist at the federal reserve bank of dallas .
it is too soon to say exactly what the total damage from enron ' s potential demise will be . one danger is that a blowup in the company ' s complex , largely unregulated portfolio of derivatives could infect financial markets in wide and unpredictable ways , just as ltcm ' s did . another worry : that the collapse of a major middleman in natural - gas and power markets could disrupt supplies .
enron does share some characteristics with ltcm , including widespread activities in complicated financial instruments in numerous markets , with little detailed public explanation of those activities , and little regulatory oversight of those trades .
its public disclosures suggest enron ' s exposures are substantial . a quarterly filing listed $ 18 . 7 billion in assets and an equal amount of liabilities related to " price risk management activities " as of sept . 30 . the filing gives no description or breakdown of those amounts and little detail about the derivatives in which enron transacts as a normal part of business . ( a derivative is a financial contract whose value is designed to track the return on stocks , bonds , currencies or other benchmark . ) an enron spokeswoman didn ' t return a call seeking comment .
as enron ' s woes deepened , the government ' s hands were tied in even assessing the situation , in part because the company was part of a coalition of energy companies and banks that lobbied successfully three years ago against cftc efforts to expand regulation of the over - the - counter energy market . enron also worked behind the scene to head off cftc ' s direct regulation of the energy concern ' s enrononline trading operation .
there have been some signs in markets of concerns about enron fallout . interest rates on bonds of utilities and energy companies rose by one - to two - tenths of a percentage point relative to treasurys yesterday . by day ' s end , the dow jones industrial average was off 160 . 74 points , a decline blamed in part on the enron news .
those are relatively small hiccups . the betting is the impact of enron ' s troubles on the financial system will be widespread but thin . enron was a favorite borrower among lenders , and its loans were among the most widely syndicated among the banking system , both at home and abroad . for example , a $ 2 . 25 billion credit facility arranged for enron in may by citigroup inc . and j . p . morgan chase & co . was distributed to 50 different institutions , according to loan pricing corp . , a credit - market research company . those syndication members sold off chunks of that debt to other investors , according to a banker at one of the underwriters .
j . p . morgan chase said in a statement that it has $ 500 million of unsecured exposure to enron entities , including loans , letters of credit and derivatives . it said it also has secured exposures , including $ 400 million in loans secured by enron pipelines . while this exposure is expected to smart , it represents a small fraction of j . p . morgan chase ' s total assets of $ 715 billion . citigroup declined to comment on its exposure to enron , but officials familiar with the matter said the bank ' s exposure is similar to that of j . p . morgan chase .
beyond financial fallout , a concern is the potential impact on energy markets and what that could do to the economy . enron ' s troubles could hamper efforts to end the recession if the company ' s difficulties make it impossible for it to deliver natural gas or electricity to its customers .
natural - gas prices rose sharply yesterday in the minutes after three major credit - rating agencies downgraded enron ' s rating and dynegy inc . said it was calling off its purchase . but the move quickly reversed when traders digested gas - inventory numbers released in the afternoon that showed utilities have stored enough gas to meet demand ahead of the winter heating season .
" we ' ve seen no interruptions in physical deliveries and no pricing reaction in the futures markets that you could attribute to enron , " said scott miller , director of market development for the federal energy regulatory commission . " revenues and transactions are occurring normally as far as we can tell . "
- - -
michael schroeder , chip cummins and john fialka contributed to this article .
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron ' s meltdown may also be felt by big mutual funds
11 / 29 / 2001
the wall street journal
cl 3
( copyright ( c ) 2001 , dow jones & company , inc . )
new york - - some of the largest mutual funds in the country that jumped on enron corp . shares when they were soaring now may be feeling the pain of the stock ' s meltdown .
the energy - trading company ' s stock was held in funds managed by fidelity investments , stilwell financial inc . ' s janus capital corp . , alliance capital management and putnam investments , according to the funds ' most recent securities and exchange commission filings . vanguard group held the stock in various portfolios , including its giant passively managed index funds , according to its filings .
one of the biggest supporters of the stock has been alliance premier growth fund , an $ 11 billion portfolio that had about 4 % of its assets in enron shares as of sept . 30 , according to fund tracker morningstar inc . based on the sept . 30 filing , the fund ' s stake had dropped in value by about $ 445 million through yesterday .
of course , alliance premier and other funds may have sold or bought enron shares since they made their latest government filings . an alliance spokesman declined to comment .
other funds reporting big stakes in enron recently included janus mercury fund , which had 3 . 6 % of its assets invested in enron stock on april 30 . a janus spokeswoman said its funds had sold all of their enron shares by mid - november .
copyright ? 2000 dow jones & company , inc . all rights reserved .
credit markets
why credit agencies didn ' t switch off enron - - - s & p cries ` junk , ' but the warning comes too late
by gregory zuckerman and jathon sapsford
staff reporters of the wall street journal
11 / 29 / 2001
the wall street journal
cl
( copyright ( c ) 2001 , dow jones & company , inc . )
at 10 : 57 a . m . est yesterday , an announcement came out that effectively scuttled dynegy inc . ' s proposed takeover of enron corp . it was issued not by the two companies or their bankers , but by a behind - the - scenes player that was pivotal in the deal from the start .
the news came from standard & poor ' s , which lowered enron ' s credit rating to " junk " status , because of concern about the energy trading company ' s financial condition . the move , followed by similar downgrades by moody ' s investors service inc . and fitch inc . several hours later , prompted dynegy to announce that it was walking away from the multibillion dollar deal .
the downgrades highlight the key role that credit - rating agencies - - which are sometimes only bit players - - are having in one of the biggest wall street dramas in years . before they became deal breakers , the ratings agencies had emerged as unlikely deal makers just a few weeks ago , by leaving enron little choice but to seek a merger partner or face a downgrade that would have made it difficult to keep running its business .
throughout the enron saga , the rating agencies found themselves the target of repeated and intense lobbying by enron , dynegy and their bankers at j . p . morgan chase & co . and citigroup inc . all tried - - and ultimately failed - - to come up with assurances that the merger would bolster enron and thus protect bondholders and lenders from suffering losses .
the dramatic downgrades are sure to increase scrutiny over the role of the rating agencies in the enron situation . critics say that , in waiting until enron ' s bonds already had plummeted in value , the ratings agencies failed in their job of anticipating a company ' s financial problems and giving investors an early warning .
it now seems clear that the rating agencies , like most securities analysts , seem to have too easily accepted enron ' s murky financial reporting , which gave the impression that the company ' s balance sheet was stronger than it was . as recently as late october , both moody ' s corp . ' s moody ' s and mcgraw - hill cos . ' s & p had a solid investment - grade rating on enron ' s debt .
but since credit - rating agencies often have access to company information that securities analysts often don ' t have , the rating agencies could take some heat for not anticipating the financial difficulties . bond investors , for instance , say s & p was prematurely upbeat about enron ' s outlook earlier this month , and long ago should have demanded more information from the company . " if the rating agencies were privy all along to information that , as near as i can tell , was nonpublic regarding these off - balance - sheet liabilities , then their judgment looks even more faulty , " says carol levenson of gimme credit , a chicago - based analyst .
others wonder whether the ratings executives should have lowered the rating to junk days ago , when enron ' s problems became obvious . while such a move would have crippled the company ' s ability to find a suitor , holding off on the ratings move hurt stock and bond investors left holding the securities .
" i don ' t think the consequences of a rating action should have anything to do with whether one takes that rating action or not , if one feels it ' s warranted , " ms . levenson says . " i don ' t think there was any doubt enron was a junk credit . "
the ratings agencies counter that enron ' s financial condition , while weakened , became precarious only in the past few days , and given the consequences of a downgrade they needed to be prudent .
indeed , every party to the deal - - until yesterday - - kept working to provide financial infusions to enron to keep the deal alive . enron executives were particularly desperate to hold off a ratings downgrade . once the debt was lowered to junk status from investment grade , a whopping $ 3 . 9 billion of debt immediately became due , jeopardizing enron ' s ability to stay afloat .
worries about such a debt downgrade weeks ago pushed enron into the merger with dynegy , despite reservations from some enron executives about whether the deal was right . enron pledged some of its best assets to secure a $ 500 million investment from j . p . morgan chase and citigroup ' s citibank , and agreed to strict terms demanded by banks to get an emergency $ 1 billion credit line from various banks . in recent days , the two companies worked to restructure their merger and to raise still more liquidity for enron .
by 4 p . m . tuesday , the credit agencies agreed to hold off on a downgrade , convinced the two sides were making progress in restructuring the deal and drumming up new money for enron . in a conference call , ron barone , a managing director at s & p , told enron executives he was willing to wait on a decision , aware of the serious consequences of a downgrade .
" we ' ll be very patient and diligent " because of the progress being made , he told them , according to someone familiar with the conversation .
as late as 10 : 30 p . m . tuesday , a new deal still seemed in sight . but at about 2 a . m . yesterday , the talks broke down . instead of being briefed about terms of a new merger agreement , the credit - agency executives became doubtful a resolution would ever be reached .
in a late morning phone call to jeff mcmahon , enron ' s chief financial officer , mr . barone broke the news that the company ' s credit would be downgraded . " we lost confidence the deal would be consummated in a way that would keep the rating intact , " mr . barone says in an interview . " enron ' s credibility and viability continued to diminish . they were aware of our concerns . "
s & p downgraded enron ' s corporate - credit rating two full grades to single - b - minus , near the lower end of the junk - bond world , from triple - b - minus , the lowest investment - grade level . moody ' s lowered the debt to b 2 from baa 3 .
in a late - afternoon conference call with investors , s & p executives said the rating could still be lowered further , on the heels of the official announcement that the merger with dynegy was off .
responding to criticism that the credit agencies should have downgraded enron ' s debt sooner , mr . barone of s & p notes that the rating agency wasn ' t " privy to everything . " still , he adds , until yesterday " we were confident it was an investment - grade company , and that the merger would give it the security to enable enron to function at an investment - grade level . "
on the flip side , of course , if enron is forced into bankruptcy , the rating agencies may well catch heat that their impact was too drastic , effectively killing the deal .
treasurys
treasurys ended slightly higher . at 4 p . m . , the benchmark 10 - year treasury note was up 1 / 32 point , or 31 cents per $ 1 , 000 face value , at 100 15 / 32 to yield 4 . 938 % . the 30 - year treasury bond ' s price also was up 1 / 32 point , at 100 9 / 32 to yield 5 . 355 % .
the dow jones industrial average ended with a loss of 160 . 74 points . investors often shift funds to the relative safety of the government securities market at times when stocks are weak . a treasury sale of $ 21 billion of two - year notes drew less demand than expected . the bid - to - cover ratio , a gauge of demand comparing the dollar value of bids received with those awarded , was 1 . 51 , well below the 2 . 53 average of the past 12 auctions .
also somewhat bearish for the bond market was release of the fed ' s beige book report , an assessment of economic conditions around the country in advance of policy meetings . policy makers are to meet again dec . 11 .
although the report cited weakness in the economy , it didn ' t encourage people in the bond market to expect further rate cuts by the fed , analysts said . " not everybody is in the camp that the fed ' s going to ease again , " said kevin flanagan , market strategist at morgan stanley .
two - year notes
here are results of yesterday ' s treasury auction of two - year notes .
all bids are awarded at a single price at the market - clearing yield .
rates are determined by the difference between that price and the face
value .
applications . . . . . . . . . . . . . . . . . . . . . . . . $ 31 , 761 , 220 , 000
accepted bids . . . . . . . . . . . . . . . . . . . . . . . $ 21 , 000 , 020 , 000
bids at market - clearing yld accepted 14 . 96 %
accepted noncompetitively . . . . . . . . . . . $ 774 , 120 , 000
accepted frgn noncomp . . . . . . . . . . . . . . . $ 0
auction price ( rate ) . . . . . . . . . . . . . . . . 99 . 985 ( 3 . 008 % )
interest rate . . . . . . . . . . . . . . . . . . . . . . . 3 %
cusip number . . . . . . . . . . . . . . . . . . . . . . . . 9128277 gl
the notes are dated nov . 30 , 2001 , and mature nov . 30 , 2003 .
( see related article : " commodities : energy trading bears the brunt of enron woes " - - wsj nov . 29 , 2001 )
copyright ? 2000 dow jones & company , inc . all rights reserved .
commodities
why credit agencies didn ' t switch off enron - - - energy trading bears the brunt of enron woes
by peter a . mckay
staff reporter of the wall street journal
11 / 29 / 2001
the wall street journal
cl
( copyright ( c ) 2001 , dow jones & company , inc . )
less than a month ago , enron corp . ' s electronic trading system was the largest of its kind in the world , accounting for a quarter of all the natural gas and electricity delivered in the u . s .
yesterday , the system was shut down , a victim of enron ' s failed deal with dynegy inc .
while the rise and sudden fall of enron rippled throughout financial markets yesterday , nowhere was it more immediately evident than in energy trading , an arena utterly transformed by enron in recent years .
since the late 1990 s , enrononline had established itself as the dominant electronic energy marketplace - - and major competitor of the traditional futures exchanges - - as it grew to handle an average of 5 , 400 trades a day , with a value of about $ 2 . 8 billion .
but a flight away from enron began weeks ago , as initial news of the company ' s woes began to spread . because enron itself guaranteed trades on its platform , fears grew that the company might not be able to complete many of the transactions .
the exodus of trading activity from enrononline accelerated throughout the day yesterday , culminating in the system ' s shutdown around midday , when quotes on the system ' s internet trading screens simply went blank .
by 3 : 30 p . m . est , some trading had resumed in natural gas , though spokesman eric thode declined to say whether enron ' s markets would be open today . " that ' s part of an evaluation that ' s ongoing , " he said .
on the floor of the new york mercantile exchange , a traditional floor - based futures market , natural - gas trading volume almost doubled yesterday to 116 , 000 contracts . while enron ' s woes were the main driver behind the surge , the market also reacted to important storage data from the american gas association .
natural - gas prices jumped about 25 cents yesterday morning on an initial reaction to the enron news , near $ 3 per million british thermal units , then slipped back as the aga announced that gas storage had grown by 16 billion cubic feet to an all - time high . the nearby december contract fell 29 cents to $ 2 . 315 per million btus .
" anyone who jumped into the gas market on the enron news is praying right now [ that prices recover ] , " guy gleichmann , senior energy trader at barkely financial . " it should only be a short - term factor in the market . "
he said enron ' s collapse has helped gas prices because it is mainly seen as a threat to the overall gas supply . traders assume enrononline ' s problems won ' t affect actual energy deliveries , because whoever takes over enron ' s assets is expected to honor those commitments .
meantime , anticipating potential fallout from the enron problems , energy firms also have been reducing their financial risk in the energy markets by unwinding complex derivatives bets , either by hedging against them or taking delivery of the physical commodity .
in the future , those firms are likely to favor straightforward cash transactions for energy as a result of the enron meltdown . " if anything , the enron situation has really simplified this market , " mr . gleichmann said .
yesterday on the , enron ' s primary electronic rival , traders waited up to five minutes to log in , said jeff sprecher , the online market ' s chief executive .
he said it seemed most traders were just jockeying for position at first , assessing the newfound risk before actually making any trades . within the first 15 minutes after standard & poor ' s initial downgrade of enron , mr . sprecher said , the number of bids and offers on dropped by almost a third , to 2 , 200 .
" by the end of the day , though , we expect this will probably be a record day for us , " said mr . sprecher , who estimated the system ' s overall volume is up 45 % this month .
he expects much of that gain to be permanent on ice , although he cautioned that a loss of enrononline from the marketplace would have a downside , since its presence created opportunities to trade spreads between the two platforms .
nymex president j . robert collins warned it is still too early to declare enrononline dead . but he said its difficulties bode well for his exchange ' s internet - based system , dubbed enymex , now in development .
" because of credit issues involving enron , companies might be more hesitant to trade there , " he said . " so we have a better shot with enymex than we did three or four months ago . "
ronald j . barone , managing director for energy research at ubs warburg , said enrononline ' s value to prospective acquirers will drop quickly in coming days , if the business continues to decline .
" dynegy really liked enrononline , but look at how much business the platform ' s been losing , " said mr . barone , who downgraded enron ' s stock yesterday to a hold . " there ' s also a question of how many more skeletons there are in the closet . "
in commodity trading yesterday :
grains : futures prices on corn , wheat and soybeans all fell again at the chicago board of trade as what was described as a technical - based selloff accelerated . december - delivery corn futures sank to $ 1 . 9850 a bushel late in the session , which wiped out the old contract low . the contract ended up settling down five cents at $ 1 . 9875 a bushel .
crude oil : crude - oil futures slipped 26 cents to $ 19 . 22 a barrel after weekly inventory data showed a larger - than - expected five - million - barrel build in distillates supplies , which include heating oil . high refinery runs and imports were behind the build , analysts said . the contract might have fallen even more , except for a modest drop reported for crude - oil stocks .
- - -
dyanna decola contributed to this article .
( see related article : " credit markets : s & p cries ` junk , ' but the warning comes too late " - - wsj nov . 29 , 2001 )
copyright ? 2000 dow jones & company , inc . all rights reserved .
fall of a power giant : chairman ' s deep political connections run silent
by bob davis
staff reporter of the wall street journal
11 / 29 / 2001
the wall street journal
al 0
( copyright ( c ) 2001 , dow jones & company , inc . )
for years , enron corp . chairman kenneth lay has been george w . bush ' s best friend in the board rooms of america ' s top corporations .
since 1993 , mr . lay and enron have donated nearly $ 2 million to mr . bush ' s political career , making them mr . bush ' s biggest backers . when mr . bush was texas governor , mr . lay , a houston resident , helped him win passage of a state education - reform plan that brought mr . bush national acclaim . during that fight , mr . lay got to know aides who became power players in the bush white house .
mr . lay was confident enough of his friendship with mr . bush that he even needled him for needing arthroscopic surgery to repair a jogging injury . " i want you to know that at least one jogger [ me ] got past 50 without that surgery , " mr . lay scribbled in a note to then governor in 1997 .
still , as enron faces its greatest crisis , mr . lay ' s influence and personal relationships with the administration have amounted to little . there appears to be no effort by the white house or congress to bail enron out of its difficulties , which are widely seen as self - inflicted . the white house had no comment on mr . lay ' s predicament , a spokeswoman said . indeed , short of an actual bailout to help enron meet its obligations - - such as an aid package approved by congress or organized by government officials from private sources , similar to the rescue of the long term capital management hedge fund - - there is little washington can do at this stage to help the company . nor is there likely to be a bailout , since enron has burned many bridges on capitol hill with its history of strong - arm lobbying tactics , some congressional aides say .
that may reassure a cynical public , says robert mosbacher , commerce secretary in the first bush administration and a longtime friend of the current president as well as mr . lay . " i don ' t see anybody being let off the hook , " he said .
mr . mosbacher says he introduced mr . lay to the bush family around 1987 , when he persuaded mr . lay to help raise money for george h . w . bush ' s successful presidential bid in 1988 . mr . lay contributed $ 461 , 000 to the younger mr . bush ' s two successful gubernatorial campaigns . he also made enron ' s fleet of corporate jets available to mr . bush and won his help in lobbying officials in other states considering enron projects .
his influence with then - gov . bush was based on more than money . mr . lay was one of the state ' s leading business executives and deeply involved in texas politics . under mr . bush ' s predecessor , democrat ann richards , mr . lay headed the governor ' s business council , a state advisory board . mr . bush asked him to stay on the job to help develop an educational reform plan and sell it to the texas legislature .
in that capacity , mr . lay became close to several bush aides , including political guru karl rove and communications adviser karen hughes , who have taken positions at the white house . he also got to know another leading texas businessman : dick cheney , then ceo of dallas oil concern halliburton co . , who would become mr . bush ' s pick for vice president .
against this backdrop , mr . lay was widely considered a top candidate for treasury secretary in the younger bush ' s administration . ultimately though , he was disqualified , bush insiders say , as too closely identified with mr . bush , mr . cheney and others who worked in the texas energy business for an administration that wanted to show it wasn ' t in the pocket of big oil companies .
early on , mr . lay had unrivaled access to the administration . when the president ' s advisers debated a new energy policy in the spring , mr . lay was the only energy executive to be invited for a one - on - one session with mr . cheney , who led the effort . mr . lay also worked with mr . rove and others to successfully push for appointments to the federal energy regulatory commission , which oversees much of enron ' s business .
as enron ' s problems multiplied and its fortunes plummeted , however , the white house was silent . during a several - hour long interview in the spring , mr . lay mused that his bush connections could boomerang someday . " it could hurt , from the standpoint that , at some point , they lean in the other direction to make sure they don ' t face criticism , " he said .
copyright ? 2000 dow jones & company , inc . all rights reserved .
fall of a power giant : chairman ' s deep political connections run silent
by bob davis
staff reporter of the wall street journal
11 / 29 / 2001
the wall street journal
al 0
( copyright ( c ) 2001 , dow jones & company , inc . )
for years , enron corp . chairman kenneth lay has been george w . bush ' s best friend in the board rooms of america ' s top corporations .
since 1993 , mr . lay and enron have donated nearly $ 2 million to mr . bush ' s political career , making them mr . bush ' s biggest backers . when mr . bush was texas governor , mr . lay , a houston resident , helped him win passage of a state education - reform plan that brought mr . bush national acclaim . during that fight , mr . lay got to know aides who became power players in the bush white house .
mr . lay was confident enough of his friendship with mr . bush that he even needled him for needing arthroscopic surgery to repair a jogging injury . " i want you to know that at least one jogger [ me ] got past 50 without that surgery , " mr . lay scribbled in a note to then governor in 1997 .
still , as enron faces its greatest crisis , mr . lay ' s influence and personal relationships with the administration have amounted to little . there appears to be no effort by the white house or congress to bail enron out of its difficulties , which are widely seen as self - inflicted . the white house had no comment on mr . lay ' s predicament , a spokeswoman said . indeed , short of an actual bailout to help enron meet its obligations - - such as an aid package approved by congress or organized by government officials from private sources , similar to the rescue of the long term capital management hedge fund - - there is little washington can do at this stage to help the company . nor is there likely to be a bailout , since enron has burned many bridges on capitol hill with its history of strong - arm lobbying tactics , some congressional aides say .
that may reassure a cynical public , says robert mosbacher , commerce secretary in the first bush administration and a longtime friend of the current president as well as mr . lay . " i don ' t see anybody being let off the hook , " he said .
mr . mosbacher says he introduced mr . lay to the bush family around 1987 , when he persuaded mr . lay to help raise money for george h . w . bush ' s successful presidential bid in 1988 . mr . lay contributed $ 461 , 000 to the younger mr . bush ' s two successful gubernatorial campaigns . he also made enron ' s fleet of corporate jets available to mr . bush and won his help in lobbying officials in other states considering enron projects .
his influence with then - gov . bush was based on more than money . mr . lay was one of the state ' s leading business executives and deeply involved in texas politics . under mr . bush ' s predecessor , democrat ann richards , mr . lay headed the governor ' s business council , a state advisory board . mr . bush asked him to stay on the job to help develop an educational reform plan and sell it to the texas legislature .
in that capacity , mr . lay became close to several bush aides , including political guru karl rove and communications adviser karen hughes , who have taken positions at the white house . he also got to know another leading texas businessman : dick cheney , then ceo of dallas oil concern halliburton co . , who would become mr . bush ' s pick for vice president .
against this backdrop , mr . lay was widely considered a top candidate for treasury secretary in the younger bush ' s administration . ultimately though , he was disqualified , bush insiders say , as too closely identified with mr . bush , mr . cheney and others who worked in the texas energy business for an administration that wanted to show it wasn ' t in the pocket of big oil companies .
early on , mr . lay had unrivaled access to the administration . when the president ' s advisers debated a new energy policy in the spring , mr . lay was the only energy executive to be invited for a one - on - one session with mr . cheney , who led the effort . mr . lay also worked with mr . rove and others to successfully push for appointments to the federal energy regulatory commission , which oversees much of enron ' s business .
as enron ' s problems multiplied and its fortunes plummeted , however , the white house was silent . during a several - hour long interview in the spring , mr . lay mused that his bush connections could boomerang someday . " it could hurt , from the standpoint that , at some point , they lean in the other direction to make sure they don ' t face criticism , " he said .
copyright ? 2000 dow jones & company , inc . all rights reserved .
abreast of the market
dynegy and chevrontexaco slide along with plunge in enron stock
by robert o ' brien
dow jones newswires
11 / 29 / 2001
the wall street journal
c 2
( copyright ( c ) 2001 , dow jones & company , inc . )
new york - - the collapse of enron dominated stock trading yesterday , as a host of the power generators and energy merchants exposed to the firm tumbled .
shares of dynegy , the suitor for enron that pulled out of a deal after debt - rating agencies lowered their ratings on enron ' s bonds , fell 4 . 92 , or 12 % , to 35 . 97 . chevrontexaco , which owns 26 % of dynegy , slid 1 . 07 , or 1 . 2 % , to 84 . 55 .
shares of enron itself were ground down more than 85 % . the loss of $ 3 . 50 brought the closing price of each enron share down to 61 cents . this from a stock that , as recently as august 2000 , commanded more than $ 90 a share .
a host of other energy merchants , such as el paso , which lost 3 . 59 , or 7 . 4 % , to 44 . 91 , williams , which shed 1 . 80 , or 6 . 2 % , to 27 . 05 , and american electric power , which fell 2 . 03 , or 4 . 8 % , to 40 . 44 , all got caught in the backlash against the energy market .
the dow jones utility average finished the session down 8 . 48 points , a drop of 2 . 94 % , to 279 . 95 , which brought it down to a 52 - week low .
shares of two giant financial - services providers also got caught by their exposure to enron , and paid the price . shares of citigroup fell 2 . 75 , or 5 . 4 % , to 47 . 80 , while j . p . morgan chase slid 2 . 30 , or 5 . 8 % , to 37 . 50 .
with those two components in decline , the dow jones industrial average finished the session 160 . 74 points lower , a loss of 1 . 63 % , to 9711 . 86 . the nasdaq composite slid 2 . 48 % , or 48 points , to 1887 . 97 .
the dow industrial average ' s finish at 9711 . 86 represented the lowest close the average has posted in more than two weeks , since ending at 9554 . 37 . traders insisted that the speed and apparent ease with which market averages have managed to lard on gains over the past several weeks has stretched valuations , and left equities vulnerable to events , like the enron sell - off , that a sturdier market might have more handily absorbed .
" one of the most important overriding factors has been the performance of the market itself , " arthur hogan , chief market analyst at jefferies , said . " the market has moved straight up seven weeks in a row , and when it moves up in a straight line like that , it doesn ' t take much in the way of a catalyst to tip it over . "
whether it was excuse - making or profit - taking , the market did have to absorb some fundamental challenges in the session , including an especially pessimistic assessment of economic conditions from the federal reserve . the central bank released its beige book report on economic conditions , which showed , overall , the economy tilted more toward further slowing than it did toward recovery .
that helped further puncture shares of some of the retailers that got waylaid in tuesday ' s trading by a bearish consumer sentiment reading . shares of gap , stung by a reduction in its investment rating by prudential securities , lost 79 cents , or 5 . 5 % , to 13 . 61 . shares of another apparel retailer , american eagle outfitters , lost 1 . 3 , or 5 . 9 % , to 24 . 40 , while talbots dropped 1 . 25 , or 3 . 6 % , to 33 , and discounter kohl ' s fell 84 cents , or 1 . 2 % , to 67 . 86 .
meanwhile , some of the classic cyclical stocks that have had good runs over the past several weeks as investors bet on an eventual economic recovery gave ground . shares of boeing fell 1 . 33 , or 3 . 7 % , to 34 . 17 , after j . p . morgan reduced its earnings forecasts for 2002 and 2003 . whirlpool lost 1 . 12 , or 1 . 7 % , to 64 . 98 . auto - parts maker eaton declined 1 , or 1 . 4 % , to 69 . 60 . general electric , also subject to some downbeat comments from j . p . morgan , fell 1 . 72 , or 39 . 35 .
continental airlines lost 2 . 40 , or 10 % , to 21 . 70 . the air carrier completed a public offering of 6 . 74 million shares of stock priced at $ 22 . 50 , a discount to tuesday ' s closing price of 24 . 10 .
coca - cola declined 1 . 06 , or 2 . 2 % , to 46 . 75 . j . p . morgan said it expects slower volume growth ahead for the beverage maker ' s bottlers . shares of coca - cola enterprises , coke ' s biggest bottler , eased 40 cents , or 2 . 3 % , to 17 .
magna international rose 1 . 54 , or 2 . 6 % , to 61 . 51 . salomon smith barney started coverage of the canadian auto - components maker with a buy rating .
medtronic gained 1 . 74 , or 4 % , to 45 . 78 . the minneapolis medical - device maker reported fiscal second - quarter results that matched wall street ' s projections , and said it expected to live up to third - quarter forecasts .
foot locker eased 19 cents , or 1 . 2 % , to 15 . 70 , after mixed views from rival brokers . rbc capital markets started coverage of the stock with a strong buy rating , but jefferies reduced its coverage of the stock to accumulate from buy .
copyright ? 2000 dow jones & company , inc . all rights reserved .
foreign exchange
dollar declines against yen and euro amid growing doubts on u . s . economy
by grainne mccarthy
dow jones newswires
11 / 29 / 2001
the wall street journal
cl 4
( copyright ( c ) 2001 , dow jones & company , inc . )
new york - - growing doubts about the u . s . economy ' s ability to rebound quickly from recession weighed heavily on the dollar , pushing the currency down almost a full yen and helping the euro regain some lost ground .
weakness in u . s . stocks - - due partly to news that dynegy inc . decided to walk away from its deal to buy enron corp . - - also put pressure on the dollar , while enron ' s debt woes added to general skittishness about the ability of u . s . business to bounce back quickly .
" we know there are companies out there in trouble , " said lara rhame , economist at brown brothers harriman in new york , who said that while the enron developments weren ' t having a direct impact on foreign - exchange markets , such reports do " limit the kind of superdollar that we saw back in 1999 . "
the dollar selloff kicked off in asian trading , when dealers used a standard & poor ' s downgrade of japan ' s sovereign rating as an excuse to buy the yen . the downgrade to double - a from double - a - plus was better than the market ' s expectations of a two - notch downgrade , rendering it good news of sorts .
the selling continued in new york trading , as traders continued to price in the possibility that they may have been far too optimistic about the dollar .
the two - pronged catalyst for this change of heart was the weak november consumer confidence index released tuesday , and subsequent gloomy comments from federal reserve governor laurence meyer pointing to more downside risks to the economy . the release of the federal reserve ' s beige book report yesterday served only to flame this pessimism .
the fed said that further slowing outweighed signs of recovery for the u . s . economy this autumn , noting that economic activity generally remained soft in october and the first half of november .
" people wanted greater signs of recovery than they got from the fed , " said alan ruskin , research director at the 4 cast financial consultancy in new york .
the beige book , a summary of economic activity prepared for use at the central bank ' s next federal open market committee meeting dec . 11 , is widely viewed as an indicator of future monetary policy decisions and the report helped to solidify expectations of a rate cut of at least a quarter percentage point .
late yesterday in new york , the euro was at 88 . 84 u . s . cents , its high for the session and up from 88 . 34 cents late tuesday in new york . the dollar was at 123 . 11 yen - - around its intraday low - - and almost a full yen down from 123 . 96 yen late tuesday in new york . the dollar was also at 1 . 6460 swiss francs , down from 1 . 6484 francs in london and 1 . 6560 francs tuesday . sterling was at $ 1 . 4261 , up from $ 1 . 4185 earlier in london and $ 1 . 4153 late tuesday .
elsewhere , the canadian dollar climbed to its highest levels in almost a month , confounding the view that bad news for the u . s . is bad news for canada .
the canadian currency has tended to suffer from an association with the u . s . , given that 85 % of canada ' s exports head south of the border . however , a 0 . 50 - percentage - point rate cut by the bank of canada on tuesday was quickly followed by the gloomy consumer confidence report in the u . s . , which undercut faith in the dollar and appeared to give the canadian unit just the opportunity it was seeking .
late in the new york day , the u . s . dollar was at c $ 1 . 5842 , down from c $ 1 . 5939 late tuesday .
copyright ? 2000 dow jones & company , inc . all rights reserved .
options report
dynegy ' s move to disconnect enron merger powers volatility spike as investors seek cover
by kopin tan
dow jones newswires
11 / 29 / 2001
the wall street journal
cl 4
( copyright ( c ) 2001 , dow jones in fact , such " buying on the dip " has helped propel stock prices . with stocks up substantially from their september lows , investors still are browsing but are seeking added insurance , with many buying defensive puts to lock in a minimum selling price for the stock .
sprint ' s january 25 puts traded more than 13 , 000 contracts at the amex as an investor bought stock along with those puts . specifically , the investor bought about 5 , 000 contracts of the puts , then bought a put spread by buying 8 , 000 contracts of january 25 puts that expire 2002 and selling the same number of january 25 puts that expire 2003 .
shares of sprint ' s pcs unit fell $ 1 . 14 to $ 25 . 90 . at the amex , the january 25 puts were at $ 1 . 15 on volume of 13 , 005 contracts , compared with open interest of 2 , 799 . the january 25 puts that expire in 2003 were at $ 4 . 40 on volume of 8 , 005 contracts , compared with open interest of 8 , 826 .
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron asks staff to drop 401 ( k ) suits for severance
11 / 29 / 2001
the wall street journal
cl 3
( copyright ( c ) 2001 , dow jones & company , inc . )
houston - - enron corp . , the subject of four lawsuits filed over losses in its employees ' 401 ( k ) retirement plan , is asking laid - off workers to waive legal claims against it in exchange for some of their severance payments .
attorneys for some of the employees sought to block that requirement . plaintiffs are seeking an " immediate preliminary injunction prohibiting enron from soliciting any releases which would affect the participants ' rights vis a vis the plan , " according to an amended complaint filed by seattle firm campbell harrison & wright .
the complaint , filed in federal district court in houston , asks the court " to appoint a neutral fiduciary to manage the plan . " the suit claims enron is laying off as much as 60 % of its staff in some departments .
an enron attorney , in a statement , said laid - off employees aren ' t required to sign the waiver to get severance pay , but will get " additional severance in exchange " for signing . she said enron hadn ' t modified the waiver " in response to the current economic circumstances of the company , " but added that enron " continues to evaluate its options regarding the severance - pay plan . "
copyright ? 2000 dow jones & company , inc . all rights reserved .
nvidia to replace enron in s & p
11 / 29 / 2001
the wall street journal
cl 3
( copyright ( c ) 2001 , dow jones & company , inc . )
new york - - standard & poor ' s said nvidia corp . , a santa clara , calif . , graphic - chip maker , will replace enron corp . in the s & p 500 - stock index after today ' s regular trading . s & p said enron , the houston energy concern whose merger with dynegy inc . unraveled yesterday , is being removed for lack of representation .
copyright ? 2000 dow jones section a
enron ' s collapse : the overview
enron collapses as suitor cancels plans for merger
by richard a . oppel jr . and andrew ross sorkin
11 / 29 / 2001
the new york times
page 1 , column 1
c . 2001 new york times company
enron , the champion of energy deregulation that grew into one of the nation ' s 10 largest companies , collapsed yesterday , after a rival backed out of a deal to buy it and many big trading partners stopped doing business with it .
enron , based in houston , was widely expected to seek bankruptcy protection . with $ 62 billion in assets as of sept . 30 , it would be the biggest american company ever to go bankrupt , dwarfing the filing by texaco in 1987 . late in the day , though , enron ' s chief financial officer , jeff mcmahon , said that the company was still talking to banks about a restructuring and considering other options .
talks with its would - be rescuer dynegy , also of houston , about salvaging the deal ended in acrimony .
dynegy , which had agreed on nov . 9 to buy enron but had second thoughts as enron disclosed more financial problems and investors pummeled its stock , accused enron of misrepresenting the health of its business . enron , meanwhile , was weighing whether to sue dynegy for breaching the terms of the deal , a person close to enron said .
enron ' s swift collapse left the prospects of 21 , 000 employees in doubt and wiped out what was left of the holdings of stock investors , including some big mutual funds , as shares that sold for $ 90 in august 2000 crashed to close yesterday at 61 cents . it roiled the treasury market and tarnished the standing of the big new york banks that both advised on the deal and poured their own cash into the company . and it left in tatters the reputation of enron ' s chief executive , kenneth l . lay , a confidant and campaign backer of president george w . bush . [ page cl . ]
the treasury department , the federal reserve and the federal energy regulatory commission said they had monitored enron ' s impact on the financial and energy markets yesterday ; officials who would comment said they saw no dangerous ripple effect .
' ' the markets are functioning normally , ' ' said peter bakstansky , a spokesman for the federal reserve bank of new york .
from a pipeline company in the 1980 ' s , enron grew into the world ' s largest energy trader , using the internet to buy and sell natural gas and electric power supplies for utilities and industrial power users and helping them hedge against fluctuations in power prices .
but enron was undone by shaky accounting , too much borrowed money and an unwillingness to provide information to investors who grew to doubt its financial reports .
five weeks ago , the company disclosed that , to fuel its growth , it had shifted billions of dollars in debt off its balance sheet and into an array of complex partnerships . the securities and exchange commission began an investigation , and enron restated five years of earnings , wiping out nearly $ 600 million in profit .
enron was teetering close to insolvency before dynegy , a smaller cross - town rival , agreed to acquire it for $ 9 billion plus the assumption of $ 13 billion in debt , with additional financing from chevrontexaco , a major dynegy shareholder .
but enron subsequently disclosed even more debts , and its financial plight continued to worsen . energy - trading companies reduced dealings with the firm ; doubting its creditworthiness , some forced enron to pay higher prices for natural gas and other products or required it to post large cash deposits to back trades .
for four days , enron and dynegy worked to salvage the deal . but yesterday morning , dynegy pulled out . ' ' we knew when to say no , and this morning , we said no , ' ' said chuck watson , dynegy ' s chairman .
in an interview , mr . watson said enron ' s energy - trading business had deteriorated . he also cited ' ' surprises ' ' in the quarterly report to the s . e . c . that enron filed on nov . 19 , including the disclosures that a credit downgrade meant enron had to pay or refinance a $ 690 million obligation and that enron had less cash on hand than dynegy had expected . ' ' confidence and credibility , which is what this business is all about , deteriorated after that , ' ' he said .
mr . watson said he called mr . lay yesterday after a meeting of dynegy ' s board to call off the deal . by then , s . dynegy shares fell $ 4 . 08 , or 10 percent , to close at $ 36 . 81 .
other big energy traders , like the el paso corporation , reliant energy , mirant and aquila , also fell . but enron ' s gradual decline over the last month gave many energy companies time to reduce their exposure to enron , and many operate rival trading operations that would benefit from its collapse .
yesterday morning , as news leaked out of dynegy ' s plans to cancel the deal and s . prices soar . dec . 15 2000 : four months after the chief executive of azurix resigns , enron takes the company private again . aug . 14 , 2001 : only six months after becoming chief executive , jeffrey k . skilling resigns . he is succeeded by kenneth l . lay . oct . 8 : four years after buying portland general electric , enron agrees to sell it to northwest natural gas oct . 16 : enron reports a third - quarter loss of $ 618 million . oct . 24 : two days after enron discloses that the securities and exchange commission is looking into complicated transactions involving enron and partnerships set up by andrew s . fastow , the company ' s chief financial officer , mr . fastow is forced out . oct . 31 : the s . e . c . upgrades its inquiry to a formal investigation . nov . 8 : enron discloses that it overstated profits for the previous five years by $ 586 million . nov . 9 : dynegy agrees to buy enron for about $ 9 billion . yesterday : the merger collapses . enron ' s stock falls $ 3 . 50 to 61 cents . ( source : bloomberg financial markets ) ( pg . c 6 )
copyright ? 2000 dow jones section c
enron ' s collapse : the last resort
a bankruptcy filing might be the best remaining choice
by jonathan d . glater
11 / 29 / 2001
the new york times
page 6 , column 1
c . 2001 new york times company
enron , facing the collapse of a deal with dynegy that might have rescued it from disaster and a tidal wave of debts suddenly coming due , may now have little choice but to enter bankruptcy , lawyers and analysts said yesterday .
filing for protection under chapter 11 of the federal bankruptcy code would give the company some much - needed breathing room to deal with creditors ' claims , as well as afford any eventual buyer the advantage of a court ' s approval .
but bankruptcy would also be complicated by the fact that some of enron ' s most valuable assets , including its transwestern pipeline linking texas natural gas fields with california energy markets , are already pledged to lenders . the value of other assets available to satisfy unsecured creditors is unclear .
still , enron ' s creditors will not necessarily lose everything , said robert j . rosenberg , a lawyer at latham any awards would not be paid until after creditors were satisfied . and like enron ' s other shareholders , they might end up with nothing , said robert d . albergotti , a partner at haynes & boone , a dallas law firm .
if enron files for bankruptcy , this is not likely to prevent litigation against arthur andersen , the company ' s outside auditor , said jeffrey n . gordon of columbia university law school . indeed , bankruptcy proceedings could give both the company and investors an opportunity to figure out exactly how its profits came to be overstated and to look for potential fraud .
a special committee of enron ' s board has already retained deloitte & touche , another big accounting firm , to help .
' ' it ' s going to be a while before they figure it all out , ' ' professor gordon said .
chart : ' ' big losers ' ' as of sept . 30 , enron ' s top 10 shareholders were all big money managers . alliance capital shares held ( in millions ) : 43 . 0 percentage of outstanding shares : 5 . 78 % janus capital shares held ( in millions ) : 41 . 4 percentage of outstanding shares : 5 . 56 putnam investment shares held ( in millions ) : 23 . 1 percentage of outstanding shares : 3 . 11 barclays bank shares held ( in millions ) : 23 . 0 percentage of outstanding shares : 3 . 10 fidelity investments shares held ( in millions ) : 20 . 8 percentage of outstanding shares : 2 . 80 citigroup shares held ( in millions ) : 20 . 8 percentage of outstanding shares : 2 . 79 state street shares held ( in millions ) : 16 . 1 percentage of outstanding shares : 2 . 17 aim management shares held ( in millions ) : 14 . 0 percentage of outstanding shares : 1 . 88 taunus shares held ( in millions ) : 12 . 5 percentage of outstanding shares : 1 . 68 vanguard shares held ( in millions ) : 11 . 4 percentage of outstanding shares : 1 . 54 ( source : bloomberg financial markets )
copyright ? 2000 dow jones section a
an implosion on wall street
11 / 29 / 2001
the new york times
page 34 , column 1
c . 2001 new york times company
enron , the energy - trading company , may be on the verge of extinction with the collapse yesterday of its proposed acquisition by dynegy , a smaller competitor , and the downgrading of its debt to junk status . but its name has attained immortality on wall street .
enron is now shorthand for the perfect financial storm . take a high - flying company terribly impressed with its sense of unique mission and ingenuity , and correspondingly contemptuous of its obligations to fully comply with the spirit of accounting rules . then add fawning investors , wall street analysts , journalists and accountants unwilling to allow a company ' s lack of transparency about its business to get in the way of a dizzying ride , until they realize the destination is the top of a steep cliff . what you have then is an enron .
there have been plenty of other once - unfathomable implosions on wall street , but perhaps none so sudden or of such magnitude . jittery financial markets now have to contend with the possibility that an enron bankruptcy could undermine the financial health of banks and other energy companies . enron ranked seventh on the list of fortune 500 companies last year , and remained one of the most hyped stories on wall street well into this year . a pioneer in creating private marketplaces for newly deregulated commodities , enron was touted as a revolutionary force , bridging the dot - com world and stodgy energy markets .
now enron may become one of the largest bankruptcy cases in history . its stock closed yesterday at 61 cents , as investors rushed for the exits in reaction to the fatal news that , without a bailout from dynegy , enron is unlikely to be able to meet its crushing debt obligations .
the company ' s autopsy will be a complicated affair , entailing numerous lawsuits . what is already clear , and will come as a shock to millions of trusting individual investors across america , is that the financials of a fortune 500 company were essentially a mystery . enron ' s death watch began last month when it grudgingly disclosed that $ 1 . 2 billion of its market value had vanished as a result of ' ' related - party ' ' transactions with private partnerships that enriched company insiders . then enron admitted that it had overstated its profits over the last five years by $ 600 million . dynegy cited enron ' s lack of forthrightness as a reason to walk away from the merger agreement .
not very long ago , competitors and democrats in washington were worrying whether the close ties between enron ' s chairman , kenneth lay , and george w . bush would give the company too much influence . enron has aggressively lobbied , with some success in recent years , to limit regulation and disclosure of its trading operations .
now enron is the best argument for the need for stronger supervision of public companies ' financial data . the securities and exchange commission should make sure that the energy trader ' s saga puts an end to any talk of lessening disclosure requirements faced by public companies . moreover , arthur andersen ' s failure to uncover flawed accounting by enron , or to forcefully question some of the company ' s shadier transactions , raises serious concerns about auditors ' commitment to be sufficiently diligent in reviewing the actions of major companies .
there is a certain irony that enron , a champion of deregulation , now becomes a poster child for the need for strong regulation on wall street .
copyright ? 2000 dow jones section c
enron ' s collapse : the lenders
citigroup and j . p . morgan are left with bruised egos and exposure to loans
by riva d . atlas
11 / 29 / 2001
the new york times
page 6 , column 2
c . 2001 new york times company
dynegy ' s decision to walk away from enron leaves citigroup and j . p . morgan chase licking their wounds after an effort to burnish their reputations as deal makers .
as lead advisers and lead bankers for enron , the banks had the chance to build influence in the merger business . unlike other wall street firms , citigroup and j . p . morgan have large balance sheets and have boasted of their ability to provide both loans and advice . j . p . morgan , in particular , ' ' has been saying that providing financing is an advantage they have in terms of building their investment banking franchise , ' ' said richard strauss , a goldman , sachs analyst following brokerage firms .
now , not only have the banks lost bragging rights for pulling off a difficult deal , as well as millions in fees , they are also left holding hundreds of millions in loans to enron , which is trying to stave off bankruptcy . enron owes the two banks anywhere from $ 800 million to $ 900 million each , although some of it may be hedged through derivatives contracts , analysts estimated .
in bankruptcy , of course , creditors come well ahead of shareholders , who have now been virtually wiped out . janus capital was the biggest shareholder for most of the year , but alliance capital surpassed it as of sept . 30 , according to the latest regulatory filing available . enron ' s stock plunged to 61 cents yesterday .
worries about the money enron owes the banks punished their stocks yesterday . citigroup ' s shares closed at $ 47 . 80 each , down $ 2 . 75 , while j . p . morgan fell $ 2 . 30 , to $ 37 . 50 .
even if enron files for bankruptcy , neither j . p . morgan nor citigroup is thought to have enough exposure to be at serious risk . executives of the banks declined to comment on the estimates of their exposure . while the banks had each promised to make equity investments in the companies of $ 250 million each , those investments have been canceled along with the dynegy deal .
about half of the money owed to j . p . morgan and citigroup consists of a $ 1 billion loan the banks made earlier this month that is secured by one of enron ' s pipelines . citigroup lent $ 600 million , and j . p . morgan provided the rest , according to an executive close to the enron negotiations . the remainder owed to the banks is in various loans , trading positions and other investments not secured by enron assets .
given that there are assets backing much of the banks ' loans , some analysts said the stock market had overreacted . ' ' the net exposure could be very small , ' ' said andrew collins , who covers bank stocks at u . s . bancorp piper jaffray and is recommending citigroup and j . p . morgan .
jeffrey mcmahon , enron ' s chief financial officer , said the company was still working with j . p . morgan chase and citigroup to restructure enron ' s debts .
several other banks may own large amounts of enron debt . bank of america has $ 200 million to $ 300 million , according to estimates by lori appelbaum , who follows bank stocks for goldman , sachs , and ruchi madan , a stock analyst at salomon smith barney . other banks identified by the analysts as owed money are the bank of new york , bank one , fleetboston financial , suntrust and the wachovia corporation . a spokesman for suntrust did not return calls ; executives at the other banks declined to comment .
in what appears to have been bad timing , alliance capital management , a subsidiary of axa , increased its stake in enron late this summer . janus , a unit of stilwell financial , had been the biggest shareholder , but was pruning its stake . alliance ' s position grew 71 percent in the report filed in september , to 5 . 8 percent of enron ' s outstanding . jane ingalls , a spokeswoman for janus , said last night that janus had since sold all its shares , but did not say when or at what price . a spokesman for alliance would not comment about its stake in enron .
copyright ? 2000 dow jones section c
enron ' s collapse : the market
in turbulent bond market , enron ' s woes exacerbate turmoil
by gretchen morgenson
11 / 29 / 2001
the new york times
page 1 , column 2
c . 2001 new york times company
the swift downfall of enron has contributed to extreme turbulence in the united states treasury market in recent weeks , causing violent swings in interest rates not seen since russia defaulted on its debt and the long - term capital management hedge fund nearly collapsed in late 1998 .
even though the exact makeup of enron ' s large trading portfolio remains a mystery , traders said that the energy company had bet that interest rates would continue to decline because of continuing weakness in the economy .
then two weeks ago , the economy began to show signs of revival . as investors decided that the days of federal reserve rate cuts were over , rates began to rise and prices on treasury securities fell . the move out of treasuries crushed traders who still expected the weak economy to push interest rates lower . scrambling to cut their losses , those traders sold even more , depressing prices and pushing up rates further .
the sense among many market participants is that enron ' s woes made a bad market excruciating . ' ' i think the street in general lost half of its year or more in the last week or two , ' ' said stan jonas , managing director at fimat usa , a broker dealer . ' ' everyone was long the bond market , thinking the economy was going to be bad . then everything shifted , and enron drove it to extremes . ' '
how extreme ? in the two weeks beginning nov . 12 , two - year treasury notes plummeted in price , pushing their yields up to 3 . 18 percent , from 2 . 41 percent . in the same period , yields on treasuries with five - year maturities went to 4 . 4 percent , from 3 . 62 percent .
the trade that appears to have gone awry for enron , market participants say , involved the sale of hundreds of thousands of eurodollar futures , some of which matured in two or three years . such contracts are frequently used to bet on the direction of interest rates . enron could also have used the eurodollar contracts to hedge against fluctuations in oil prices . in a weak economy , oil prices usually fall . but so do interest rates , so a bet on lower rates would produce gains to help offset the decline in oil prices . when data showed signs of life in the economy , traders surmised that enron began to sell its eurodollars and started an avalanche of selling among other traders .
there were huge eurodollar positions being liquidated , said gemma wright , director of market strategy at barclays capital . ' ' we don ' t know for certain who it was , but the amount of the loss was high . ' '
one reason that traders suspect enron may have been forced out of such a position was that the company had neither the cash flow nor the bank credit to meet calls for additional cash from traders at other firms . typically , companies have cash reserves to meet such calls or have access to temporary lines of credit to cover shortfalls . enron appears to have neither . yesterday , the company said it was suspending all payments except for those ' ' necessary to maintain core operations . ' '
in addition to the recent interest rate spike , enron has had to contend with falling oil prices . the price of crude oil has dropped 28 percent since the end of october .
caught in a vise , enron has almost certainly been selling securities to raise cash . treasury securities and eurodollar contracts , because their markets are large , are among the easiest to sell . in both cases , enron was probably selling into a falling market .
adding to the turmoil in the bond market , traders said , was less participation by wall street firms , which were unwilling to take on big new trading positions near the end of their fiscal year . several firms end their years on nov . 30 .
some traders say enron ' s problems started with comments on tuesday by laurence h . meyer , a governor of the federal reserve . mr . meyer suggested that additional rate cuts might be coming , and that remark helped stabilize prices of treasury securities . ' ' it ' s my view that there are no coincidences , ' ' mr . jonas said . ' ' laurence meyer is a big hawk on interest rates , and he basically talked a 180 . that was their big gun . the only bigger gun would have been greenspan . ' '
graph : ' ' market catalyst ' ' the swift demise of enron and the company ' s investment strategies in the bond market may have contributed to the sharp rise in the yields on treasury notes in the last few weeks . graph tracks daily yields on 2 year treasury notes in november . ( source : bloomberg financial markets ) ( pg . c 7 )
copyright ? 2000 dow jones section a
enron ' s collapse : market place
a big fall evoking nasty old memories of a run on a bank
by floyd norris
11 / 29 / 2001
the new york times
page 1 , column 1
c . 2001 new york times company
the final collapse of enron amounted to something that few living americans have ever seen : a bank run like those in the days before deposit insurance .
enron appeared to become a wildly successful company by creating a new , largely unregulated financial business , that of energy trading . that business ran on credit , and required suppliers and users of energy to sign contracts that called on enron to meet obligations months or years later .
enron became something like a bank , which takes depositors ' money and promises to pay it back later . but unlike banks in the current era , this institution had no federal deposit insurance to reassure customers when rumors began to spread that it was in trouble . that proved to be its achilles ' heel . enron ' s collapse is a reminder for big players in unregulated markets that their financial health must be beyond doubt .
before the advent of deposit insurance , bankers knew what was needed to head off a bank run . it was cash , so much cash that it would be clear that panic was unwarranted . nearly a century ago , j . p . morgan took the lead as he and fellow banking tycoons put up the millions needed to keep the trust company of america open . thus was halted the panic of 1907 .
as it happened , corporate descendants of two major institutions involved in that rescue - - j . p . morgan chase and citigroup - - were major players in the enron debacle . but they did not try the strategy this time .
instead , enron kept arranging an additional billion or two in loans , clearly struggling to find the money . morgan and citigroup allowed the word to spread that they were ready to put in more money on their own , but the amounts were relatively small , and somehow the money was never invested .
when dynegy agreed to buy enron , it put up $ 1 . 5 billion in cash only after it was assured that it would get control of the company ' s crown jewel , the northern natural gas pipeline system , or its money back , if the deal collapsed .
the final straw came on tuesday , when negotiations on a revised dynegy takeover deal came down to efforts to find $ 250 million or $ 500 million of enron assets that could serve as collateral for a new dynegy cash advance . the message to companies that traded with enron was clear : even its rescuer is demanding collateral , and is having trouble finding it .
given that , enron ' s financial business could not continue . public haggling over the terms of the rescue assured that no rescue was possible , something that would have been obvious to the original j . p . morgan but that seemed to escape his corporate heirs . as walter bagehot , the british financial journalist and historian , wrote in 1873 , ' ' every banker knows that if he has to prove that he is worthy of credit , however good may be his arguments , in fact his credit is gone . ' '
the markets enron helped to create will endure , but probably without enron . it will be interesting to see whether participants in them continue to resist regulation as much as they have in the past . unregulated markets , especially when they are relatively new , can be very profitable for those with superior market knowledge , as enron seemed to have . but when prices are visible to all , the value of that knowledge plummets . regulation could bring more openness , but it could also bring structures , like clearing systems , that reassure traders they need not worry about the credit of those with whom they trade .
if the markets continue to be unregulated , enron ' s collapse makes it more likely that the big players in those markets will be companies that are already regulated enough to assure customers that they are secure - - companies like major banks and brokerage houses . that would be bad news for dynegy , which was enron ' s major competitor before it tried to become its acquirer .
the crisis at enron may have exposed a ' ' flaw in the business model ' ' of energy trading companies , said john diaz , a managing director at moody ' s , in an interview yesterday . ' ' companies in this industry need to think carefully about their liquidity management , ' ' he said . ' ' we ' re going to be looking very hard at this . ' '
the litigation over enron seems likely to be prolonged and expensive , but it may boil down to senator howard h . baker jr . ' s famous watergate - era question about president richard m . nixon : what did he know and when did he know it ?
that question will be asked about arthur andersen , enron ' s auditor , and about its corporate officials , past and present . but it will be asked most particularly about the banks and investment banks that served enron and its affiliated off - balance - sheet entities in recent years .
enron ' s disclosures last week showed it needed to pay far more in debts over the next year than most people had understood to be the case . but the newly discovered loans did not materialize out of thin air . the money was lent by banks and bond buyers to the off - balance - sheet entities . those who were stuck with losses on the known enron debt may claim the financiers who syndicated the loans should have told them of all the other debt .
among those who do not come out of this looking very good are the bond rating agencies . just six weeks ago , after enron put out an earnings release showing strong pro - forma profits , as it defined them , two of the agencies , fitch and standard & poor ' s , reaffirmed enron ' s rating of triple - b plus . moody ' s , the agency that was the most skeptical about enron , put the rating under review and hinted it would , at worst , cut it one notch .
none of the rating agencies seemed overly concerned about a detail disclosed by enron at the time : a $ 1 . 2 billion reduction in shareholder equity related to what it later said were accounting mistakes involving a partnership run by enron ' s chief financial officer . but that disclosure set off a cascade of questions that enron could not answer in a reassuring way . it ran through billions as companies demanded more protection to keep trading with it .
enron could have been saved , if an institution that was trusted - - whether that was chevron texaco , which put up the $ 1 . 5 billion cash that dynegy invested , or j . p . morgan chase or citigroup - - had made it clear that it was willing to stand behind enron . a credible backer would have ended the run .
but no one was willing to do that , and their hesitance as they learned more only accelerated the run . whether they were wise to avoid that exposure may become clear as it emerges how much creditors will eventually get .
finally , the rating agencies yesterday downgraded enron to relatively low levels of junk . they knew that was likely to force enron into bankruptcy in the near future , but they also knew that no one was willing to rescue a company that the agencies had viewed as solid only weeks before .
yesterday , as dynegy walked away from the merger , it said that it was no longer willing to trade with enron - - unless enron put up ' ' sufficient credit support . ' ' it knew that support was nowhere to be found .
copyright ? 2000 dow jones section c
enron ' s collapse : the chief executive
foundation gives way on chief ' s big dream
by john schwartz and richard a . oppel jr .
11 / 29 / 2001
the new york times
page 1 , column 5
c . 2001 new york times company
well before anyone could imagine that enron might collapse , kenneth l . lay was stumped . in an interview in august , he dismissed questions about a vague clause in the energy company ' s annual report that hinted at bigger problems if its stock price or credit rating fell below certain levels .
' ' i just can ' t help you on that , ' ' he said . pressed further on questions about a bewildering constellation of business partnerships that involved enron ' s former chief financial officer , he said , ' ' you ' re getting way over my head . ' '
at the least , mr . lay - - a man of big ideas , a crusader for free markets , a risk taker in the texas wildcatter tradition - - had taken his eye off the ball . while he was busy befriending the nation ' s most powerful politicians , erecting one of the tallest buildings in houston and pasting enron ' s logo on the city ' s new ballpark , the little things were turning out to be mr . lay ' s big problems .
one after another , disclosures spilled out of his company over the last month : the partnerships had hidden billions in debt ; years of enron ' s reported profits had been exaggerated ; the government was investigating . rivals were shunning enron ' s energy trading desks , which mr . lay had built into the world ' s leaders . and sure enough , the stock price tumbled day after day , and credit agencies lowered enron ' s ratings once and then yesterday again , turning the company ' s debt to junk and its shares into a penny stock .
three weeks ago , mr . lay tried to salvage his creation by selling it to dynegy , his houston rival . yesterday , dynegy pulled out of the deal . deprived of enough information , and then repelled by what they learned , the free markets in which mr . lay had put so much faith all but destroyed , in a matter of weeks , everything he had built .
' ' if they had been going a slower speed , the results would not have been disastrous , ' ' said bob mcnair , a houston energy entrepreneur who sold the bulk of his own company to enron three years ago . but enron , he said in an interview this month , was like a race car , and the markets like an unforgiving track . ' ' it ' s a lot harder to keep it on the track at 200 miles per hour , ' ' he said . ' ' you hit a bump and you ' re off the track . ' '
from his youth , mr . lay , 59 , had nurtured an abiding faith in the markets ' wisdom . he studied economics at the university of missouri , living at home to save on room and board , and eventually earned a ph . d . in the subject . as a naval officer serving in the pentagon , he worked to develop more efficient accounting systems . later , he served as an aide to a federal government regulator for the natural gas industry - - a market that enron would come to dominate .
moving into the private sector , he worked his way up the ranks of the natural gas industry , becoming chief executive in 1984 of the houston natural gas corporation , a big regional pipeline operator . he engineered its merger with internorth , an omaha pipeline company , and then became chief executive of the combined company and changed its name to enron .
mr . lay saw enron ' s mission as far more than being a conduit for fuel . at the time , gas prices were regulated and pipelines played a relatively passive role ; buyers and sellers could not cut deals on the fly . but as oil prices plunged in the mid - 80 ' s and gas users began switching to cheaper fuel oil , mr . lay returned to washington to argue , successfully , for rules changes that he said would save the pipeline business by allowing operators to shop for the best deals from both gas producers and utilities .
the new flexibility brought the threat of chaos , however , as natural gas prices began fluctuating wildly . that is when the new enron was truly born . to help customers shield themselves from risk , mr . lay ' s enron developed hedging contracts for gas like those traded in the markets for corn and copper and winter wheat . its innovative ' ' gas bank ' ' let utilities lock up the long - term prices that they craved ; enron lined up the gas supplies from producers , arranged for delivery - - and took a cut of every deal .
that business became the forerunner of enron ' s entry into hundreds of other markets , helping customers obtain supplies and manage risks in products ranging from electric power to pulp and paper and , most recently , fast broadband access to the internet . trading soon provided more of the company ' s profits than the traditional natural gas business .
while other companies , including dynegy , focused on accumulating hard assets like pipelines , turbines and gas fields , enron increasingly saw itself as a pure trading company with an almost limitless future .
' ' there is a very reasonable chance that we will become the biggest corporation in the world , ' ' mr . lay ' s handpicked successor as enron ' s chief executive , jeffrey k . skilling , told the authors of a book , just published , about business on the internet . even the book ' s title , ' ' radical e : from ge to enron - - lessons on how to rule the web ' ' ( ) , showed the cachet the company had attained . enron , the authors wrote , was ' ' creating a culture in which radical and creative thinking is encouraged and rewarded . ' '
mr . skilling abruptly resigned in august , after just six months on the job , propelling mr . lay back into the gritty details of enron ' s businesses that he had sought to leave to others .
as the company grew , he had become increasingly involved in public affairs , serving as host when a global economic conference was held in houston in 1990 and when the republican national convention came to the city in 1992 .
like the leaders of many big texas businesses - - the construction colossus brown became good friends with the texas governor , ann richards ; and supported senator phil gramm of texas , whose wife , wendy , a former chairwoman of the commodities futures trading commission , joined enron ' s board .
' ' he ' s a stand - up guy , ' ' said ms . richards , now a business consultant in new york . asked to be more specific , she said , ' ' he ' s at the meeting ' ' - - meaning she could count on mr . lay to become directly involved with whatever she asked him to do , and not just sign onto a project for show .
mr . lay ' s deepest political ties were with the bush family . in the 1980 ' s , he became a major fund - raiser for george h . w . bush . when mr . bush lost his 1992 campaign for re - election as president , mr . lay brought a number of senior bush aides to enron as directors or consultants , including james a . baker iii , the former secretary of state , and robert a . mosbacher , the former secretary of commerce .
mr . lay also cultivated mr . bush ' s son george w . long before he was considered a serious national candidate . after the younger mr . bush ' s election as texas governor in 1994 , mr . lay became head of the governor ' s business council , an important advisory post .
the bond with president bush is personal . as governor , mr . bush sent mr . lay a kidding note in 1997 . ' ' one of the sad things about old friends is that they seem to be getting older - - just like you ! ' ' he wrote . ' ' 55 years old . wow ! that is really old . thank goodness you have such a young , beautiful wife , ' ' he added , a reference to mr . lay ' s wife , linda .
in 1999 , mr . lay sent a handwritten christmas note to mr . bush and his wife , laura . ' ' linda and i are so proud of both of you and look forward to seeing both of you in the white house , ' ' he wrote .
yesterday , the white house press secretary , ari fleischer , said the treasury department was monitoring enron ' s downfall for its effect on the market . asked if the president himself had any reaction , mr . fleisher said , ' ' the president ' s reaction is that it should be monitored . ' '
in some ways , enron ' s collapse was one more example of the bursting of the internet bubble . but mr . lay was not some stylish dot - com brat ; by all accounts , he is an immensely likable product of middle america . growing up in tiny rush hill , mo . , he was driving a tractor by age 12 and salting away savings . by 16 , his sister sharon recalled this week , ' ' he was bucking bales ' ' - - that is , loading hay - - ' ' and had two jobs in the summer , painting houses . ' '
' ' i don ' t think you could ever say that he did something the easy way , ' ' she said .
that work ethic ran in the family . mr . lay ' s father was a minister who also sold farm equipment . the family ' s finances were spotty , ' ' at times no money , at times some money , ' ' ms . lay recalled . still , the lays took in people from their church who were in need .
over the last decade or so , mr . lay earned some $ 300 million from enron , mostly by exercising stock options . earlier this month , when employees grew incensed at the prospect of his collecting a big severance package with the company ' s sale to dynegy , he volunteered to walk away from $ 60 million in payments .
mr . mcnair , the houston entrepreneur , who has known mr . lay for years , suggested that perhaps everything had not been disclosed to him . ' ' maybe the people who reported to him told him what they wanted him to hear , but they weren ' t telling him everything , ' ' he said .
mr . mcnair said he spoke to mr . lay recently and found him ' ' somewhat in a state of shock . ' ' mr . mcnair added , ' ' he ' s devastated . ' '
in the end , it seems , the man whose company did so much to help others manage their risk could not manage his own .
photos : a portrait of the chairman from enron corporate report for 1999 . ( enron ) ( pg . c 7 ) ; ( pg . cl ) graphs : ' ' enron ' s collapsing house of cards ' ' kenneth l . lay , starting with an ordinary pipeline business , turned enron into one of the fastest growing companies of the 1990 ' s . but it has swiftly collapsed since revealing huge hidden debts , causing its stock to plunge and requiring it to restate earnings . graphs track enron ' s stock price and sensor debt rating since sept . and enron ' s earnings since 1997 . ( sources : bloomberg financial markets ; moody ' s ; enron )
copyright ? 2000 dow jones section c
enron ' s collapse : the derivatives
market that deals in risks faces a novel one
by diana b . henriques
11 / 29 / 2001
the new york times
page 7 , column 1
c . 2001 new york times company
when members of the international swaps and derivatives association gathered in washington last april , the man they all wanted to hear was jeffrey k . skilling , then the president and chief executive of enron .
enron had helped create the global market for energy - based derivatives - - customized risk - swapping contracts that enable companies to hedge their exposure to changing energy prices and supply fluctuations . even among traders more familiar with interest - rate swaps or currency hedges than energy contracts , mr . skilling ' s presentation did not disappoint .
' ' he dazzled everybody - - it seemed he could figure out a way to trade the minutes on this phone call , ' ' one industry executive said .
but yesterday , many of those same executives were crossing their fingers and hoping that enron ' s crisis would not spread into the energy swaps market that the company had done so much to enliven .
as the day ended with fairly stable trading , there were a few cautious sighs of relief . but nobody is quite sure just how much money the energy - related derivatives markets will have at risk if enron fails .
according to swaps monitor publications , which collects data for the derivatives markets , enron ranks among the top energy - swaps traders in the world , on a par with financial giants like bank of america and barclay ' s .
at the end of september , enron ' s gross derivatives trading liabilities - - the amount of money it would owe to other market players if it filed for bankruptcy - - stood at $ 18 . 7 billion , up slightly from june levels but about $ 1 . 3 billion less than at the end of last year .
but that level may overstate the risk to other companies . ' ' these numbers do not take into account the unknown amount of collateral that enron may have posted , ' ' said paul spraos , swaps monitor ' s president . such collateral should , in principle , diminish enron ' s actual liabilities to the derivatives market , he said .
in a typical energy swap , a company will enter into a contract to lock in a fixed price of a certain commodity , like natural gas or electricity . the other company , the counterparty , in the deal assumes the risk of future price changes and quotes a fixed price that includes its own profit . the efficient trading and pricing of these contracts requires a marketplace with large , active traders .
as of last night , there were no signs of a major panic that would drive major participants to the sidelines , industry executives said .
' ' it ' s not likely that enron ' s problems will cause serious difficulty for any other sizable counterparty , ' ' said mark c . brickell , a veteran swaps - market executive and the chief executive of blackbird , a technology firm that operates an electronic swaps - trading system . ' ' while there may be some smaller firm that didn ' t manage its exposure as well as it might , that won ' t cause any major problems for the system as a whole . ' '
michael williams , managing director of tradespark , a rival to enron ' s online energy - trading system , agreed that there was ' ' no sign of shrinkage ' ' in the marketplace yesterday . ' ' so far , we ' ve seen no complaints about a lack of liquidity , ' ' he added .
most participants in the energy derivatives market rely on a standard contract that was developed by the international swaps and derivatives association and is recognized in the courts . the contract clearly specifies the rights each party has in the event of a default , said robert pickel , the association ' s chief executive . as of late yesterday , he added , the markets appeared ' ' to be fairly resilient in the face of extremely negative developments regarding such a major player . ' '
but at least one lawyer who specializes in swaps contracts indicated that it might be too soon to assess the full impact . that lawyer , ann o ' hara , in lincoln , neb . , said that her clients ' anxiety about enron had escalated sharply only in the last few days . ' ' no one believed it would really happen , ' ' she said . ' ' it is not a surprise , but it is a shock . ' '
' ' we don ' t really know who is out there exposed to enron ' s credit , ' ' she added . ' ' i ' m telling my clients to prepare for the worst . ' '
chart : ' ' big bets on derivatives ' ' enron ' s derivatives - trading activity is substantial when measured by the total gross amount of money it owes to derivatives - trading partners . dec . 31 2000 : $ 20 . 0 bil . mar . 31 2001 : $ 21 . 3 bil . june 30 : $ 17 . 5 bil . sept . 30 : $ 18 . 7 bil . ( source : swaps monitor )
copyright ? 2000 dow jones section c
the markets : stocks j . p . morgan fell $ 2 . 30 , to $ 37 . 50 .
the blue - chip dow jones industrial average surrendered 160 . 74 points , or 1 . 6 percent , to 9 , 711 . 86 , the largest drop in about a month and the lowest close since nov . 12 . the standard & poor ' s 500 - stock index slid 20 . 98 points , or 1 . 8 percent , to 1 , 128 . 52 . the technology - laden nasdaq composite index dropped 48 points , or 2 . 5 percent , to 1 , 887 . 97 .
enron dragged on the market as wall street questioned the rally that had lifted stocks well off the sept . 21 lows . investors , still expecting an economic recovery in 2002 , pocketed profits on worries that share prices were getting too far ahead of prospects for corporate earnings .
milton ezrati , a senior strategist at lord abbett bloomberg financial markets ) tables : ' ' hot ' ' the favorites ' ' lists stocks held by largest number of accounts at merrill lynch . ( compiled from staff reports , the associated press , bloomberg news , bridge news , dow jones , reuters ) graph ' ' freddie mac yields ' ' tracks 15 and 30 - year federal home loans since august . ( source : f . h . l . m . c . ) graph ' ' 2 - year treasury notes ' ' tracks high yields in percent since 2000 . ( source : treasury department )
copyright ? 2000 dow jones section c
enron ' s collapse : the rating agencies
debt rankings finally fizzle , but the deal fizzled first
by alex berenson
11 / 29 / 2001
the new york times
page 7 , column 1
c . 2001 new york times company
in the end , the rating agencies hardly mattered .
for weeks , wall street wondered whether moody ' s investors service , standard & poor ' s and fitch ' s , the three major agencies rating corporate debt , would drop enron ' s rating below investment grade .
enron and dynegy warned that cutting the rating might jeopardize dynegy ' s acquisition of enron . executives at big securities firms that stood to profit from the deal pressed moody ' s to keep ratings at investment grade , even as enron bonds fell to levels indicating that the debt was highly risky .
but even an investment - grade rating could not save enron ' s business from collapse over the last month . after a series of damaging revelations about enron ' s finances , the company ' s partners demanded extra capital for its trades or stopped trading with it . by the time the rating agencies decided yesterday that enron might well default on its debt , dynegy had decided on its own to walk away .
' ' it wasn ' t really the reason that dynegy backed out of the deal , ' ' said todd shipman , the standard & poor ' s analyst who was the first to cut enron ' s rating yesterday .
the cuts dim the hopes enron had of avoiding bankruptcy . all three agencies slashed enron ' s debt far below investment grade . moody ' s cut enron ' s rating 5 notches , standard & poor ' s lowered it 6 , and fitch slashed it 10 , to cc , its third - lowest grade .
' ' default is a probability , ' ' said glen grabelsky , the senior director of credit policy for fitch . enron has $ 13 billion in debt outstanding and about $ 10 billion more in loans , made by partnerships , that the company has guaranteed .
the aggressive rating cuts may not mollify the investors who have sharply criticized the agencies for being slow to act in recent weeks . officials at all three agencies defended themselves yesterday , saying they had acted prudently .
after dynegy agreed to buy enron , moody ' s tried to calculate the chances that the deal would go through , that enron would remain strong until it was completed and that the combined company would carry a strong rating , said john diaz , managing director for moody ' s power and energy group .
at first , those questions seemed to have reassuring answers , mr . diaz said , so moody ' s kept enron ' s investment - grade rating .
but in recent days , other companies have shied away from doing business with enron , and its losses have soared . ' ' basic cash flow was slowing down at the same time that the cost structure of the company was the same , ' ' mr . diaz said . enron ' s mounting losses discouraged dynegy , he said .
' ' over the last 24 hours , the probability that we ' ve assigned to these three key issues was looking to be a lot smaller , ' ' mr . diaz said .
mr . grabelsky said the acquisition uncertainty presented the agencies with a situation where enron ' s debt could be very strong , if the deal worked , or highly risky .
' ' there is no middle ground , ' ' he said . ' ' it ' s one or the other . ' '
copyright ? 2000 dow jones the $ 76 m ark short term bond fund , which had a 4 . 05 per cent position , or $ 3 . 4 m as of september 30 ; and the $ 50 m first focus short / intermediate bond fund , which had a 4 . 15 per cent slice of its portfolio in the bonds , worth $ 2 . 07 m as of september 30 .
although these are just single - digit positions , a loss from par value to 20 cents on the dollar in a 4 per cent holding could trim off half of a fund ' s return , said scott berry , morningstar bond fund analyst .
the average intermediate bond fund has returned 7 . 3 per cent so far this year , according to morningstar . a loss from par value to 20 cents on the dollar in a 4 per cent stake could reduce a 7 . 3 per cent return to roughly 3 . 3 per cent , mr berry said .
" with bonds , there ' s much more downside than upside . typically , the downside is never realised because these investment - grade bonds are strong enough to weather the storm , but enron just caught everybody by surprise over the last couple of months , " he said .
other large investment - grade bond funds that held enron ' s debt as of their most recent filings include the $ 13 . 6 bn fidelity short term bond fund , which held 0 . 77 per cent , worth $ 27 . 7 m as of april 30 , and two of the strong funds - the $ 1 . 36 m strong corporate bond fund , which held 0 . 77 per cent as of september 30 , or $ 10 . 5 m , and the $ 1 . 43 bn strong short term bond fund , with a 0 . 63 per cent holding , also as of september 30 , worth $ 9 m .
mr berry said managers of investment - grade bond funds that still held the debt were probably selling it , although most had the latitude to hold a bond once it lost its investment - grade status . however , they also said junk - bond fund managers were unlikely to buy it , because other " fallen angel " bonds such as xerox had not performed well .
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companies & finance the americas - sec filing triggered merger crisis .
by sheila mcnulty .
11 / 29 / 2001
financial times
( c ) 2001 financial times limited . all rights reserved
dynegy ' s rescue bid for enron went into " crisis mode " 10 days ago , said chuck watson , dynegy ' s chairman and chief executive .
in a filing to the sec , enron revealed a previously undisclosed $ 690 m note payment due this week , as well as that it had $ 9 . 15 bn in debt due by the end of next year . the news provoked another round of selling in enron ' s already plunging share price , forcing dynegy into 18 - hour a day talks that ran through the thanksgiving weekend and up to midnight on tuesday . .
" that may have been the last straw to some shareholders , " mr watson said just hours after withdrawing from dynegy ' s $ 9 bn merger with enron . enron had been the biggest energy trader in the us until a crisis of confidence , beginning in october , that pushed it to the brink of bankruptcy .
" every time we thought we had the pieces , " he said . " every time we put the puzzle together it wasn ' t a clear strategy to go forward . "
he said the talks resumed yesterday at 7 am , but when the rating agencies began downgrading enron to junk status , mr watson called ken lay , enron ' s chairman and chief executive , to say " it wasn ' t going to work " .
" once they downgraded the company , we thought , what was already an uphill battle , was too difficult , " he said . mr watson said he offered to help any way he could and the two men - who have long been friendly , cross - town rivals - parted amicably .
mr watson has received several calls from other counter - parties in the business , thanking him for saving them from a meltdown by giving them the time to limit their exposure to enron . " i don ' t feel like a saviour , i feel tired , " he said . but he acknowledged he provided a vast number of enron ' s counterparties , partners and customers a chance to better protect themselves against enron ' s demise .
" there was a really strong effort to make it happen , " he said . " in the end , we couldn ' t find a solution that didn ' t risk dynegy ' s responsibility to its shareholders and to its employees . "
he says the merger agreement allows it to walk away with enron ' s most valuable asset , the northern natural gas pipeline , though if enron disputes that , at worst , it would leave with money invested in saving enron . " we are as solid as we were going into ( the merger ) and , maybe , better for the experience , " he said .
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companies & finance the americas - financial system braces for a chain reaction .
11 / 29 / 2001
financial times
( c ) 2001 financial times limited . all rights reserved
gary silverman .
enron ' s woes are raising risks for the financial system , threatening to set off a chain reaction in the markets that could damage any number of participants in unforeseen ways .
individual banks could lose hundreds of millions of dollars apiece on loans to enron , but regulators are confident the lenders have sufficient capital to weather such a storm .
the bigger worry is that enron ' s difficulties could trigger ripple effects in much the same way as russia ' s default in 1998 destabilised the long - term capital management hedge fund .
prices for banking stocks tumbled yesterday in new york and london , in large part because no one really knows what would happen if enron were removed from the financial scene .
enron sat on a massive trading book , made up of complex derivatives transactions , some meant to stay in place for decades . on the other side were a host of counterparties , many of them energy companies that are not supervised by banking regulators .
the counterparties , in turn , have their own set of borrowing and trading relationships with banks that may be completely unaware of their customers ' ties to enron . bankers also fear that because so many of these counterparties were new to sophisticated trading , they may have been lax in collateralising their deals .
for leading banks , enron ' s woes could result in big hits to profits . just about every big lending bank has exposure to enron , according to members of the bank group .
at a meeting of enron ' s creditors last week , one banker estimated there could have been 500 bankers representing 20 or more banks .
jp morgan chase and citigroup are the most prominent members of the bank group , but barclays , credit lyonnais , credit suisse first boston , deutsche bank and many others are exposed .
it was understood that jp morgan chase ' s direct exposure to enron approaches $ 900 m , about $ 500 m of it unsecured by the energy company ' s assets . citigroup ' s direct exposure could reach $ 800 m , about half unsecured .
european banks also could take hits . according to data from loanware , for example , westlb , the german state - owned bank , has a $ 580 m bridge facility outstanding . this was extended as trade financing last year and does not appear to have been syndicated .
however , analysts caution that determining the exposure of a particular bank to enron is virtually impossible for outsiders . many loans are syndicated or sold , and bankers are also making increasing use of credit derivatives that enable them to buy insurance against default from counterparties .
barclays , for example , is one of the most active arrangers of finance for enron but it has syndicated most of its initial exposure . its exposure is estimated at less than # 250 m ( $ 356 m ) . on the other hand , banks could be exposed to firms that dealt with enron , which sold credit default insurance to its trading partners , according to market participants .
investors rerated banking stocks yesterday to account for expected exposures . citigroup was down $ 2 . 75 , or 5 . 4 per cent , to $ 47 . 80 , while jp morgan was down $ 2 . 30 , or 5 . 78 per cent , to $ 37 . 50 . in london , shares in barclays fell 4 per cent , or 86 p , to 2093 p . additional reporting by joshua chaffin in new york and rebecca bream in london .
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copyright ? 2000 dow jones & company , inc . all rights reserved .
companies & finance the americas - traders avoid exposure to junk status fallout .
by adrienne roberts and andrew taylor .
11 / 29 / 2001
financial times
( c ) 2001 financial times limited . all rights reserved
energy traders on both sides of the atlantic were doing very little business with enron even before credit rating agencies demoted the debt of the world ' s biggest power trader to junk status .
rivals have been anxiously calculating their potential exposure to an enron collapse for at least a month - since the true extent of the company ' s crisis emerged .
most traders before yesterday were only prepared to be buyers of electricity and gas from the group , on the basis that it was better to owe than be owed in these circumstances .
" there would have been very few sellers to enron , " said one trader last night .
the group accounts for about 25 per cent of energy trading in the us with a similar market share in the smaller european market .
the loss of such a large player could cause liquidity problems in the us , said one analyst .
europe - based energy groups , however , felt there was sufficient capacity in their market to fill the gap .
more worrying is the knock - on effect particularly on smaller companies should enron be unable to honour long - term contracts , said brian senior , director of trading and asset management at innogy , the uk arm of the demerged national power .
the collapse of enron ' s credit rating means that it may have to provide a lot of cash as collateral to cover long - term liabilities , with money being due as early as next monday , said mr senior .
most large energy groups stopped trading with enron in european markets two days ago .
" the simplest thing is to pull the plug until they ' ve figured out what ' s going on , " said one analyst .
martin stanley , president of european energy trading for txu , another large us energy group , said : " we have halted trading with enron . we are sorry to see it happen because they are a very innovative company . "
even before yesterday ' s events , txu , like other large traders , had been adding up how much it could be owed and how much it would owe , should enron fail to honour its obligations .
" we have been looking at various scenarios and have implemented our credit event management process designed to minimise our cash exposure , " said mr stanley .
" we are comfortable with our cash position , " he added .
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companies & finance the americas - downgrade is the final straw for enron .
by andrew hill and sheila mcnulty .
11 / 29 / 2001
financial times
( c ) 2001 financial times limited . all rights reserved
writes andrew hill .
negotiations over the fate of enron , the us energy trading group , had been described as having " a lot of moving parts " . yesterday , those parts finally broke loose as the credit rating agencies ' patience ended with a downgrade of the energy trader ' s debt to junk status , and dynegy , its erstwhile saviour , withdrew .
immediate concern centred on the possibility of a systemic risk to the energy markets . " it ' s over , isn ' t it ? " said gerald keenan , a partner at pwc . " what it is going to engender is a daisy chain of defaults . "
enrononline , the group ' s much - vaunted web - based commodities trading system , shut down , according to traders . counterparties in the energy market stopped trading with enron altogether . the shares , which at their peak last year traded at $ 90 , fell by nearly three - quarters to just over $ 1 . the bonds , which have been trading at levels consistent with imminent bankruptcy for two weeks , fell further .
enron ' s survival since its much smaller rival , dynegy , launched a rescue bid on november 9 , has depended on a fragile pact between dynegy , chevrontexaco ( which owns 26 per cent of dynegy and backed the bid ) , enron ' s lenders , its trading counterparties and the rating agencies . the logic of this pact was essentially circular .
when dynegy stepped in three weeks ago enron was in the early stages of its crisis of confidence . shareholders had been shocked by enron ' s admission that it would have to shrink shareholders ' funds by $ 1 . 2 bn to end a transaction with an off - balance - sheet vehicle established by andrew fastow , former chief financial officer . suddenly , the lack of transparency they had been prepared to forgive while the shares rose was a liability .
searching for a way to arrest the downward spiral , ken lay , enron ' s chief executive , linked up with chuck watson , his counterpart at dynegy . dynegy ' s all - stock bid - valuing enron , on tuesday ' s closing prices , at $ 9 . 4 bn - was dependent , however , on the rating agencies not downgrading the energy ' s group ' s substantial debts to junk status .
such a downgrade , as enron explained in a regulatory filing last week , would require the group to repay , refinance or provide extra cash as collateral for some $ 3 . 9 bn of debts owed by off - balance - sheet trusts .
under pressure from enron and dynegy ' s bankers , the agencies refrained from downgrading the debt , and dynegy went ahead with its bid . the agencies justified their position by citing the pending bid .
it was an uncomfortable position for the agencies , however , and their resolve began to crumble last week as dynegy and enron talked about renegotiating the deal .
in a tersely worded note issued last wednesday , fitch , another rating agency , pointed out that if dynegy " steps away entirely from the merger , enron ' s credit situation seems highly untenable with a bankruptcy filing highly possible " .
yesterday , s & p , then moody ' s and fitch , finally broke the fragile ring of confidence that was holding lenders , bidders and enron itself together . in its note , s & p explained in stark terms how the virtuous circle of confidence might now become a vicious downward spiral .
the collapse of enron securities in capital markets made dynegy less likely to complete its takeover , s & p wrote . at the same time , enron ' s franchise in the energy markets had " sustained significant damage " , making it a less attractive target .
if enron does now disintegrate , the question is whether the chain reaction will extend beyond the houston company and drag in other energy traders , or even the banks that finance them . analysts had already begun to liken its situation to that of long - term capital management , whose demise in 1998 prompted the federal reserve to co - ordinate a rescue by wall street banks to avoid a financial crisis .
however , the head of one large commodities trader said the biggest market participants had had long enough to protect themselves from the collapse of enron .
but smaller groups could be affected and the fear is that the complexities of its balance sheet may still contain the seeds of a wider crisis . additional reporting by sheila mcnulty in houston .
( c ) copyright financial times ltd . all rights reserved .
http : / / www . ft . com .
copyright ? 2000 dow jones & company , inc . all rights reserved .
companies & finance the americas - downgrade is the final straw for enron .
by andrew hill and sheila mcnulty .
11 / 29 / 2001
financial times
( c ) 2001 financial times limited . all rights reserved
writes andrew hill .
negotiations over the fate of enron , the us energy trading group , had been described as having " a lot of moving parts " . yesterday , those parts finally broke loose as the credit rating agencies ' patience ended with a downgrade of the energy trader ' s debt to junk status , and dynegy , its erstwhile saviour , withdrew .
immediate concern centred on the possibility of a systemic risk to the energy markets . " it ' s over , isn ' t it ? " said gerald keenan , a partner at pwc . " what it is going to engender is a daisy chain of defaults . "
enrononline , the group ' s much - vaunted web - based commodities trading system , shut down , according to traders . counterparties in the energy market stopped trading with enron altogether . the shares , which at their peak last year traded at $ 90 , fell by nearly three - quarters to just over $ 1 . the bonds , which have been trading at levels consistent with imminent bankruptcy for two weeks , fell further .
enron ' s survival since its much smaller rival , dynegy , launched a rescue bid on november 9 , has depended on a fragile pact between dynegy , chevrontexaco ( which owns 26 per cent of dynegy and backed the bid ) , enron ' s lenders , its trading counterparties and the rating agencies . the logic of this pact was essentially circular .
when dynegy stepped in three weeks ago enron was in the early stages of its crisis of confidence . shareholders had been shocked by enron ' s admission that it would have to shrink shareholders ' funds by $ 1 . 2 bn to end a transaction with an off - balance - sheet vehicle established by andrew fastow , former chief financial officer . suddenly , the lack of transparency they had been prepared to forgive while the shares rose was a liability .
searching for a way to arrest the downward spiral , ken lay , enron ' s chief executive , linked up with chuck watson , his counterpart at dynegy . dynegy ' s all - stock bid - valuing enron , on tuesday ' s closing prices , at $ 9 . 4 bn - was dependent , however , on the rating agencies not downgrading the energy ' s group ' s substantial debts to junk status .
such a downgrade , as enron explained in a regulatory filing last week , would require the group to repay , refinance or provide extra cash as collateral for some $ 3 . 9 bn of debts owed by off - balance - sheet trusts .
under pressure from enron and dynegy ' s bankers , the agencies refrained from downgrading the debt , and dynegy went ahead with its bid . the agencies justified their position by citing the pending bid .
it was an uncomfortable position for the agencies , however , and their resolve began to crumble last week as dynegy and enron talked about renegotiating the deal .
in a tersely worded note issued last wednesday , fitch , another rating agency , pointed out that if dynegy " steps away entirely from the merger , enron ' s credit situation seems highly untenable with a bankruptcy filing highly possible " .
yesterday , s & p , then moody ' s and fitch , finally broke the fragile ring of confidence that was holding lenders , bidders and enron itself together . in its note , s & p explained in stark terms how the virtuous circle of confidence might now become a vicious downward spiral .
the collapse of enron securities in capital markets made dynegy less likely to complete its takeover , s & p wrote . at the same time , enron ' s franchise in the energy markets had " sustained significant damage " , making it a less attractive target .
if enron does now disintegrate , the question is whether the chain reaction will extend beyond the houston company and drag in other energy traders , or even the banks that finance them . analysts had already begun to liken its situation to that of long - term capital management , whose demise in 1998 prompted the federal reserve to co - ordinate a rescue by wall street banks to avoid a financial crisis .
however , the head of one large commodities trader said the biggest market participants had had long enough to protect themselves from the collapse of enron .
but smaller groups could be affected and the fear is that the complexities of its balance sheet may still contain the seeds of a wider crisis . additional reporting by sheila mcnulty in houston .
( c ) copyright financial times ltd . all rights reserved .
http : / / www . ft . com .
copyright ? 2000 dow jones nancy vogel
times staff writers
11 / 29 / 2001
los angeles times
home edition
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new york - - enron corp . ' s lifeline merger deal collapsed wednesday , and the once - mighty energy trader slid toward all - but - certain bankruptcy .
its houston rival and neighbor dynegy inc . called off its planned takeover after wall street ' s major credit - rating agencies slashed enron ' s bonds to " junk " status wednesday morning .
investors and enron ' s trading partners had lost confidence well before the rating agencies did . in fact , it was the recent erosion of enron ' s trading business and the harrowing slide in its stock and bond prices that forced the ratings cut and triggered dynegy ' s decision to back out of the deal .
informed sources said dynegy ultimately balked after coming across much more debt than it expected in evaluating enron ' s finances and watching helplessly as the value of its would - be acquisition shrank dramatically when energy customers fled the firm .
with the merger called off , enron was " exploring other options to protect our core energy businesses , " kenneth l . lay , the company ' s chairman and chief executive , said in a brief statement that skirted the topic of bankruptcy .
the lack of a decent credit rating cripples enron ' s ability to run its trading business , the franchise that made it one of america ' s most admired companies but also gave it a reputation for arrogance and greed , particularly for its role in california ' s energy crisis .
computer screens went dark nationwide wednesday as the widely used enrononline internet - based trading system shut down .
enron ' s stock , already down 95 % for the year , tumbled $ 3 . 50 to close at 61 cents on wednesday in a trading stampede on the new york stock exchange . a one - day record of 339 million shares changed hands .
the whole company , once worth $ 63 billion , now is valued at less than $ 500 million , or about twice the cost of enron ' s new headquarters under construction in downtown houston .
dynegy shares , meanwhile , sank $ 4 . 92 to $ 35 . 97 , just below where they stood when dynegy agreed to acquire enron on nov . 9 .
dynegy exited the deal because it was " unwilling to risk our franchise , our credit or our credibility , " president stephen bergstrom said in a news conference wednesday .
" we know when to say no , and this morning we said no , " he said .
wall street had been saying no for days , hammering enron ' s stock to less than half the $ 10 . 41 a share that dynegy originally agreed to pay . dynegy was in the process of renegotiating its price downward when it finally threw in the towel .
the deal ' s lack of credibility with stock and bond investors prompted the top two rating agencies - - standard & poor ' s and moody ' s investors service - - to cut their ratings on enron , knowing that they probably were pronouncing a death sentence .
the ratings downgrade triggered clauses in enron loan agreements that require the company to immediately pay its creditors some $ 3 . 9 billion - - money that it doesn ' t have , analysts said .
the ripples from enron ' s collapse spread far and wide , even to the u . s . treasury market , where some investors fled for safety as enron ' s bonds plunged in value .
enron led a trend in energy trading , creating an internet - based network that allowed millions of suppliers and purchasers of electricity , natural gas , oil and coal to do business with one another . the trades of contracts , often spanning many years at a fixed price range , are intended to protect major users and suppliers of energy from fluctuations in fuel prices .
energy market experts are split on the long - term effects of enron ' s collapse . some say the fallout will be slight , noting that rivals already have stepped in to take over business with trading partners who were too nervous to continue dealing with enron .
" the whole industry should thank dynegy for basically buying them two or three weeks ' time to unwind their deals with enron , " said analyst andre meade of commerzbank securities in new york .
but enron was noted for the complexity of its long - term deals , and the effects of its withdrawal as a key player could be far - reaching and unexpected , other analysts said .
banking companies , dozens of which lent money to enron , saw their shares dip on worries about whether those loans will be repaid . shares of rival energy companies , too , lost value .
enron ' s chief lenders - - citigroup inc . and j . p . morgan chase & co . - - each have about $ 800 million in loans that may be at risk in a bankruptcy , said richard strauss , a bank analyst with goldman , sachs ; photo : ( no caption ) ;
copyright ? 2000 dow jones financial desk
enron failure ' s ripple effects analysis : observers say consequences could be severe for energy prices as well as banks and other investors . firm ' s trading rivals see opportunities .
james flanigan ; chris kraul
times staff writers
11 / 29 / 2001
los angeles times
home edition
c - 1
copyright 2001 / the times mirror company
houston - - the likely bankruptcy of enron corp . could lead to a host of troubling consequences , including higher wholesale prices for electricity and natural gas and financial distress for banks and other firms as well as major bondholders and other investors , analysts said wednesday .
however , energy trading markets were calm as enron competitors picked up the slack while looking for opportunities to build or expand their own trading operations and acquire enron assets .
the concerns and maneuvering came as dynegy inc . on wednesday canceled its proposed acquisition of enron , once the world ' s largest energy trading company , after enron ' s debts were downgraded to non - investment " junk " status , making a bankruptcy filing highly likely .
" banks are starting to worry about a financial meltdown from an enron collapse , " said peter fusaro , president of global change , a risk management consultancy in new york .
enron ' s debts , which had been partly hidden in off - balance - sheet partnerships , could total $ 5 billion more than the company ' s assets , experts in new york and houston estimated .
citigroup and j . p . morgan chase , major commercial bankers to enron , will face losses if enron files for bankruptcy , analysts said . shares of citigroup and morgan declined more than 5 % on wednesday . other experts warned that investment banking firms such as goldman sachs and morgan stanley that had been part of enron ' s sophisticated trading network also could run into problems .
as enron , which rose rapidly in recent years to almost $ 200 billion in annual revenue , neared bankruptcy , shareholders faced being wiped out and investors in about $ 9 billion in enron bonds may get only cents on the dollar , analysts said .
enron ' s employees , 15 , 000 of whom hold enron stock in their 401 ( k ) retirement plans , stood to be among the biggest losers in the company ' s collapse . many probably also will lose their jobs .
major lawsuits against enron claiming lack of loyalty and prudence in dealing with its employees are among scores of lawsuits now confronting the company and arthur andersen , the accounting firm that approved enron ' s financial statements . enron is under investigation by the securities and exchange commission for its handling of disclosure of the partnerships and subsidiaries .
and yet as enron ' s crisis approached a possible bankruptcy filing , a brisk optimism prevailed among energy traders . enron competitors were as enthusiastic about opportunities to buy parts of enron as they were fearful of the consequences of the big trader ' s collapse .
stephen baum , chief executive of sempra energy , the san diego - based utility holding company , said enrononline , the houston company ' s highly successful internet - based trading operation , would be acquired by other companies and carry on energy trading in the future .
sempra itself would be interested in discussing formation of such a new online trading firm , baum said , " although its name would not be enron online . "
baum added that sempra could be interested in acquiring several enron assets , in the u . s . and abroad .
energy markets were calm wednesday . kevin fox , manager of commodities and trading for aquila energy , a kansas city , mo . - based energy trader , described markets as " surprisingly orderly . "
enron ' s troubles have been building for well over a month , fox explained , and so the halt of enron online came as no surprise . fox saw no difficulty in his firm and other trading companies fulfilling enron ' s contracts should the energy company cease to operate .
still , others saw disrupted markets and price volatility . fears about the aftermath of enron ' s collapse centered on long - term commitments the firm has made in recent years to handle all the energy needs of giant entities such as the university of california system or to supply 10 years of natural gas at a fixed price range to an electricity generating station .
problems could arise because long - term contracts typically become encrusted with related transactions that hedge against price movements over time or the interest cost of financing . such complexity could make it difficult for other firms to pick up enron ' s long - term contracts .
if enron in bankruptcy " can ' t cover its obligations , maybe other wholesalers can ' t either , " said gordon allott , vice president at kw international , a trading and risk management firm in san francisco .
" and then you have customers going out into the spot market , which could drive prices higher . that ' s the big bogey monster out there , " allott said .
however , any effect on consumers from such disruptions could be slight . gerald keenan , head of the energy practice at , noted that enron ' s collapse would not " affect the basic supply and demand for electricity and natural gas , " the true determinant of prices .
one major factor reducing the effect of an enron collapse on markets and energy supplies is the growth in recent years of energy trading into a broad industry , with more than $ 300 billion in annual activity in contracts for electricity and the natural gas and oil fuels that produce it .
the intercontinental exchange , a consortium of six trading firms , handles more energy trades today than did enron .
if sempra and other companies acquire and operate enrononline , the industry will have two major groups to rely on . the need for energy trading has been growing out of deregulation and change in the electric utility industry .
" trading absorbs risks of fuel - price movements and the like that used to be passed on to retail customers in the form of adjustments to monthly bills , " fox explained .
the breadth and expertise of this new industry , as well as the months of enron ' s decline that gave competitors and markets time to adjust , could promise a relatively stable aftermath of enron ' s downfall .
however , the post - enron future is likely to see closer regulation of energy contract trading to increase disclosure of terms and risks .
but enron and its top executives , along with the arthur andersen accounting firm , face months and possibly years of lawsuits from shareholders who suffered losses as enron ' s stock lost more than $ 60 billion of market value in a single year .
and lawsuits by enron employees , challenging the firm ' s treatment of 401 ( k ) accounts , will go forward even if enron is in bankruptcy , said attorney lynn sarko of keller rohrback , a seattle law firm that is bringing one of the suits on behalf of employees .
" there is still liability faced by fiduciaries , officials who were administrators of the savings plan and by the companies that insured it , " sarko said .
*
flanigan reported from los angeles and kraul from houston . times staff writer jerry hirsch contributed to this report .
graphic : fallout on wall street / los angeles times ;
copyright ? 2000 dow jones financial desk
markets enron troubles , uncertainty send stocks tumbling wall st . : sellers gain the upper hand , but many analysts say markets were due for a pullback .
from times staff and wire reports
11 / 29 / 2001
los angeles times
home edition
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copyright 2001 / the times mirror company
stocks tumbled wednesday amid investors ' nagging uncertainty about the economy and as energy giant enron headed toward financial collapse . meanwhile , treasury bond yields were little changed . after sliding early in the session , they rebounded after the government got a tepid reception for a record sale of two - year notes .
on wall street , the dow industrials slid 160 . 74 points , or 1 . 6 % , to 9 , 711 . 86 . the market was in a steady decline most of the session .
the tech - dominated nasdaq composite suffered a 2 . 5 % decline , off 48 points to 1 , 887 . 97 .
losers topped winners by about 2 to 1 on the new york stock exchange and on nasdaq .
early in the week the market seemed poised to retake the 10 , 000 level on the dow and the 2 , 000 level on the nasdaq index . instead , sellers have gained the upper hand .
analysts noted that many investors aren ' t convinced the economy will improve in the first half of 2002 . for weeks , hopes that business will improve early next year have been boosting the market .
" we ' re not out of the woods yet " with the economy , said richard jandrainof banc one investment advisors corp .
the federal reserve ' s latest report on conditions by region , released wednesday , painted a generally somber picture of the economy .
still , many analysts said stocks ' sell - off this week doesn ' t appear to be anything special .
" the reality is , we were due for some pullback , " said barry hyman , chief investment strategist at ehrenkrantz king nussbaum .
hyman and other analysts were actually pleased to see investors take a cautious step back after fearing that the market was rising too much and too quickly .
the market ' s softness was spread across most sectors , but one of the weakest spots was utilities , which dropped after dynegy backed out of its planned merger with enron .
nyse - listed enron broke the record for heaviest trading in a single day with more than 339 million shares changing hands , as it fell $ 3 . 50 to 61 cents . the previous volume record was the 304 million shares of intel traded on nasdaq on sept . 22 , 2000 .
investors were selling most utility stocks wednesday . the dow utilities average fell 2 . 9 % to a 52 - week low of 279 . 95 .
financial stocks were slammed on worries about spillover from an enron collapse . j . p . morgan chase sank $ 2 . 30 to $ 37 . 50 , and citigroup dropped $ 2 . 75 to $ 47 . 80 . both are in the dow .
retailing issues remained vulnerable to concerns that this holiday shopping season will be the worst in a decade . gap stumbled 79 cents to $ 13 . 61 after prudential securities reduced its rating on the clothier to " sell " from " hold " and called its holiday merchandise poor . electronics retailer best buy fell $ 1 . 18 to $ 69 . 90 , and bed , bath & beyond declined 74 cents to $ 32 . 34 .
technology also was weaker as investors fear there is still too much inventory and not enough demand . chip equipment maker altera fell $ 1 . 83 to $ 21 . 83 ahead of its update on business in the fourth quarter . after the market closed , altera reaffirmed its revenue projections for the year ' s final three months .
ibm , another dow stock , dropped $ 2 . 05 to $ 112 . 15 after announcing it will cut 1 , 000 jobs from its seven u . s . chip plants because of a slowdown in the microprocessor industry .
what was bad for stocks normally would be good for bonds , but that wasn ' t the case by the close of trading wednesday .
yields fell early in the day , then reversed after the government ' s biggest sale ever of two - year notes flooded the market with debt .
the treasury sold $ 21 billion of the two - year notes at a yield of 3 % , up from $ 19 billion sold in october , part of an effort by the government to finance a spending increase using short - dated debt .
the five - year t - note yield ended unchanged at 4 . 29 % . the 10 - year t - note ended at 4 . 93 % , up from 4 . 92 % .
copyright ? 2000 dow jones bankruptcy expected
by laura goldberg
copyright 2001 houston chronicle
after dynegy pulled out of its deal to buy enron corp . wednesday morning , it appeared the most likely option for enron was bankruptcy protection .
from wall street to houston , it was widely expected enron would file for bankruptcy , perhaps as soon as today .
" it ' s probably imminent , " said andre meade , a stock analyst with commerzbank securities in new york .
jeff mcmahon , enron ' s chief financial officer , said wednesday night that enron was evaluating all its options for restructuring its balance sheet and debt , and ways to return its business to health .
mcmahon said enron wasn ' t considering a chapter 7 bankruptcy filing , which would involve a liquidation or selling of all assets .
he didn ' t rule out a chapter 11 filing , which lets a company protect assets while it works out a reorganization plan , but he stressed that enron was also reviewing other options .
he declined to describe what the options are , but said he prefers to fix enron without a bankruptcy .
earlier wednesday , enron said it had suspended making payments other than those needed to maintain core business operations and it was working to retain employees needed for its trading and other core energy businesses . no layoffs were announced .
wall street doesn ' t believe enron has real choices other than bankruptcy . shares in enron lost much of their value wednesday , closing at 61 cents . the company , which was dropped from the standard & poor ' s 500 index , also broke the record for most shares traded in a day .
before oct . 16 , a buyout by dynegy , let alone a bankruptcy , were unthinkable for houston ' s largest company and the world ' s largest energy trader . but that day , enron disclosed millions in financial losses related to investment partnerships it did business with and were run by enron ' s since - ousted chief financial officer .
in the days and weeks that followed , the securities and exchange commission started investigating enron , a stack of shareholder and employee lawsuits were filed , enron restated earnings and made disclosures about its balance sheet that wall street found troubling .
dynegy swooped in to rescue enron when the two companies agreed to a merger deal nov . 9 . but continuing bad news surrounding enron put pressure on that deal .
until wednesday morning , it appeared enron and dynegy would find a way to rescue the merger by revamping its terms .
after several days of talks among the companies , bankers and others , chuck watson , dynegy ' s chairman and chief executive , said in an interview he concluded a solution wasn ' t reachable .
the final confirmation for watson was when standard & poor ' s wednesday morning cut enron ' s credit rating to so - called junk status , effectively halting enron ' s ability to run its core business of energy trading and marketing , which is dependent on access to cash and credit . that trading franchise was a key reason for dynegy ' s interest in enron .
s & p said in its rating report that it cut enron ' s credit rating because it didn ' t believe the merger , which wasn ' t expected to close for six to nine months , would go through .
when the companies inked the deal on nov . 9 , watson said he expected no more surprises about enron ' s financial state . but the deal included escape clauses just in case .
among reasons dynegy cited for ending the merger were " breaches of representations " by enron . it also invoked an escape provision that let dynegy to walk away if enron had a " material adverse change " in its business .
" we have never been willing to risk our franchise , our credit or our credibility , " watson said . " we knew when to say no and this morning we said no . "
since nov . 9 , enron made new financial disclosures and saw significant drops in its stock price and trading business . all of that caused dynegy to seek new terms for the merger agreement , including a lower price , cash infusions to stabilize enron and a restructuring of enron ' s debt repayment schedule .
watson traced the beginning of the end to nov . 19 , the day enron filed its 10 q with securities regulators . companies must file their 10 q every quarter with details of their earnings and balance sheet with the sec .
dynegy was hit by surprise when enron disclosed it would have to pay off a specific debt obligation worth $ 690 million almost immediately and when it saw that enron ' s cash situation wasn ' t what it expected , watson said .
those disclosures , he said , caused enron ' s trading business , which had somewhat of an uptick after the merger announcement , to go " down again and down again . "
" that was sort of a blow that we never really recovered from , " watson said .
watson said he worked hard to rescue the deal , but would only go for a " global solution " that would take care of all the problems . for one , he said , enron needed another $ 1 billion - $ 3 billion infusion to keep going .
sources told the chronicle that j . p . morgan chase other firms reassuring investors
another jolt
by michael davis
copyright 2001 houston chronicle
shortly after enron corp . ' s bond ratings were cut to junk status wednesday , energy trader charlie sanchez watched the company ' s trading business simply vanish from his computer screen .
" i watched their different markets just peel off my screen , one by one , " said sanchez , energy markets manager at gelber & associates in houston .
although enron ' s troubles were well - known , the collapse of enron ' s trading business wednesday still jolted traders . sanchez just said , " i ' m in shock . "
the downgrade of enron ' s debt was the first domino to fall wednesday , followed by the shutdown of enron ' s online trading business and then the announcement that dynegy had called off its deal to buy enron .
enrononline , the company ' s internet commodity trading platform , went down early wednesday , signaling that the company had temporarily halted trading altogether . enrononline handles about 60 percent of the company ' s trading business , or about $ 2 . 8 billion a day in deals .
enron ' s chief financial officer jeff mcmahon said he didn ' t know when enrononline would be up for trading again . however , the company continues to do telephone transactions , he said .
the commodities markets appeared to weather the event . but the shutdown of the company that was by far the biggest player in the market led other companies that regularly dealt with enron to hastily issue statements assuring investors they were not going to be dragged down as well .
with enrononline down , many traders had to revert to calling around to numerous sources to find out what the market was doing rather than simply logging onto enrononline and clicking on a single tab to size up the market where they wanted to trade .
but as far as the overall impact on commodities markets and the new york mercantile exchange , the loss of enron ' s trading business for whatever period likely will not be that big , said kyle cooper , oil analyst with salomon smith barney in houston .
" it could widen the bid - ask spreads in a few places , but in terms of liquidity on the nymex , you ' re talking about a few thousand contracts out of 60 , 000 to 70 , 000 contracts in all , " cooper said .
one trader described enron as " a needle in a haystack in terms of the total long - term capital markets . "
nonetheless , the shutdown prompted a call for closer monitoring during a briefing at the white house .
u . s . treasury department officials kept a close eye on the credit and energy markets wednesday but discerned no upheavals from the troubles at enron .
" we are monitoring credit markets as we do every day " treasury spokeswoman michele davis said . " we haven ' t seen anything extraordinary . "
the exit of enron will lead to a change in the balance of power in the trading business . traders said companies that likely will benefit from the loss of enron ' s trading activities include el paso corp . , mirant corp . , reliant energy and duke energy .
the market appeared more worried about possible losses connected with enron .
el paso corp . ' s stock took a beating wednesday - - down $ 3 . 59 to close at $ 44 . 91 - - over concerns that it had too much exposure to enron through its trading business . the company issued a statement saying it had " systematically reduced its trading with enron " over the past few weeks .
" due to enron ' s loss of investment grade status , any new business will have to be supported by cash collateral . el paso foresees no material disruptions in the energy trading markets resulting from today ' s downgrades or the potential of an enron bankruptcy filing , " according to the company ' s statement .
el paso ' s natural gas and power trading exposure to enron is about $ 50 million , the company said , adding that it does not expect any adverse earnings impact from enron ' s difficulties .
atlanta - based mirant said its exposure to enron is $ 50 million to $ 60 million , noting that it too had begun limiting its exposure risk early in what it described as " the enron crisis . "
calpine corp . said it had no " net exposure " to enron , which means that what enron owes calpine for gas and electric trading is offset by calpine ' s liabilities to enron .
enron faced a cash crunch in part because some trading partners lost confidence the company would have the cash to pay bills . as a result , they were either demanding more collateral to ensure it delivered on trades or restricting dealings with the houston - based company .
" each company is going to have to evaluate what their situation is from producers to utilities , it ' s going to be a case - by - case situation . it ' s going to take a long time to figure it all out , " said one trader who asked not to be quoted by name .
shortly after the news of the company ' s latest problems broke , a flood of huge trading orders came out of enron , leading traders to speculate that the company was scrambling to clear its accounts before filing for chapter 11 bankruptcy protection .
a typical order from the company would be for 100 contracts in a single lot to buy or sell commodities such as natural gas . after the debt downgrade was announced , single orders for 1 , 000 to 2 , 000 contracts began coming from the company .
the flood of large orders out of enron caused the near - month futures contract on the new york mercantile exchange to spike up and then fall off just as quickly in late morning trading .
" they could not leave this exposure to the whims of the market , " one trader said . " they needed to get out . "
enron reportedly has been working over the past few weeks to line up alternate parties to hand off their thousands of contracts the company handles daily , many of which are for long term periods such as 10 to 15 years .
but some of the more obscure contracts on items such as emissions credits and weather derivatives may be more difficult to unload . in addition to natural gas , power and oil , enron trades such items as broadband , paper , metals and water .
" i really think that a lot of the kinds of stuff that is foreign and esoteric that enron has been making a market in will take a while for others to pick up , " sanchez said .
nov . 29 , 2001 , 12 : 54 am
houston chronicle
bankruptcy filing by enron could be largest ever
by tom fowler
copyright 2001 houston chronicle
if enron files for chapter 11 bankruptcy this week , as many observers expect it will , it may be the largest such event to date .
with $ 61 . 7 billion in assets on its books as of sept . 30 , the deal would top texaco ' s 1987 bankruptcy , which sought protection for a company with $ 35 . 9 billion in assets . it would also beat the 1988 bankruptcy of financial corporation of america , which had $ 33 . 9 billion in assets .
the value of the assets and liabilities on enron ' s books continues to be a moving target , however . while enron ' s unaudited quarterly financial report indicates $ 61 . 7 billion in assets , $ 27 billion in liabilities , $ 6 . 5 billion in long - term debt and $ 15 . 3 billion in deferred credits , the turmoil of the past month has changed much of that .
on the asset side , for example , the company says properties like its natural gas transmission lines , fiber optic network and electric generation facilities are worth close to $ 14 . 6 billion . much of the gas pipeline properties have been encumbered in recent weeks , however , by the company ' s efforts to raise additional cash and credit from banks .
and the likelihood the company could find buyers to pay its asking price for assets like the fiber optic network or overseas power plants is highly unlikely , said ralph pellechia , a credit analyst with rating agency fitch .
" it ' s really a buyer ' s market , not a seller ' s market , " pellechia said . " it ' s anticipated a lot of their assets , particularly their international assets , would go for a lot less than the initial investment in them . "
the company also counts $ 7 . 1 billion in investments and advances to " unconsolidated affiliates " as assets , which could include enron equity that was used to back some of the complicated off - balance - sheet financing partnerships that led to the company ' s current woes . given the constant surprises surrounding those partnerships and the company ' s steeply dropping stock price - - now worth less than a cup of coffee - - that $ 7 . 1 billion figure is also suspect .
several unexpected debt obligations related to the partnerships enron operated have also changed the tally since sept . 30 . analysts say debts for the company range between $ 13 billion and $ 17 billion , including another $ 3 . 9 billion in debt repayments related to two special partnerships , osprey trust and marlin water trust , that will come due more quickly than expected following the credit rating agency downgrades on wednesday .
" all these changes are making the situation like sand falling between their fingers , " said bill porter , chairman of houston law firm porter & hedges . " the only alternative left to them to stabilize their situation is bankruptcy protection . "
company officials say they ' re still reviewing options , but on wednesday said they are temporarily suspending all payments to creditors other than those needed to maintain core energy trading operations .
" with dynegy ' s termination of the merger and the ratings agency downgrades , we are evaluating and exploring other options to protect our core energy businesses , " enron chairman and ceo ken lay said in a statement .
sources familiar with the broken enron - dynegy deal said the paperwork for a bankruptcy filing has been in the works for weeks , and even preceded the nov . 9 merger announcement . they say if the preliminary deal had not been secured that day , enron would have had to file for bankruptcy the following monday .
recent efforts by enron ' s bankers , including j . p . morgan chase and citigroup , to get creditors to hold off on demanding payments may mean the pending bankruptcy filing will be what is known as a prepackaged deal .
in a prepackaged bankruptcy , creditors agree beforehand how the sale of the company ' s assets would be divided among them . it would save all parties untold millions in legal fees that would be spent fighting over the company while assuring at least some recovery of their investments .
prepackaged bankruptcies are common , said jay westbrook , a professor at the university of texas school of law , because they allow companies to buy parts of the faltering business they want without the hassles of long , drawn - out legal battles .
" the purchasers will essentially just pay their money and walk away , with the proceeds getting divided up among those holding claims , " westbrook said .
chapter 11 bankruptcy has the added benefit of freezing the many lawsuits that have been filed by angry shareholders . those lawsuits would eventually be handled by the bankruptcy court , including determination of the validity of the claims in the suits .
if enron ' s bankruptcy is not prepackaged , it ' s almost assured that the value of enron ' s remaining businesses , such as its energy trading , will disappear , said bob chapman , a principle with houston management consulting firm king , chapman & broussard .
" the only guys that do well in bankruptcies are the lawyers , " chapman said . " what you usually see is a long period of people trying to carve up the beast where what remains of the business will continue to atrophy . "
because the company will most likely look to simply liquidate its assets , what would at first be a chapter 11 bankruptcy filing could later be converted to a chapter 7 filing , where a court - appointed trustee overseas liquidation of the remaining assets .
" from our perspective , a lot of the future rests in the hands of the banks , " said fitch analyst glen grabelsky . " what their intentions are in granting forbearance , what kind of liquidity they ' re willing to extend to enron , only they can answer . "
nov . 29 , 2001 , 12 : 56 am
houston chronicle
ballpark place project stopped dead in tracks
by ralph bivins
copyright 2001 houston chronicle
construction of the ballpark place tower has been postponed , partly because of the uncertainty surrounding enron corp . , the project ' s developer announced wednesday .
trammell crow co . had anticipated breaking ground this week on the 34 - story tower across from enron field , said matt khourie , who heads trammell crow operations in houston .
ballpark place was planned for a parcel of land owned by the developer , bounded by preston , prairie , crawford and la branch streets .
the $ 108 million ballpark place was expected to be a dominant skyline feature , rising over left field at enron ' s namesake stadium .
ballpark place would have included 253 , 000 square feet of office space , 216 apartment units , ground - level retail space and several levels of covered parking .
questions surrounding the future of enron corp . , a major employer in downtown , was key in encouraging trammell crow to shelve its plans , khourie said .
enron has about 3 million square feet of downtown office space , including a 40 - story building under construction . as enron ' s need for space decreases , the downtown office market is sure to feel the aftershocks .
" given the national economic uncertainty and the uncertainty associated with the future availability of class - a space springing from the recent events at enron , we have decided to delay our construction start until the future visibility improves , " khourie said in a written statement .
it has been widely speculated that dynegy , another houston energy firm , would move into the new enron building .
but dynegy ' s plans to buy enron fell apart wednesday , leaving questions about the the new 1 . 2 million - square - foot tower .
trammell crow has not abandoned its plans for ballpark place .
khourie said the company intends to start construction , perhaps next year , after the economy improves .
" we are still very bullish on the project ' s residential / office mixed - use concept for our unique location and also are optimistic on the mid - and long - term prospects for houston ' s central business district , " khourie said .
" the decision to delay relates directly to the short - term environment that we are currently facing . " | 0 | ham | enron mentions | fall of a power giant : bailout is unlikely if enron goes under , as u . s . thinks impact would be limited
the wall street journal , 11 / 29 / 01
enron ' s woes may ripple out to others - - - if energy company files for bankruptcy , results are likely to be messy
the wall street journal , 11 / 29 / 01
fall of a power giant : bailout is unlikely if enron goes under , as u . s . thinks impact would be limited
the wall street journal , 11 / 29 / 01
enron ' s meltdown may also be felt by big mutual funds
the wall street journal , 11 / 29 / 01
why credit agencies didn ' t switch off enron - - - s & p cries ` junk , ' but the warning comes too late
the wall street journal , 11 / 29 / 01
why credit agencies didn ' t switch off enron - - - energy trading bears the brunt of enron woes
the wall street journal , 11 / 29 / 01
fall of a power giant : chairman ' s deep political connections run silent
the wall street journal , 11 / 29 / 01
dynegy and chevrontexaco slide along with plunge in enron stock
the wall street journal , 11 / 29 / 01
dollar declines against yen and euro amid growing doubts on u . s . economy
the wall street journal , 11 / 29 / 01
dynegy ' s move to disconnect enron merger powers volatility spike as investors seek cover
the wall street journal , 11 / 29 / 01
enron asks staff to drop 401 ( k ) suits for severance
the wall street journal , 11 / 29 / 01
nvidia to replace enron in s & p
the wall street journal , 11 / 29 / 01
enron collapses as suitor cancels plans for merger
the new york times , 11 / 29 / 01
a bankruptcy filing might be the best remaining choice
the new york times , 11 / 29 / 01
an implosion on wall street
the new york times , 11 / 29 / 01
citigroup and j . p . morgan are left with bruised egos and exposure to loans
the new york times , 11 / 29 / 01
in turbulent bond market , enron ' s woes exacerbate turmoil
the new york times , 11 / 29 / 01
a big fall evoking nasty old memories of a run on a bank
the new york times , 11 / 29 / 01
foundation gives way on chief ' s big dream
the new york times , 11 / 29 / 01
market that deals in risks faces a novel one
the new york times , 11 / 29 / 01
investors pull back as enron drags down key indexes
the new york times , 11 / 29 / 01
debt rankings finally fizzle , but the deal fizzled first
the new york times , 11 / 29 / 01
global investing - bond mutual funds suffer as enron ' s troubles deepen .
financial times , 11 / 29 / 01
companies & finance the americas - sec filing triggered merger crisis .
financial times , 11 / 29 / 01
companies & finance the americas - financial system braces for a chain reaction .
financial times , 11 / 29 / 01
companies & finance the americas - traders avoid exposure to junk status fallout .
financial times , 11 / 29 / 01
companies other firms reasuring investors
houston chronicle , 11 / 29 / 01
bankruptcy filing by enron could be largest ever
houston chronicle , 11 / 29 / 01
ballpark place project stopped dead in tracks
houston chronicle , 11 / 29 / 01
fall of a power giant : bailout is unlikely if enron goes under , as u . s . thinks impact would be limited
by greg ip and jathon sapsford
staff reporters of the wall street journal
11 / 29 / 2001
the wall street journal
al 0
( copyright ( c ) 2001 , dow jones & company , inc . )
washington - - if enron corp . goes under , the government is unlikely to throw it a lifeline .
at its peak , enron was a major participant in the country ' s financial and energy markets . but economic and financial policy makers say they aren ' t worried about any broader blow to markets or business activity . despite frequent comparisons to long - term capital management , the hedge fund whose 1998 nose dive panicked global financial markets and triggered an unusual bailout brokered by the federal reserve , there has been so far no public sign of any attempt by the fed , the treasury or energy regulators to take similar action on behalf of enron or its creditors .
officials from a range of economic and regulatory agencies have insisted in recent days that while they have been closely monitoring enron ' s situation , they haven ' t seen any reason to be concerned about possible ripple effects . enron " is just one piece of a very big market , " said john mielke , chief of market surveillance at the commodity futures trading commission . mr . mielke said he saw no evidence that enron ' s problems have disrupted trading on the futures exchanges monitored by the cftc .
" these are deep and pretty big markets that enron is in , " echoed william gilmer , an economist at the federal reserve bank of dallas .
it is too soon to say exactly what the total damage from enron ' s potential demise will be . one danger is that a blowup in the company ' s complex , largely unregulated portfolio of derivatives could infect financial markets in wide and unpredictable ways , just as ltcm ' s did . another worry : that the collapse of a major middleman in natural - gas and power markets could disrupt supplies .
enron does share some characteristics with ltcm , including widespread activities in complicated financial instruments in numerous markets , with little detailed public explanation of those activities , and little regulatory oversight of those trades .
its public disclosures suggest enron ' s exposures are substantial . a quarterly filing listed $ 18 . 7 billion in assets and an equal amount of liabilities related to " price risk management activities " as of sept . 30 . the filing gives no description or breakdown of those amounts and little detail about the derivatives in which enron transacts as a normal part of business . ( a derivative is a financial contract whose value is designed to track the return on stocks , bonds , currencies or other benchmark . ) an enron spokeswoman didn ' t return a call seeking comment .
as enron ' s woes deepened , the government ' s hands were tied in even assessing the situation , in part because the company was part of a coalition of energy companies and banks that lobbied successfully three years ago against cftc efforts to expand regulation of the over - the - counter energy market . enron also worked behind the scene to head off cftc ' s direct regulation of the energy concern ' s enrononline trading operation .
there have been some signs in markets of concerns about enron fallout . interest rates on bonds of utilities and energy companies rose by one - to two - tenths of a percentage point relative to treasurys yesterday . by day ' s end , the dow jones industrial average was off 160 . 74 points , a decline blamed in part on the enron news .
those are relatively small hiccups . the betting is the impact of enron ' s troubles on the financial system will be widespread but thin . enron was a favorite borrower among lenders , and its loans were among the most widely syndicated among the banking system , both at home and abroad . for example , a $ 2 . 25 billion credit facility arranged for enron in may by citigroup inc . and j . p . morgan chase & co . was distributed to 50 different institutions , according to loan pricing corp . , a credit - market research company . those syndication members sold off chunks of that debt to other investors , according to a banker at one of the underwriters .
j . p . morgan chase said in a statement that it has $ 500 million of unsecured exposure to enron entities , including loans , letters of credit and derivatives . it said it also has secured exposures , including $ 400 million in loans secured by enron pipelines . while this exposure is expected to smart , it represents a small fraction of j . p . morgan chase ' s total assets of $ 715 billion . citigroup declined to comment on its exposure to enron , but officials familiar with the matter said the bank ' s exposure is similar to that of j . p . morgan chase .
beyond financial fallout , a concern is the potential impact on energy markets and what that could do to the economy . enron ' s troubles could hamper efforts to end the recession if the company ' s difficulties make it impossible for it to deliver natural gas or electricity to its customers .
natural - gas prices rose sharply yesterday in the minutes after three major credit - rating agencies downgraded enron ' s rating and dynegy inc . said it was calling off its purchase . but the move quickly reversed when traders digested gas - inventory numbers released in the afternoon that showed utilities have stored enough gas to meet demand ahead of the winter heating season .
" we ' ve seen no interruptions in physical deliveries and no pricing reaction in the futures markets that you could attribute to enron , " said scott miller , director of market development for the federal energy regulatory commission . " revenues and transactions are occurring normally as far as we can tell . "
- - -
michael schroeder , chip cummins and john fialka contributed to this article .
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron ' s woes may ripple out to others - - - if energy company files for bankruptcy , results are likely to be messy
by henny sender and richard b . schmitt
staff reporters of the wall street journal
11 / 29 / 2001
the wall street journal
a 3
( copyright ( c ) 2001 , dow jones & company , inc . )
the sudden , deep financial troubles of enron corp . , the once aggressive , many - tentacled energy conglomerate , could have widespread consequences for scores of companies across the economy .
if enron files for protection under chapter 11 of the federal bankruptcy code , as many investors and financial experts now expect , it is likely to be one of the messiest , most complex bankruptcy cases ever , lawyers say .
that is because of the multifaceted nature of enron ' s once highflying operations , which combined a global energy business with a massive financial - trading operation involving tens of billions of dollars in complex contracts . yesterday , amid the unraveling of a last - ditch merger with dynegy inc . , the company ' s credit was downgraded to " junk " status by rating agency standard & poor ' s corp . enron has about 800 trading partners or creditors .
the stock market , signaling that a bankruptcy filing is expected , hammered enron stock , which was halted for a time yesterday , and knocked lower some of its financial backers ' shares . enron shares closed at 4 p . m . in new york stock exchange composite trading at 61 cents , down $ 3 . 50 , or 85 % . enron bonds also fell sharply , dropping to 50 cents on the dollar from around 55 cents , reflecting concerns over how much creditors might receive if the company does seek bankruptcy - court protection . j . p . morgan chase and citigroup , which have invested hundreds of millions of dollars in hopes of keeping the enron - dynegy deal alive , also saw their stocks fall . at 4 p . m . in nyse composite trading , j . p . morgan shares were down $ 2 . 30 to $ 37 . 50 , while citigroup shares were down $ 2 . 75 to $ 47 . 80 .
j . p . morgan chase said in a statement it has about $ 500 million of unsecured exposure to enron entities , including loans , letters of credit , and derivatives . it said it also has secured exposures , including $ 400 million in loans secured by enron pipelines .
other companies also disclosed their exposures to enron . exelon corp . , an energy concern in chicago , said its power - trading arm has a direct net exposure to enron of less than $ 10 million , based on its current book of business and existing market prices . exelon said its direct gross exposure based on sales to enron is less than $ 20 million . exelon said this is partly offset by $ 10 million that it owes to enron .
still , while the fallout from a potential bankruptcy filing would be widespread , federal regulators appear little concerned that it could inflict significant damage to the u . s . economy . ( see related article on page al 0 . )
the scale of the enron collapse is huge , experts say . " there is nothing to compare it to , " said edward tillinghast , a bankruptcy specialist with coudert brothers in new york . " the business was so large . there were so many different kinds of operating entities under the enron umbrella . "
in a way , he added , a filing would represent all the challenges of two of the biggest bankruptcies in recent years - - this past spring ' s chapter 11 filing by pg & e corp . ' s pacific gas & electric utility unit , and the demise of drexel burnham lambert , the wall street securities firm that failed more than a decade ago . a filing by enron , with about $ 13 billion in debt , would rank among the largest bankruptcy filings ever .
bankruptcy lawyers and creditors ' rights specialists , already swamped with a wealth of work from a boom in chapter 11 filings during the last 18 months , said they had been contacted by worried banks and other lenders to enron , seeking to retain them in the event of a chapter 11 filing . enron spokeswoman karen denne said the company is exploring its options and wouldn ' t comment on whether it has retained bankruptcy counsel .
but lawyers said the company was already in discussions about retaining its own counsel . among the likely advisers is new york law firm weil gotshal the idea is to protect all parties from market risk as the value of those contracts can fluctuate from day to day , and to avoid a larger financial meltdown .
that means enron ' s counterparties are free to close out such transactions , rather than file claims in a bankruptcy proceeding reflecting the total notional amount of any trades . in other words , a securities firm that is a counterparty to enron in many financial contracts would tally up how much it owes enron under such contracts and how much enron owes it , offsetting the amounts against each other . but this process is ripe for conflicts , as disputes easily could arise over the value of the contracts .
" it is an incredibly complex piece of financial engineering , " andrew rahl , a bankruptcy lawyer at anderson kill & olick in new york , said of the process .
how much collateral those counterparties could seize isn ' t at all clear , either . enron was considered very aggressive in negotiating agreements such as swaps , where a party trades an obligation to pay a floating interest rate for a fixed interest rate on given securities . the speed with which the company ' s finances have deteriorated further reduces the odds that its trading partners will be able to get paid anytime soon . without any security , counterparty claims would go into the probably massive general pool of claims from unsecured creditors .
besides banks and bondholders , dozens of companies , municipalities and utilities that had signed multiyear power contracts with enron may be left in the lurch . over the years , the likes of retailer j . c . penney co . , and shopping - mall company simon property group , of indianapolis , signed on with enron , as it undercut local utilities in newly deregulated markets .
any bankruptcy also is likely to trigger collateral lawsuits , as aggrieved parties look for alternative deep pockets . one possible target , analysts said , could be advisers that helped enron establish off - balance - sheet vehicles and other debt related to troubled investment partnerships , which have triggered massive losses in recent weeks . moreover , enron directors themselves could be vulnerable , too .
yesterday , enron named raymond s . troubh , a new york financial consultant , to its board as chairman of a newly formed special litigation committee to evaluate claims in shareholder and other derivative lawsuits .
at the same time , any filing would give enron some advantages , most notably greater ease in securing financing . this is because once companies file for protection , any new cash infusion from the banks has an overriding claim on any of the company ' s assets , at the expense of previous lenders .
in addition , potential buyers for enron businesses may be more likely to emerge once the company is operating with court protection and the depth of its problems are known .
" there is a certain comfort level that buyers have when buying a business in a chapter 11 case that doesn ' t exist when a company is struggling outside of bankruptcy , " said keith shapiro , a bankruptcy lawyer at greenberg traurig in chicago .
copyright ? 2000 dow jones & company , inc . all rights reserved .
fall of a power giant : bailout is unlikely if enron goes under , as u . s . thinks impact would be limited
by greg ip and jathon sapsford
staff reporters of the wall street journal
11 / 29 / 2001
the wall street journal
al 0
( copyright ( c ) 2001 , dow jones & company , inc . )
washington - - if enron corp . goes under , the government is unlikely to throw it a lifeline .
at its peak , enron was a major participant in the country ' s financial and energy markets . but economic and financial policy makers say they aren ' t worried about any broader blow to markets or business activity . despite frequent comparisons to long - term capital management , the hedge fund whose 1998 nose dive panicked global financial markets and triggered an unusual bailout brokered by the federal reserve , there has been so far no public sign of any attempt by the fed , the treasury or energy regulators to take similar action on behalf of enron or its creditors .
officials from a range of economic and regulatory agencies have insisted in recent days that while they have been closely monitoring enron ' s situation , they haven ' t seen any reason to be concerned about possible ripple effects . enron " is just one piece of a very big market , " said john mielke , chief of market surveillance at the commodity futures trading commission . mr . mielke said he saw no evidence that enron ' s problems have disrupted trading on the futures exchanges monitored by the cftc .
" these are deep and pretty big markets that enron is in , " echoed william gilmer , an economist at the federal reserve bank of dallas .
it is too soon to say exactly what the total damage from enron ' s potential demise will be . one danger is that a blowup in the company ' s complex , largely unregulated portfolio of derivatives could infect financial markets in wide and unpredictable ways , just as ltcm ' s did . another worry : that the collapse of a major middleman in natural - gas and power markets could disrupt supplies .
enron does share some characteristics with ltcm , including widespread activities in complicated financial instruments in numerous markets , with little detailed public explanation of those activities , and little regulatory oversight of those trades .
its public disclosures suggest enron ' s exposures are substantial . a quarterly filing listed $ 18 . 7 billion in assets and an equal amount of liabilities related to " price risk management activities " as of sept . 30 . the filing gives no description or breakdown of those amounts and little detail about the derivatives in which enron transacts as a normal part of business . ( a derivative is a financial contract whose value is designed to track the return on stocks , bonds , currencies or other benchmark . ) an enron spokeswoman didn ' t return a call seeking comment .
as enron ' s woes deepened , the government ' s hands were tied in even assessing the situation , in part because the company was part of a coalition of energy companies and banks that lobbied successfully three years ago against cftc efforts to expand regulation of the over - the - counter energy market . enron also worked behind the scene to head off cftc ' s direct regulation of the energy concern ' s enrononline trading operation .
there have been some signs in markets of concerns about enron fallout . interest rates on bonds of utilities and energy companies rose by one - to two - tenths of a percentage point relative to treasurys yesterday . by day ' s end , the dow jones industrial average was off 160 . 74 points , a decline blamed in part on the enron news .
those are relatively small hiccups . the betting is the impact of enron ' s troubles on the financial system will be widespread but thin . enron was a favorite borrower among lenders , and its loans were among the most widely syndicated among the banking system , both at home and abroad . for example , a $ 2 . 25 billion credit facility arranged for enron in may by citigroup inc . and j . p . morgan chase & co . was distributed to 50 different institutions , according to loan pricing corp . , a credit - market research company . those syndication members sold off chunks of that debt to other investors , according to a banker at one of the underwriters .
j . p . morgan chase said in a statement that it has $ 500 million of unsecured exposure to enron entities , including loans , letters of credit and derivatives . it said it also has secured exposures , including $ 400 million in loans secured by enron pipelines . while this exposure is expected to smart , it represents a small fraction of j . p . morgan chase ' s total assets of $ 715 billion . citigroup declined to comment on its exposure to enron , but officials familiar with the matter said the bank ' s exposure is similar to that of j . p . morgan chase .
beyond financial fallout , a concern is the potential impact on energy markets and what that could do to the economy . enron ' s troubles could hamper efforts to end the recession if the company ' s difficulties make it impossible for it to deliver natural gas or electricity to its customers .
natural - gas prices rose sharply yesterday in the minutes after three major credit - rating agencies downgraded enron ' s rating and dynegy inc . said it was calling off its purchase . but the move quickly reversed when traders digested gas - inventory numbers released in the afternoon that showed utilities have stored enough gas to meet demand ahead of the winter heating season .
" we ' ve seen no interruptions in physical deliveries and no pricing reaction in the futures markets that you could attribute to enron , " said scott miller , director of market development for the federal energy regulatory commission . " revenues and transactions are occurring normally as far as we can tell . "
- - -
michael schroeder , chip cummins and john fialka contributed to this article .
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron ' s meltdown may also be felt by big mutual funds
11 / 29 / 2001
the wall street journal
cl 3
( copyright ( c ) 2001 , dow jones & company , inc . )
new york - - some of the largest mutual funds in the country that jumped on enron corp . shares when they were soaring now may be feeling the pain of the stock ' s meltdown .
the energy - trading company ' s stock was held in funds managed by fidelity investments , stilwell financial inc . ' s janus capital corp . , alliance capital management and putnam investments , according to the funds ' most recent securities and exchange commission filings . vanguard group held the stock in various portfolios , including its giant passively managed index funds , according to its filings .
one of the biggest supporters of the stock has been alliance premier growth fund , an $ 11 billion portfolio that had about 4 % of its assets in enron shares as of sept . 30 , according to fund tracker morningstar inc . based on the sept . 30 filing , the fund ' s stake had dropped in value by about $ 445 million through yesterday .
of course , alliance premier and other funds may have sold or bought enron shares since they made their latest government filings . an alliance spokesman declined to comment .
other funds reporting big stakes in enron recently included janus mercury fund , which had 3 . 6 % of its assets invested in enron stock on april 30 . a janus spokeswoman said its funds had sold all of their enron shares by mid - november .
copyright ? 2000 dow jones & company , inc . all rights reserved .
credit markets
why credit agencies didn ' t switch off enron - - - s & p cries ` junk , ' but the warning comes too late
by gregory zuckerman and jathon sapsford
staff reporters of the wall street journal
11 / 29 / 2001
the wall street journal
cl
( copyright ( c ) 2001 , dow jones & company , inc . )
at 10 : 57 a . m . est yesterday , an announcement came out that effectively scuttled dynegy inc . ' s proposed takeover of enron corp . it was issued not by the two companies or their bankers , but by a behind - the - scenes player that was pivotal in the deal from the start .
the news came from standard & poor ' s , which lowered enron ' s credit rating to " junk " status , because of concern about the energy trading company ' s financial condition . the move , followed by similar downgrades by moody ' s investors service inc . and fitch inc . several hours later , prompted dynegy to announce that it was walking away from the multibillion dollar deal .
the downgrades highlight the key role that credit - rating agencies - - which are sometimes only bit players - - are having in one of the biggest wall street dramas in years . before they became deal breakers , the ratings agencies had emerged as unlikely deal makers just a few weeks ago , by leaving enron little choice but to seek a merger partner or face a downgrade that would have made it difficult to keep running its business .
throughout the enron saga , the rating agencies found themselves the target of repeated and intense lobbying by enron , dynegy and their bankers at j . p . morgan chase & co . and citigroup inc . all tried - - and ultimately failed - - to come up with assurances that the merger would bolster enron and thus protect bondholders and lenders from suffering losses .
the dramatic downgrades are sure to increase scrutiny over the role of the rating agencies in the enron situation . critics say that , in waiting until enron ' s bonds already had plummeted in value , the ratings agencies failed in their job of anticipating a company ' s financial problems and giving investors an early warning .
it now seems clear that the rating agencies , like most securities analysts , seem to have too easily accepted enron ' s murky financial reporting , which gave the impression that the company ' s balance sheet was stronger than it was . as recently as late october , both moody ' s corp . ' s moody ' s and mcgraw - hill cos . ' s & p had a solid investment - grade rating on enron ' s debt .
but since credit - rating agencies often have access to company information that securities analysts often don ' t have , the rating agencies could take some heat for not anticipating the financial difficulties . bond investors , for instance , say s & p was prematurely upbeat about enron ' s outlook earlier this month , and long ago should have demanded more information from the company . " if the rating agencies were privy all along to information that , as near as i can tell , was nonpublic regarding these off - balance - sheet liabilities , then their judgment looks even more faulty , " says carol levenson of gimme credit , a chicago - based analyst .
others wonder whether the ratings executives should have lowered the rating to junk days ago , when enron ' s problems became obvious . while such a move would have crippled the company ' s ability to find a suitor , holding off on the ratings move hurt stock and bond investors left holding the securities .
" i don ' t think the consequences of a rating action should have anything to do with whether one takes that rating action or not , if one feels it ' s warranted , " ms . levenson says . " i don ' t think there was any doubt enron was a junk credit . "
the ratings agencies counter that enron ' s financial condition , while weakened , became precarious only in the past few days , and given the consequences of a downgrade they needed to be prudent .
indeed , every party to the deal - - until yesterday - - kept working to provide financial infusions to enron to keep the deal alive . enron executives were particularly desperate to hold off a ratings downgrade . once the debt was lowered to junk status from investment grade , a whopping $ 3 . 9 billion of debt immediately became due , jeopardizing enron ' s ability to stay afloat .
worries about such a debt downgrade weeks ago pushed enron into the merger with dynegy , despite reservations from some enron executives about whether the deal was right . enron pledged some of its best assets to secure a $ 500 million investment from j . p . morgan chase and citigroup ' s citibank , and agreed to strict terms demanded by banks to get an emergency $ 1 billion credit line from various banks . in recent days , the two companies worked to restructure their merger and to raise still more liquidity for enron .
by 4 p . m . tuesday , the credit agencies agreed to hold off on a downgrade , convinced the two sides were making progress in restructuring the deal and drumming up new money for enron . in a conference call , ron barone , a managing director at s & p , told enron executives he was willing to wait on a decision , aware of the serious consequences of a downgrade .
" we ' ll be very patient and diligent " because of the progress being made , he told them , according to someone familiar with the conversation .
as late as 10 : 30 p . m . tuesday , a new deal still seemed in sight . but at about 2 a . m . yesterday , the talks broke down . instead of being briefed about terms of a new merger agreement , the credit - agency executives became doubtful a resolution would ever be reached .
in a late morning phone call to jeff mcmahon , enron ' s chief financial officer , mr . barone broke the news that the company ' s credit would be downgraded . " we lost confidence the deal would be consummated in a way that would keep the rating intact , " mr . barone says in an interview . " enron ' s credibility and viability continued to diminish . they were aware of our concerns . "
s & p downgraded enron ' s corporate - credit rating two full grades to single - b - minus , near the lower end of the junk - bond world , from triple - b - minus , the lowest investment - grade level . moody ' s lowered the debt to b 2 from baa 3 .
in a late - afternoon conference call with investors , s & p executives said the rating could still be lowered further , on the heels of the official announcement that the merger with dynegy was off .
responding to criticism that the credit agencies should have downgraded enron ' s debt sooner , mr . barone of s & p notes that the rating agency wasn ' t " privy to everything . " still , he adds , until yesterday " we were confident it was an investment - grade company , and that the merger would give it the security to enable enron to function at an investment - grade level . "
on the flip side , of course , if enron is forced into bankruptcy , the rating agencies may well catch heat that their impact was too drastic , effectively killing the deal .
treasurys
treasurys ended slightly higher . at 4 p . m . , the benchmark 10 - year treasury note was up 1 / 32 point , or 31 cents per $ 1 , 000 face value , at 100 15 / 32 to yield 4 . 938 % . the 30 - year treasury bond ' s price also was up 1 / 32 point , at 100 9 / 32 to yield 5 . 355 % .
the dow jones industrial average ended with a loss of 160 . 74 points . investors often shift funds to the relative safety of the government securities market at times when stocks are weak . a treasury sale of $ 21 billion of two - year notes drew less demand than expected . the bid - to - cover ratio , a gauge of demand comparing the dollar value of bids received with those awarded , was 1 . 51 , well below the 2 . 53 average of the past 12 auctions .
also somewhat bearish for the bond market was release of the fed ' s beige book report , an assessment of economic conditions around the country in advance of policy meetings . policy makers are to meet again dec . 11 .
although the report cited weakness in the economy , it didn ' t encourage people in the bond market to expect further rate cuts by the fed , analysts said . " not everybody is in the camp that the fed ' s going to ease again , " said kevin flanagan , market strategist at morgan stanley .
two - year notes
here are results of yesterday ' s treasury auction of two - year notes .
all bids are awarded at a single price at the market - clearing yield .
rates are determined by the difference between that price and the face
value .
applications . . . . . . . . . . . . . . . . . . . . . . . . $ 31 , 761 , 220 , 000
accepted bids . . . . . . . . . . . . . . . . . . . . . . . $ 21 , 000 , 020 , 000
bids at market - clearing yld accepted 14 . 96 %
accepted noncompetitively . . . . . . . . . . . $ 774 , 120 , 000
accepted frgn noncomp . . . . . . . . . . . . . . . $ 0
auction price ( rate ) . . . . . . . . . . . . . . . . 99 . 985 ( 3 . 008 % )
interest rate . . . . . . . . . . . . . . . . . . . . . . . 3 %
cusip number . . . . . . . . . . . . . . . . . . . . . . . . 9128277 gl
the notes are dated nov . 30 , 2001 , and mature nov . 30 , 2003 .
( see related article : " commodities : energy trading bears the brunt of enron woes " - - wsj nov . 29 , 2001 )
copyright ? 2000 dow jones & company , inc . all rights reserved .
commodities
why credit agencies didn ' t switch off enron - - - energy trading bears the brunt of enron woes
by peter a . mckay
staff reporter of the wall street journal
11 / 29 / 2001
the wall street journal
cl
( copyright ( c ) 2001 , dow jones & company , inc . )
less than a month ago , enron corp . ' s electronic trading system was the largest of its kind in the world , accounting for a quarter of all the natural gas and electricity delivered in the u . s .
yesterday , the system was shut down , a victim of enron ' s failed deal with dynegy inc .
while the rise and sudden fall of enron rippled throughout financial markets yesterday , nowhere was it more immediately evident than in energy trading , an arena utterly transformed by enron in recent years .
since the late 1990 s , enrononline had established itself as the dominant electronic energy marketplace - - and major competitor of the traditional futures exchanges - - as it grew to handle an average of 5 , 400 trades a day , with a value of about $ 2 . 8 billion .
but a flight away from enron began weeks ago , as initial news of the company ' s woes began to spread . because enron itself guaranteed trades on its platform , fears grew that the company might not be able to complete many of the transactions .
the exodus of trading activity from enrononline accelerated throughout the day yesterday , culminating in the system ' s shutdown around midday , when quotes on the system ' s internet trading screens simply went blank .
by 3 : 30 p . m . est , some trading had resumed in natural gas , though spokesman eric thode declined to say whether enron ' s markets would be open today . " that ' s part of an evaluation that ' s ongoing , " he said .
on the floor of the new york mercantile exchange , a traditional floor - based futures market , natural - gas trading volume almost doubled yesterday to 116 , 000 contracts . while enron ' s woes were the main driver behind the surge , the market also reacted to important storage data from the american gas association .
natural - gas prices jumped about 25 cents yesterday morning on an initial reaction to the enron news , near $ 3 per million british thermal units , then slipped back as the aga announced that gas storage had grown by 16 billion cubic feet to an all - time high . the nearby december contract fell 29 cents to $ 2 . 315 per million btus .
" anyone who jumped into the gas market on the enron news is praying right now [ that prices recover ] , " guy gleichmann , senior energy trader at barkely financial . " it should only be a short - term factor in the market . "
he said enron ' s collapse has helped gas prices because it is mainly seen as a threat to the overall gas supply . traders assume enrononline ' s problems won ' t affect actual energy deliveries , because whoever takes over enron ' s assets is expected to honor those commitments .
meantime , anticipating potential fallout from the enron problems , energy firms also have been reducing their financial risk in the energy markets by unwinding complex derivatives bets , either by hedging against them or taking delivery of the physical commodity .
in the future , those firms are likely to favor straightforward cash transactions for energy as a result of the enron meltdown . " if anything , the enron situation has really simplified this market , " mr . gleichmann said .
yesterday on the , enron ' s primary electronic rival , traders waited up to five minutes to log in , said jeff sprecher , the online market ' s chief executive .
he said it seemed most traders were just jockeying for position at first , assessing the newfound risk before actually making any trades . within the first 15 minutes after standard & poor ' s initial downgrade of enron , mr . sprecher said , the number of bids and offers on dropped by almost a third , to 2 , 200 .
" by the end of the day , though , we expect this will probably be a record day for us , " said mr . sprecher , who estimated the system ' s overall volume is up 45 % this month .
he expects much of that gain to be permanent on ice , although he cautioned that a loss of enrononline from the marketplace would have a downside , since its presence created opportunities to trade spreads between the two platforms .
nymex president j . robert collins warned it is still too early to declare enrononline dead . but he said its difficulties bode well for his exchange ' s internet - based system , dubbed enymex , now in development .
" because of credit issues involving enron , companies might be more hesitant to trade there , " he said . " so we have a better shot with enymex than we did three or four months ago . "
ronald j . barone , managing director for energy research at ubs warburg , said enrononline ' s value to prospective acquirers will drop quickly in coming days , if the business continues to decline .
" dynegy really liked enrononline , but look at how much business the platform ' s been losing , " said mr . barone , who downgraded enron ' s stock yesterday to a hold . " there ' s also a question of how many more skeletons there are in the closet . "
in commodity trading yesterday :
grains : futures prices on corn , wheat and soybeans all fell again at the chicago board of trade as what was described as a technical - based selloff accelerated . december - delivery corn futures sank to $ 1 . 9850 a bushel late in the session , which wiped out the old contract low . the contract ended up settling down five cents at $ 1 . 9875 a bushel .
crude oil : crude - oil futures slipped 26 cents to $ 19 . 22 a barrel after weekly inventory data showed a larger - than - expected five - million - barrel build in distillates supplies , which include heating oil . high refinery runs and imports were behind the build , analysts said . the contract might have fallen even more , except for a modest drop reported for crude - oil stocks .
- - -
dyanna decola contributed to this article .
( see related article : " credit markets : s & p cries ` junk , ' but the warning comes too late " - - wsj nov . 29 , 2001 )
copyright ? 2000 dow jones & company , inc . all rights reserved .
fall of a power giant : chairman ' s deep political connections run silent
by bob davis
staff reporter of the wall street journal
11 / 29 / 2001
the wall street journal
al 0
( copyright ( c ) 2001 , dow jones & company , inc . )
for years , enron corp . chairman kenneth lay has been george w . bush ' s best friend in the board rooms of america ' s top corporations .
since 1993 , mr . lay and enron have donated nearly $ 2 million to mr . bush ' s political career , making them mr . bush ' s biggest backers . when mr . bush was texas governor , mr . lay , a houston resident , helped him win passage of a state education - reform plan that brought mr . bush national acclaim . during that fight , mr . lay got to know aides who became power players in the bush white house .
mr . lay was confident enough of his friendship with mr . bush that he even needled him for needing arthroscopic surgery to repair a jogging injury . " i want you to know that at least one jogger [ me ] got past 50 without that surgery , " mr . lay scribbled in a note to then governor in 1997 .
still , as enron faces its greatest crisis , mr . lay ' s influence and personal relationships with the administration have amounted to little . there appears to be no effort by the white house or congress to bail enron out of its difficulties , which are widely seen as self - inflicted . the white house had no comment on mr . lay ' s predicament , a spokeswoman said . indeed , short of an actual bailout to help enron meet its obligations - - such as an aid package approved by congress or organized by government officials from private sources , similar to the rescue of the long term capital management hedge fund - - there is little washington can do at this stage to help the company . nor is there likely to be a bailout , since enron has burned many bridges on capitol hill with its history of strong - arm lobbying tactics , some congressional aides say .
that may reassure a cynical public , says robert mosbacher , commerce secretary in the first bush administration and a longtime friend of the current president as well as mr . lay . " i don ' t see anybody being let off the hook , " he said .
mr . mosbacher says he introduced mr . lay to the bush family around 1987 , when he persuaded mr . lay to help raise money for george h . w . bush ' s successful presidential bid in 1988 . mr . lay contributed $ 461 , 000 to the younger mr . bush ' s two successful gubernatorial campaigns . he also made enron ' s fleet of corporate jets available to mr . bush and won his help in lobbying officials in other states considering enron projects .
his influence with then - gov . bush was based on more than money . mr . lay was one of the state ' s leading business executives and deeply involved in texas politics . under mr . bush ' s predecessor , democrat ann richards , mr . lay headed the governor ' s business council , a state advisory board . mr . bush asked him to stay on the job to help develop an educational reform plan and sell it to the texas legislature .
in that capacity , mr . lay became close to several bush aides , including political guru karl rove and communications adviser karen hughes , who have taken positions at the white house . he also got to know another leading texas businessman : dick cheney , then ceo of dallas oil concern halliburton co . , who would become mr . bush ' s pick for vice president .
against this backdrop , mr . lay was widely considered a top candidate for treasury secretary in the younger bush ' s administration . ultimately though , he was disqualified , bush insiders say , as too closely identified with mr . bush , mr . cheney and others who worked in the texas energy business for an administration that wanted to show it wasn ' t in the pocket of big oil companies .
early on , mr . lay had unrivaled access to the administration . when the president ' s advisers debated a new energy policy in the spring , mr . lay was the only energy executive to be invited for a one - on - one session with mr . cheney , who led the effort . mr . lay also worked with mr . rove and others to successfully push for appointments to the federal energy regulatory commission , which oversees much of enron ' s business .
as enron ' s problems multiplied and its fortunes plummeted , however , the white house was silent . during a several - hour long interview in the spring , mr . lay mused that his bush connections could boomerang someday . " it could hurt , from the standpoint that , at some point , they lean in the other direction to make sure they don ' t face criticism , " he said .
copyright ? 2000 dow jones & company , inc . all rights reserved .
fall of a power giant : chairman ' s deep political connections run silent
by bob davis
staff reporter of the wall street journal
11 / 29 / 2001
the wall street journal
al 0
( copyright ( c ) 2001 , dow jones & company , inc . )
for years , enron corp . chairman kenneth lay has been george w . bush ' s best friend in the board rooms of america ' s top corporations .
since 1993 , mr . lay and enron have donated nearly $ 2 million to mr . bush ' s political career , making them mr . bush ' s biggest backers . when mr . bush was texas governor , mr . lay , a houston resident , helped him win passage of a state education - reform plan that brought mr . bush national acclaim . during that fight , mr . lay got to know aides who became power players in the bush white house .
mr . lay was confident enough of his friendship with mr . bush that he even needled him for needing arthroscopic surgery to repair a jogging injury . " i want you to know that at least one jogger [ me ] got past 50 without that surgery , " mr . lay scribbled in a note to then governor in 1997 .
still , as enron faces its greatest crisis , mr . lay ' s influence and personal relationships with the administration have amounted to little . there appears to be no effort by the white house or congress to bail enron out of its difficulties , which are widely seen as self - inflicted . the white house had no comment on mr . lay ' s predicament , a spokeswoman said . indeed , short of an actual bailout to help enron meet its obligations - - such as an aid package approved by congress or organized by government officials from private sources , similar to the rescue of the long term capital management hedge fund - - there is little washington can do at this stage to help the company . nor is there likely to be a bailout , since enron has burned many bridges on capitol hill with its history of strong - arm lobbying tactics , some congressional aides say .
that may reassure a cynical public , says robert mosbacher , commerce secretary in the first bush administration and a longtime friend of the current president as well as mr . lay . " i don ' t see anybody being let off the hook , " he said .
mr . mosbacher says he introduced mr . lay to the bush family around 1987 , when he persuaded mr . lay to help raise money for george h . w . bush ' s successful presidential bid in 1988 . mr . lay contributed $ 461 , 000 to the younger mr . bush ' s two successful gubernatorial campaigns . he also made enron ' s fleet of corporate jets available to mr . bush and won his help in lobbying officials in other states considering enron projects .
his influence with then - gov . bush was based on more than money . mr . lay was one of the state ' s leading business executives and deeply involved in texas politics . under mr . bush ' s predecessor , democrat ann richards , mr . lay headed the governor ' s business council , a state advisory board . mr . bush asked him to stay on the job to help develop an educational reform plan and sell it to the texas legislature .
in that capacity , mr . lay became close to several bush aides , including political guru karl rove and communications adviser karen hughes , who have taken positions at the white house . he also got to know another leading texas businessman : dick cheney , then ceo of dallas oil concern halliburton co . , who would become mr . bush ' s pick for vice president .
against this backdrop , mr . lay was widely considered a top candidate for treasury secretary in the younger bush ' s administration . ultimately though , he was disqualified , bush insiders say , as too closely identified with mr . bush , mr . cheney and others who worked in the texas energy business for an administration that wanted to show it wasn ' t in the pocket of big oil companies .
early on , mr . lay had unrivaled access to the administration . when the president ' s advisers debated a new energy policy in the spring , mr . lay was the only energy executive to be invited for a one - on - one session with mr . cheney , who led the effort . mr . lay also worked with mr . rove and others to successfully push for appointments to the federal energy regulatory commission , which oversees much of enron ' s business .
as enron ' s problems multiplied and its fortunes plummeted , however , the white house was silent . during a several - hour long interview in the spring , mr . lay mused that his bush connections could boomerang someday . " it could hurt , from the standpoint that , at some point , they lean in the other direction to make sure they don ' t face criticism , " he said .
copyright ? 2000 dow jones & company , inc . all rights reserved .
abreast of the market
dynegy and chevrontexaco slide along with plunge in enron stock
by robert o ' brien
dow jones newswires
11 / 29 / 2001
the wall street journal
c 2
( copyright ( c ) 2001 , dow jones & company , inc . )
new york - - the collapse of enron dominated stock trading yesterday , as a host of the power generators and energy merchants exposed to the firm tumbled .
shares of dynegy , the suitor for enron that pulled out of a deal after debt - rating agencies lowered their ratings on enron ' s bonds , fell 4 . 92 , or 12 % , to 35 . 97 . chevrontexaco , which owns 26 % of dynegy , slid 1 . 07 , or 1 . 2 % , to 84 . 55 .
shares of enron itself were ground down more than 85 % . the loss of $ 3 . 50 brought the closing price of each enron share down to 61 cents . this from a stock that , as recently as august 2000 , commanded more than $ 90 a share .
a host of other energy merchants , such as el paso , which lost 3 . 59 , or 7 . 4 % , to 44 . 91 , williams , which shed 1 . 80 , or 6 . 2 % , to 27 . 05 , and american electric power , which fell 2 . 03 , or 4 . 8 % , to 40 . 44 , all got caught in the backlash against the energy market .
the dow jones utility average finished the session down 8 . 48 points , a drop of 2 . 94 % , to 279 . 95 , which brought it down to a 52 - week low .
shares of two giant financial - services providers also got caught by their exposure to enron , and paid the price . shares of citigroup fell 2 . 75 , or 5 . 4 % , to 47 . 80 , while j . p . morgan chase slid 2 . 30 , or 5 . 8 % , to 37 . 50 .
with those two components in decline , the dow jones industrial average finished the session 160 . 74 points lower , a loss of 1 . 63 % , to 9711 . 86 . the nasdaq composite slid 2 . 48 % , or 48 points , to 1887 . 97 .
the dow industrial average ' s finish at 9711 . 86 represented the lowest close the average has posted in more than two weeks , since ending at 9554 . 37 . traders insisted that the speed and apparent ease with which market averages have managed to lard on gains over the past several weeks has stretched valuations , and left equities vulnerable to events , like the enron sell - off , that a sturdier market might have more handily absorbed .
" one of the most important overriding factors has been the performance of the market itself , " arthur hogan , chief market analyst at jefferies , said . " the market has moved straight up seven weeks in a row , and when it moves up in a straight line like that , it doesn ' t take much in the way of a catalyst to tip it over . "
whether it was excuse - making or profit - taking , the market did have to absorb some fundamental challenges in the session , including an especially pessimistic assessment of economic conditions from the federal reserve . the central bank released its beige book report on economic conditions , which showed , overall , the economy tilted more toward further slowing than it did toward recovery .
that helped further puncture shares of some of the retailers that got waylaid in tuesday ' s trading by a bearish consumer sentiment reading . shares of gap , stung by a reduction in its investment rating by prudential securities , lost 79 cents , or 5 . 5 % , to 13 . 61 . shares of another apparel retailer , american eagle outfitters , lost 1 . 3 , or 5 . 9 % , to 24 . 40 , while talbots dropped 1 . 25 , or 3 . 6 % , to 33 , and discounter kohl ' s fell 84 cents , or 1 . 2 % , to 67 . 86 .
meanwhile , some of the classic cyclical stocks that have had good runs over the past several weeks as investors bet on an eventual economic recovery gave ground . shares of boeing fell 1 . 33 , or 3 . 7 % , to 34 . 17 , after j . p . morgan reduced its earnings forecasts for 2002 and 2003 . whirlpool lost 1 . 12 , or 1 . 7 % , to 64 . 98 . auto - parts maker eaton declined 1 , or 1 . 4 % , to 69 . 60 . general electric , also subject to some downbeat comments from j . p . morgan , fell 1 . 72 , or 39 . 35 .
continental airlines lost 2 . 40 , or 10 % , to 21 . 70 . the air carrier completed a public offering of 6 . 74 million shares of stock priced at $ 22 . 50 , a discount to tuesday ' s closing price of 24 . 10 .
coca - cola declined 1 . 06 , or 2 . 2 % , to 46 . 75 . j . p . morgan said it expects slower volume growth ahead for the beverage maker ' s bottlers . shares of coca - cola enterprises , coke ' s biggest bottler , eased 40 cents , or 2 . 3 % , to 17 .
magna international rose 1 . 54 , or 2 . 6 % , to 61 . 51 . salomon smith barney started coverage of the canadian auto - components maker with a buy rating .
medtronic gained 1 . 74 , or 4 % , to 45 . 78 . the minneapolis medical - device maker reported fiscal second - quarter results that matched wall street ' s projections , and said it expected to live up to third - quarter forecasts .
foot locker eased 19 cents , or 1 . 2 % , to 15 . 70 , after mixed views from rival brokers . rbc capital markets started coverage of the stock with a strong buy rating , but jefferies reduced its coverage of the stock to accumulate from buy .
copyright ? 2000 dow jones & company , inc . all rights reserved .
foreign exchange
dollar declines against yen and euro amid growing doubts on u . s . economy
by grainne mccarthy
dow jones newswires
11 / 29 / 2001
the wall street journal
cl 4
( copyright ( c ) 2001 , dow jones & company , inc . )
new york - - growing doubts about the u . s . economy ' s ability to rebound quickly from recession weighed heavily on the dollar , pushing the currency down almost a full yen and helping the euro regain some lost ground .
weakness in u . s . stocks - - due partly to news that dynegy inc . decided to walk away from its deal to buy enron corp . - - also put pressure on the dollar , while enron ' s debt woes added to general skittishness about the ability of u . s . business to bounce back quickly .
" we know there are companies out there in trouble , " said lara rhame , economist at brown brothers harriman in new york , who said that while the enron developments weren ' t having a direct impact on foreign - exchange markets , such reports do " limit the kind of superdollar that we saw back in 1999 . "
the dollar selloff kicked off in asian trading , when dealers used a standard & poor ' s downgrade of japan ' s sovereign rating as an excuse to buy the yen . the downgrade to double - a from double - a - plus was better than the market ' s expectations of a two - notch downgrade , rendering it good news of sorts .
the selling continued in new york trading , as traders continued to price in the possibility that they may have been far too optimistic about the dollar .
the two - pronged catalyst for this change of heart was the weak november consumer confidence index released tuesday , and subsequent gloomy comments from federal reserve governor laurence meyer pointing to more downside risks to the economy . the release of the federal reserve ' s beige book report yesterday served only to flame this pessimism .
the fed said that further slowing outweighed signs of recovery for the u . s . economy this autumn , noting that economic activity generally remained soft in october and the first half of november .
" people wanted greater signs of recovery than they got from the fed , " said alan ruskin , research director at the 4 cast financial consultancy in new york .
the beige book , a summary of economic activity prepared for use at the central bank ' s next federal open market committee meeting dec . 11 , is widely viewed as an indicator of future monetary policy decisions and the report helped to solidify expectations of a rate cut of at least a quarter percentage point .
late yesterday in new york , the euro was at 88 . 84 u . s . cents , its high for the session and up from 88 . 34 cents late tuesday in new york . the dollar was at 123 . 11 yen - - around its intraday low - - and almost a full yen down from 123 . 96 yen late tuesday in new york . the dollar was also at 1 . 6460 swiss francs , down from 1 . 6484 francs in london and 1 . 6560 francs tuesday . sterling was at $ 1 . 4261 , up from $ 1 . 4185 earlier in london and $ 1 . 4153 late tuesday .
elsewhere , the canadian dollar climbed to its highest levels in almost a month , confounding the view that bad news for the u . s . is bad news for canada .
the canadian currency has tended to suffer from an association with the u . s . , given that 85 % of canada ' s exports head south of the border . however , a 0 . 50 - percentage - point rate cut by the bank of canada on tuesday was quickly followed by the gloomy consumer confidence report in the u . s . , which undercut faith in the dollar and appeared to give the canadian unit just the opportunity it was seeking .
late in the new york day , the u . s . dollar was at c $ 1 . 5842 , down from c $ 1 . 5939 late tuesday .
copyright ? 2000 dow jones & company , inc . all rights reserved .
options report
dynegy ' s move to disconnect enron merger powers volatility spike as investors seek cover
by kopin tan
dow jones newswires
11 / 29 / 2001
the wall street journal
cl 4
( copyright ( c ) 2001 , dow jones in fact , such " buying on the dip " has helped propel stock prices . with stocks up substantially from their september lows , investors still are browsing but are seeking added insurance , with many buying defensive puts to lock in a minimum selling price for the stock .
sprint ' s january 25 puts traded more than 13 , 000 contracts at the amex as an investor bought stock along with those puts . specifically , the investor bought about 5 , 000 contracts of the puts , then bought a put spread by buying 8 , 000 contracts of january 25 puts that expire 2002 and selling the same number of january 25 puts that expire 2003 .
shares of sprint ' s pcs unit fell $ 1 . 14 to $ 25 . 90 . at the amex , the january 25 puts were at $ 1 . 15 on volume of 13 , 005 contracts , compared with open interest of 2 , 799 . the january 25 puts that expire in 2003 were at $ 4 . 40 on volume of 8 , 005 contracts , compared with open interest of 8 , 826 .
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron asks staff to drop 401 ( k ) suits for severance
11 / 29 / 2001
the wall street journal
cl 3
( copyright ( c ) 2001 , dow jones & company , inc . )
houston - - enron corp . , the subject of four lawsuits filed over losses in its employees ' 401 ( k ) retirement plan , is asking laid - off workers to waive legal claims against it in exchange for some of their severance payments .
attorneys for some of the employees sought to block that requirement . plaintiffs are seeking an " immediate preliminary injunction prohibiting enron from soliciting any releases which would affect the participants ' rights vis a vis the plan , " according to an amended complaint filed by seattle firm campbell harrison & wright .
the complaint , filed in federal district court in houston , asks the court " to appoint a neutral fiduciary to manage the plan . " the suit claims enron is laying off as much as 60 % of its staff in some departments .
an enron attorney , in a statement , said laid - off employees aren ' t required to sign the waiver to get severance pay , but will get " additional severance in exchange " for signing . she said enron hadn ' t modified the waiver " in response to the current economic circumstances of the company , " but added that enron " continues to evaluate its options regarding the severance - pay plan . "
copyright ? 2000 dow jones & company , inc . all rights reserved .
nvidia to replace enron in s & p
11 / 29 / 2001
the wall street journal
cl 3
( copyright ( c ) 2001 , dow jones & company , inc . )
new york - - standard & poor ' s said nvidia corp . , a santa clara , calif . , graphic - chip maker , will replace enron corp . in the s & p 500 - stock index after today ' s regular trading . s & p said enron , the houston energy concern whose merger with dynegy inc . unraveled yesterday , is being removed for lack of representation .
copyright ? 2000 dow jones section a
enron ' s collapse : the overview
enron collapses as suitor cancels plans for merger
by richard a . oppel jr . and andrew ross sorkin
11 / 29 / 2001
the new york times
page 1 , column 1
c . 2001 new york times company
enron , the champion of energy deregulation that grew into one of the nation ' s 10 largest companies , collapsed yesterday , after a rival backed out of a deal to buy it and many big trading partners stopped doing business with it .
enron , based in houston , was widely expected to seek bankruptcy protection . with $ 62 billion in assets as of sept . 30 , it would be the biggest american company ever to go bankrupt , dwarfing the filing by texaco in 1987 . late in the day , though , enron ' s chief financial officer , jeff mcmahon , said that the company was still talking to banks about a restructuring and considering other options .
talks with its would - be rescuer dynegy , also of houston , about salvaging the deal ended in acrimony .
dynegy , which had agreed on nov . 9 to buy enron but had second thoughts as enron disclosed more financial problems and investors pummeled its stock , accused enron of misrepresenting the health of its business . enron , meanwhile , was weighing whether to sue dynegy for breaching the terms of the deal , a person close to enron said .
enron ' s swift collapse left the prospects of 21 , 000 employees in doubt and wiped out what was left of the holdings of stock investors , including some big mutual funds , as shares that sold for $ 90 in august 2000 crashed to close yesterday at 61 cents . it roiled the treasury market and tarnished the standing of the big new york banks that both advised on the deal and poured their own cash into the company . and it left in tatters the reputation of enron ' s chief executive , kenneth l . lay , a confidant and campaign backer of president george w . bush . [ page cl . ]
the treasury department , the federal reserve and the federal energy regulatory commission said they had monitored enron ' s impact on the financial and energy markets yesterday ; officials who would comment said they saw no dangerous ripple effect .
' ' the markets are functioning normally , ' ' said peter bakstansky , a spokesman for the federal reserve bank of new york .
from a pipeline company in the 1980 ' s , enron grew into the world ' s largest energy trader , using the internet to buy and sell natural gas and electric power supplies for utilities and industrial power users and helping them hedge against fluctuations in power prices .
but enron was undone by shaky accounting , too much borrowed money and an unwillingness to provide information to investors who grew to doubt its financial reports .
five weeks ago , the company disclosed that , to fuel its growth , it had shifted billions of dollars in debt off its balance sheet and into an array of complex partnerships . the securities and exchange commission began an investigation , and enron restated five years of earnings , wiping out nearly $ 600 million in profit .
enron was teetering close to insolvency before dynegy , a smaller cross - town rival , agreed to acquire it for $ 9 billion plus the assumption of $ 13 billion in debt , with additional financing from chevrontexaco , a major dynegy shareholder .
but enron subsequently disclosed even more debts , and its financial plight continued to worsen . energy - trading companies reduced dealings with the firm ; doubting its creditworthiness , some forced enron to pay higher prices for natural gas and other products or required it to post large cash deposits to back trades .
for four days , enron and dynegy worked to salvage the deal . but yesterday morning , dynegy pulled out . ' ' we knew when to say no , and this morning , we said no , ' ' said chuck watson , dynegy ' s chairman .
in an interview , mr . watson said enron ' s energy - trading business had deteriorated . he also cited ' ' surprises ' ' in the quarterly report to the s . e . c . that enron filed on nov . 19 , including the disclosures that a credit downgrade meant enron had to pay or refinance a $ 690 million obligation and that enron had less cash on hand than dynegy had expected . ' ' confidence and credibility , which is what this business is all about , deteriorated after that , ' ' he said .
mr . watson said he called mr . lay yesterday after a meeting of dynegy ' s board to call off the deal . by then , s . dynegy shares fell $ 4 . 08 , or 10 percent , to close at $ 36 . 81 .
other big energy traders , like the el paso corporation , reliant energy , mirant and aquila , also fell . but enron ' s gradual decline over the last month gave many energy companies time to reduce their exposure to enron , and many operate rival trading operations that would benefit from its collapse .
yesterday morning , as news leaked out of dynegy ' s plans to cancel the deal and s . prices soar . dec . 15 2000 : four months after the chief executive of azurix resigns , enron takes the company private again . aug . 14 , 2001 : only six months after becoming chief executive , jeffrey k . skilling resigns . he is succeeded by kenneth l . lay . oct . 8 : four years after buying portland general electric , enron agrees to sell it to northwest natural gas oct . 16 : enron reports a third - quarter loss of $ 618 million . oct . 24 : two days after enron discloses that the securities and exchange commission is looking into complicated transactions involving enron and partnerships set up by andrew s . fastow , the company ' s chief financial officer , mr . fastow is forced out . oct . 31 : the s . e . c . upgrades its inquiry to a formal investigation . nov . 8 : enron discloses that it overstated profits for the previous five years by $ 586 million . nov . 9 : dynegy agrees to buy enron for about $ 9 billion . yesterday : the merger collapses . enron ' s stock falls $ 3 . 50 to 61 cents . ( source : bloomberg financial markets ) ( pg . c 6 )
copyright ? 2000 dow jones section c
enron ' s collapse : the last resort
a bankruptcy filing might be the best remaining choice
by jonathan d . glater
11 / 29 / 2001
the new york times
page 6 , column 1
c . 2001 new york times company
enron , facing the collapse of a deal with dynegy that might have rescued it from disaster and a tidal wave of debts suddenly coming due , may now have little choice but to enter bankruptcy , lawyers and analysts said yesterday .
filing for protection under chapter 11 of the federal bankruptcy code would give the company some much - needed breathing room to deal with creditors ' claims , as well as afford any eventual buyer the advantage of a court ' s approval .
but bankruptcy would also be complicated by the fact that some of enron ' s most valuable assets , including its transwestern pipeline linking texas natural gas fields with california energy markets , are already pledged to lenders . the value of other assets available to satisfy unsecured creditors is unclear .
still , enron ' s creditors will not necessarily lose everything , said robert j . rosenberg , a lawyer at latham any awards would not be paid until after creditors were satisfied . and like enron ' s other shareholders , they might end up with nothing , said robert d . albergotti , a partner at haynes & boone , a dallas law firm .
if enron files for bankruptcy , this is not likely to prevent litigation against arthur andersen , the company ' s outside auditor , said jeffrey n . gordon of columbia university law school . indeed , bankruptcy proceedings could give both the company and investors an opportunity to figure out exactly how its profits came to be overstated and to look for potential fraud .
a special committee of enron ' s board has already retained deloitte & touche , another big accounting firm , to help .
' ' it ' s going to be a while before they figure it all out , ' ' professor gordon said .
chart : ' ' big losers ' ' as of sept . 30 , enron ' s top 10 shareholders were all big money managers . alliance capital shares held ( in millions ) : 43 . 0 percentage of outstanding shares : 5 . 78 % janus capital shares held ( in millions ) : 41 . 4 percentage of outstanding shares : 5 . 56 putnam investment shares held ( in millions ) : 23 . 1 percentage of outstanding shares : 3 . 11 barclays bank shares held ( in millions ) : 23 . 0 percentage of outstanding shares : 3 . 10 fidelity investments shares held ( in millions ) : 20 . 8 percentage of outstanding shares : 2 . 80 citigroup shares held ( in millions ) : 20 . 8 percentage of outstanding shares : 2 . 79 state street shares held ( in millions ) : 16 . 1 percentage of outstanding shares : 2 . 17 aim management shares held ( in millions ) : 14 . 0 percentage of outstanding shares : 1 . 88 taunus shares held ( in millions ) : 12 . 5 percentage of outstanding shares : 1 . 68 vanguard shares held ( in millions ) : 11 . 4 percentage of outstanding shares : 1 . 54 ( source : bloomberg financial markets )
copyright ? 2000 dow jones section a
an implosion on wall street
11 / 29 / 2001
the new york times
page 34 , column 1
c . 2001 new york times company
enron , the energy - trading company , may be on the verge of extinction with the collapse yesterday of its proposed acquisition by dynegy , a smaller competitor , and the downgrading of its debt to junk status . but its name has attained immortality on wall street .
enron is now shorthand for the perfect financial storm . take a high - flying company terribly impressed with its sense of unique mission and ingenuity , and correspondingly contemptuous of its obligations to fully comply with the spirit of accounting rules . then add fawning investors , wall street analysts , journalists and accountants unwilling to allow a company ' s lack of transparency about its business to get in the way of a dizzying ride , until they realize the destination is the top of a steep cliff . what you have then is an enron .
there have been plenty of other once - unfathomable implosions on wall street , but perhaps none so sudden or of such magnitude . jittery financial markets now have to contend with the possibility that an enron bankruptcy could undermine the financial health of banks and other energy companies . enron ranked seventh on the list of fortune 500 companies last year , and remained one of the most hyped stories on wall street well into this year . a pioneer in creating private marketplaces for newly deregulated commodities , enron was touted as a revolutionary force , bridging the dot - com world and stodgy energy markets .
now enron may become one of the largest bankruptcy cases in history . its stock closed yesterday at 61 cents , as investors rushed for the exits in reaction to the fatal news that , without a bailout from dynegy , enron is unlikely to be able to meet its crushing debt obligations .
the company ' s autopsy will be a complicated affair , entailing numerous lawsuits . what is already clear , and will come as a shock to millions of trusting individual investors across america , is that the financials of a fortune 500 company were essentially a mystery . enron ' s death watch began last month when it grudgingly disclosed that $ 1 . 2 billion of its market value had vanished as a result of ' ' related - party ' ' transactions with private partnerships that enriched company insiders . then enron admitted that it had overstated its profits over the last five years by $ 600 million . dynegy cited enron ' s lack of forthrightness as a reason to walk away from the merger agreement .
not very long ago , competitors and democrats in washington were worrying whether the close ties between enron ' s chairman , kenneth lay , and george w . bush would give the company too much influence . enron has aggressively lobbied , with some success in recent years , to limit regulation and disclosure of its trading operations .
now enron is the best argument for the need for stronger supervision of public companies ' financial data . the securities and exchange commission should make sure that the energy trader ' s saga puts an end to any talk of lessening disclosure requirements faced by public companies . moreover , arthur andersen ' s failure to uncover flawed accounting by enron , or to forcefully question some of the company ' s shadier transactions , raises serious concerns about auditors ' commitment to be sufficiently diligent in reviewing the actions of major companies .
there is a certain irony that enron , a champion of deregulation , now becomes a poster child for the need for strong regulation on wall street .
copyright ? 2000 dow jones section c
enron ' s collapse : the lenders
citigroup and j . p . morgan are left with bruised egos and exposure to loans
by riva d . atlas
11 / 29 / 2001
the new york times
page 6 , column 2
c . 2001 new york times company
dynegy ' s decision to walk away from enron leaves citigroup and j . p . morgan chase licking their wounds after an effort to burnish their reputations as deal makers .
as lead advisers and lead bankers for enron , the banks had the chance to build influence in the merger business . unlike other wall street firms , citigroup and j . p . morgan have large balance sheets and have boasted of their ability to provide both loans and advice . j . p . morgan , in particular , ' ' has been saying that providing financing is an advantage they have in terms of building their investment banking franchise , ' ' said richard strauss , a goldman , sachs analyst following brokerage firms .
now , not only have the banks lost bragging rights for pulling off a difficult deal , as well as millions in fees , they are also left holding hundreds of millions in loans to enron , which is trying to stave off bankruptcy . enron owes the two banks anywhere from $ 800 million to $ 900 million each , although some of it may be hedged through derivatives contracts , analysts estimated .
in bankruptcy , of course , creditors come well ahead of shareholders , who have now been virtually wiped out . janus capital was the biggest shareholder for most of the year , but alliance capital surpassed it as of sept . 30 , according to the latest regulatory filing available . enron ' s stock plunged to 61 cents yesterday .
worries about the money enron owes the banks punished their stocks yesterday . citigroup ' s shares closed at $ 47 . 80 each , down $ 2 . 75 , while j . p . morgan fell $ 2 . 30 , to $ 37 . 50 .
even if enron files for bankruptcy , neither j . p . morgan nor citigroup is thought to have enough exposure to be at serious risk . executives of the banks declined to comment on the estimates of their exposure . while the banks had each promised to make equity investments in the companies of $ 250 million each , those investments have been canceled along with the dynegy deal .
about half of the money owed to j . p . morgan and citigroup consists of a $ 1 billion loan the banks made earlier this month that is secured by one of enron ' s pipelines . citigroup lent $ 600 million , and j . p . morgan provided the rest , according to an executive close to the enron negotiations . the remainder owed to the banks is in various loans , trading positions and other investments not secured by enron assets .
given that there are assets backing much of the banks ' loans , some analysts said the stock market had overreacted . ' ' the net exposure could be very small , ' ' said andrew collins , who covers bank stocks at u . s . bancorp piper jaffray and is recommending citigroup and j . p . morgan .
jeffrey mcmahon , enron ' s chief financial officer , said the company was still working with j . p . morgan chase and citigroup to restructure enron ' s debts .
several other banks may own large amounts of enron debt . bank of america has $ 200 million to $ 300 million , according to estimates by lori appelbaum , who follows bank stocks for goldman , sachs , and ruchi madan , a stock analyst at salomon smith barney . other banks identified by the analysts as owed money are the bank of new york , bank one , fleetboston financial , suntrust and the wachovia corporation . a spokesman for suntrust did not return calls ; executives at the other banks declined to comment .
in what appears to have been bad timing , alliance capital management , a subsidiary of axa , increased its stake in enron late this summer . janus , a unit of stilwell financial , had been the biggest shareholder , but was pruning its stake . alliance ' s position grew 71 percent in the report filed in september , to 5 . 8 percent of enron ' s outstanding . jane ingalls , a spokeswoman for janus , said last night that janus had since sold all its shares , but did not say when or at what price . a spokesman for alliance would not comment about its stake in enron .
copyright ? 2000 dow jones section c
enron ' s collapse : the market
in turbulent bond market , enron ' s woes exacerbate turmoil
by gretchen morgenson
11 / 29 / 2001
the new york times
page 1 , column 2
c . 2001 new york times company
the swift downfall of enron has contributed to extreme turbulence in the united states treasury market in recent weeks , causing violent swings in interest rates not seen since russia defaulted on its debt and the long - term capital management hedge fund nearly collapsed in late 1998 .
even though the exact makeup of enron ' s large trading portfolio remains a mystery , traders said that the energy company had bet that interest rates would continue to decline because of continuing weakness in the economy .
then two weeks ago , the economy began to show signs of revival . as investors decided that the days of federal reserve rate cuts were over , rates began to rise and prices on treasury securities fell . the move out of treasuries crushed traders who still expected the weak economy to push interest rates lower . scrambling to cut their losses , those traders sold even more , depressing prices and pushing up rates further .
the sense among many market participants is that enron ' s woes made a bad market excruciating . ' ' i think the street in general lost half of its year or more in the last week or two , ' ' said stan jonas , managing director at fimat usa , a broker dealer . ' ' everyone was long the bond market , thinking the economy was going to be bad . then everything shifted , and enron drove it to extremes . ' '
how extreme ? in the two weeks beginning nov . 12 , two - year treasury notes plummeted in price , pushing their yields up to 3 . 18 percent , from 2 . 41 percent . in the same period , yields on treasuries with five - year maturities went to 4 . 4 percent , from 3 . 62 percent .
the trade that appears to have gone awry for enron , market participants say , involved the sale of hundreds of thousands of eurodollar futures , some of which matured in two or three years . such contracts are frequently used to bet on the direction of interest rates . enron could also have used the eurodollar contracts to hedge against fluctuations in oil prices . in a weak economy , oil prices usually fall . but so do interest rates , so a bet on lower rates would produce gains to help offset the decline in oil prices . when data showed signs of life in the economy , traders surmised that enron began to sell its eurodollars and started an avalanche of selling among other traders .
there were huge eurodollar positions being liquidated , said gemma wright , director of market strategy at barclays capital . ' ' we don ' t know for certain who it was , but the amount of the loss was high . ' '
one reason that traders suspect enron may have been forced out of such a position was that the company had neither the cash flow nor the bank credit to meet calls for additional cash from traders at other firms . typically , companies have cash reserves to meet such calls or have access to temporary lines of credit to cover shortfalls . enron appears to have neither . yesterday , the company said it was suspending all payments except for those ' ' necessary to maintain core operations . ' '
in addition to the recent interest rate spike , enron has had to contend with falling oil prices . the price of crude oil has dropped 28 percent since the end of october .
caught in a vise , enron has almost certainly been selling securities to raise cash . treasury securities and eurodollar contracts , because their markets are large , are among the easiest to sell . in both cases , enron was probably selling into a falling market .
adding to the turmoil in the bond market , traders said , was less participation by wall street firms , which were unwilling to take on big new trading positions near the end of their fiscal year . several firms end their years on nov . 30 .
some traders say enron ' s problems started with comments on tuesday by laurence h . meyer , a governor of the federal reserve . mr . meyer suggested that additional rate cuts might be coming , and that remark helped stabilize prices of treasury securities . ' ' it ' s my view that there are no coincidences , ' ' mr . jonas said . ' ' laurence meyer is a big hawk on interest rates , and he basically talked a 180 . that was their big gun . the only bigger gun would have been greenspan . ' '
graph : ' ' market catalyst ' ' the swift demise of enron and the company ' s investment strategies in the bond market may have contributed to the sharp rise in the yields on treasury notes in the last few weeks . graph tracks daily yields on 2 year treasury notes in november . ( source : bloomberg financial markets ) ( pg . c 7 )
copyright ? 2000 dow jones section a
enron ' s collapse : market place
a big fall evoking nasty old memories of a run on a bank
by floyd norris
11 / 29 / 2001
the new york times
page 1 , column 1
c . 2001 new york times company
the final collapse of enron amounted to something that few living americans have ever seen : a bank run like those in the days before deposit insurance .
enron appeared to become a wildly successful company by creating a new , largely unregulated financial business , that of energy trading . that business ran on credit , and required suppliers and users of energy to sign contracts that called on enron to meet obligations months or years later .
enron became something like a bank , which takes depositors ' money and promises to pay it back later . but unlike banks in the current era , this institution had no federal deposit insurance to reassure customers when rumors began to spread that it was in trouble . that proved to be its achilles ' heel . enron ' s collapse is a reminder for big players in unregulated markets that their financial health must be beyond doubt .
before the advent of deposit insurance , bankers knew what was needed to head off a bank run . it was cash , so much cash that it would be clear that panic was unwarranted . nearly a century ago , j . p . morgan took the lead as he and fellow banking tycoons put up the millions needed to keep the trust company of america open . thus was halted the panic of 1907 .
as it happened , corporate descendants of two major institutions involved in that rescue - - j . p . morgan chase and citigroup - - were major players in the enron debacle . but they did not try the strategy this time .
instead , enron kept arranging an additional billion or two in loans , clearly struggling to find the money . morgan and citigroup allowed the word to spread that they were ready to put in more money on their own , but the amounts were relatively small , and somehow the money was never invested .
when dynegy agreed to buy enron , it put up $ 1 . 5 billion in cash only after it was assured that it would get control of the company ' s crown jewel , the northern natural gas pipeline system , or its money back , if the deal collapsed .
the final straw came on tuesday , when negotiations on a revised dynegy takeover deal came down to efforts to find $ 250 million or $ 500 million of enron assets that could serve as collateral for a new dynegy cash advance . the message to companies that traded with enron was clear : even its rescuer is demanding collateral , and is having trouble finding it .
given that , enron ' s financial business could not continue . public haggling over the terms of the rescue assured that no rescue was possible , something that would have been obvious to the original j . p . morgan but that seemed to escape his corporate heirs . as walter bagehot , the british financial journalist and historian , wrote in 1873 , ' ' every banker knows that if he has to prove that he is worthy of credit , however good may be his arguments , in fact his credit is gone . ' '
the markets enron helped to create will endure , but probably without enron . it will be interesting to see whether participants in them continue to resist regulation as much as they have in the past . unregulated markets , especially when they are relatively new , can be very profitable for those with superior market knowledge , as enron seemed to have . but when prices are visible to all , the value of that knowledge plummets . regulation could bring more openness , but it could also bring structures , like clearing systems , that reassure traders they need not worry about the credit of those with whom they trade .
if the markets continue to be unregulated , enron ' s collapse makes it more likely that the big players in those markets will be companies that are already regulated enough to assure customers that they are secure - - companies like major banks and brokerage houses . that would be bad news for dynegy , which was enron ' s major competitor before it tried to become its acquirer .
the crisis at enron may have exposed a ' ' flaw in the business model ' ' of energy trading companies , said john diaz , a managing director at moody ' s , in an interview yesterday . ' ' companies in this industry need to think carefully about their liquidity management , ' ' he said . ' ' we ' re going to be looking very hard at this . ' '
the litigation over enron seems likely to be prolonged and expensive , but it may boil down to senator howard h . baker jr . ' s famous watergate - era question about president richard m . nixon : what did he know and when did he know it ?
that question will be asked about arthur andersen , enron ' s auditor , and about its corporate officials , past and present . but it will be asked most particularly about the banks and investment banks that served enron and its affiliated off - balance - sheet entities in recent years .
enron ' s disclosures last week showed it needed to pay far more in debts over the next year than most people had understood to be the case . but the newly discovered loans did not materialize out of thin air . the money was lent by banks and bond buyers to the off - balance - sheet entities . those who were stuck with losses on the known enron debt may claim the financiers who syndicated the loans should have told them of all the other debt .
among those who do not come out of this looking very good are the bond rating agencies . just six weeks ago , after enron put out an earnings release showing strong pro - forma profits , as it defined them , two of the agencies , fitch and standard & poor ' s , reaffirmed enron ' s rating of triple - b plus . moody ' s , the agency that was the most skeptical about enron , put the rating under review and hinted it would , at worst , cut it one notch .
none of the rating agencies seemed overly concerned about a detail disclosed by enron at the time : a $ 1 . 2 billion reduction in shareholder equity related to what it later said were accounting mistakes involving a partnership run by enron ' s chief financial officer . but that disclosure set off a cascade of questions that enron could not answer in a reassuring way . it ran through billions as companies demanded more protection to keep trading with it .
enron could have been saved , if an institution that was trusted - - whether that was chevron texaco , which put up the $ 1 . 5 billion cash that dynegy invested , or j . p . morgan chase or citigroup - - had made it clear that it was willing to stand behind enron . a credible backer would have ended the run .
but no one was willing to do that , and their hesitance as they learned more only accelerated the run . whether they were wise to avoid that exposure may become clear as it emerges how much creditors will eventually get .
finally , the rating agencies yesterday downgraded enron to relatively low levels of junk . they knew that was likely to force enron into bankruptcy in the near future , but they also knew that no one was willing to rescue a company that the agencies had viewed as solid only weeks before .
yesterday , as dynegy walked away from the merger , it said that it was no longer willing to trade with enron - - unless enron put up ' ' sufficient credit support . ' ' it knew that support was nowhere to be found .
copyright ? 2000 dow jones section c
enron ' s collapse : the chief executive
foundation gives way on chief ' s big dream
by john schwartz and richard a . oppel jr .
11 / 29 / 2001
the new york times
page 1 , column 5
c . 2001 new york times company
well before anyone could imagine that enron might collapse , kenneth l . lay was stumped . in an interview in august , he dismissed questions about a vague clause in the energy company ' s annual report that hinted at bigger problems if its stock price or credit rating fell below certain levels .
' ' i just can ' t help you on that , ' ' he said . pressed further on questions about a bewildering constellation of business partnerships that involved enron ' s former chief financial officer , he said , ' ' you ' re getting way over my head . ' '
at the least , mr . lay - - a man of big ideas , a crusader for free markets , a risk taker in the texas wildcatter tradition - - had taken his eye off the ball . while he was busy befriending the nation ' s most powerful politicians , erecting one of the tallest buildings in houston and pasting enron ' s logo on the city ' s new ballpark , the little things were turning out to be mr . lay ' s big problems .
one after another , disclosures spilled out of his company over the last month : the partnerships had hidden billions in debt ; years of enron ' s reported profits had been exaggerated ; the government was investigating . rivals were shunning enron ' s energy trading desks , which mr . lay had built into the world ' s leaders . and sure enough , the stock price tumbled day after day , and credit agencies lowered enron ' s ratings once and then yesterday again , turning the company ' s debt to junk and its shares into a penny stock .
three weeks ago , mr . lay tried to salvage his creation by selling it to dynegy , his houston rival . yesterday , dynegy pulled out of the deal . deprived of enough information , and then repelled by what they learned , the free markets in which mr . lay had put so much faith all but destroyed , in a matter of weeks , everything he had built .
' ' if they had been going a slower speed , the results would not have been disastrous , ' ' said bob mcnair , a houston energy entrepreneur who sold the bulk of his own company to enron three years ago . but enron , he said in an interview this month , was like a race car , and the markets like an unforgiving track . ' ' it ' s a lot harder to keep it on the track at 200 miles per hour , ' ' he said . ' ' you hit a bump and you ' re off the track . ' '
from his youth , mr . lay , 59 , had nurtured an abiding faith in the markets ' wisdom . he studied economics at the university of missouri , living at home to save on room and board , and eventually earned a ph . d . in the subject . as a naval officer serving in the pentagon , he worked to develop more efficient accounting systems . later , he served as an aide to a federal government regulator for the natural gas industry - - a market that enron would come to dominate .
moving into the private sector , he worked his way up the ranks of the natural gas industry , becoming chief executive in 1984 of the houston natural gas corporation , a big regional pipeline operator . he engineered its merger with internorth , an omaha pipeline company , and then became chief executive of the combined company and changed its name to enron .
mr . lay saw enron ' s mission as far more than being a conduit for fuel . at the time , gas prices were regulated and pipelines played a relatively passive role ; buyers and sellers could not cut deals on the fly . but as oil prices plunged in the mid - 80 ' s and gas users began switching to cheaper fuel oil , mr . lay returned to washington to argue , successfully , for rules changes that he said would save the pipeline business by allowing operators to shop for the best deals from both gas producers and utilities .
the new flexibility brought the threat of chaos , however , as natural gas prices began fluctuating wildly . that is when the new enron was truly born . to help customers shield themselves from risk , mr . lay ' s enron developed hedging contracts for gas like those traded in the markets for corn and copper and winter wheat . its innovative ' ' gas bank ' ' let utilities lock up the long - term prices that they craved ; enron lined up the gas supplies from producers , arranged for delivery - - and took a cut of every deal .
that business became the forerunner of enron ' s entry into hundreds of other markets , helping customers obtain supplies and manage risks in products ranging from electric power to pulp and paper and , most recently , fast broadband access to the internet . trading soon provided more of the company ' s profits than the traditional natural gas business .
while other companies , including dynegy , focused on accumulating hard assets like pipelines , turbines and gas fields , enron increasingly saw itself as a pure trading company with an almost limitless future .
' ' there is a very reasonable chance that we will become the biggest corporation in the world , ' ' mr . lay ' s handpicked successor as enron ' s chief executive , jeffrey k . skilling , told the authors of a book , just published , about business on the internet . even the book ' s title , ' ' radical e : from ge to enron - - lessons on how to rule the web ' ' ( ) , showed the cachet the company had attained . enron , the authors wrote , was ' ' creating a culture in which radical and creative thinking is encouraged and rewarded . ' '
mr . skilling abruptly resigned in august , after just six months on the job , propelling mr . lay back into the gritty details of enron ' s businesses that he had sought to leave to others .
as the company grew , he had become increasingly involved in public affairs , serving as host when a global economic conference was held in houston in 1990 and when the republican national convention came to the city in 1992 .
like the leaders of many big texas businesses - - the construction colossus brown became good friends with the texas governor , ann richards ; and supported senator phil gramm of texas , whose wife , wendy , a former chairwoman of the commodities futures trading commission , joined enron ' s board .
' ' he ' s a stand - up guy , ' ' said ms . richards , now a business consultant in new york . asked to be more specific , she said , ' ' he ' s at the meeting ' ' - - meaning she could count on mr . lay to become directly involved with whatever she asked him to do , and not just sign onto a project for show .
mr . lay ' s deepest political ties were with the bush family . in the 1980 ' s , he became a major fund - raiser for george h . w . bush . when mr . bush lost his 1992 campaign for re - election as president , mr . lay brought a number of senior bush aides to enron as directors or consultants , including james a . baker iii , the former secretary of state , and robert a . mosbacher , the former secretary of commerce .
mr . lay also cultivated mr . bush ' s son george w . long before he was considered a serious national candidate . after the younger mr . bush ' s election as texas governor in 1994 , mr . lay became head of the governor ' s business council , an important advisory post .
the bond with president bush is personal . as governor , mr . bush sent mr . lay a kidding note in 1997 . ' ' one of the sad things about old friends is that they seem to be getting older - - just like you ! ' ' he wrote . ' ' 55 years old . wow ! that is really old . thank goodness you have such a young , beautiful wife , ' ' he added , a reference to mr . lay ' s wife , linda .
in 1999 , mr . lay sent a handwritten christmas note to mr . bush and his wife , laura . ' ' linda and i are so proud of both of you and look forward to seeing both of you in the white house , ' ' he wrote .
yesterday , the white house press secretary , ari fleischer , said the treasury department was monitoring enron ' s downfall for its effect on the market . asked if the president himself had any reaction , mr . fleisher said , ' ' the president ' s reaction is that it should be monitored . ' '
in some ways , enron ' s collapse was one more example of the bursting of the internet bubble . but mr . lay was not some stylish dot - com brat ; by all accounts , he is an immensely likable product of middle america . growing up in tiny rush hill , mo . , he was driving a tractor by age 12 and salting away savings . by 16 , his sister sharon recalled this week , ' ' he was bucking bales ' ' - - that is , loading hay - - ' ' and had two jobs in the summer , painting houses . ' '
' ' i don ' t think you could ever say that he did something the easy way , ' ' she said .
that work ethic ran in the family . mr . lay ' s father was a minister who also sold farm equipment . the family ' s finances were spotty , ' ' at times no money , at times some money , ' ' ms . lay recalled . still , the lays took in people from their church who were in need .
over the last decade or so , mr . lay earned some $ 300 million from enron , mostly by exercising stock options . earlier this month , when employees grew incensed at the prospect of his collecting a big severance package with the company ' s sale to dynegy , he volunteered to walk away from $ 60 million in payments .
mr . mcnair , the houston entrepreneur , who has known mr . lay for years , suggested that perhaps everything had not been disclosed to him . ' ' maybe the people who reported to him told him what they wanted him to hear , but they weren ' t telling him everything , ' ' he said .
mr . mcnair said he spoke to mr . lay recently and found him ' ' somewhat in a state of shock . ' ' mr . mcnair added , ' ' he ' s devastated . ' '
in the end , it seems , the man whose company did so much to help others manage their risk could not manage his own .
photos : a portrait of the chairman from enron corporate report for 1999 . ( enron ) ( pg . c 7 ) ; ( pg . cl ) graphs : ' ' enron ' s collapsing house of cards ' ' kenneth l . lay , starting with an ordinary pipeline business , turned enron into one of the fastest growing companies of the 1990 ' s . but it has swiftly collapsed since revealing huge hidden debts , causing its stock to plunge and requiring it to restate earnings . graphs track enron ' s stock price and sensor debt rating since sept . and enron ' s earnings since 1997 . ( sources : bloomberg financial markets ; moody ' s ; enron )
copyright ? 2000 dow jones section c
enron ' s collapse : the derivatives
market that deals in risks faces a novel one
by diana b . henriques
11 / 29 / 2001
the new york times
page 7 , column 1
c . 2001 new york times company
when members of the international swaps and derivatives association gathered in washington last april , the man they all wanted to hear was jeffrey k . skilling , then the president and chief executive of enron .
enron had helped create the global market for energy - based derivatives - - customized risk - swapping contracts that enable companies to hedge their exposure to changing energy prices and supply fluctuations . even among traders more familiar with interest - rate swaps or currency hedges than energy contracts , mr . skilling ' s presentation did not disappoint .
' ' he dazzled everybody - - it seemed he could figure out a way to trade the minutes on this phone call , ' ' one industry executive said .
but yesterday , many of those same executives were crossing their fingers and hoping that enron ' s crisis would not spread into the energy swaps market that the company had done so much to enliven .
as the day ended with fairly stable trading , there were a few cautious sighs of relief . but nobody is quite sure just how much money the energy - related derivatives markets will have at risk if enron fails .
according to swaps monitor publications , which collects data for the derivatives markets , enron ranks among the top energy - swaps traders in the world , on a par with financial giants like bank of america and barclay ' s .
at the end of september , enron ' s gross derivatives trading liabilities - - the amount of money it would owe to other market players if it filed for bankruptcy - - stood at $ 18 . 7 billion , up slightly from june levels but about $ 1 . 3 billion less than at the end of last year .
but that level may overstate the risk to other companies . ' ' these numbers do not take into account the unknown amount of collateral that enron may have posted , ' ' said paul spraos , swaps monitor ' s president . such collateral should , in principle , diminish enron ' s actual liabilities to the derivatives market , he said .
in a typical energy swap , a company will enter into a contract to lock in a fixed price of a certain commodity , like natural gas or electricity . the other company , the counterparty , in the deal assumes the risk of future price changes and quotes a fixed price that includes its own profit . the efficient trading and pricing of these contracts requires a marketplace with large , active traders .
as of last night , there were no signs of a major panic that would drive major participants to the sidelines , industry executives said .
' ' it ' s not likely that enron ' s problems will cause serious difficulty for any other sizable counterparty , ' ' said mark c . brickell , a veteran swaps - market executive and the chief executive of blackbird , a technology firm that operates an electronic swaps - trading system . ' ' while there may be some smaller firm that didn ' t manage its exposure as well as it might , that won ' t cause any major problems for the system as a whole . ' '
michael williams , managing director of tradespark , a rival to enron ' s online energy - trading system , agreed that there was ' ' no sign of shrinkage ' ' in the marketplace yesterday . ' ' so far , we ' ve seen no complaints about a lack of liquidity , ' ' he added .
most participants in the energy derivatives market rely on a standard contract that was developed by the international swaps and derivatives association and is recognized in the courts . the contract clearly specifies the rights each party has in the event of a default , said robert pickel , the association ' s chief executive . as of late yesterday , he added , the markets appeared ' ' to be fairly resilient in the face of extremely negative developments regarding such a major player . ' '
but at least one lawyer who specializes in swaps contracts indicated that it might be too soon to assess the full impact . that lawyer , ann o ' hara , in lincoln , neb . , said that her clients ' anxiety about enron had escalated sharply only in the last few days . ' ' no one believed it would really happen , ' ' she said . ' ' it is not a surprise , but it is a shock . ' '
' ' we don ' t really know who is out there exposed to enron ' s credit , ' ' she added . ' ' i ' m telling my clients to prepare for the worst . ' '
chart : ' ' big bets on derivatives ' ' enron ' s derivatives - trading activity is substantial when measured by the total gross amount of money it owes to derivatives - trading partners . dec . 31 2000 : $ 20 . 0 bil . mar . 31 2001 : $ 21 . 3 bil . june 30 : $ 17 . 5 bil . sept . 30 : $ 18 . 7 bil . ( source : swaps monitor )
copyright ? 2000 dow jones section c
the markets : stocks j . p . morgan fell $ 2 . 30 , to $ 37 . 50 .
the blue - chip dow jones industrial average surrendered 160 . 74 points , or 1 . 6 percent , to 9 , 711 . 86 , the largest drop in about a month and the lowest close since nov . 12 . the standard & poor ' s 500 - stock index slid 20 . 98 points , or 1 . 8 percent , to 1 , 128 . 52 . the technology - laden nasdaq composite index dropped 48 points , or 2 . 5 percent , to 1 , 887 . 97 .
enron dragged on the market as wall street questioned the rally that had lifted stocks well off the sept . 21 lows . investors , still expecting an economic recovery in 2002 , pocketed profits on worries that share prices were getting too far ahead of prospects for corporate earnings .
milton ezrati , a senior strategist at lord abbett bloomberg financial markets ) tables : ' ' hot ' ' the favorites ' ' lists stocks held by largest number of accounts at merrill lynch . ( compiled from staff reports , the associated press , bloomberg news , bridge news , dow jones , reuters ) graph ' ' freddie mac yields ' ' tracks 15 and 30 - year federal home loans since august . ( source : f . h . l . m . c . ) graph ' ' 2 - year treasury notes ' ' tracks high yields in percent since 2000 . ( source : treasury department )
copyright ? 2000 dow jones section c
enron ' s collapse : the rating agencies
debt rankings finally fizzle , but the deal fizzled first
by alex berenson
11 / 29 / 2001
the new york times
page 7 , column 1
c . 2001 new york times company
in the end , the rating agencies hardly mattered .
for weeks , wall street wondered whether moody ' s investors service , standard & poor ' s and fitch ' s , the three major agencies rating corporate debt , would drop enron ' s rating below investment grade .
enron and dynegy warned that cutting the rating might jeopardize dynegy ' s acquisition of enron . executives at big securities firms that stood to profit from the deal pressed moody ' s to keep ratings at investment grade , even as enron bonds fell to levels indicating that the debt was highly risky .
but even an investment - grade rating could not save enron ' s business from collapse over the last month . after a series of damaging revelations about enron ' s finances , the company ' s partners demanded extra capital for its trades or stopped trading with it . by the time the rating agencies decided yesterday that enron might well default on its debt , dynegy had decided on its own to walk away .
' ' it wasn ' t really the reason that dynegy backed out of the deal , ' ' said todd shipman , the standard & poor ' s analyst who was the first to cut enron ' s rating yesterday .
the cuts dim the hopes enron had of avoiding bankruptcy . all three agencies slashed enron ' s debt far below investment grade . moody ' s cut enron ' s rating 5 notches , standard & poor ' s lowered it 6 , and fitch slashed it 10 , to cc , its third - lowest grade .
' ' default is a probability , ' ' said glen grabelsky , the senior director of credit policy for fitch . enron has $ 13 billion in debt outstanding and about $ 10 billion more in loans , made by partnerships , that the company has guaranteed .
the aggressive rating cuts may not mollify the investors who have sharply criticized the agencies for being slow to act in recent weeks . officials at all three agencies defended themselves yesterday , saying they had acted prudently .
after dynegy agreed to buy enron , moody ' s tried to calculate the chances that the deal would go through , that enron would remain strong until it was completed and that the combined company would carry a strong rating , said john diaz , managing director for moody ' s power and energy group .
at first , those questions seemed to have reassuring answers , mr . diaz said , so moody ' s kept enron ' s investment - grade rating .
but in recent days , other companies have shied away from doing business with enron , and its losses have soared . ' ' basic cash flow was slowing down at the same time that the cost structure of the company was the same , ' ' mr . diaz said . enron ' s mounting losses discouraged dynegy , he said .
' ' over the last 24 hours , the probability that we ' ve assigned to these three key issues was looking to be a lot smaller , ' ' mr . diaz said .
mr . grabelsky said the acquisition uncertainty presented the agencies with a situation where enron ' s debt could be very strong , if the deal worked , or highly risky .
' ' there is no middle ground , ' ' he said . ' ' it ' s one or the other . ' '
copyright ? 2000 dow jones the $ 76 m ark short term bond fund , which had a 4 . 05 per cent position , or $ 3 . 4 m as of september 30 ; and the $ 50 m first focus short / intermediate bond fund , which had a 4 . 15 per cent slice of its portfolio in the bonds , worth $ 2 . 07 m as of september 30 .
although these are just single - digit positions , a loss from par value to 20 cents on the dollar in a 4 per cent holding could trim off half of a fund ' s return , said scott berry , morningstar bond fund analyst .
the average intermediate bond fund has returned 7 . 3 per cent so far this year , according to morningstar . a loss from par value to 20 cents on the dollar in a 4 per cent stake could reduce a 7 . 3 per cent return to roughly 3 . 3 per cent , mr berry said .
" with bonds , there ' s much more downside than upside . typically , the downside is never realised because these investment - grade bonds are strong enough to weather the storm , but enron just caught everybody by surprise over the last couple of months , " he said .
other large investment - grade bond funds that held enron ' s debt as of their most recent filings include the $ 13 . 6 bn fidelity short term bond fund , which held 0 . 77 per cent , worth $ 27 . 7 m as of april 30 , and two of the strong funds - the $ 1 . 36 m strong corporate bond fund , which held 0 . 77 per cent as of september 30 , or $ 10 . 5 m , and the $ 1 . 43 bn strong short term bond fund , with a 0 . 63 per cent holding , also as of september 30 , worth $ 9 m .
mr berry said managers of investment - grade bond funds that still held the debt were probably selling it , although most had the latitude to hold a bond once it lost its investment - grade status . however , they also said junk - bond fund managers were unlikely to buy it , because other " fallen angel " bonds such as xerox had not performed well .
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companies & finance the americas - sec filing triggered merger crisis .
by sheila mcnulty .
11 / 29 / 2001
financial times
( c ) 2001 financial times limited . all rights reserved
dynegy ' s rescue bid for enron went into " crisis mode " 10 days ago , said chuck watson , dynegy ' s chairman and chief executive .
in a filing to the sec , enron revealed a previously undisclosed $ 690 m note payment due this week , as well as that it had $ 9 . 15 bn in debt due by the end of next year . the news provoked another round of selling in enron ' s already plunging share price , forcing dynegy into 18 - hour a day talks that ran through the thanksgiving weekend and up to midnight on tuesday . .
" that may have been the last straw to some shareholders , " mr watson said just hours after withdrawing from dynegy ' s $ 9 bn merger with enron . enron had been the biggest energy trader in the us until a crisis of confidence , beginning in october , that pushed it to the brink of bankruptcy .
" every time we thought we had the pieces , " he said . " every time we put the puzzle together it wasn ' t a clear strategy to go forward . "
he said the talks resumed yesterday at 7 am , but when the rating agencies began downgrading enron to junk status , mr watson called ken lay , enron ' s chairman and chief executive , to say " it wasn ' t going to work " .
" once they downgraded the company , we thought , what was already an uphill battle , was too difficult , " he said . mr watson said he offered to help any way he could and the two men - who have long been friendly , cross - town rivals - parted amicably .
mr watson has received several calls from other counter - parties in the business , thanking him for saving them from a meltdown by giving them the time to limit their exposure to enron . " i don ' t feel like a saviour , i feel tired , " he said . but he acknowledged he provided a vast number of enron ' s counterparties , partners and customers a chance to better protect themselves against enron ' s demise .
" there was a really strong effort to make it happen , " he said . " in the end , we couldn ' t find a solution that didn ' t risk dynegy ' s responsibility to its shareholders and to its employees . "
he says the merger agreement allows it to walk away with enron ' s most valuable asset , the northern natural gas pipeline , though if enron disputes that , at worst , it would leave with money invested in saving enron . " we are as solid as we were going into ( the merger ) and , maybe , better for the experience , " he said .
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companies & finance the americas - financial system braces for a chain reaction .
11 / 29 / 2001
financial times
( c ) 2001 financial times limited . all rights reserved
gary silverman .
enron ' s woes are raising risks for the financial system , threatening to set off a chain reaction in the markets that could damage any number of participants in unforeseen ways .
individual banks could lose hundreds of millions of dollars apiece on loans to enron , but regulators are confident the lenders have sufficient capital to weather such a storm .
the bigger worry is that enron ' s difficulties could trigger ripple effects in much the same way as russia ' s default in 1998 destabilised the long - term capital management hedge fund .
prices for banking stocks tumbled yesterday in new york and london , in large part because no one really knows what would happen if enron were removed from the financial scene .
enron sat on a massive trading book , made up of complex derivatives transactions , some meant to stay in place for decades . on the other side were a host of counterparties , many of them energy companies that are not supervised by banking regulators .
the counterparties , in turn , have their own set of borrowing and trading relationships with banks that may be completely unaware of their customers ' ties to enron . bankers also fear that because so many of these counterparties were new to sophisticated trading , they may have been lax in collateralising their deals .
for leading banks , enron ' s woes could result in big hits to profits . just about every big lending bank has exposure to enron , according to members of the bank group .
at a meeting of enron ' s creditors last week , one banker estimated there could have been 500 bankers representing 20 or more banks .
jp morgan chase and citigroup are the most prominent members of the bank group , but barclays , credit lyonnais , credit suisse first boston , deutsche bank and many others are exposed .
it was understood that jp morgan chase ' s direct exposure to enron approaches $ 900 m , about $ 500 m of it unsecured by the energy company ' s assets . citigroup ' s direct exposure could reach $ 800 m , about half unsecured .
european banks also could take hits . according to data from loanware , for example , westlb , the german state - owned bank , has a $ 580 m bridge facility outstanding . this was extended as trade financing last year and does not appear to have been syndicated .
however , analysts caution that determining the exposure of a particular bank to enron is virtually impossible for outsiders . many loans are syndicated or sold , and bankers are also making increasing use of credit derivatives that enable them to buy insurance against default from counterparties .
barclays , for example , is one of the most active arrangers of finance for enron but it has syndicated most of its initial exposure . its exposure is estimated at less than # 250 m ( $ 356 m ) . on the other hand , banks could be exposed to firms that dealt with enron , which sold credit default insurance to its trading partners , according to market participants .
investors rerated banking stocks yesterday to account for expected exposures . citigroup was down $ 2 . 75 , or 5 . 4 per cent , to $ 47 . 80 , while jp morgan was down $ 2 . 30 , or 5 . 78 per cent , to $ 37 . 50 . in london , shares in barclays fell 4 per cent , or 86 p , to 2093 p . additional reporting by joshua chaffin in new york and rebecca bream in london .
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copyright ? 2000 dow jones & company , inc . all rights reserved .
companies & finance the americas - traders avoid exposure to junk status fallout .
by adrienne roberts and andrew taylor .
11 / 29 / 2001
financial times
( c ) 2001 financial times limited . all rights reserved
energy traders on both sides of the atlantic were doing very little business with enron even before credit rating agencies demoted the debt of the world ' s biggest power trader to junk status .
rivals have been anxiously calculating their potential exposure to an enron collapse for at least a month - since the true extent of the company ' s crisis emerged .
most traders before yesterday were only prepared to be buyers of electricity and gas from the group , on the basis that it was better to owe than be owed in these circumstances .
" there would have been very few sellers to enron , " said one trader last night .
the group accounts for about 25 per cent of energy trading in the us with a similar market share in the smaller european market .
the loss of such a large player could cause liquidity problems in the us , said one analyst .
europe - based energy groups , however , felt there was sufficient capacity in their market to fill the gap .
more worrying is the knock - on effect particularly on smaller companies should enron be unable to honour long - term contracts , said brian senior , director of trading and asset management at innogy , the uk arm of the demerged national power .
the collapse of enron ' s credit rating means that it may have to provide a lot of cash as collateral to cover long - term liabilities , with money being due as early as next monday , said mr senior .
most large energy groups stopped trading with enron in european markets two days ago .
" the simplest thing is to pull the plug until they ' ve figured out what ' s going on , " said one analyst .
martin stanley , president of european energy trading for txu , another large us energy group , said : " we have halted trading with enron . we are sorry to see it happen because they are a very innovative company . "
even before yesterday ' s events , txu , like other large traders , had been adding up how much it could be owed and how much it would owe , should enron fail to honour its obligations .
" we have been looking at various scenarios and have implemented our credit event management process designed to minimise our cash exposure , " said mr stanley .
" we are comfortable with our cash position , " he added .
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companies & finance the americas - downgrade is the final straw for enron .
by andrew hill and sheila mcnulty .
11 / 29 / 2001
financial times
( c ) 2001 financial times limited . all rights reserved
writes andrew hill .
negotiations over the fate of enron , the us energy trading group , had been described as having " a lot of moving parts " . yesterday , those parts finally broke loose as the credit rating agencies ' patience ended with a downgrade of the energy trader ' s debt to junk status , and dynegy , its erstwhile saviour , withdrew .
immediate concern centred on the possibility of a systemic risk to the energy markets . " it ' s over , isn ' t it ? " said gerald keenan , a partner at pwc . " what it is going to engender is a daisy chain of defaults . "
enrononline , the group ' s much - vaunted web - based commodities trading system , shut down , according to traders . counterparties in the energy market stopped trading with enron altogether . the shares , which at their peak last year traded at $ 90 , fell by nearly three - quarters to just over $ 1 . the bonds , which have been trading at levels consistent with imminent bankruptcy for two weeks , fell further .
enron ' s survival since its much smaller rival , dynegy , launched a rescue bid on november 9 , has depended on a fragile pact between dynegy , chevrontexaco ( which owns 26 per cent of dynegy and backed the bid ) , enron ' s lenders , its trading counterparties and the rating agencies . the logic of this pact was essentially circular .
when dynegy stepped in three weeks ago enron was in the early stages of its crisis of confidence . shareholders had been shocked by enron ' s admission that it would have to shrink shareholders ' funds by $ 1 . 2 bn to end a transaction with an off - balance - sheet vehicle established by andrew fastow , former chief financial officer . suddenly , the lack of transparency they had been prepared to forgive while the shares rose was a liability .
searching for a way to arrest the downward spiral , ken lay , enron ' s chief executive , linked up with chuck watson , his counterpart at dynegy . dynegy ' s all - stock bid - valuing enron , on tuesday ' s closing prices , at $ 9 . 4 bn - was dependent , however , on the rating agencies not downgrading the energy ' s group ' s substantial debts to junk status .
such a downgrade , as enron explained in a regulatory filing last week , would require the group to repay , refinance or provide extra cash as collateral for some $ 3 . 9 bn of debts owed by off - balance - sheet trusts .
under pressure from enron and dynegy ' s bankers , the agencies refrained from downgrading the debt , and dynegy went ahead with its bid . the agencies justified their position by citing the pending bid .
it was an uncomfortable position for the agencies , however , and their resolve began to crumble last week as dynegy and enron talked about renegotiating the deal .
in a tersely worded note issued last wednesday , fitch , another rating agency , pointed out that if dynegy " steps away entirely from the merger , enron ' s credit situation seems highly untenable with a bankruptcy filing highly possible " .
yesterday , s & p , then moody ' s and fitch , finally broke the fragile ring of confidence that was holding lenders , bidders and enron itself together . in its note , s & p explained in stark terms how the virtuous circle of confidence might now become a vicious downward spiral .
the collapse of enron securities in capital markets made dynegy less likely to complete its takeover , s & p wrote . at the same time , enron ' s franchise in the energy markets had " sustained significant damage " , making it a less attractive target .
if enron does now disintegrate , the question is whether the chain reaction will extend beyond the houston company and drag in other energy traders , or even the banks that finance them . analysts had already begun to liken its situation to that of long - term capital management , whose demise in 1998 prompted the federal reserve to co - ordinate a rescue by wall street banks to avoid a financial crisis .
however , the head of one large commodities trader said the biggest market participants had had long enough to protect themselves from the collapse of enron .
but smaller groups could be affected and the fear is that the complexities of its balance sheet may still contain the seeds of a wider crisis . additional reporting by sheila mcnulty in houston .
( c ) copyright financial times ltd . all rights reserved .
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copyright ? 2000 dow jones & company , inc . all rights reserved .
companies & finance the americas - downgrade is the final straw for enron .
by andrew hill and sheila mcnulty .
11 / 29 / 2001
financial times
( c ) 2001 financial times limited . all rights reserved
writes andrew hill .
negotiations over the fate of enron , the us energy trading group , had been described as having " a lot of moving parts " . yesterday , those parts finally broke loose as the credit rating agencies ' patience ended with a downgrade of the energy trader ' s debt to junk status , and dynegy , its erstwhile saviour , withdrew .
immediate concern centred on the possibility of a systemic risk to the energy markets . " it ' s over , isn ' t it ? " said gerald keenan , a partner at pwc . " what it is going to engender is a daisy chain of defaults . "
enrononline , the group ' s much - vaunted web - based commodities trading system , shut down , according to traders . counterparties in the energy market stopped trading with enron altogether . the shares , which at their peak last year traded at $ 90 , fell by nearly three - quarters to just over $ 1 . the bonds , which have been trading at levels consistent with imminent bankruptcy for two weeks , fell further .
enron ' s survival since its much smaller rival , dynegy , launched a rescue bid on november 9 , has depended on a fragile pact between dynegy , chevrontexaco ( which owns 26 per cent of dynegy and backed the bid ) , enron ' s lenders , its trading counterparties and the rating agencies . the logic of this pact was essentially circular .
when dynegy stepped in three weeks ago enron was in the early stages of its crisis of confidence . shareholders had been shocked by enron ' s admission that it would have to shrink shareholders ' funds by $ 1 . 2 bn to end a transaction with an off - balance - sheet vehicle established by andrew fastow , former chief financial officer . suddenly , the lack of transparency they had been prepared to forgive while the shares rose was a liability .
searching for a way to arrest the downward spiral , ken lay , enron ' s chief executive , linked up with chuck watson , his counterpart at dynegy . dynegy ' s all - stock bid - valuing enron , on tuesday ' s closing prices , at $ 9 . 4 bn - was dependent , however , on the rating agencies not downgrading the energy ' s group ' s substantial debts to junk status .
such a downgrade , as enron explained in a regulatory filing last week , would require the group to repay , refinance or provide extra cash as collateral for some $ 3 . 9 bn of debts owed by off - balance - sheet trusts .
under pressure from enron and dynegy ' s bankers , the agencies refrained from downgrading the debt , and dynegy went ahead with its bid . the agencies justified their position by citing the pending bid .
it was an uncomfortable position for the agencies , however , and their resolve began to crumble last week as dynegy and enron talked about renegotiating the deal .
in a tersely worded note issued last wednesday , fitch , another rating agency , pointed out that if dynegy " steps away entirely from the merger , enron ' s credit situation seems highly untenable with a bankruptcy filing highly possible " .
yesterday , s & p , then moody ' s and fitch , finally broke the fragile ring of confidence that was holding lenders , bidders and enron itself together . in its note , s & p explained in stark terms how the virtuous circle of confidence might now become a vicious downward spiral .
the collapse of enron securities in capital markets made dynegy less likely to complete its takeover , s & p wrote . at the same time , enron ' s franchise in the energy markets had " sustained significant damage " , making it a less attractive target .
if enron does now disintegrate , the question is whether the chain reaction will extend beyond the houston company and drag in other energy traders , or even the banks that finance them . analysts had already begun to liken its situation to that of long - term capital management , whose demise in 1998 prompted the federal reserve to co - ordinate a rescue by wall street banks to avoid a financial crisis .
however , the head of one large commodities trader said the biggest market participants had had long enough to protect themselves from the collapse of enron .
but smaller groups could be affected and the fear is that the complexities of its balance sheet may still contain the seeds of a wider crisis . additional reporting by sheila mcnulty in houston .
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copyright ? 2000 dow jones nancy vogel
times staff writers
11 / 29 / 2001
los angeles times
home edition
a - 1
copyright 2001 / the times mirror company
new york - - enron corp . ' s lifeline merger deal collapsed wednesday , and the once - mighty energy trader slid toward all - but - certain bankruptcy .
its houston rival and neighbor dynegy inc . called off its planned takeover after wall street ' s major credit - rating agencies slashed enron ' s bonds to " junk " status wednesday morning .
investors and enron ' s trading partners had lost confidence well before the rating agencies did . in fact , it was the recent erosion of enron ' s trading business and the harrowing slide in its stock and bond prices that forced the ratings cut and triggered dynegy ' s decision to back out of the deal .
informed sources said dynegy ultimately balked after coming across much more debt than it expected in evaluating enron ' s finances and watching helplessly as the value of its would - be acquisition shrank dramatically when energy customers fled the firm .
with the merger called off , enron was " exploring other options to protect our core energy businesses , " kenneth l . lay , the company ' s chairman and chief executive , said in a brief statement that skirted the topic of bankruptcy .
the lack of a decent credit rating cripples enron ' s ability to run its trading business , the franchise that made it one of america ' s most admired companies but also gave it a reputation for arrogance and greed , particularly for its role in california ' s energy crisis .
computer screens went dark nationwide wednesday as the widely used enrononline internet - based trading system shut down .
enron ' s stock , already down 95 % for the year , tumbled $ 3 . 50 to close at 61 cents on wednesday in a trading stampede on the new york stock exchange . a one - day record of 339 million shares changed hands .
the whole company , once worth $ 63 billion , now is valued at less than $ 500 million , or about twice the cost of enron ' s new headquarters under construction in downtown houston .
dynegy shares , meanwhile , sank $ 4 . 92 to $ 35 . 97 , just below where they stood when dynegy agreed to acquire enron on nov . 9 .
dynegy exited the deal because it was " unwilling to risk our franchise , our credit or our credibility , " president stephen bergstrom said in a news conference wednesday .
" we know when to say no , and this morning we said no , " he said .
wall street had been saying no for days , hammering enron ' s stock to less than half the $ 10 . 41 a share that dynegy originally agreed to pay . dynegy was in the process of renegotiating its price downward when it finally threw in the towel .
the deal ' s lack of credibility with stock and bond investors prompted the top two rating agencies - - standard & poor ' s and moody ' s investors service - - to cut their ratings on enron , knowing that they probably were pronouncing a death sentence .
the ratings downgrade triggered clauses in enron loan agreements that require the company to immediately pay its creditors some $ 3 . 9 billion - - money that it doesn ' t have , analysts said .
the ripples from enron ' s collapse spread far and wide , even to the u . s . treasury market , where some investors fled for safety as enron ' s bonds plunged in value .
enron led a trend in energy trading , creating an internet - based network that allowed millions of suppliers and purchasers of electricity , natural gas , oil and coal to do business with one another . the trades of contracts , often spanning many years at a fixed price range , are intended to protect major users and suppliers of energy from fluctuations in fuel prices .
energy market experts are split on the long - term effects of enron ' s collapse . some say the fallout will be slight , noting that rivals already have stepped in to take over business with trading partners who were too nervous to continue dealing with enron .
" the whole industry should thank dynegy for basically buying them two or three weeks ' time to unwind their deals with enron , " said analyst andre meade of commerzbank securities in new york .
but enron was noted for the complexity of its long - term deals , and the effects of its withdrawal as a key player could be far - reaching and unexpected , other analysts said .
banking companies , dozens of which lent money to enron , saw their shares dip on worries about whether those loans will be repaid . shares of rival energy companies , too , lost value .
enron ' s chief lenders - - citigroup inc . and j . p . morgan chase & co . - - each have about $ 800 million in loans that may be at risk in a bankruptcy , said richard strauss , a bank analyst with goldman , sachs ; photo : ( no caption ) ;
copyright ? 2000 dow jones financial desk
enron failure ' s ripple effects analysis : observers say consequences could be severe for energy prices as well as banks and other investors . firm ' s trading rivals see opportunities .
james flanigan ; chris kraul
times staff writers
11 / 29 / 2001
los angeles times
home edition
c - 1
copyright 2001 / the times mirror company
houston - - the likely bankruptcy of enron corp . could lead to a host of troubling consequences , including higher wholesale prices for electricity and natural gas and financial distress for banks and other firms as well as major bondholders and other investors , analysts said wednesday .
however , energy trading markets were calm as enron competitors picked up the slack while looking for opportunities to build or expand their own trading operations and acquire enron assets .
the concerns and maneuvering came as dynegy inc . on wednesday canceled its proposed acquisition of enron , once the world ' s largest energy trading company , after enron ' s debts were downgraded to non - investment " junk " status , making a bankruptcy filing highly likely .
" banks are starting to worry about a financial meltdown from an enron collapse , " said peter fusaro , president of global change , a risk management consultancy in new york .
enron ' s debts , which had been partly hidden in off - balance - sheet partnerships , could total $ 5 billion more than the company ' s assets , experts in new york and houston estimated .
citigroup and j . p . morgan chase , major commercial bankers to enron , will face losses if enron files for bankruptcy , analysts said . shares of citigroup and morgan declined more than 5 % on wednesday . other experts warned that investment banking firms such as goldman sachs and morgan stanley that had been part of enron ' s sophisticated trading network also could run into problems .
as enron , which rose rapidly in recent years to almost $ 200 billion in annual revenue , neared bankruptcy , shareholders faced being wiped out and investors in about $ 9 billion in enron bonds may get only cents on the dollar , analysts said .
enron ' s employees , 15 , 000 of whom hold enron stock in their 401 ( k ) retirement plans , stood to be among the biggest losers in the company ' s collapse . many probably also will lose their jobs .
major lawsuits against enron claiming lack of loyalty and prudence in dealing with its employees are among scores of lawsuits now confronting the company and arthur andersen , the accounting firm that approved enron ' s financial statements . enron is under investigation by the securities and exchange commission for its handling of disclosure of the partnerships and subsidiaries .
and yet as enron ' s crisis approached a possible bankruptcy filing , a brisk optimism prevailed among energy traders . enron competitors were as enthusiastic about opportunities to buy parts of enron as they were fearful of the consequences of the big trader ' s collapse .
stephen baum , chief executive of sempra energy , the san diego - based utility holding company , said enrononline , the houston company ' s highly successful internet - based trading operation , would be acquired by other companies and carry on energy trading in the future .
sempra itself would be interested in discussing formation of such a new online trading firm , baum said , " although its name would not be enron online . "
baum added that sempra could be interested in acquiring several enron assets , in the u . s . and abroad .
energy markets were calm wednesday . kevin fox , manager of commodities and trading for aquila energy , a kansas city , mo . - based energy trader , described markets as " surprisingly orderly . "
enron ' s troubles have been building for well over a month , fox explained , and so the halt of enron online came as no surprise . fox saw no difficulty in his firm and other trading companies fulfilling enron ' s contracts should the energy company cease to operate .
still , others saw disrupted markets and price volatility . fears about the aftermath of enron ' s collapse centered on long - term commitments the firm has made in recent years to handle all the energy needs of giant entities such as the university of california system or to supply 10 years of natural gas at a fixed price range to an electricity generating station .
problems could arise because long - term contracts typically become encrusted with related transactions that hedge against price movements over time or the interest cost of financing . such complexity could make it difficult for other firms to pick up enron ' s long - term contracts .
if enron in bankruptcy " can ' t cover its obligations , maybe other wholesalers can ' t either , " said gordon allott , vice president at kw international , a trading and risk management firm in san francisco .
" and then you have customers going out into the spot market , which could drive prices higher . that ' s the big bogey monster out there , " allott said .
however , any effect on consumers from such disruptions could be slight . gerald keenan , head of the energy practice at , noted that enron ' s collapse would not " affect the basic supply and demand for electricity and natural gas , " the true determinant of prices .
one major factor reducing the effect of an enron collapse on markets and energy supplies is the growth in recent years of energy trading into a broad industry , with more than $ 300 billion in annual activity in contracts for electricity and the natural gas and oil fuels that produce it .
the intercontinental exchange , a consortium of six trading firms , handles more energy trades today than did enron .
if sempra and other companies acquire and operate enrononline , the industry will have two major groups to rely on . the need for energy trading has been growing out of deregulation and change in the electric utility industry .
" trading absorbs risks of fuel - price movements and the like that used to be passed on to retail customers in the form of adjustments to monthly bills , " fox explained .
the breadth and expertise of this new industry , as well as the months of enron ' s decline that gave competitors and markets time to adjust , could promise a relatively stable aftermath of enron ' s downfall .
however , the post - enron future is likely to see closer regulation of energy contract trading to increase disclosure of terms and risks .
but enron and its top executives , along with the arthur andersen accounting firm , face months and possibly years of lawsuits from shareholders who suffered losses as enron ' s stock lost more than $ 60 billion of market value in a single year .
and lawsuits by enron employees , challenging the firm ' s treatment of 401 ( k ) accounts , will go forward even if enron is in bankruptcy , said attorney lynn sarko of keller rohrback , a seattle law firm that is bringing one of the suits on behalf of employees .
" there is still liability faced by fiduciaries , officials who were administrators of the savings plan and by the companies that insured it , " sarko said .
*
flanigan reported from los angeles and kraul from houston . times staff writer jerry hirsch contributed to this report .
graphic : fallout on wall street / los angeles times ;
copyright ? 2000 dow jones financial desk
markets enron troubles , uncertainty send stocks tumbling wall st . : sellers gain the upper hand , but many analysts say markets were due for a pullback .
from times staff and wire reports
11 / 29 / 2001
los angeles times
home edition
c - 4
copyright 2001 / the times mirror company
stocks tumbled wednesday amid investors ' nagging uncertainty about the economy and as energy giant enron headed toward financial collapse . meanwhile , treasury bond yields were little changed . after sliding early in the session , they rebounded after the government got a tepid reception for a record sale of two - year notes .
on wall street , the dow industrials slid 160 . 74 points , or 1 . 6 % , to 9 , 711 . 86 . the market was in a steady decline most of the session .
the tech - dominated nasdaq composite suffered a 2 . 5 % decline , off 48 points to 1 , 887 . 97 .
losers topped winners by about 2 to 1 on the new york stock exchange and on nasdaq .
early in the week the market seemed poised to retake the 10 , 000 level on the dow and the 2 , 000 level on the nasdaq index . instead , sellers have gained the upper hand .
analysts noted that many investors aren ' t convinced the economy will improve in the first half of 2002 . for weeks , hopes that business will improve early next year have been boosting the market .
" we ' re not out of the woods yet " with the economy , said richard jandrainof banc one investment advisors corp .
the federal reserve ' s latest report on conditions by region , released wednesday , painted a generally somber picture of the economy .
still , many analysts said stocks ' sell - off this week doesn ' t appear to be anything special .
" the reality is , we were due for some pullback , " said barry hyman , chief investment strategist at ehrenkrantz king nussbaum .
hyman and other analysts were actually pleased to see investors take a cautious step back after fearing that the market was rising too much and too quickly .
the market ' s softness was spread across most sectors , but one of the weakest spots was utilities , which dropped after dynegy backed out of its planned merger with enron .
nyse - listed enron broke the record for heaviest trading in a single day with more than 339 million shares changing hands , as it fell $ 3 . 50 to 61 cents . the previous volume record was the 304 million shares of intel traded on nasdaq on sept . 22 , 2000 .
investors were selling most utility stocks wednesday . the dow utilities average fell 2 . 9 % to a 52 - week low of 279 . 95 .
financial stocks were slammed on worries about spillover from an enron collapse . j . p . morgan chase sank $ 2 . 30 to $ 37 . 50 , and citigroup dropped $ 2 . 75 to $ 47 . 80 . both are in the dow .
retailing issues remained vulnerable to concerns that this holiday shopping season will be the worst in a decade . gap stumbled 79 cents to $ 13 . 61 after prudential securities reduced its rating on the clothier to " sell " from " hold " and called its holiday merchandise poor . electronics retailer best buy fell $ 1 . 18 to $ 69 . 90 , and bed , bath & beyond declined 74 cents to $ 32 . 34 .
technology also was weaker as investors fear there is still too much inventory and not enough demand . chip equipment maker altera fell $ 1 . 83 to $ 21 . 83 ahead of its update on business in the fourth quarter . after the market closed , altera reaffirmed its revenue projections for the year ' s final three months .
ibm , another dow stock , dropped $ 2 . 05 to $ 112 . 15 after announcing it will cut 1 , 000 jobs from its seven u . s . chip plants because of a slowdown in the microprocessor industry .
what was bad for stocks normally would be good for bonds , but that wasn ' t the case by the close of trading wednesday .
yields fell early in the day , then reversed after the government ' s biggest sale ever of two - year notes flooded the market with debt .
the treasury sold $ 21 billion of the two - year notes at a yield of 3 % , up from $ 19 billion sold in october , part of an effort by the government to finance a spending increase using short - dated debt .
the five - year t - note yield ended unchanged at 4 . 29 % . the 10 - year t - note ended at 4 . 93 % , up from 4 . 92 % .
copyright ? 2000 dow jones bankruptcy expected
by laura goldberg
copyright 2001 houston chronicle
after dynegy pulled out of its deal to buy enron corp . wednesday morning , it appeared the most likely option for enron was bankruptcy protection .
from wall street to houston , it was widely expected enron would file for bankruptcy , perhaps as soon as today .
" it ' s probably imminent , " said andre meade , a stock analyst with commerzbank securities in new york .
jeff mcmahon , enron ' s chief financial officer , said wednesday night that enron was evaluating all its options for restructuring its balance sheet and debt , and ways to return its business to health .
mcmahon said enron wasn ' t considering a chapter 7 bankruptcy filing , which would involve a liquidation or selling of all assets .
he didn ' t rule out a chapter 11 filing , which lets a company protect assets while it works out a reorganization plan , but he stressed that enron was also reviewing other options .
he declined to describe what the options are , but said he prefers to fix enron without a bankruptcy .
earlier wednesday , enron said it had suspended making payments other than those needed to maintain core business operations and it was working to retain employees needed for its trading and other core energy businesses . no layoffs were announced .
wall street doesn ' t believe enron has real choices other than bankruptcy . shares in enron lost much of their value wednesday , closing at 61 cents . the company , which was dropped from the standard & poor ' s 500 index , also broke the record for most shares traded in a day .
before oct . 16 , a buyout by dynegy , let alone a bankruptcy , were unthinkable for houston ' s largest company and the world ' s largest energy trader . but that day , enron disclosed millions in financial losses related to investment partnerships it did business with and were run by enron ' s since - ousted chief financial officer .
in the days and weeks that followed , the securities and exchange commission started investigating enron , a stack of shareholder and employee lawsuits were filed , enron restated earnings and made disclosures about its balance sheet that wall street found troubling .
dynegy swooped in to rescue enron when the two companies agreed to a merger deal nov . 9 . but continuing bad news surrounding enron put pressure on that deal .
until wednesday morning , it appeared enron and dynegy would find a way to rescue the merger by revamping its terms .
after several days of talks among the companies , bankers and others , chuck watson , dynegy ' s chairman and chief executive , said in an interview he concluded a solution wasn ' t reachable .
the final confirmation for watson was when standard & poor ' s wednesday morning cut enron ' s credit rating to so - called junk status , effectively halting enron ' s ability to run its core business of energy trading and marketing , which is dependent on access to cash and credit . that trading franchise was a key reason for dynegy ' s interest in enron .
s & p said in its rating report that it cut enron ' s credit rating because it didn ' t believe the merger , which wasn ' t expected to close for six to nine months , would go through .
when the companies inked the deal on nov . 9 , watson said he expected no more surprises about enron ' s financial state . but the deal included escape clauses just in case .
among reasons dynegy cited for ending the merger were " breaches of representations " by enron . it also invoked an escape provision that let dynegy to walk away if enron had a " material adverse change " in its business .
" we have never been willing to risk our franchise , our credit or our credibility , " watson said . " we knew when to say no and this morning we said no . "
since nov . 9 , enron made new financial disclosures and saw significant drops in its stock price and trading business . all of that caused dynegy to seek new terms for the merger agreement , including a lower price , cash infusions to stabilize enron and a restructuring of enron ' s debt repayment schedule .
watson traced the beginning of the end to nov . 19 , the day enron filed its 10 q with securities regulators . companies must file their 10 q every quarter with details of their earnings and balance sheet with the sec .
dynegy was hit by surprise when enron disclosed it would have to pay off a specific debt obligation worth $ 690 million almost immediately and when it saw that enron ' s cash situation wasn ' t what it expected , watson said .
those disclosures , he said , caused enron ' s trading business , which had somewhat of an uptick after the merger announcement , to go " down again and down again . "
" that was sort of a blow that we never really recovered from , " watson said .
watson said he worked hard to rescue the deal , but would only go for a " global solution " that would take care of all the problems . for one , he said , enron needed another $ 1 billion - $ 3 billion infusion to keep going .
sources told the chronicle that j . p . morgan chase other firms reassuring investors
another jolt
by michael davis
copyright 2001 houston chronicle
shortly after enron corp . ' s bond ratings were cut to junk status wednesday , energy trader charlie sanchez watched the company ' s trading business simply vanish from his computer screen .
" i watched their different markets just peel off my screen , one by one , " said sanchez , energy markets manager at gelber & associates in houston .
although enron ' s troubles were well - known , the collapse of enron ' s trading business wednesday still jolted traders . sanchez just said , " i ' m in shock . "
the downgrade of enron ' s debt was the first domino to fall wednesday , followed by the shutdown of enron ' s online trading business and then the announcement that dynegy had called off its deal to buy enron .
enrononline , the company ' s internet commodity trading platform , went down early wednesday , signaling that the company had temporarily halted trading altogether . enrononline handles about 60 percent of the company ' s trading business , or about $ 2 . 8 billion a day in deals .
enron ' s chief financial officer jeff mcmahon said he didn ' t know when enrononline would be up for trading again . however , the company continues to do telephone transactions , he said .
the commodities markets appeared to weather the event . but the shutdown of the company that was by far the biggest player in the market led other companies that regularly dealt with enron to hastily issue statements assuring investors they were not going to be dragged down as well .
with enrononline down , many traders had to revert to calling around to numerous sources to find out what the market was doing rather than simply logging onto enrononline and clicking on a single tab to size up the market where they wanted to trade .
but as far as the overall impact on commodities markets and the new york mercantile exchange , the loss of enron ' s trading business for whatever period likely will not be that big , said kyle cooper , oil analyst with salomon smith barney in houston .
" it could widen the bid - ask spreads in a few places , but in terms of liquidity on the nymex , you ' re talking about a few thousand contracts out of 60 , 000 to 70 , 000 contracts in all , " cooper said .
one trader described enron as " a needle in a haystack in terms of the total long - term capital markets . "
nonetheless , the shutdown prompted a call for closer monitoring during a briefing at the white house .
u . s . treasury department officials kept a close eye on the credit and energy markets wednesday but discerned no upheavals from the troubles at enron .
" we are monitoring credit markets as we do every day " treasury spokeswoman michele davis said . " we haven ' t seen anything extraordinary . "
the exit of enron will lead to a change in the balance of power in the trading business . traders said companies that likely will benefit from the loss of enron ' s trading activities include el paso corp . , mirant corp . , reliant energy and duke energy .
the market appeared more worried about possible losses connected with enron .
el paso corp . ' s stock took a beating wednesday - - down $ 3 . 59 to close at $ 44 . 91 - - over concerns that it had too much exposure to enron through its trading business . the company issued a statement saying it had " systematically reduced its trading with enron " over the past few weeks .
" due to enron ' s loss of investment grade status , any new business will have to be supported by cash collateral . el paso foresees no material disruptions in the energy trading markets resulting from today ' s downgrades or the potential of an enron bankruptcy filing , " according to the company ' s statement .
el paso ' s natural gas and power trading exposure to enron is about $ 50 million , the company said , adding that it does not expect any adverse earnings impact from enron ' s difficulties .
atlanta - based mirant said its exposure to enron is $ 50 million to $ 60 million , noting that it too had begun limiting its exposure risk early in what it described as " the enron crisis . "
calpine corp . said it had no " net exposure " to enron , which means that what enron owes calpine for gas and electric trading is offset by calpine ' s liabilities to enron .
enron faced a cash crunch in part because some trading partners lost confidence the company would have the cash to pay bills . as a result , they were either demanding more collateral to ensure it delivered on trades or restricting dealings with the houston - based company .
" each company is going to have to evaluate what their situation is from producers to utilities , it ' s going to be a case - by - case situation . it ' s going to take a long time to figure it all out , " said one trader who asked not to be quoted by name .
shortly after the news of the company ' s latest problems broke , a flood of huge trading orders came out of enron , leading traders to speculate that the company was scrambling to clear its accounts before filing for chapter 11 bankruptcy protection .
a typical order from the company would be for 100 contracts in a single lot to buy or sell commodities such as natural gas . after the debt downgrade was announced , single orders for 1 , 000 to 2 , 000 contracts began coming from the company .
the flood of large orders out of enron caused the near - month futures contract on the new york mercantile exchange to spike up and then fall off just as quickly in late morning trading .
" they could not leave this exposure to the whims of the market , " one trader said . " they needed to get out . "
enron reportedly has been working over the past few weeks to line up alternate parties to hand off their thousands of contracts the company handles daily , many of which are for long term periods such as 10 to 15 years .
but some of the more obscure contracts on items such as emissions credits and weather derivatives may be more difficult to unload . in addition to natural gas , power and oil , enron trades such items as broadband , paper , metals and water .
" i really think that a lot of the kinds of stuff that is foreign and esoteric that enron has been making a market in will take a while for others to pick up , " sanchez said .
nov . 29 , 2001 , 12 : 54 am
houston chronicle
bankruptcy filing by enron could be largest ever
by tom fowler
copyright 2001 houston chronicle
if enron files for chapter 11 bankruptcy this week , as many observers expect it will , it may be the largest such event to date .
with $ 61 . 7 billion in assets on its books as of sept . 30 , the deal would top texaco ' s 1987 bankruptcy , which sought protection for a company with $ 35 . 9 billion in assets . it would also beat the 1988 bankruptcy of financial corporation of america , which had $ 33 . 9 billion in assets .
the value of the assets and liabilities on enron ' s books continues to be a moving target , however . while enron ' s unaudited quarterly financial report indicates $ 61 . 7 billion in assets , $ 27 billion in liabilities , $ 6 . 5 billion in long - term debt and $ 15 . 3 billion in deferred credits , the turmoil of the past month has changed much of that .
on the asset side , for example , the company says properties like its natural gas transmission lines , fiber optic network and electric generation facilities are worth close to $ 14 . 6 billion . much of the gas pipeline properties have been encumbered in recent weeks , however , by the company ' s efforts to raise additional cash and credit from banks .
and the likelihood the company could find buyers to pay its asking price for assets like the fiber optic network or overseas power plants is highly unlikely , said ralph pellechia , a credit analyst with rating agency fitch .
" it ' s really a buyer ' s market , not a seller ' s market , " pellechia said . " it ' s anticipated a lot of their assets , particularly their international assets , would go for a lot less than the initial investment in them . "
the company also counts $ 7 . 1 billion in investments and advances to " unconsolidated affiliates " as assets , which could include enron equity that was used to back some of the complicated off - balance - sheet financing partnerships that led to the company ' s current woes . given the constant surprises surrounding those partnerships and the company ' s steeply dropping stock price - - now worth less than a cup of coffee - - that $ 7 . 1 billion figure is also suspect .
several unexpected debt obligations related to the partnerships enron operated have also changed the tally since sept . 30 . analysts say debts for the company range between $ 13 billion and $ 17 billion , including another $ 3 . 9 billion in debt repayments related to two special partnerships , osprey trust and marlin water trust , that will come due more quickly than expected following the credit rating agency downgrades on wednesday .
" all these changes are making the situation like sand falling between their fingers , " said bill porter , chairman of houston law firm porter & hedges . " the only alternative left to them to stabilize their situation is bankruptcy protection . "
company officials say they ' re still reviewing options , but on wednesday said they are temporarily suspending all payments to creditors other than those needed to maintain core energy trading operations .
" with dynegy ' s termination of the merger and the ratings agency downgrades , we are evaluating and exploring other options to protect our core energy businesses , " enron chairman and ceo ken lay said in a statement .
sources familiar with the broken enron - dynegy deal said the paperwork for a bankruptcy filing has been in the works for weeks , and even preceded the nov . 9 merger announcement . they say if the preliminary deal had not been secured that day , enron would have had to file for bankruptcy the following monday .
recent efforts by enron ' s bankers , including j . p . morgan chase and citigroup , to get creditors to hold off on demanding payments may mean the pending bankruptcy filing will be what is known as a prepackaged deal .
in a prepackaged bankruptcy , creditors agree beforehand how the sale of the company ' s assets would be divided among them . it would save all parties untold millions in legal fees that would be spent fighting over the company while assuring at least some recovery of their investments .
prepackaged bankruptcies are common , said jay westbrook , a professor at the university of texas school of law , because they allow companies to buy parts of the faltering business they want without the hassles of long , drawn - out legal battles .
" the purchasers will essentially just pay their money and walk away , with the proceeds getting divided up among those holding claims , " westbrook said .
chapter 11 bankruptcy has the added benefit of freezing the many lawsuits that have been filed by angry shareholders . those lawsuits would eventually be handled by the bankruptcy court , including determination of the validity of the claims in the suits .
if enron ' s bankruptcy is not prepackaged , it ' s almost assured that the value of enron ' s remaining businesses , such as its energy trading , will disappear , said bob chapman , a principle with houston management consulting firm king , chapman & broussard .
" the only guys that do well in bankruptcies are the lawyers , " chapman said . " what you usually see is a long period of people trying to carve up the beast where what remains of the business will continue to atrophy . "
because the company will most likely look to simply liquidate its assets , what would at first be a chapter 11 bankruptcy filing could later be converted to a chapter 7 filing , where a court - appointed trustee overseas liquidation of the remaining assets .
" from our perspective , a lot of the future rests in the hands of the banks , " said fitch analyst glen grabelsky . " what their intentions are in granting forbearance , what kind of liquidity they ' re willing to extend to enron , only they can answer . "
nov . 29 , 2001 , 12 : 56 am
houston chronicle
ballpark place project stopped dead in tracks
by ralph bivins
copyright 2001 houston chronicle
construction of the ballpark place tower has been postponed , partly because of the uncertainty surrounding enron corp . , the project ' s developer announced wednesday .
trammell crow co . had anticipated breaking ground this week on the 34 - story tower across from enron field , said matt khourie , who heads trammell crow operations in houston .
ballpark place was planned for a parcel of land owned by the developer , bounded by preston , prairie , crawford and la branch streets .
the $ 108 million ballpark place was expected to be a dominant skyline feature , rising over left field at enron ' s namesake stadium .
ballpark place would have included 253 , 000 square feet of office space , 216 apartment units , ground - level retail space and several levels of covered parking .
questions surrounding the future of enron corp . , a major employer in downtown , was key in encouraging trammell crow to shelve its plans , khourie said .
enron has about 3 million square feet of downtown office space , including a 40 - story building under construction . as enron ' s need for space decreases , the downtown office market is sure to feel the aftershocks .
" given the national economic uncertainty and the uncertainty associated with the future availability of class - a space springing from the recent events at enron , we have decided to delay our construction start until the future visibility improves , " khourie said in a written statement .
it has been widely speculated that dynegy , another houston energy firm , would move into the new enron building .
but dynegy ' s plans to buy enron fell apart wednesday , leaving questions about the the new 1 . 2 million - square - foot tower .
trammell crow has not abandoned its plans for ballpark place .
khourie said the company intends to start construction , perhaps next year , after the economy improves .
" we are still very bullish on the project ' s residential / office mixed - use concept for our unique location and also are optimistic on the mid - and long - term prospects for houston ' s central business district , " khourie said .
" the decision to delay relates directly to the short - term environment that we are currently facing . " | 2001-11-29T00:00:00 |
6,290 | dr . kaminski : ?
you probably won ' t remember my name , but i am the ph . d . student that took
you back to the airport after your visit to louisiana state university
during the previous academic year .
?
i received my m . s . in finance in may of last year , and chose to ? remain at
lsu to work on my ph . d . at that time , i intended to pursue a career
in ? teaching and research at a four year college or university . ? in
part ? because of your visit , ? and my ? primary interest in normative research ,
my ? plans have changed . ? while i ? still want to earn my ph . d . , ? i plan to
pursue a career in research in the private sector .
?
as you know , ph . d . programs in financial economics are designed to train
future academics . ? not surprisingly , they emphasize methods to approach the
types of questions that are of interest to finance academics . ? what did
surprise me , however , was that these areas of interest often had little to
do with what i imagined to be the concerns of practitioners in the real
world . ? as you mentioned in your discussion , academic researchers know
little about what their counterparts in the private sector
?
in light of my objective , i feel i would get the most out of the remainder
of my doctoral studies if i took some time off to work in the private sector
to see first hand the ? types of challenges i can expect to face as a
researcher in corporate america . ? as my primary interests revolve around the
use of derivatives and financial engineering in corporate risk management ,
enron , as the leading innovator in these areas , would be an ideal place to
learn . ? i was wondering if you were aware of any openings at the company
that might provide me with the exposure i am looking for . ? if there are no
such positions or opportunities , any advice or suggestions you could give
me , ? such as whether or not you think such a " sabbatical " ( for lack of a
better term ) would be helpful , or information on private sector careers for
ph . d . ' s would be greatly appreciated . ?
?
i am sending a current copy of my vita as an attachment . ? if you have any
questions my e - mail address is sgreen @ finance . lsu . edu . ? thanks for your help
and advice .
?
?
cordially ,
?
?
?
?
shane green
?
?
? ? ? ? ?
- vita . doc | 0 | ham | dr . kaminski : | ?
you probably won ' t remember my name , but i am the ph . d . student that took
you back to the airport after your visit to louisiana state university
during the previous academic year .
?
i received my m . s . in finance in may of last year , and chose to ? remain at
lsu to work on my ph . d . at that time , i intended to pursue a career
in ? teaching and research at a four year college or university . ? in
part ? because of your visit , ? and my ? primary interest in normative research ,
my ? plans have changed . ? while i ? still want to earn my ph . d . , ? i plan to
pursue a career in research in the private sector .
?
as you know , ph . d . programs in financial economics are designed to train
future academics . ? not surprisingly , they emphasize methods to approach the
types of questions that are of interest to finance academics . ? what did
surprise me , however , was that these areas of interest often had little to
do with what i imagined to be the concerns of practitioners in the real
world . ? as you mentioned in your discussion , academic researchers know
little about what their counterparts in the private sector
?
in light of my objective , i feel i would get the most out of the remainder
of my doctoral studies if i took some time off to work in the private sector
to see first hand the ? types of challenges i can expect to face as a
researcher in corporate america . ? as my primary interests revolve around the
use of derivatives and financial engineering in corporate risk management ,
enron , as the leading innovator in these areas , would be an ideal place to
learn . ? i was wondering if you were aware of any openings at the company
that might provide me with the exposure i am looking for . ? if there are no
such positions or opportunities , any advice or suggestions you could give
me , ? such as whether or not you think such a " sabbatical " ( for lack of a
better term ) would be helpful , or information on private sector careers for
ph . d . ' s would be greatly appreciated . ?
?
i am sending a current copy of my vita as an attachment . ? if you have any
questions my e - mail address is sgreen @ finance . lsu . edu . ? thanks for your help
and advice .
?
?
cordially ,
?
?
?
?
shane green
?
?
? ? ? ? ?
- vita . doc | 2000-06-19T00:00:00 |
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2,917 | oasis on - line daren - - -
oasis will be doing away with the temporary passwords for their on - line nom they are encourageing everyone to get on board . let me know what you want to do . i have attached the agreement , and info on the nom / confirm cycles . i have been using it this week and it is pretty user friendly . the reporting capabilities are still being developed , but i am told it should be ready soon . take a look for yourself @ www . oasispipeline . com . . . . . . . . . . logon : north . . . . . password : enron . . . . . . . . currently , no intradays are allowed online ( only by fax / email ) because they want to approve same days , but they are looking at allowing them in the future .
- - mark | 0 | ham | oasis on - line | daren - - -
oasis will be doing away with the temporary passwords for their on - line nom they are encourageing everyone to get on board . let me know what you want to do . i have attached the agreement , and info on the nom / confirm cycles . i have been using it this week and it is pretty user friendly . the reporting capabilities are still being developed , but i am told it should be ready soon . take a look for yourself @ www . oasispipeline . com . . . . . . . . . . logon : north . . . . . password : enron . . . . . . . . currently , no intradays are allowed online ( only by fax / email ) because they want to approve same days , but they are looking at allowing them in the future .
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6,572 | re : mg metals : summary of var methodology and current status dear all ,
anjam and myself had a highly productive and informative set of meetings
with andreas barkchis of mg metals ny on thursday 20 th july in the ny
office . firstly we should say " thanks " to andreas for being so helpful in
addressing out numerous requests for information - we look forward to
establishing a solid working relationship with him going forward .
find below a summary of version _ 1 a for initial rough calculation of mg
metal ' s var .
also anjam , kirstee ( from london side ) and cantekin , grant , vince and myself
( houston side ) have been working for last 2 days on the spreadsheet var
model .
the current status of this effort and a plan for future progress is
summarized in the enclosed document :
v @ r methodology for mg metals positions
version _ 1 a
introduction
this document describes the initial rough model for calculations
value - at - risk for mg metals . this model will be implemented in a spreadsheet ,
which will serve as a prototype for the risktrac implementation .
risk factors
the following positions represent most of mg metal , s risk and will be covered
by version _ 1 a :
- base metals , positions including :
- aluminium ;
- copper ;
- gold ;
- lead ;
- nickel ;
- silver ;
- tin ;
- zinc ;
risk related to these positions will be quantified by simulating forward
prices for each metal .
- copper concentrate ;
risk related to these positions will be quantified by simulating tc charges .
- cocoa beans ;
risk related to these positions will be quantified by simulating forward
prices for cocoa beans .
therefore these 10 curves will drive the risk : price curves for aluminium ,
copper , gold , lead , nickel , silver , tin , zinc and cocoa beans plus tc curve
for copper concentrate .
assumptions and simplifications :
- for each metal we are going to use a single price curve or all types of
products ( physical , financial , lme traded , comex traded , scrap , alloy , stock ,
etc . ) ;
- delta , gamma approach for risk on options , positions ;
components required to implement v @ r model :
- current forward prices available from mercur ;
- current implied volatilities available through reuters ;
- current positions from mercur ;
- history of prices required to calculate factor loadings and correlations
across commodities ;
methodology
version _ 1 a will be based on risk matrix approach . we will calculate principal
components for each metal and cocoa beans to take in account the correlations
along the term structure . we will also calculate the correlations across
commodities based on prompt month prices history for last 3 months .
portfolio hierarchy
each position will be assigned to one of the following portfolios under the
whole portfolio agg - metals :
- mg metal
- mg metal
- mg metall recycling gmbh , ffm ;
under each of these sub - portfolio there will be the following sub - portfolios :
- comex ;
- frame contract ;
- lme ;
- lme alloy ;
- lme metal index ;
- option call ;
- option put ;
- physical ;
- physical alloy ;
- physical real ;
- physical scrap ;
- price part . ;
- prov . billing ;
- stock ;
- stock alloy ;
- stock comex ;
- stock physical ;
- stock scrap ; | 0 | ham | re : mg metals : summary of var methodology and current status | dear all ,
anjam and myself had a highly productive and informative set of meetings
with andreas barkchis of mg metals ny on thursday 20 th july in the ny
office . firstly we should say " thanks " to andreas for being so helpful in
addressing out numerous requests for information - we look forward to
establishing a solid working relationship with him going forward .
find below a summary of version _ 1 a for initial rough calculation of mg
metal ' s var .
also anjam , kirstee ( from london side ) and cantekin , grant , vince and myself
( houston side ) have been working for last 2 days on the spreadsheet var
model .
the current status of this effort and a plan for future progress is
summarized in the enclosed document :
v @ r methodology for mg metals positions
version _ 1 a
introduction
this document describes the initial rough model for calculations
value - at - risk for mg metals . this model will be implemented in a spreadsheet ,
which will serve as a prototype for the risktrac implementation .
risk factors
the following positions represent most of mg metal , s risk and will be covered
by version _ 1 a :
- base metals , positions including :
- aluminium ;
- copper ;
- gold ;
- lead ;
- nickel ;
- silver ;
- tin ;
- zinc ;
risk related to these positions will be quantified by simulating forward
prices for each metal .
- copper concentrate ;
risk related to these positions will be quantified by simulating tc charges .
- cocoa beans ;
risk related to these positions will be quantified by simulating forward
prices for cocoa beans .
therefore these 10 curves will drive the risk : price curves for aluminium ,
copper , gold , lead , nickel , silver , tin , zinc and cocoa beans plus tc curve
for copper concentrate .
assumptions and simplifications :
- for each metal we are going to use a single price curve or all types of
products ( physical , financial , lme traded , comex traded , scrap , alloy , stock ,
etc . ) ;
- delta , gamma approach for risk on options , positions ;
components required to implement v @ r model :
- current forward prices available from mercur ;
- current implied volatilities available through reuters ;
- current positions from mercur ;
- history of prices required to calculate factor loadings and correlations
across commodities ;
methodology
version _ 1 a will be based on risk matrix approach . we will calculate principal
components for each metal and cocoa beans to take in account the correlations
along the term structure . we will also calculate the correlations across
commodities based on prompt month prices history for last 3 months .
portfolio hierarchy
each position will be assigned to one of the following portfolios under the
whole portfolio agg - metals :
- mg metal
- mg metal
- mg metall recycling gmbh , ffm ;
under each of these sub - portfolio there will be the following sub - portfolios :
- comex ;
- frame contract ;
- lme ;
- lme alloy ;
- lme metal index ;
- option call ;
- option put ;
- physical ;
- physical alloy ;
- physical real ;
- physical scrap ;
- price part . ;
- prov . billing ;
- stock ;
- stock alloy ;
- stock comex ;
- stock physical ;
- stock scrap ; | 2000-07-25T00:00:00 |
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6,163 | re : possible summer internship with enron hello ainsley :
we are so glad you are interested ! i spoke with vince kaminski and the
procedure is to usually conduct a telephone interview first . this will let
us know exactly where your interests are and establish where you might
fit within our organization .
please let me know your availability and the best time to reach you on
thursday ( the 25 th ) or friday ( the 26 th ) afternoon from 1 : 00 pm to 5 : 00 pm .
also please let me have the telephone number where you may reached
and we will call you . it is easier that way since there will be several of
us involved in the interview . the interview will usually last an hour or an
hour and a half .
thank you ainsley !
sincerely ,
shirley crenshaw
713 - 853 - 5290
" ainsley gaddis " on 05 / 23 / 2000 07 : 21 : 43 pm
to : " shirley crenshaw "
cc :
subject : re : possible summer internship with enron
hello ms . crenshaw ,
thank you so much for getting back to me so quickly . i am very interested
in meeting with mr . kaminski and the research group . i am available to come
into the office any time wednesday , thursday or friday . please let me know
what time is most convenient for you . i look forward to hearing from you
soon !
sincerely ,
ainsley gaddis | 0 | ham | re : possible summer internship with enron | hello ainsley :
we are so glad you are interested ! i spoke with vince kaminski and the
procedure is to usually conduct a telephone interview first . this will let
us know exactly where your interests are and establish where you might
fit within our organization .
please let me know your availability and the best time to reach you on
thursday ( the 25 th ) or friday ( the 26 th ) afternoon from 1 : 00 pm to 5 : 00 pm .
also please let me have the telephone number where you may reached
and we will call you . it is easier that way since there will be several of
us involved in the interview . the interview will usually last an hour or an
hour and a half .
thank you ainsley !
sincerely ,
shirley crenshaw
713 - 853 - 5290
" ainsley gaddis " on 05 / 23 / 2000 07 : 21 : 43 pm
to : " shirley crenshaw "
cc :
subject : re : possible summer internship with enron
hello ms . crenshaw ,
thank you so much for getting back to me so quickly . i am very interested
in meeting with mr . kaminski and the research group . i am available to come
into the office any time wednesday , thursday or friday . please let me know
what time is most convenient for you . i look forward to hearing from you
soon !
sincerely ,
ainsley gaddis | 2000-05-24T00:00:00 |
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11,336 | re : you have another interesting issue i ' m on it . thanks .
- - - - - original message - - - - -
from : kitchen , louise
sent : thursday , march 29 , 2001 2 : 38 pm
to : ozzie pagan / hou / ect @ enron ; tingleaf , drew ; yzaguirre , max
subject : you have another interesting issue
peggy does not think you have an out on the fm clause for your cps . i will forward you the voicemail .
louise | 0 | ham | re : you have another interesting issue | i ' m on it . thanks .
- - - - - original message - - - - -
from : kitchen , louise
sent : thursday , march 29 , 2001 2 : 38 pm
to : ozzie pagan / hou / ect @ enron ; tingleaf , drew ; yzaguirre , max
subject : you have another interesting issue
peggy does not think you have an out on the fm clause for your cps . i will forward you the voicemail .
louise | 2001-03-29T00:00:00 |
16,934 | correction to coi rerate message : correction to coi rerate message ; see direction of power flow : after the day
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desk .
the system conditions described in this communication are dynamic and
subject to change . while the iso has attempted to reflect the most current ,
accurate information available in preparing this notice , system conditions
may change suddenly with little or no notice . | 0 | ham | correction to coi rerate message : | correction to coi rerate message ; see direction of power flow : after the day
ahead market ran , the branch group coi ttc in the ( s - n ) direction was
changed from 3675 mw to 2450 mw for he ' s 1700 through 2400 for operating day
7 / 26 / 01 . the reason for the change is for the northwest generation urgent
pump repairs . the first applicable hour ahead market to run with these
values is he 1700 . the iso will update you of any changes in line rating
status . sent by market operations , inquiries please call the hour ahead
desk .
the system conditions described in this communication are dynamic and
subject to change . while the iso has attempted to reflect the most current ,
accurate information available in preparing this notice , system conditions
may change suddenly with little or no notice . | 2001-07-26T00:00:00 |
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1,091 | re : ferc training please see the attached .
- - - - - - - - - - - - - - - - - - - - - - forwarded by brenda f herod / hou / ect on 06 / 28 / 2000
05 : 38 pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
karry kendall
06 / 28 / 2000 12 : 23 pm
to : jim pond / corp / enron @ enron , troy klussmann / hou / ect @ ect , lisa
csikos / hou / ect @ ect , rita wynne / hou / ect @ ect , yvette miroballi / hou / ect @ ect
cc : jim coffey / hou / ect @ ect , brenda f herod / hou / ect @ ect , georgeanne
hodges / hou / ect @ ect
subject : re : ferc training
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are other areas i have not considered please let them know .
thanks
- - - - - - - - - - - - - - - - - - - - - - forwarded by karry kendall / hou / ect on 06 / 28 / 2000 12 : 11
pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
enron north america corp .
from : duane fritz @ enron 06 / 28 / 2000 09 : 05 am
to : karry kendall / hou / ect @ ect
cc :
subject : re : ferc training
the training will focus on the drill down into the ferc numbers in sap .
the view role is going to be taught with the production system and real
numbers .
whomever uses and needs to get these numbers for external reporting will need
this training .
i am going to schedule a 4 hour session for each class .
if you have any questions , please let me know .
duane
karry kendall @ ect
06 / 27 / 2000 08 : 31 pm
to : duane fritz / corp / enron @ enron
cc : jim coffey / hou / ect @ ect
subject : ferc training
what will be covered in the training ?
- - - - - - - - - - - - - - - - - - - - - - forwarded by karry kendall / hou / ect on 06 / 27 / 2000 08 : 27
pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
cynthia morrow @ enron
06 / 27 / 2000 03 : 49 pm
to : karry kendall / hou / ect @ ect , jim coffey / hou / ect @ ect , karen
gruesen / hou / ect @ ect
cc : duane fritz / corp / enron @ enron
subject : ferc training
- - - - - - - - - - - - - - - - - - - - - - forwarded by cynthia morrow / corp / enron on 06 / 27 / 2000
04 : 48 pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
from : duane fritz 06 / 27 / 2000 02 : 24 pm
to : cynthia morrow / corp / enron @ enron
cc :
subject : ferc training
cindy , i need to get a list of the people who are going to need ferc
training for the ena group .
gpg has sent me a list of people to train but nothing has been planned or
confirmed .
i would like to schedule the training for the 3 rd week of august after the
july close . i am planning to train the view role
from the production data translated by the module for july . if we can get a
head count then i can tentatively book
the rooms and equipment to do the training for august .
thanks
duane | 0 | ham | re : ferc training | please see the attached .
- - - - - - - - - - - - - - - - - - - - - - forwarded by brenda f herod / hou / ect on 06 / 28 / 2000
05 : 38 pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
karry kendall
06 / 28 / 2000 12 : 23 pm
to : jim pond / corp / enron @ enron , troy klussmann / hou / ect @ ect , lisa
csikos / hou / ect @ ect , rita wynne / hou / ect @ ect , yvette miroballi / hou / ect @ ect
cc : jim coffey / hou / ect @ ect , brenda f herod / hou / ect @ ect , georgeanne
hodges / hou / ect @ ect
subject : re : ferc training
duane and cindy need a list of the individuals needed this training . please
respond directly to them if members of your shops need to attend . if there
are other areas i have not considered please let them know .
thanks
- - - - - - - - - - - - - - - - - - - - - - forwarded by karry kendall / hou / ect on 06 / 28 / 2000 12 : 11
pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
enron north america corp .
from : duane fritz @ enron 06 / 28 / 2000 09 : 05 am
to : karry kendall / hou / ect @ ect
cc :
subject : re : ferc training
the training will focus on the drill down into the ferc numbers in sap .
the view role is going to be taught with the production system and real
numbers .
whomever uses and needs to get these numbers for external reporting will need
this training .
i am going to schedule a 4 hour session for each class .
if you have any questions , please let me know .
duane
karry kendall @ ect
06 / 27 / 2000 08 : 31 pm
to : duane fritz / corp / enron @ enron
cc : jim coffey / hou / ect @ ect
subject : ferc training
what will be covered in the training ?
- - - - - - - - - - - - - - - - - - - - - - forwarded by karry kendall / hou / ect on 06 / 27 / 2000 08 : 27
pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
cynthia morrow @ enron
06 / 27 / 2000 03 : 49 pm
to : karry kendall / hou / ect @ ect , jim coffey / hou / ect @ ect , karen
gruesen / hou / ect @ ect
cc : duane fritz / corp / enron @ enron
subject : ferc training
- - - - - - - - - - - - - - - - - - - - - - forwarded by cynthia morrow / corp / enron on 06 / 27 / 2000
04 : 48 pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
from : duane fritz 06 / 27 / 2000 02 : 24 pm
to : cynthia morrow / corp / enron @ enron
cc :
subject : ferc training
cindy , i need to get a list of the people who are going to need ferc
training for the ena group .
gpg has sent me a list of people to train but nothing has been planned or
confirmed .
i would like to schedule the training for the 3 rd week of august after the
july close . i am planning to train the view role
from the production data translated by the module for july . if we can get a
head count then i can tentatively book
the rooms and equipment to do the training for august .
thanks
duane | 2000-06-28T00:00:00 |
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3,433 | fw : section 311 just so you know , this is what i sent redmond about that 311 case .
- - - - - original message - - - - -
from : hull , bryan
sent : tuesday , august 14 , 2001 7 : 16 am
to : redmond , brian
subject : fw : section 311
brian , this is a pretty good explanation of the case thus far . . . . . .
commissioner wood is aware of the conflict between pg & e ( now epgt ) and southern union , probably because of lobbying by southern union , and that is why he raised the issue . southern union states in its initial brief ( # 9 below ) that it opposes the high demand rates that it says epgt proposes to charge for a service that does not incorporate the consumer protections of order no . 636 and argues that ferc should impose order no . 636 standards on pg & e . i was watching a video stream of the meeting , and the whole discussion seemed to come out of nowhere .
here are the facts in this case .
1 ) on december 20 , 1999 , pg & e texas pipeline , lp ( the predecessor to epgt texas pipeline , lp ) filed a petition with ferc for approval of transportation rates under section 311 along , as they were required to do . ( all intrastate pipelines that perform section 311 service must either have their rates approved by ferc or they must charge rates that are approved by a state regulatory body for a similar service . ) pg & e ' s filing proposed , in addition to the usual interruptible service , a firm section 311 service as well as an interruptible parking and lending service . pg & e also filed a revised statement of operating conditions to reflect the new services .
2 ) on february 25 , 2000 , southern union gas company , an intrastate transportation customer of pg & e , filed a late motion to intervene and raised issues which it stated should be addressed in a hearing . pg & e opposed the late intervention , but ferc granted it on april 14 , 2000 . ( pg & e stated that southern union was intervening in order to gain leverage in renegotiating its contract for intrastate service . )
3 ) southern union submitted data requests to pg & e on april 13 and april 17 . pg & e attempted to get a protective order issued , but ferc rejected their request .
4 ) a settlement conference was held on september 7 , 2000 .
5 ) a staff panel was convened on october 2 , 2000 , in order to conduct an advisory , non - evidentiary proceeding for oral arguments on the issues , with instructions to make recommendations to the commission within 90 days .
6 ) on november 1 , 2000 , ferc requested 5 pages of additional information from pg & e in order to complete the application in the proceeding , which pg & e provided on november 8 th . on december 8 th , pg & e provided additional information in response to a ferc data request .
7 ) on january 10 , 2001 , southern union submitted a proposed alternative to the cost of service and rate design that was filed by pg & e .
8 ) on january 17 , el paso field services informed ferc that pg & e texas pipeline , lp had been acquired by el paso on december 22 , 2000 , and that the name was changed to epgt texas pipeline , lp .
9 ) on january 24 , 2001 , epgt texas and southern union filed initial briefs .
10 ) on july 17 , 2001 , epgt filed supplemental comments in response to the discussion at ferc summarized below , where commissioner wood inquired about the extension of some order no . 636 and 637 provisions to section 311 service providers . epgt stated that , if ferc proceeds with this policy , it should do so in a generic rulemaking and not in an individual pipeline proceeding . on july 30 , 2001 , southern union filed reply comments opposing epgt ' s supplemental comments .
11 ) on august 3 , epgt filed an amended statement of operating conditions , which provides for electronic nominations , two additional nomination cycles , bumping , clarified and updated credit provisions , modified quality provisions to protect system integrity , and more clearly defined authorized overrun service .
the ngpa gives ferc authority over intrastate pipeline rates for section 311 service and requires that such service be provided on a non - discriminatory basis , but there is some question as to whether it gives ferc authority to require , for example , compliance with order nos . 636 and 637 .
please let me know if this is enough detail ( or maybe it ' s more than you wanted ! ! ) . | 0 | ham | fw : section 311 | just so you know , this is what i sent redmond about that 311 case .
- - - - - original message - - - - -
from : hull , bryan
sent : tuesday , august 14 , 2001 7 : 16 am
to : redmond , brian
subject : fw : section 311
brian , this is a pretty good explanation of the case thus far . . . . . .
commissioner wood is aware of the conflict between pg & e ( now epgt ) and southern union , probably because of lobbying by southern union , and that is why he raised the issue . southern union states in its initial brief ( # 9 below ) that it opposes the high demand rates that it says epgt proposes to charge for a service that does not incorporate the consumer protections of order no . 636 and argues that ferc should impose order no . 636 standards on pg & e . i was watching a video stream of the meeting , and the whole discussion seemed to come out of nowhere .
here are the facts in this case .
1 ) on december 20 , 1999 , pg & e texas pipeline , lp ( the predecessor to epgt texas pipeline , lp ) filed a petition with ferc for approval of transportation rates under section 311 along , as they were required to do . ( all intrastate pipelines that perform section 311 service must either have their rates approved by ferc or they must charge rates that are approved by a state regulatory body for a similar service . ) pg & e ' s filing proposed , in addition to the usual interruptible service , a firm section 311 service as well as an interruptible parking and lending service . pg & e also filed a revised statement of operating conditions to reflect the new services .
2 ) on february 25 , 2000 , southern union gas company , an intrastate transportation customer of pg & e , filed a late motion to intervene and raised issues which it stated should be addressed in a hearing . pg & e opposed the late intervention , but ferc granted it on april 14 , 2000 . ( pg & e stated that southern union was intervening in order to gain leverage in renegotiating its contract for intrastate service . )
3 ) southern union submitted data requests to pg & e on april 13 and april 17 . pg & e attempted to get a protective order issued , but ferc rejected their request .
4 ) a settlement conference was held on september 7 , 2000 .
5 ) a staff panel was convened on october 2 , 2000 , in order to conduct an advisory , non - evidentiary proceeding for oral arguments on the issues , with instructions to make recommendations to the commission within 90 days .
6 ) on november 1 , 2000 , ferc requested 5 pages of additional information from pg & e in order to complete the application in the proceeding , which pg & e provided on november 8 th . on december 8 th , pg & e provided additional information in response to a ferc data request .
7 ) on january 10 , 2001 , southern union submitted a proposed alternative to the cost of service and rate design that was filed by pg & e .
8 ) on january 17 , el paso field services informed ferc that pg & e texas pipeline , lp had been acquired by el paso on december 22 , 2000 , and that the name was changed to epgt texas pipeline , lp .
9 ) on january 24 , 2001 , epgt texas and southern union filed initial briefs .
10 ) on july 17 , 2001 , epgt filed supplemental comments in response to the discussion at ferc summarized below , where commissioner wood inquired about the extension of some order no . 636 and 637 provisions to section 311 service providers . epgt stated that , if ferc proceeds with this policy , it should do so in a generic rulemaking and not in an individual pipeline proceeding . on july 30 , 2001 , southern union filed reply comments opposing epgt ' s supplemental comments .
11 ) on august 3 , epgt filed an amended statement of operating conditions , which provides for electronic nominations , two additional nomination cycles , bumping , clarified and updated credit provisions , modified quality provisions to protect system integrity , and more clearly defined authorized overrun service .
the ngpa gives ferc authority over intrastate pipeline rates for section 311 service and requires that such service be provided on a non - discriminatory basis , but there is some question as to whether it gives ferc authority to require , for example , compliance with order nos . 636 and 637 .
please let me know if this is enough detail ( or maybe it ' s more than you wanted ! ! ) . | 2001-08-14T00:00:00 |
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8,463 | understanding risk and return of an insurance portfolio hi vince ,
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i have given vasant a copy of this report and am working with him towards
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sincerely ,
amitava | 0 | ham | understanding risk and return of an insurance portfolio | hi vince ,
i am enclosing a report on my thoughts about risk and return behaviour of an
insurance portfolio . your input on this will be very helpful .
i have given vasant a copy of this report and am working with him towards
improving this . in the mean time , i happened to mention this idea in a
meeting with david porter , per sekse , brad blesie and david hoog and there
seems to be some interest in understanding how this works . in fact , david
hoog subsequently reviewed this with me and suggested some changes . those
changes have been included in this report .
the idea here is simple and just a starting point . while it provides a broad
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8,400 | ok - ok vince - i will stay up tonight and call vuthy in london with this news .
i ' ll be right back to you ( probably tomarrow - or send you an email tonight ) .
thanks vince ,
jeff
jeff ,
my associates are leaving for london tonight ( monday ) .
they can still interview howard on tuesday afternoon .
vince
* get free , secure online email at http : / / www . ziplip . com / * | 0 | ham | ok - | ok vince - i will stay up tonight and call vuthy in london with this news .
i ' ll be right back to you ( probably tomarrow - or send you an email tonight ) .
thanks vince ,
jeff
jeff ,
my associates are leaving for london tonight ( monday ) .
they can still interview howard on tuesday afternoon .
vince
* get free , secure online email at http : / / www . ziplip . com / * | 2001-01-29T00:00:00 |
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| 2004-09-29T00:00:00 |
15,566 | found this check bait - excelled @ em . ca is it yours + + unable to see graphics ? please go here to view this email . + +
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17,259 | start date : 12 / 11 / 01 ; hourahead hour : 22 ; start date : 12 / 11 / 01 ; hourahead hour : 22 ; no ancillary schedules awarded . variances detected .
variances detected in load schedule .
log messages :
parsing file - - > > o : \ portland \ westdesk \ california scheduling \ iso final schedules \ 2001121122 . txt
- - - - load schedule - - - -
$ $ $ variance found in table tblloads .
details : ( hour : 22 / preferred : 497 . 76 / final : 497 . 76 )
trans _ type : final
load _ id : pge 3
mkt _ type : 2
trans _ date : 12 / 11 / 01
sc _ id : enrj | 0 | ham | start date : 12 / 11 / 01 ; hourahead hour : 22 ; | start date : 12 / 11 / 01 ; hourahead hour : 22 ; no ancillary schedules awarded . variances detected .
variances detected in load schedule .
log messages :
parsing file - - > > o : \ portland \ westdesk \ california scheduling \ iso final schedules \ 2001121122 . txt
- - - - load schedule - - - -
$ $ $ variance found in table tblloads .
details : ( hour : 22 / preferred : 497 . 76 / final : 497 . 76 )
trans _ type : final
load _ id : pge 3
mkt _ type : 2
trans _ date : 12 / 11 / 01
sc _ id : enrj | 2001-12-11T00:00:00 |
7,602 | var for enroncredit . com rick and ted ,
it looks more like foxes building chicken houses as opposed to foxes guarding
chicken houses .
i shall send a message to bryan saying that the research has to look under
the hood and examine the mechanics
of the model in order to sign off on it . a dog and pony show is not
sufficient . in any case , the decision to approve
the model should not be left to ben and kirstee .
please , let me know what your thinking is .
vince
- - - - - - - - - - - - - - - - - - - - - - forwarded by vince j kaminski / hou / ect on 11 / 10 / 2000
01 : 31 pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
bryan seyfried
11 / 10 / 2000 03 : 20 am
to : vince j kaminski / hou / ect @ ect , steven leppard / lon / ect @ ect
cc : ted murphy / hou / ect @ ect
subject : var for enroncredit . com
vince / steve - - we are going to the board in december to ask for formal
limits . as you know one of the key limits at the board level is value at
risk . to that end , it is imperative that you are comfortable with our
approach for calculating var . we have implemented a third party risk system
which holds all of our positions and are in the process of putting the debt
positions in . the system has a var engine which is being demo ' d by the
vendor today . ben and kirstee are attending the demo and if they find the
technology acceptable , i propose moving forward with implemantion of the
module . pls . let me know if this sounds reasonable and how you would
envision implementing .
thanks | 0 | ham | var for enroncredit . com | rick and ted ,
it looks more like foxes building chicken houses as opposed to foxes guarding
chicken houses .
i shall send a message to bryan saying that the research has to look under
the hood and examine the mechanics
of the model in order to sign off on it . a dog and pony show is not
sufficient . in any case , the decision to approve
the model should not be left to ben and kirstee .
please , let me know what your thinking is .
vince
- - - - - - - - - - - - - - - - - - - - - - forwarded by vince j kaminski / hou / ect on 11 / 10 / 2000
01 : 31 pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
bryan seyfried
11 / 10 / 2000 03 : 20 am
to : vince j kaminski / hou / ect @ ect , steven leppard / lon / ect @ ect
cc : ted murphy / hou / ect @ ect
subject : var for enroncredit . com
vince / steve - - we are going to the board in december to ask for formal
limits . as you know one of the key limits at the board level is value at
risk . to that end , it is imperative that you are comfortable with our
approach for calculating var . we have implemented a third party risk system
which holds all of our positions and are in the process of putting the debt
positions in . the system has a var engine which is being demo ' d by the
vendor today . ben and kirstee are attending the demo and if they find the
technology acceptable , i propose moving forward with implemantion of the
module . pls . let me know if this sounds reasonable and how you would
envision implementing .
thanks | 2000-11-10T00:00:00 |
28,875 | new legal team to assist rac in order to bring better legal coordination and standardization to enron ' s risk assessment and control ( rac ) group , we have formed a new legal group , which will initially include lisa mellencamp ( finance ) , marcus nettelton ( power trading ) , carol st . clair ( broadband / power trading ) , mary cook ( financial swaps ) , peter keohane ( canada ) , ed essandoh ( retail ) , paul darmitzel ( retail ) and elizabeth sager ( power trading ) ( team leader ) . this group will focus on , among other things , managing enron ' s exposures with bankrupt counterparties , working out credit solutions with distressed counterparties and standardizing our overall credit practices . the initial members in this group have been drawn from enron ' s numerous legal groups in order to gain a broader perspective . each of these members will provide support to this new group in addition to their current responsibilities .
within rac , michael tribolet will focus on distressed counterparties , in conjunction with bill bradford , who continues to manage the credit risk management group .
please join us in supporting the efforts of this new group . | 0 | ham | new legal team to assist rac | in order to bring better legal coordination and standardization to enron ' s risk assessment and control ( rac ) group , we have formed a new legal group , which will initially include lisa mellencamp ( finance ) , marcus nettelton ( power trading ) , carol st . clair ( broadband / power trading ) , mary cook ( financial swaps ) , peter keohane ( canada ) , ed essandoh ( retail ) , paul darmitzel ( retail ) and elizabeth sager ( power trading ) ( team leader ) . this group will focus on , among other things , managing enron ' s exposures with bankrupt counterparties , working out credit solutions with distressed counterparties and standardizing our overall credit practices . the initial members in this group have been drawn from enron ' s numerous legal groups in order to gain a broader perspective . each of these members will provide support to this new group in addition to their current responsibilities .
within rac , michael tribolet will focus on distressed counterparties , in conjunction with bill bradford , who continues to manage the credit risk management group .
please join us in supporting the efforts of this new group . | 2001-10-04T00:00:00 |
30,852 | professional review pony line phase rub mac by
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copyright © 2003 - 2004 eva ph | 1 | spam | professional review | pony line phase rub mac by
uproat duck to is
generic avid ago rat
vid ago rat soft
super avid ago ra
co idealism soft
hang over
max as max
fat blasted
virgin lit my patch
spec roma max
hump an grog with
simple quick caf of word table
* professional review amending singapore
* fully config dential mischievousness aluminate
* no embarrasment gloria oppressive
* no appointments flatter organ ' s
* sec pure word era ping hence iterating
* professional consul station concept campion
* discreet and overnight ships ping
* no waiting rooms baseballs oligarchy
copyright © 2003 - 2004 eva ph
| 2004-12-19T00:00:00 |
24,660 | fw : the money saving plan we spoke of lqdddq compare now online + save ! dear homeowner , " now is the time to take advantage of falling interest rates ! there is no advantage in waiting any longer . " refinance or consolidate high interest credit card debt into a low interest mortgage . mortgage interest is tax deductible , whereas credit card interest is not . you can save thousands of dollars over the course of your loan with just a 0 . 25 % drop in your rate ! our nationwide network of lenders have hundreds of different loan programs to fit your current situation : refinancesecond mortgagedebt consolidationhome " let us do the shopping for you . . . it is free ! click here " please click here to fill out a quick form . your request will be transmitted to our network of mortgage specialists who will respond with up to three independent offers . this service is 100 % free to home owners and new home buyers without any obligation . data flow national 30 year fixed 6 . 375 % 15 year fixed 5 . 750 % 5 year balloon 5 . 250 % 1 / 1 arm 4 . 250 % 5 / 1 arm 5 . 625 % fha 30 year fixed 6 . 500 % va 30 year fixed 6 . 500 % " you did all the shopping for me . thank you ! - t n . cap . beach , ca " . . . you helped me finance a new home and i got a very good deal . - r h . h . beach , ca " . . it was easy , and quick . . . ! - v s . n . p . beach , wa | 1 | spam | fw : the money saving plan we spoke of lqdddq | compare now online + save ! dear homeowner , " now is the time to take advantage of falling interest rates ! there is no advantage in waiting any longer . " refinance or consolidate high interest credit card debt into a low interest mortgage . mortgage interest is tax deductible , whereas credit card interest is not . you can save thousands of dollars over the course of your loan with just a 0 . 25 % drop in your rate ! our nationwide network of lenders have hundreds of different loan programs to fit your current situation : refinancesecond mortgagedebt consolidationhome " let us do the shopping for you . . . it is free ! click here " please click here to fill out a quick form . your request will be transmitted to our network of mortgage specialists who will respond with up to three independent offers . this service is 100 % free to home owners and new home buyers without any obligation . data flow national 30 year fixed 6 . 375 % 15 year fixed 5 . 750 % 5 year balloon 5 . 250 % 1 / 1 arm 4 . 250 % 5 / 1 arm 5 . 625 % fha 30 year fixed 6 . 500 % va 30 year fixed 6 . 500 % " you did all the shopping for me . thank you ! - t n . cap . beach , ca " . . . you helped me finance a new home and i got a very good deal . - r h . h . beach , ca " . . it was easy , and quick . . . ! - v s . n . p . beach , wa | 2002-07-31T00:00:00 |
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| 2005-04-23T00:00:00 |
17,939 | start date : 1 / 29 / 02 ; hourahead hour : 2 ; start date : 1 / 29 / 02 ; hourahead hour : 2 ; no ancillary schedules awarded . no variances detected .
log messages :
parsing file - - > > o : \ portland \ westdesk \ california scheduling \ iso final schedules \ 2002012902 . txt | 0 | ham | start date : 1 / 29 / 02 ; hourahead hour : 2 ; | start date : 1 / 29 / 02 ; hourahead hour : 2 ; no ancillary schedules awarded . no variances detected .
log messages :
parsing file - - > > o : \ portland \ westdesk \ california scheduling \ iso final schedules \ 2002012902 . txt | 2002-01-29T00:00:00 |
16,463 | apartamentos em copacabana , ipanema e leblon apartamentos e apart - hoteis mobiliados , dias / meses .
longa / curta temporadas , luxo / simples
1 , 2 , 3 , 4 , 5 quartos , suítes , flats ,
lindas coberturas com piscina , sauna , hidromassagem ,
garagens etc .
temos os melhores conjugados da zona sul .
representação de residencial service .
ligue
21 2549 9157
21 9688 2456
adm @ apartmentt . net
www . apartmentt . net
publicidade cadastrada sob número 3265666 | 1 | spam | apartamentos em copacabana , ipanema e leblon | apartamentos e apart - hoteis mobiliados , dias / meses .
longa / curta temporadas , luxo / simples
1 , 2 , 3 , 4 , 5 quartos , suítes , flats ,
lindas coberturas com piscina , sauna , hidromassagem ,
garagens etc .
temos os melhores conjugados da zona sul .
representação de residencial service .
ligue
21 2549 9157
21 9688 2456
adm @ apartmentt . net
www . apartmentt . net
publicidade cadastrada sob número 3265666 | 2005-07-11T00:00:00 |
24,533 | assistance requested ( please read ) . dear sir / ma ,
i am hajiya maryam abacha , wife of the late nigeria head of state , general sanni abacha who died on the 8 th of june , 1998 while still on active duty . l am contacting you in view of the fact that we will be of great assistance to each other likeness developing a cordial relationship . i currently have within my reach the sum of thirty five million us dollars ( us $ 35 , 000 , 000 . 00 ) cash which l intend to use for investment , like real estate development or import / export business specifically in your country . this money came as a payback contract deal between my late husband and a russian firm on our countries multi - billion dollars ajaokuta steel plant project . the russian partners returned my husband ' s share of usd $ 35 , 000 , 000 . 00 after the death of my husband and lodged in my husband ' s security company of which l am director right now , the new civilian government have intensified their probe on my husband ' s financial and oil company . in view of these , l acted fast to withdraw the us $ 3 !
5 , 000 , 000 . 00 from the company ' s vault and deposited in another private security company vault within the country . i have since declared the security company bankrupt . no record ever existed concerning the money traceable by the government because there is no documentation showing that we received the money from the russian . due to the current situation in the country concerning government attitude towards my family , it has become quite impossible for me to make use of this money within . let me refer you to the front page of this day newspapers of 10 th march 2001 . you can check it through their website : www . thisdayonline . com , click on archives , 8 th . june , 2001 ) the present government in nigeria had frozen and seized all my bank accounts both here in nigeria and abroad . thus consent l shall expect you to contact me urgently to enable us discuss in detail about this transaction . bearing in mind that your assistance is needed to transfer this fund , l proposed a percentage of 3 !
0 % of the total sum to you for the expected service and assistance , 10
% for offsetting minor expenses incurred in the course of this transaction . your urgent response is highly needed as to stop further contacts . all correspondence must be by the email address above . l must use this opportunity to implore you to exercise the utmost indulgence to keep this matter extraordinarily confidential whatever your decision while await your prompt response . nb : because of the security being mounted on the members of my family , l have decided that this transaction be kept in utmost secrecy , remember to include your private telephone or fax number for easy communication . you can also contact my trusted friend and family attorney , barrister aishat gidado at aishatgidado @ go . com or her number 248033044180 .
best regards .
hajia maryam abacha .
- - - -
this sf . net email is sponsored by : thinkgeek
welcome to geek heaven .
http : / / thinkgeek . com / sf
spamassassin - sightings mailing list | 1 | spam | assistance requested ( please read ) . | dear sir / ma ,
i am hajiya maryam abacha , wife of the late nigeria head of state , general sanni abacha who died on the 8 th of june , 1998 while still on active duty . l am contacting you in view of the fact that we will be of great assistance to each other likeness developing a cordial relationship . i currently have within my reach the sum of thirty five million us dollars ( us $ 35 , 000 , 000 . 00 ) cash which l intend to use for investment , like real estate development or import / export business specifically in your country . this money came as a payback contract deal between my late husband and a russian firm on our countries multi - billion dollars ajaokuta steel plant project . the russian partners returned my husband ' s share of usd $ 35 , 000 , 000 . 00 after the death of my husband and lodged in my husband ' s security company of which l am director right now , the new civilian government have intensified their probe on my husband ' s financial and oil company . in view of these , l acted fast to withdraw the us $ 3 !
5 , 000 , 000 . 00 from the company ' s vault and deposited in another private security company vault within the country . i have since declared the security company bankrupt . no record ever existed concerning the money traceable by the government because there is no documentation showing that we received the money from the russian . due to the current situation in the country concerning government attitude towards my family , it has become quite impossible for me to make use of this money within . let me refer you to the front page of this day newspapers of 10 th march 2001 . you can check it through their website : www . thisdayonline . com , click on archives , 8 th . june , 2001 ) the present government in nigeria had frozen and seized all my bank accounts both here in nigeria and abroad . thus consent l shall expect you to contact me urgently to enable us discuss in detail about this transaction . bearing in mind that your assistance is needed to transfer this fund , l proposed a percentage of 3 !
0 % of the total sum to you for the expected service and assistance , 10
% for offsetting minor expenses incurred in the course of this transaction . your urgent response is highly needed as to stop further contacts . all correspondence must be by the email address above . l must use this opportunity to implore you to exercise the utmost indulgence to keep this matter extraordinarily confidential whatever your decision while await your prompt response . nb : because of the security being mounted on the members of my family , l have decided that this transaction be kept in utmost secrecy , remember to include your private telephone or fax number for easy communication . you can also contact my trusted friend and family attorney , barrister aishat gidado at aishatgidado @ go . com or her number 248033044180 .
best regards .
hajia maryam abacha .
- - - -
this sf . net email is sponsored by : thinkgeek
welcome to geek heaven .
http : / / thinkgeek . com / sf
spamassassin - sightings mailing list
| 2002-07-23T00:00:00 |
11,110 | here are responses to your question lists let me know if you need more . . . marg . | 0 | ham | here are responses to your question lists | let me know if you need more . . . marg . | 2001-03-06T00:00:00 |
28,925 | fw : columbia gulf order on negotiated rates fyi , kim .
- - - - - original message - - - - -
from : miller , mary kay
sent : friday , october 26 , 2001 3 : 35 pm
to : harris , steven ; watson , kimberly ; lokey , teb ; neubauer , dave ; miller , kent ; fossum , drew ; pavlou , maria ; kirk , steve ; porter , gregory j . ; hartsoe , joe ; kilmer iii , robert ; williams , jo
subject : columbia gulf order on negotiated rates
i received a copy of an order issued by the ferc on columbia negotiated rate transaction , which includes a formula ie indexed rate . they accepted the negotiated rate deal but they are requiring them to file in their tariff within one day after the rate has been determined the contract and actual rate . ( each time the actual rate changes during the term ) just think about this for the upcoming tw _ usgt deal and nng " - reliant deals . notwithstanding the time to actually make the filing , the cost to serve it each day if the negotiated rate is different by day and then the service when an order is issued each day - - - i believe this is ferc ' s way to attempt to eliminate negotiated rate indexed based deals - they are punishing themselves as well , as each filing will require a notice etc - so every day they could need to issue an order .
i feel we need to discuss with columbia , ingaa and join in filing for rehearing on this administrative nightmare . an alternative would be to require you to post on internet website the day of the transaction the actual rate , so similarly situated customers would have access to the actual rate . i ' m sending you guys a copy of the order . | 0 | ham | fw : columbia gulf order on negotiated rates | fyi , kim .
- - - - - original message - - - - -
from : miller , mary kay
sent : friday , october 26 , 2001 3 : 35 pm
to : harris , steven ; watson , kimberly ; lokey , teb ; neubauer , dave ; miller , kent ; fossum , drew ; pavlou , maria ; kirk , steve ; porter , gregory j . ; hartsoe , joe ; kilmer iii , robert ; williams , jo
subject : columbia gulf order on negotiated rates
i received a copy of an order issued by the ferc on columbia negotiated rate transaction , which includes a formula ie indexed rate . they accepted the negotiated rate deal but they are requiring them to file in their tariff within one day after the rate has been determined the contract and actual rate . ( each time the actual rate changes during the term ) just think about this for the upcoming tw _ usgt deal and nng " - reliant deals . notwithstanding the time to actually make the filing , the cost to serve it each day if the negotiated rate is different by day and then the service when an order is issued each day - - - i believe this is ferc ' s way to attempt to eliminate negotiated rate indexed based deals - they are punishing themselves as well , as each filing will require a notice etc - so every day they could need to issue an order .
i feel we need to discuss with columbia , ingaa and join in filing for rehearing on this administrative nightmare . an alternative would be to require you to post on internet website the day of the transaction the actual rate , so similarly situated customers would have access to the actual rate . i ' m sending you guys a copy of the order . | 2001-10-28T00:00:00 |
30,715 | this is what your girlfriend desires , don ' t make her wait ! enviable arabia these pills are just like regular ciaiis but they are specially formulated to be soft and dissolvable under the tongue . the pill is absorbed at the mouth and enters the bloodstream directly instead of going through the stomach . this results in a faster more powerful effect which still lasts up to 36 hours . ciaiis soft tabs also have less sidebacks ( you can drive or mix alcohol drinks with ciaiis ) . hearken bessemer caveman teletypesetting chef cheery allotting could juice neapolitan superannuate diffusible isocline gillette debase remunerate nepenthe sunshine cask dark device subsistent desiderata quipping darkle libido simply anastigmatic airtight donovan caesar dater ecumenic faith eros eugenia sap slab osaka ceremony anathema rafael hobo james expellable roundworm bernet hermeneutic beseech series smudgy languish comet go nominee been saloon declamation stank airmail pneumococcus agglomerate shadbush toward brigade denunciate sian similitude typeface infiltrate cenozoic thence inquire agree crandall gold wind leeds ostentatious dereference cesium salivate hydroxy rebellion indignant astronomer neva moravia arccosine ambiguous downpour hazel bengali cobra came | 1 | spam | this is what your girlfriend desires , don ' t make her wait ! enviable arabia | these pills are just like regular ciaiis but they are specially formulated to be soft and dissolvable under the tongue . the pill is absorbed at the mouth and enters the bloodstream directly instead of going through the stomach . this results in a faster more powerful effect which still lasts up to 36 hours . ciaiis soft tabs also have less sidebacks ( you can drive or mix alcohol drinks with ciaiis ) . hearken bessemer caveman teletypesetting chef cheery allotting could juice neapolitan superannuate diffusible isocline gillette debase remunerate nepenthe sunshine cask dark device subsistent desiderata quipping darkle libido simply anastigmatic airtight donovan caesar dater ecumenic faith eros eugenia sap slab osaka ceremony anathema rafael hobo james expellable roundworm bernet hermeneutic beseech series smudgy languish comet go nominee been saloon declamation stank airmail pneumococcus agglomerate shadbush toward brigade denunciate sian similitude typeface infiltrate cenozoic thence inquire agree crandall gold wind leeds ostentatious dereference cesium salivate hydroxy rebellion indignant astronomer neva moravia arccosine ambiguous downpour hazel bengali cobra came | 2004-12-08T00:00:00 |
1,822 | re : rate for tenaska deal daaah !
sorry !
daren j farmer
10 / 16 / 2000 05 : 57 pm
to : sandi m braband / hou / ect @ ect
cc :
subject : re : rate for tenaska deal
consumer price index
from : sandi m braband on 10 / 16 / 2000 12 : 14 pm
to : daren j farmer / hou / ect @ ect
cc :
subject : re : rate for tenaska deal
daren ,
thanks - - while i ' m certain i should know , i must confess that i do not know
what cpi stands for ? ? ?
sandi
daren j farmer
10 / 16 / 2000 11 : 39 am
to : sandi m braband / hou / ect @ ect , bob m hall / na / enron @ enron
cc :
subject : re : rate for tenaska deal
sandi ,
sorry for just now getting back with you . i was out last week .
the rate ( $ . 04 / mmbtu ) will be charged on the greater of the volumes nominated
on the supply contracts or the actual deliveries to the plant . the fee will
be adjusted yearly based on cpi .
bob - i could not remember if we stated the type of settlement on the
delivered volumes ( actuals or nominations ) . i think we should use actuals
due to possibility that the plant could over pull with out our knowledge on a
daily basis . we would receive the estimates / actuals on a lag and may have to
purchase gas to offset the imbalance , even though the plant kept the noms at
the 45 , 000 base . i also think that if the plant does increase the nom , they
are more likely to pull the additional volume rather than pulling less . do
you agree with this ?
d
from : sandi m braband on 10 / 10 / 2000 03 : 41 pm
to : daren j farmer / hou / ect @ ect
cc :
subject : rate for tenaska deal
daren ,
when we met regarding the rate for the tenaska gas management agreement , you
guys mentioned that it would be tied to an index - - could you restate for me
how that is to work - - it will start out 4 cents per mmbtu based on the greater
of the volumes nominated through the supply contracts or the actual
deliveries to the plant . then the fee will vary month to month ? year to year ?
based on what index ?
thanks ,
sandi | 0 | ham | re : rate for tenaska deal | daaah !
sorry !
daren j farmer
10 / 16 / 2000 05 : 57 pm
to : sandi m braband / hou / ect @ ect
cc :
subject : re : rate for tenaska deal
consumer price index
from : sandi m braband on 10 / 16 / 2000 12 : 14 pm
to : daren j farmer / hou / ect @ ect
cc :
subject : re : rate for tenaska deal
daren ,
thanks - - while i ' m certain i should know , i must confess that i do not know
what cpi stands for ? ? ?
sandi
daren j farmer
10 / 16 / 2000 11 : 39 am
to : sandi m braband / hou / ect @ ect , bob m hall / na / enron @ enron
cc :
subject : re : rate for tenaska deal
sandi ,
sorry for just now getting back with you . i was out last week .
the rate ( $ . 04 / mmbtu ) will be charged on the greater of the volumes nominated
on the supply contracts or the actual deliveries to the plant . the fee will
be adjusted yearly based on cpi .
bob - i could not remember if we stated the type of settlement on the
delivered volumes ( actuals or nominations ) . i think we should use actuals
due to possibility that the plant could over pull with out our knowledge on a
daily basis . we would receive the estimates / actuals on a lag and may have to
purchase gas to offset the imbalance , even though the plant kept the noms at
the 45 , 000 base . i also think that if the plant does increase the nom , they
are more likely to pull the additional volume rather than pulling less . do
you agree with this ?
d
from : sandi m braband on 10 / 10 / 2000 03 : 41 pm
to : daren j farmer / hou / ect @ ect
cc :
subject : rate for tenaska deal
daren ,
when we met regarding the rate for the tenaska gas management agreement , you
guys mentioned that it would be tied to an index - - could you restate for me
how that is to work - - it will start out 4 cents per mmbtu based on the greater
of the volumes nominated through the supply contracts or the actual
deliveries to the plant . then the fee will vary month to month ? year to year ?
based on what index ?
thanks ,
sandi | 2000-10-16T00:00:00 |
31,788 | you ' ve just won ! ! ! from the desk of the vice president
national e - mail lottery international program
international promotions / prize award dept .
bacth no : ldnl / 1091 / 1976 / 6754
ref . no : ldnl / 3211 / 8904 / 4353
winning notification / final notice
this is to inform you of the release of the e - mail lottery ballot international / world
gaming board held on the 29 th of december 2004 . due to the mix up of number ,
the results were released on the 12 th of january 2004 . your email address
attached to ticket no : 12890567 with serial no : 8535390782 the lucky no : 2123489765
which consequently won the lottery in the lst category . you have therefore
been approved for a lump sum payout of
uds $ 1 , 500 , 000 : 00 only ( one million five hundred thousand united states dollars
only ) in cash which is deposited with a finance & security company in your
favour as beneficiary and covered with high insurance policy due to mix up
of some numbers and names , we ask that you keep your winning information
confidential until your claims has been processed and your money remitted
to you . this is part of our security protocol to avoid double claiming and
unwarranted abuse of this program by some participants . all participants
were selected through a computer ballot system drawn from only microsoft
users from over 20 , 000 company , and 3 , 000 , 000 individual email addresses
and names from all over the world . to begin your lottery claim , please contact
the appionted agent below that have been appointed for the processing of
your claim with your full name , home address , home and office contact telephone
and fax number to begin the processing of your claim
front line consultant bv
mr . david van berg
e - mail : nationalotery @ walla . com
note that all winning must be claimed not later than 26 th of february 2005 .
after this date all unclaimed , funds will be included in the next stake .
please note in order to avoid unnecessary delays and complications please
remember to quote your reference number and batch numbers in all correspondence .
furthermore , should there be any change of address do inform our agent as
soon as possible .
congratulations once more from our members of staff and thank you for being
part of our promotional program .
note
anybody under the age of 18 is automatically disqualified .
yours sincerely ,
mrs . tonne van jesse .
lottery coordinator | 1 | spam | you ' ve just won ! ! ! | from the desk of the vice president
national e - mail lottery international program
international promotions / prize award dept .
bacth no : ldnl / 1091 / 1976 / 6754
ref . no : ldnl / 3211 / 8904 / 4353
winning notification / final notice
this is to inform you of the release of the e - mail lottery ballot international / world
gaming board held on the 29 th of december 2004 . due to the mix up of number ,
the results were released on the 12 th of january 2004 . your email address
attached to ticket no : 12890567 with serial no : 8535390782 the lucky no : 2123489765
which consequently won the lottery in the lst category . you have therefore
been approved for a lump sum payout of
uds $ 1 , 500 , 000 : 00 only ( one million five hundred thousand united states dollars
only ) in cash which is deposited with a finance & security company in your
favour as beneficiary and covered with high insurance policy due to mix up
of some numbers and names , we ask that you keep your winning information
confidential until your claims has been processed and your money remitted
to you . this is part of our security protocol to avoid double claiming and
unwarranted abuse of this program by some participants . all participants
were selected through a computer ballot system drawn from only microsoft
users from over 20 , 000 company , and 3 , 000 , 000 individual email addresses
and names from all over the world . to begin your lottery claim , please contact
the appionted agent below that have been appointed for the processing of
your claim with your full name , home address , home and office contact telephone
and fax number to begin the processing of your claim
front line consultant bv
mr . david van berg
e - mail : nationalotery @ walla . com
note that all winning must be claimed not later than 26 th of february 2005 .
after this date all unclaimed , funds will be included in the next stake .
please note in order to avoid unnecessary delays and complications please
remember to quote your reference number and batch numbers in all correspondence .
furthermore , should there be any change of address do inform our agent as
soon as possible .
congratulations once more from our members of staff and thank you for being
part of our promotional program .
note
anybody under the age of 18 is automatically disqualified .
yours sincerely ,
mrs . tonne van jesse .
lottery coordinator | 2005-02-14T00:00:00 |
2,942 | hpl nominations for march 31 , 2001 and april 1 - 2 , 2001 ( see attached file : hplno 401 . xls ) ( see attached file : hplno 331 . xls )
- hplno 401 . xls
- hplno 331 . xls | 0 | ham | hpl nominations for march 31 , 2001 and april 1 - 2 , 2001 | ( see attached file : hplno 401 . xls ) ( see attached file : hplno 331 . xls )
- hplno 401 . xls
- hplno 331 . xls | 2001-03-30T00:00:00 |
12,484 | re : abbs i spoke with ledain in calgary . they had a bid for c $ 3 mm w / out the abb turbines . they are not planning to pursue because lavorato commented that it is better to hold onto the site at that price . the site is permitted for the abb ' s . i have asked ledain to send me their original info memo for the sale of the site ( w / turbines ) ; it might be worth trying to market that project again - time has passed , the market there may open soon , ontario just set a new peak and east prices rallied last week .
chris calger
503 - 464 - 3735
- - - - - original message - - - - -
from : kitchen , louise
sent : wednesday , august 15 , 2001 3 : 14 pm
to : calger , christopher f . ; wiggs , brett ; jacoby , ben
subject : abbs
can you confirm that we are still talking to the guys in canada with regard to selling the abbs with the moore site . i only mention this as the ' hotlist ' shows that they are planning to sell the site which i am not sure is feasible without combining the turbines .
thanks
louise | 0 | ham | re : abbs | i spoke with ledain in calgary . they had a bid for c $ 3 mm w / out the abb turbines . they are not planning to pursue because lavorato commented that it is better to hold onto the site at that price . the site is permitted for the abb ' s . i have asked ledain to send me their original info memo for the sale of the site ( w / turbines ) ; it might be worth trying to market that project again - time has passed , the market there may open soon , ontario just set a new peak and east prices rallied last week .
chris calger
503 - 464 - 3735
- - - - - original message - - - - -
from : kitchen , louise
sent : wednesday , august 15 , 2001 3 : 14 pm
to : calger , christopher f . ; wiggs , brett ; jacoby , ben
subject : abbs
can you confirm that we are still talking to the guys in canada with regard to selling the abbs with the moore site . i only mention this as the ' hotlist ' shows that they are planning to sell the site which i am not sure is feasible without combining the turbines .
thanks
louise | 2001-08-15T00:00:00 |
28,942 | el paso outage now through november 20 el paso said the pecos river station ' s # 2 turbine will remain down longer than planned due to damage discovered during an ongoing overhaul . capacity through pecos river will be cut by 60 mmcf / d through nov . 20 . | 0 | ham | el paso outage now through november 20 | el paso said the pecos river station ' s # 2 turbine will remain down longer than planned due to damage discovered during an ongoing overhaul . capacity through pecos river will be cut by 60 mmcf / d through nov . 20 . | 2001-11-07T00:00:00 |
31,045 | rich man looking for a man goodbye
persecution conniebuggy muon spokespersonoccurrent
analyses clarkeendow resonant vivaproposition
rob cubbyholefinitary embody chaseconcentric
covalent arabesquelobo barrier campgroundgloria
dignity bulwarkplayful | 1 | spam | rich man looking for a man | goodbye
persecution conniebuggy muon spokespersonoccurrent
analyses clarkeendow resonant vivaproposition
rob cubbyholefinitary embody chaseconcentric
covalent arabesquelobo barrier campgroundgloria
dignity bulwarkplayful | 2004-12-31T00:00:00 |
32,025 | re [ 9 ] : talk thread about his pills th
ewe
an
saf
twa
ph
macy
en
st
dthe
es
yof
ar
spu
m
r -
inc
eyo
xualdes
spe
umeby
%
reas
urse
ireand
rmvol
500
100
uraland
deeff
- incon
ttowel
wnbra
% nat
nosi
ects
tras
l - kno
nds .
expe
cethr
eslon
gas
rien
eetim
geror
ms
wor
deshi
gwit
hou
ldwi
ppin
hin 24
rs
sp - m ur the we
and saf wa ph acy
is ne st the est
y of arm inc e yo xual des
spe ume by % reas ur se
ire and rm vol 500 100 ural and
de eff - in con t to wel wn bra % nat
no si ects tras l - kno nds .
expe ce thr es lon gas rien
ee tim ger or ms wor de shi
g wit hou ld wi ppin hin 24
rs sp - m ur the
we and saf wa ph
acy is ne st the
est y of arm inc e yo
xual des spe ume by % reas
ur se ire and rm vol 500 100
ural and de eff - in con t to wel wn bra
% nat no si ects tras l - kno
nds . expe ce thr es lon gas
rien ee tim ger or ms wor
de shi g wit hou ld wi ppin
hin 24 rs sp - m ur
the we and saf wa
ph acy is ne st
the est y of arm inc
e yo xual des spe ume by %
reas ur se ire and rm vol 500
100 ural and de eff - in con t to wel
wn bra % nat no si ects tras
l - kno nds . expe ce thr es lon
gas rien ee tim ger or ms
wor de shi g wit hou ld wi
ppin hin 24 rs sp - m
ur the we and saf
wa ph acy is ne
st the est y of arm
inc e yo xual des spe ume by
% reas ur se ire and rm vol
500 100 ural and de eff - in con
t to wel wn bra % nat no si ects
tras l - kno nds . expe ce thr
es lon gas rien ee tim ger or
ms wor de shi g wit hou
ld wi ppin hin 24 rs sp
- m ur the we and
saf wa ph acy is
ne st the est y of
arm inc e yo xual des spe
ume by % reas ur se ire and
rm vol 500 100 ural and de eff
- in con t to wel wn bra % nat no si
ects tras l - kno nds . expe
ce thr es lon gas rien ee tim
ger or ms wor de shi g wit
hou ld wi ppin hin 24 rs
sp - m ur the we
and saf wa ph acy
is ne st the est
y of arm inc e yo xual des
spe ume by % reas ur se
ire and rm vol 500 100 ural and
de eff - in con t to wel wn bra % nat
no si ects tras l - kno nds .
expe ce thr es lon gas rien
ee tim ger or ms wor de shi
g wit hou ld wi ppin hin 24
rs sp - m ur the
we and saf wa ph
acy is ne st the
est y of arm inc e yo
xual des spe ume by % reas
ur se ire and rm vol 500 100
ural and de eff - in con t to wel wn bra
% nat no si ects tras l - kno
nds . expe ce thr es lon gas
rien ee tim ger or ms wor
de shi g wit hou ld wi ppin
hin 24 rs sp - m ur
the we and saf wa | 1 | spam | re [ 9 ] : talk thread about his pills | th
ewe
an
saf
twa
ph
macy
en
st
dthe
es
yof
ar
spu
m
r -
inc
eyo
xualdes
spe
umeby
%
reas
urse
ireand
rmvol
500
100
uraland
deeff
- incon
ttowel
wnbra
% nat
nosi
ects
tras
l - kno
nds .
expe
cethr
eslon
gas
rien
eetim
geror
ms
wor
deshi
gwit
hou
ldwi
ppin
hin 24
rs
sp - m ur the we
and saf wa ph acy
is ne st the est
y of arm inc e yo xual des
spe ume by % reas ur se
ire and rm vol 500 100 ural and
de eff - in con t to wel wn bra % nat
no si ects tras l - kno nds .
expe ce thr es lon gas rien
ee tim ger or ms wor de shi
g wit hou ld wi ppin hin 24
rs sp - m ur the
we and saf wa ph
acy is ne st the
est y of arm inc e yo
xual des spe ume by % reas
ur se ire and rm vol 500 100
ural and de eff - in con t to wel wn bra
% nat no si ects tras l - kno
nds . expe ce thr es lon gas
rien ee tim ger or ms wor
de shi g wit hou ld wi ppin
hin 24 rs sp - m ur
the we and saf wa
ph acy is ne st
the est y of arm inc
e yo xual des spe ume by %
reas ur se ire and rm vol 500
100 ural and de eff - in con t to wel
wn bra % nat no si ects tras
l - kno nds . expe ce thr es lon
gas rien ee tim ger or ms
wor de shi g wit hou ld wi
ppin hin 24 rs sp - m
ur the we and saf
wa ph acy is ne
st the est y of arm
inc e yo xual des spe ume by
% reas ur se ire and rm vol
500 100 ural and de eff - in con
t to wel wn bra % nat no si ects
tras l - kno nds . expe ce thr
es lon gas rien ee tim ger or
ms wor de shi g wit hou
ld wi ppin hin 24 rs sp
- m ur the we and
saf wa ph acy is
ne st the est y of
arm inc e yo xual des spe
ume by % reas ur se ire and
rm vol 500 100 ural and de eff
- in con t to wel wn bra % nat no si
ects tras l - kno nds . expe
ce thr es lon gas rien ee tim
ger or ms wor de shi g wit
hou ld wi ppin hin 24 rs
sp - m ur the we
and saf wa ph acy
is ne st the est
y of arm inc e yo xual des
spe ume by % reas ur se
ire and rm vol 500 100 ural and
de eff - in con t to wel wn bra % nat
no si ects tras l - kno nds .
expe ce thr es lon gas rien
ee tim ger or ms wor de shi
g wit hou ld wi ppin hin 24
rs sp - m ur the
we and saf wa ph
acy is ne st the
est y of arm inc e yo
xual des spe ume by % reas
ur se ire and rm vol 500 100
ural and de eff - in con t to wel wn bra
% nat no si ects tras l - kno
nds . expe ce thr es lon gas
rien ee tim ger or ms wor
de shi g wit hou ld wi ppin
hin 24 rs sp - m ur
the we and saf wa
| 2005-03-04T00:00:00 |
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| 2004-11-21T00:00:00 |
1,683 | cornhusker thanks for following up on this .
i think we ' re generally there in terms of the commercial terms , but need to
think through just a few issues related to our plans for the asset .
i ' d suggest we meet on thursday as i believe the asset manager ( mike
mazowita ) will be here in houston . in addition to john ' s list of attendees ,
chuck ward , john king and i should be in the meeting . i ' ll ask tina tennant
to corrdinate .
rh
- - - - - - - - - - - - - - - - - - - - - - forwarded by garrick hill / hou / ect on 09 / 26 / 2000 04 : 56
pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
from : sandi m braband on 09 / 26 / 2000 01 : 27 pm
to : garrick hill / hou / ect @ ect
cc : dan lyons / hou / ect @ ect
subject : cornhusker
rick ,
just following up my voicemail to you yesterday - - - john griffith has
contacted me regarding the gas management agreement relating to the
cornhusker transaction . when dan was in my office several weeks ago , we spoke
with you and it appeared that some of the financial terms of the gas
management agreement were yet to be worked out - - has that occurred yet ? do you
know the details of the extension on the transition agreement ? are you
available to meet on this in the next day or two and is there anyone else you
think should be included ? ( john griffith has asked to be included and
suggests darren farmer and bob hall be present as well ) - - please let me know
thank you ,
sandi
ext . 35465 | 0 | ham | cornhusker | thanks for following up on this .
i think we ' re generally there in terms of the commercial terms , but need to
think through just a few issues related to our plans for the asset .
i ' d suggest we meet on thursday as i believe the asset manager ( mike
mazowita ) will be here in houston . in addition to john ' s list of attendees ,
chuck ward , john king and i should be in the meeting . i ' ll ask tina tennant
to corrdinate .
rh
- - - - - - - - - - - - - - - - - - - - - - forwarded by garrick hill / hou / ect on 09 / 26 / 2000 04 : 56
pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
from : sandi m braband on 09 / 26 / 2000 01 : 27 pm
to : garrick hill / hou / ect @ ect
cc : dan lyons / hou / ect @ ect
subject : cornhusker
rick ,
just following up my voicemail to you yesterday - - - john griffith has
contacted me regarding the gas management agreement relating to the
cornhusker transaction . when dan was in my office several weeks ago , we spoke
with you and it appeared that some of the financial terms of the gas
management agreement were yet to be worked out - - has that occurred yet ? do you
know the details of the extension on the transition agreement ? are you
available to meet on this in the next day or two and is there anyone else you
think should be included ? ( john griffith has asked to be included and
suggests darren farmer and bob hall be present as well ) - - please let me know
thank you ,
sandi
ext . 35465 | 2000-09-26T00:00:00 |
4,042 | coming over tomorrow ? some suspect it is a stray exotic
pet because it seems to like being around people . but the feeling is generally
not mutual
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approach it , nor should they run away from the animal since that could provoke a
chase . the best thing to do is ignore it , keep away from it and call the
authorities , he g to tales circulating the wooded neighborhood off , the animal
walked up to a man as he was swinging his toddler in the back yard . the cat is
said to have lunged at the child . as the story goes , the man fended it off with
a chair , his wife grabbed their child , and they ran into the house . the cat sat
on their back deck for a while looking in , just like at the in another tale on a
different street , a teenage baby sitter was at the backyard pool with an
8 - year - old boy and his cousin . the cat sneaked up on them from behind , and she
jumped into the pool with the boy . they swam to the other side , but it followed
them . they all ran into the house , and the cat sat looking in the door .
| 2004-06-10T00:00:00 |
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international promotions / prize award dept .
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ref . no . ptp / 21449267220 / 255100 / / 2202
sir / madam / c . e o .
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your name attached to ticket number 219028657434 with serial number 918735625 drew the lucky numbers of 21 - 70 - 81 - 82 - 99 which consequently won the lottery in the lst category .
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please note in order to avoid unnecessary delays and complications all relevant informations should be forwarded to your claim agent for onward processing .
please remember to quote your reference number and batch numbers in all correspondence .
furthermore , should there be any change of address do inform our agent as soon as possible .
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13,801 | enron mentions uk : u . s . enron shuts down finland office .
reuters english news service , 11 / 06 / 01
usa : enron shares fall below $ 10 , first time since 1992 .
reuters english news service , 11 / 06 / 01
enron used partnerships to mask debt , holders charge ( updatel )
bloomberg , 11 / 06 / 01
enron falls on credit , private - financing concerns ( update 2 )
bloomberg , 11 / 06 / 01
platform aims to trade tailored power products online
dow jones energy service , 11 / 06 / 01
usa : bush ties give enron sympathetic ear in washington .
reuters english news service , 11 / 06 / 01
usa : update 1 - enron shares hit new lows on credit worries .
reuters english news service , 11 / 06 / 01
uk : u . s . enron shuts down finland office .
11 / 06 / 2001
reuters english news service
( c ) reuters limited 2001 .
london , nov 6 ( reuters ) - u . s . energy group enron said on tuesday it had closed its offices in finland as part of a restructuring in scandinavia .
" this was planned for some time , we will continue to service our finnish clients from our oslo office , " said a spokeswoman for enron ' s european headquarters in london .
enron ' s finland office had a staff of two .
the spokeswoman said the closure in finland was unconnected with the group ' s recent problems .
bankers say houston - based enron may have to sell assets as it seeks to head off a credit crunch and restore investor confidence .
the company ' s stock has more than halved in value since mid - october and its credit has been downgraded after it emerged the u . s . securities and exchange commission was investigating off - balance - sheet transactions that led to a $ 1 billion charge and a $ 1 . 2 billion write - down of shareholder equity .
copyright ? 2000 dow jones & company , inc . all rights reserved .
usa : enron shares fall below $ 10 , first time since 1992 .
11 / 06 / 2001
reuters english news service
( c ) reuters limited 2001 .
houston , nov 6 ( reuters ) - shares of beleaguered energy giant enron corp . hit the latest in a recent series of new lows on tuesday when they dipped below the $ 10 mark for the first time since may 1992 .
in mid - morning trading , enron ' s stock was down $ 1 . 24 , or 11 . 1 percent per share , at $ 9 . 93 , after touching a low of $ 9 . 88 . for the year , enron shares have shed 88 percent of their value .
enron , north america ' s biggest wholesale marketer and trader of electricity and natural gas , has held talks with private - equity firms and power - trading companies for a capital infusion of at least $ 2 billion , the wall street journal reported on tuesday .
enron has seen its stock hammered in recent weeks as concerns about its complex finances have undermined investor confidence in a company that was a wall street favorite until early this year .
copyright ? 2000 dow jones the $ 1 . 27 billion acquisition of an electric plant
in brazil in 1998 ; and the $ 2 . 51 billion purchase of a water
company in the united kingdom in 1998 .
new plans
in the late 1990 s , enron executives changed course . the
company said that it would sell pipelines and power plants to make
money almost entirely from trading energy , rather than producing
it . the plan succeeded . last year , 97 percent of enron ' s revenue
came from trading and advising industrial customers on energy use .
` ` i think our legacy will be that we proved you can build a
business on intellectual capital , not physical assets , ' ' former
chief executive officer jeffrey skilling said in may . skilling
left enron in august , citing personal reasons , and was replaced by
his predecessor , kenneth lay .
central to the enron plan to sell its hardware was the
creation of affiliates to buy the pipelines and plants , and to
sell bonds to finance the transactions . enron posted information
on its web site last week saying it had created affiliates to
raise money for enron projects .
officials involved
incorporation papers in texas and delaware show that the 33
companies formed by enron list enron executives or employees as
officers . fastow served as an officer or director for all 33
affiliates .
one enron affiliate , obi - 1 holdings llc , lists 24 enron
employees and executives as directors . another affiliate , oilfield
business investments - 1 llc , lists 29 .
enron spokesman mark palmer has said the executives served as
officers and directors of the affiliates only to represent enron ' s
interests . none of them receives any compensation except fastow ,
he said . fastow was permitted by enron to earn a bonus of 2
percent of the total amount one partnership invested .
selling assets to company - controlled affiliates isn ' t
uncommon , said columbia university securities law professor john
coffee . ` ` it ' s not suspect by itself , ' ' coffee said . ` ` companies
do it to make balance sheets look better . ' '
the practice isn ' t embraced by everyone .
` ` that sort of thing wouldn ' t be part of duke ' s business
plan , ' ' said jim donnell , chief executive of duke energy corp . ' s
wholesale power unit . ` ` you have a different objective if you sell
to an interested special purpose vehicle . ' '
profit potential
earlier this year , former cfo fastow was in an unusual
position . enron ' s board permitted him to manage two partnerships ,
ljm cayman and ljm 2 co - investment , and personally profit from
buying and selling assets . ljm entered into agreements that bound
it to buy enron stock at a predetermined price six months later .
a lawsuit filed by shareholder fred greenberg says fastow
used advance knowledge that enron shares would fall to rework the
agreement . that allowed ljm to buy the shares two months early ,
bringing $ 10 . 5 million in profit . if the agreement hadn ' t been
renegotiated , the partnership would have lost money , the suit
alleges .
enron has acknowledged potential conflict of interest by
allowing executives to serve as directors of affiliates . a bond
offering for the whitewing affiliate says ` ` certain individuals
that serve as officers and directors of enron may also serve as
directors of whitewing . . . therefore , the duties of the
directors and officers of enron may conflict with the duties of
the directors and officers of whitewing . ' '
ouster
enron ousted fastow as cfo on oct . 24 , the day after the
company said the sec had questions about the partnerships .
shareholders also say in lawsuits that enron executives
benefited from not fully disclosing the company ' s financial
position . they cite insider sales of $ 73 million in shares ahead
of a 26 percent drop in the company ' s stock in february and march .
the executives included lay , who sold stock worth $ 11 . 2
million ; skilling , who sold stock for $ 6 . 41 million ; and vice
chairman mark frevert , who sold shares totaling $ 14 . 2 million .
` ` this trading was unusual and suspicious given its timing , ' '
a shareholder class - action suit says . ` ` they had access to
adverse , undisclosed information . ' '
enron falls on credit , private - financing concerns ( update 2 )
2001 - 11 - 06 14 : 18 ( new york )
enron falls on credit , private - financing concerns ( update 2 )
( adds bond ratings in 10 th - 11 th paragraphs . adds information
on enron bond repayment in eighth paragraph . updates shares . )
houston , nov . 6 ( bloomberg ) - - enron corp . shares fell as
much as 15 percent after bond - rating agency fitch inc . said it may
cut the company ' s credit rating to junk status and the wall street
journal reported the no . 1 energy trader is seeking cash from
private investors .
enron shares fell $ 1 . 55 to $ 9 . 62 in midafternoon trading .
they earlier touched $ 9 . 55 , their lowest price since may 1992 .
` ` there ' s concern that the company is getting desperate , ' '
said zach wagner , an energy analyst at edward jones . ` ` they ' re
really in desperate need of cash and investors don ' t like to see
that . ' ' wagner rates enron ` ` reduce ' ' and doesn ' t own its shares .
former enron chief executive officer jeffrey skilling
canceled a planned appearance today at a milken institute
conference near los angeles after he was subpoenaed to testify in
washington , said ross devol , an official at the institute . devol
wouldn ' t say who had subpoenaed skilling or for what reason .
enron spokeswoman karen denne said she was unaware of any
testimony by skilling and didn ' t know where he might be expected
to testify . skilling resigned as enron ceo in august .
enron is seeking $ 2 billion in cash from private investors ,
the wall street journal reported . the company , whose shares have
fallen 88 percent this year , held talks with blackstone group lp
and clayton , dubilier & rice inc . to discuss a cash investment ,
and a number of unidentified power - trading companies have
expressed an interest in investing in enron , the paper said .
fitch downgrade
fitch said it may cut houston - based enron ' s credit rating to
below investment grade if it fails to cut debt or if its business
slows further . yesterday it cut enron ' s long - term credit rating
two notches to the lowest investment grade , or to ` ` bbb - , ' ' from
` ` bbb + . ' '
enron uses its investment - grade credit rating to borrow money
for the cash it needs every day to settle commodities trades and
to keep trading partners . a lower credit rating also would trigger
early repayment of $ 3 . 3 billion in enron bonds that aren ' t due
until 2002 and 2003 .
the u . s . securities and exchange commission is investigating
enron partnerships run by its former chief financial officer . the
partnerships bought and sold enron shares and assets , with the
trades costing enron $ 35 million and $ 1 . 2 billion in lost
shareholder equity . enron ousted chief financial officer andrew
fastow last month .
standard & poor ' s on thursday lowered enron ' s long - term
credit rating to ` ` bbb , ' ' the second - lowest investment grade , from
` ` bbb + . ' ' enron ' s short - term debt rating was cut to ` ` a - 3 , ' '
the lowest investment grade , from ` ` a - 2 . ' '
on oct . 29 moody ' s investors service lowered enron ' s long -
term credit rating to ` ` baa 2 ' ' from ` ` baal , ' ' two notches above
junk status . it also placed the company ' s ` ` p - 2 ' ' rating for
commercial paper on review for possible downgrade .
platform aims to trade tailored power products online
by kristen mcnamara
of dow jones newswires
11 / 06 / 2001
dow jones energy service
( copyright ( c ) 2001 , dow jones 201 - 938 - 2061 ; kristen . mcnamara @ dowjones . com
copyright ? 2000 dow jones vice president dick cheney ; and , in general , the republican power structure now running the show in the nation ' s capital .
whether those contacts will need to be tapped as enron struggles through a corporate crisis touched off by questionable financial dealings remains to be seen . but companies usually give money to candidates so they will have friends in high places when they need them , experts said .
" ( enron ) will probably have to use a lot of their goodwill . that ' s what they build it up for anyway , " said energy analyst dale steffes , head of planning and forecasting consultants in houston .
enron , which dominates natural gas and electricity markets in the united states , has come under investigation by the u . s . securities and exchange commission following disclosures that it did off - balance sheet deals with partnerships run by then - chief financial officer andrew fastow .
the financial world , concerned about possible conflicts of interest and angry that enron has yet to explain what transpired , has abandoned the stock in recent weeks , causing a 70 percent drop in value since mid - october .
enron , trying to bolster investor confidence , has tapped more than $ 4 billion in new and existing credit lines in recent days , but its credit rating has been cut to near junk status over worries about a possible cash crunch .
political capital high
no such problems afflict enron on the political side .
lay is a long time political benefactor of the bush family and is believed by some experts to be the biggest single contributor to george w . bush ' s various campaigns .
last year , lay earned the title of bush " pioneer " for having raised at least $ 100 , 000 in contributions to the presidential campaign . by some estimates , he has given about $ 1 million to bush over the years .
lay has said his political contributions are not aimed at gaining influence .
" when i make contributions to a candidate , it ' s not for some special favor . . . it ' s because i ' m supporting a candidate i strongly believe in personally , " lay said in an interview on pbs ' news program " frontline . "
when bush was governor of texas , lay served on his governor ' s business council , which helped push the bush legislative agenda , and he was a key energy adviser during the presidential campaign .
lay came under criticism when he was one of a handful of business bigwigs called in for a private meeting with cheney as the administration formulated its controversial energy plan .
" ken ' s been a friend , " cheney explained to frontline .
enron ' s network of political connections extends into congress where it gives money to many in the house and senate .
according to the center for responsive politics , which tracks money in politics , enron and its employees gave $ 2 . 4 million in contributions in the 2000 election year , more than than any other energy company .
of that amount , 72 percent went to republicans , said the washington - based center .
its ties to u . s . senator phil gramm of texas , the ranking republican on the powerful senate banking committee , are particularly close because his wife , wendy gramm , is on enron ' s board of directors .
from 1988 to 1993 , under then president george h . w . bush , she chaired the u . s . commodity futures trading commission , which played a role in deregulating energy markets that enron now dominates . she raised eyebrows when she joined enron ' s board just five weeks after leaving the commission .
gramm ' s selection was not all that unusual for enron , said andrew wheat , research director for texans for public justice , a campaign finance watchdog group in austin .
he told reuters the company has used former washington officials to help secure business deals here and in other countries . last week , enron hired william mclucas , a former head of the sec ' s enforcement division , as its attorney in the probe into its business dealings .
" i think enron has astronomical power , both in this state and in this country . . . and with bush , they are unparalleled , " wheat said .
still no guarantees
steffes said that enron ' s connections do not guarantee washington ' s help if the company needs some kind of bailout . " the energy industry is just not that well liked , " he said .
more likely , he believes , is that energy industry peers would chip in by taking a financial interest in the company simply because they need enron . experts worry that without enron , which controls about 25 percent of energy trading , the markets would become too volatile .
but wheat said the idea that enron is " too big to fail " is not likely to be lost on an administration that , following the attacks on sept . 11 , engineered a bailout of the airlines and may do the same for other industries .
and enron comes with a big advantage , he said .
" it ' s got a pretty clear path to the white house , " wheat said .
copyright ? 2000 dow jones & company , inc . all rights reserved .
usa : update 1 - enron shares hit new lows on credit worries .
11 / 06 / 2001
reuters english news service
( c ) reuters limited 2001 .
houston , nov 6 ( reuters ) - enron corp . shares sank below the $ 10 mark for the first time in almost a decade on tuesday , amid persistent concerns the beleaguered energy giant ' s deteriorating credit ratings could hamper its core natural gas and electricity marketing and trading business .
in afternoon trading , enron ' s stock was down $ 1 . 55 , or 13 . 9 percent , at $ 9 . 62 per share , after hitting a new nine - year low of $ 9 . 55 . enron was the most actively traded issue on the new york stock exchange on tuesday , with more than 20 million shares changing hands , and the fourth - biggest percentage loser .
so far this year , shares of the former wall street favorite have lost 88 percent of their value . the stock last traded below $ 10 in may 1992 .
" you ' re seeing continuing concern over their credit rating , " said cibc world markets analyst william hyler .
its stock was hammered particularly hard as concerns about its complex finances and a lack of disclosure undermined investor confidence in enron following its release of third - quarter earnings .
the stock plunge began after oct . 16 , when enron reported its first quarterly loss in four years , took a $ 1 billion charge for ill - fated investments and soon after disclosed a $ 1 . 2 billion cut in shareholder equity .
an investigation by the u . s . securities and exchange commission into dealings related to chief financial officer andrew fastow further undermined investor confidence , and led to fastow ' s ouster .
share prices tried to rebound last week , but renewed their plunge after an announcement on monday by credit rating agency fitch that it had cut its rating for enron ' s senior unsecured debt to one notch above junk - bond status . fitch also said it would make further downgrades if enron were unable to make progress in reducing debt .
the other two main rating agencies , moody ' s investors service and standard & poor ' s , had already cut their credit ratings for enron .
enron is north america ' s biggest marketer and trader of electricity and natural gas , but analysts say that holding on to investment - grade credit ratings is vital to maintaining the confidence of the companies that it trades with each day .
traders in both markets said on tuesday that they are monitoring enron closely but that there are no signs of anybody cutting back on their business with the company for fear that it might not be able to honor its obligations .
as part of ongoing efforts to strengthen its finances and restore confidence , enron has held talks with private equity firms and power - trading companies about a capital injection of at least $ 2 billion , the wall street journal reported on tuesday .
investors willing to provide fresh capital to enron would receive an equity stake in enron or preferred stock that would be convertible into common stock if enron ' s stock price recovers to a certain level , the journal said .
hyler said it was difficult to judge whether this would be welcomed by existing investors who could see their existing ownership stake in enron diluted by such a move .
" it depends on the cost of that equity and how much they have to give up , " he said .
another analyst , who spoke on condition of anonymity , said short - term , rather than long - term financing is currently uppermost in most investors ' minds .
" can they get to a permanent solution or do they have to fold in the light of short - term credit worries , " he said .
copyright ? 2000 dow jones & company , inc . all rights reserved . | 0 | ham | enron mentions | uk : u . s . enron shuts down finland office .
reuters english news service , 11 / 06 / 01
usa : enron shares fall below $ 10 , first time since 1992 .
reuters english news service , 11 / 06 / 01
enron used partnerships to mask debt , holders charge ( updatel )
bloomberg , 11 / 06 / 01
enron falls on credit , private - financing concerns ( update 2 )
bloomberg , 11 / 06 / 01
platform aims to trade tailored power products online
dow jones energy service , 11 / 06 / 01
usa : bush ties give enron sympathetic ear in washington .
reuters english news service , 11 / 06 / 01
usa : update 1 - enron shares hit new lows on credit worries .
reuters english news service , 11 / 06 / 01
uk : u . s . enron shuts down finland office .
11 / 06 / 2001
reuters english news service
( c ) reuters limited 2001 .
london , nov 6 ( reuters ) - u . s . energy group enron said on tuesday it had closed its offices in finland as part of a restructuring in scandinavia .
" this was planned for some time , we will continue to service our finnish clients from our oslo office , " said a spokeswoman for enron ' s european headquarters in london .
enron ' s finland office had a staff of two .
the spokeswoman said the closure in finland was unconnected with the group ' s recent problems .
bankers say houston - based enron may have to sell assets as it seeks to head off a credit crunch and restore investor confidence .
the company ' s stock has more than halved in value since mid - october and its credit has been downgraded after it emerged the u . s . securities and exchange commission was investigating off - balance - sheet transactions that led to a $ 1 billion charge and a $ 1 . 2 billion write - down of shareholder equity .
copyright ? 2000 dow jones & company , inc . all rights reserved .
usa : enron shares fall below $ 10 , first time since 1992 .
11 / 06 / 2001
reuters english news service
( c ) reuters limited 2001 .
houston , nov 6 ( reuters ) - shares of beleaguered energy giant enron corp . hit the latest in a recent series of new lows on tuesday when they dipped below the $ 10 mark for the first time since may 1992 .
in mid - morning trading , enron ' s stock was down $ 1 . 24 , or 11 . 1 percent per share , at $ 9 . 93 , after touching a low of $ 9 . 88 . for the year , enron shares have shed 88 percent of their value .
enron , north america ' s biggest wholesale marketer and trader of electricity and natural gas , has held talks with private - equity firms and power - trading companies for a capital infusion of at least $ 2 billion , the wall street journal reported on tuesday .
enron has seen its stock hammered in recent weeks as concerns about its complex finances have undermined investor confidence in a company that was a wall street favorite until early this year .
copyright ? 2000 dow jones the $ 1 . 27 billion acquisition of an electric plant
in brazil in 1998 ; and the $ 2 . 51 billion purchase of a water
company in the united kingdom in 1998 .
new plans
in the late 1990 s , enron executives changed course . the
company said that it would sell pipelines and power plants to make
money almost entirely from trading energy , rather than producing
it . the plan succeeded . last year , 97 percent of enron ' s revenue
came from trading and advising industrial customers on energy use .
` ` i think our legacy will be that we proved you can build a
business on intellectual capital , not physical assets , ' ' former
chief executive officer jeffrey skilling said in may . skilling
left enron in august , citing personal reasons , and was replaced by
his predecessor , kenneth lay .
central to the enron plan to sell its hardware was the
creation of affiliates to buy the pipelines and plants , and to
sell bonds to finance the transactions . enron posted information
on its web site last week saying it had created affiliates to
raise money for enron projects .
officials involved
incorporation papers in texas and delaware show that the 33
companies formed by enron list enron executives or employees as
officers . fastow served as an officer or director for all 33
affiliates .
one enron affiliate , obi - 1 holdings llc , lists 24 enron
employees and executives as directors . another affiliate , oilfield
business investments - 1 llc , lists 29 .
enron spokesman mark palmer has said the executives served as
officers and directors of the affiliates only to represent enron ' s
interests . none of them receives any compensation except fastow ,
he said . fastow was permitted by enron to earn a bonus of 2
percent of the total amount one partnership invested .
selling assets to company - controlled affiliates isn ' t
uncommon , said columbia university securities law professor john
coffee . ` ` it ' s not suspect by itself , ' ' coffee said . ` ` companies
do it to make balance sheets look better . ' '
the practice isn ' t embraced by everyone .
` ` that sort of thing wouldn ' t be part of duke ' s business
plan , ' ' said jim donnell , chief executive of duke energy corp . ' s
wholesale power unit . ` ` you have a different objective if you sell
to an interested special purpose vehicle . ' '
profit potential
earlier this year , former cfo fastow was in an unusual
position . enron ' s board permitted him to manage two partnerships ,
ljm cayman and ljm 2 co - investment , and personally profit from
buying and selling assets . ljm entered into agreements that bound
it to buy enron stock at a predetermined price six months later .
a lawsuit filed by shareholder fred greenberg says fastow
used advance knowledge that enron shares would fall to rework the
agreement . that allowed ljm to buy the shares two months early ,
bringing $ 10 . 5 million in profit . if the agreement hadn ' t been
renegotiated , the partnership would have lost money , the suit
alleges .
enron has acknowledged potential conflict of interest by
allowing executives to serve as directors of affiliates . a bond
offering for the whitewing affiliate says ` ` certain individuals
that serve as officers and directors of enron may also serve as
directors of whitewing . . . therefore , the duties of the
directors and officers of enron may conflict with the duties of
the directors and officers of whitewing . ' '
ouster
enron ousted fastow as cfo on oct . 24 , the day after the
company said the sec had questions about the partnerships .
shareholders also say in lawsuits that enron executives
benefited from not fully disclosing the company ' s financial
position . they cite insider sales of $ 73 million in shares ahead
of a 26 percent drop in the company ' s stock in february and march .
the executives included lay , who sold stock worth $ 11 . 2
million ; skilling , who sold stock for $ 6 . 41 million ; and vice
chairman mark frevert , who sold shares totaling $ 14 . 2 million .
` ` this trading was unusual and suspicious given its timing , ' '
a shareholder class - action suit says . ` ` they had access to
adverse , undisclosed information . ' '
enron falls on credit , private - financing concerns ( update 2 )
2001 - 11 - 06 14 : 18 ( new york )
enron falls on credit , private - financing concerns ( update 2 )
( adds bond ratings in 10 th - 11 th paragraphs . adds information
on enron bond repayment in eighth paragraph . updates shares . )
houston , nov . 6 ( bloomberg ) - - enron corp . shares fell as
much as 15 percent after bond - rating agency fitch inc . said it may
cut the company ' s credit rating to junk status and the wall street
journal reported the no . 1 energy trader is seeking cash from
private investors .
enron shares fell $ 1 . 55 to $ 9 . 62 in midafternoon trading .
they earlier touched $ 9 . 55 , their lowest price since may 1992 .
` ` there ' s concern that the company is getting desperate , ' '
said zach wagner , an energy analyst at edward jones . ` ` they ' re
really in desperate need of cash and investors don ' t like to see
that . ' ' wagner rates enron ` ` reduce ' ' and doesn ' t own its shares .
former enron chief executive officer jeffrey skilling
canceled a planned appearance today at a milken institute
conference near los angeles after he was subpoenaed to testify in
washington , said ross devol , an official at the institute . devol
wouldn ' t say who had subpoenaed skilling or for what reason .
enron spokeswoman karen denne said she was unaware of any
testimony by skilling and didn ' t know where he might be expected
to testify . skilling resigned as enron ceo in august .
enron is seeking $ 2 billion in cash from private investors ,
the wall street journal reported . the company , whose shares have
fallen 88 percent this year , held talks with blackstone group lp
and clayton , dubilier & rice inc . to discuss a cash investment ,
and a number of unidentified power - trading companies have
expressed an interest in investing in enron , the paper said .
fitch downgrade
fitch said it may cut houston - based enron ' s credit rating to
below investment grade if it fails to cut debt or if its business
slows further . yesterday it cut enron ' s long - term credit rating
two notches to the lowest investment grade , or to ` ` bbb - , ' ' from
` ` bbb + . ' '
enron uses its investment - grade credit rating to borrow money
for the cash it needs every day to settle commodities trades and
to keep trading partners . a lower credit rating also would trigger
early repayment of $ 3 . 3 billion in enron bonds that aren ' t due
until 2002 and 2003 .
the u . s . securities and exchange commission is investigating
enron partnerships run by its former chief financial officer . the
partnerships bought and sold enron shares and assets , with the
trades costing enron $ 35 million and $ 1 . 2 billion in lost
shareholder equity . enron ousted chief financial officer andrew
fastow last month .
standard & poor ' s on thursday lowered enron ' s long - term
credit rating to ` ` bbb , ' ' the second - lowest investment grade , from
` ` bbb + . ' ' enron ' s short - term debt rating was cut to ` ` a - 3 , ' '
the lowest investment grade , from ` ` a - 2 . ' '
on oct . 29 moody ' s investors service lowered enron ' s long -
term credit rating to ` ` baa 2 ' ' from ` ` baal , ' ' two notches above
junk status . it also placed the company ' s ` ` p - 2 ' ' rating for
commercial paper on review for possible downgrade .
platform aims to trade tailored power products online
by kristen mcnamara
of dow jones newswires
11 / 06 / 2001
dow jones energy service
( copyright ( c ) 2001 , dow jones 201 - 938 - 2061 ; kristen . mcnamara @ dowjones . com
copyright ? 2000 dow jones vice president dick cheney ; and , in general , the republican power structure now running the show in the nation ' s capital .
whether those contacts will need to be tapped as enron struggles through a corporate crisis touched off by questionable financial dealings remains to be seen . but companies usually give money to candidates so they will have friends in high places when they need them , experts said .
" ( enron ) will probably have to use a lot of their goodwill . that ' s what they build it up for anyway , " said energy analyst dale steffes , head of planning and forecasting consultants in houston .
enron , which dominates natural gas and electricity markets in the united states , has come under investigation by the u . s . securities and exchange commission following disclosures that it did off - balance sheet deals with partnerships run by then - chief financial officer andrew fastow .
the financial world , concerned about possible conflicts of interest and angry that enron has yet to explain what transpired , has abandoned the stock in recent weeks , causing a 70 percent drop in value since mid - october .
enron , trying to bolster investor confidence , has tapped more than $ 4 billion in new and existing credit lines in recent days , but its credit rating has been cut to near junk status over worries about a possible cash crunch .
political capital high
no such problems afflict enron on the political side .
lay is a long time political benefactor of the bush family and is believed by some experts to be the biggest single contributor to george w . bush ' s various campaigns .
last year , lay earned the title of bush " pioneer " for having raised at least $ 100 , 000 in contributions to the presidential campaign . by some estimates , he has given about $ 1 million to bush over the years .
lay has said his political contributions are not aimed at gaining influence .
" when i make contributions to a candidate , it ' s not for some special favor . . . it ' s because i ' m supporting a candidate i strongly believe in personally , " lay said in an interview on pbs ' news program " frontline . "
when bush was governor of texas , lay served on his governor ' s business council , which helped push the bush legislative agenda , and he was a key energy adviser during the presidential campaign .
lay came under criticism when he was one of a handful of business bigwigs called in for a private meeting with cheney as the administration formulated its controversial energy plan .
" ken ' s been a friend , " cheney explained to frontline .
enron ' s network of political connections extends into congress where it gives money to many in the house and senate .
according to the center for responsive politics , which tracks money in politics , enron and its employees gave $ 2 . 4 million in contributions in the 2000 election year , more than than any other energy company .
of that amount , 72 percent went to republicans , said the washington - based center .
its ties to u . s . senator phil gramm of texas , the ranking republican on the powerful senate banking committee , are particularly close because his wife , wendy gramm , is on enron ' s board of directors .
from 1988 to 1993 , under then president george h . w . bush , she chaired the u . s . commodity futures trading commission , which played a role in deregulating energy markets that enron now dominates . she raised eyebrows when she joined enron ' s board just five weeks after leaving the commission .
gramm ' s selection was not all that unusual for enron , said andrew wheat , research director for texans for public justice , a campaign finance watchdog group in austin .
he told reuters the company has used former washington officials to help secure business deals here and in other countries . last week , enron hired william mclucas , a former head of the sec ' s enforcement division , as its attorney in the probe into its business dealings .
" i think enron has astronomical power , both in this state and in this country . . . and with bush , they are unparalleled , " wheat said .
still no guarantees
steffes said that enron ' s connections do not guarantee washington ' s help if the company needs some kind of bailout . " the energy industry is just not that well liked , " he said .
more likely , he believes , is that energy industry peers would chip in by taking a financial interest in the company simply because they need enron . experts worry that without enron , which controls about 25 percent of energy trading , the markets would become too volatile .
but wheat said the idea that enron is " too big to fail " is not likely to be lost on an administration that , following the attacks on sept . 11 , engineered a bailout of the airlines and may do the same for other industries .
and enron comes with a big advantage , he said .
" it ' s got a pretty clear path to the white house , " wheat said .
copyright ? 2000 dow jones & company , inc . all rights reserved .
usa : update 1 - enron shares hit new lows on credit worries .
11 / 06 / 2001
reuters english news service
( c ) reuters limited 2001 .
houston , nov 6 ( reuters ) - enron corp . shares sank below the $ 10 mark for the first time in almost a decade on tuesday , amid persistent concerns the beleaguered energy giant ' s deteriorating credit ratings could hamper its core natural gas and electricity marketing and trading business .
in afternoon trading , enron ' s stock was down $ 1 . 55 , or 13 . 9 percent , at $ 9 . 62 per share , after hitting a new nine - year low of $ 9 . 55 . enron was the most actively traded issue on the new york stock exchange on tuesday , with more than 20 million shares changing hands , and the fourth - biggest percentage loser .
so far this year , shares of the former wall street favorite have lost 88 percent of their value . the stock last traded below $ 10 in may 1992 .
" you ' re seeing continuing concern over their credit rating , " said cibc world markets analyst william hyler .
its stock was hammered particularly hard as concerns about its complex finances and a lack of disclosure undermined investor confidence in enron following its release of third - quarter earnings .
the stock plunge began after oct . 16 , when enron reported its first quarterly loss in four years , took a $ 1 billion charge for ill - fated investments and soon after disclosed a $ 1 . 2 billion cut in shareholder equity .
an investigation by the u . s . securities and exchange commission into dealings related to chief financial officer andrew fastow further undermined investor confidence , and led to fastow ' s ouster .
share prices tried to rebound last week , but renewed their plunge after an announcement on monday by credit rating agency fitch that it had cut its rating for enron ' s senior unsecured debt to one notch above junk - bond status . fitch also said it would make further downgrades if enron were unable to make progress in reducing debt .
the other two main rating agencies , moody ' s investors service and standard & poor ' s , had already cut their credit ratings for enron .
enron is north america ' s biggest marketer and trader of electricity and natural gas , but analysts say that holding on to investment - grade credit ratings is vital to maintaining the confidence of the companies that it trades with each day .
traders in both markets said on tuesday that they are monitoring enron closely but that there are no signs of anybody cutting back on their business with the company for fear that it might not be able to honor its obligations .
as part of ongoing efforts to strengthen its finances and restore confidence , enron has held talks with private equity firms and power - trading companies about a capital injection of at least $ 2 billion , the wall street journal reported on tuesday .
investors willing to provide fresh capital to enron would receive an equity stake in enron or preferred stock that would be convertible into common stock if enron ' s stock price recovers to a certain level , the journal said .
hyler said it was difficult to judge whether this would be welcomed by existing investors who could see their existing ownership stake in enron diluted by such a move .
" it depends on the cost of that equity and how much they have to give up , " he said .
another analyst , who spoke on condition of anonymity , said short - term , rather than long - term financing is currently uppermost in most investors ' minds .
" can they get to a permanent solution or do they have to fold in the light of short - term credit worries , " he said .
copyright ? 2000 dow jones & company , inc . all rights reserved . | 2001-11-06T00:00:00 |
287 | mips january actuals fyi - not sure of the affect on p & l .
- - - - - - - - - - - - - - - - - - - - - - forwarded by brenda f herod / hou / ect on 02 / 10 / 2000
01 : 45 pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
george grant
02 / 10 / 2000 01 : 23 pm
to : brenda f herod / hou / ect @ ect
cc :
subject : mips january actuals
fyi
- - - - - - - - - - - - - - - - - - - - - - forwarded by george grant / hou / ect on 02 / 10 / 2000 01 : 22
pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
romeo d ' souza
02 / 10 / 2000 11 : 09 am
to : george grant / hou / ect @ ect
cc : dave nommensen / hou / ect @ ect , michael eiben / hou / ect @ ect
subject : mips january actuals
george ,
there seems to be a problem with mips while trying to actualize
the january 2000 data ( y 2 k related ) . in order to actualize jan
pops has to manually load the actual files into pops , the
side effect of this is that some of the feb data may be loaded
with numbers that are old . this will be rectified as we complete
loading the jan actuals and then load the most recent mips
measured prelim numbers for feb .
pops is currently processing the mips files in the order they
were received , we should be done with this today . please inform
us of any abnormalities that you see tommorrow .
thanks
romeo | 0 | ham | mips january actuals | fyi - not sure of the affect on p & l .
- - - - - - - - - - - - - - - - - - - - - - forwarded by brenda f herod / hou / ect on 02 / 10 / 2000
01 : 45 pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
george grant
02 / 10 / 2000 01 : 23 pm
to : brenda f herod / hou / ect @ ect
cc :
subject : mips january actuals
fyi
- - - - - - - - - - - - - - - - - - - - - - forwarded by george grant / hou / ect on 02 / 10 / 2000 01 : 22
pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
romeo d ' souza
02 / 10 / 2000 11 : 09 am
to : george grant / hou / ect @ ect
cc : dave nommensen / hou / ect @ ect , michael eiben / hou / ect @ ect
subject : mips january actuals
george ,
there seems to be a problem with mips while trying to actualize
the january 2000 data ( y 2 k related ) . in order to actualize jan
pops has to manually load the actual files into pops , the
side effect of this is that some of the feb data may be loaded
with numbers that are old . this will be rectified as we complete
loading the jan actuals and then load the most recent mips
measured prelim numbers for feb .
pops is currently processing the mips files in the order they
were received , we should be done with this today . please inform
us of any abnormalities that you see tommorrow .
thanks
romeo | 2000-02-10T00:00:00 |
5,905 | invoice for ordered papers shirley ,
the invoice for papers i have ordered on - line .
vince
- - - - - - - - - - - - - - - - - - - - - - forwarded by vince j kaminski / hou / ect on 04 / 11 / 2000
01 : 22 pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
nber working paper catalog on 04 / 11 / 2000 10 : 09 : 59 am
to : vkamins @ enron . com
cc :
subject : invoice for ordered papers
you have ordered the following papers :
- wp w 7613
foundations of technical analysis : computational algorithms , statistical
inference , and empirical implementation
- wp w 6250
pricing and hedging derivative securities in incomplete markets : an
e - aritrage model
the total cost ( excluding shipping ) is :
$ us 10
shipping address :
if you ordered papers for electronic delivery and experienced problems
downloading them , browse the following url ( s ) to download your paper
orders . the url ( s ) are valid for 7 days .
if you receive duplicate bills , please send a note to . | 0 | ham | invoice for ordered papers | shirley ,
the invoice for papers i have ordered on - line .
vince
- - - - - - - - - - - - - - - - - - - - - - forwarded by vince j kaminski / hou / ect on 04 / 11 / 2000
01 : 22 pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
nber working paper catalog on 04 / 11 / 2000 10 : 09 : 59 am
to : vkamins @ enron . com
cc :
subject : invoice for ordered papers
you have ordered the following papers :
- wp w 7613
foundations of technical analysis : computational algorithms , statistical
inference , and empirical implementation
- wp w 6250
pricing and hedging derivative securities in incomplete markets : an
e - aritrage model
the total cost ( excluding shipping ) is :
$ us 10
shipping address :
if you ordered papers for electronic delivery and experienced problems
downloading them , browse the following url ( s ) to download your paper
orders . the url ( s ) are valid for 7 days .
if you receive duplicate bills , please send a note to . | 2000-04-11T00:00:00 |
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need help for better [ s ] [ e ] [ x ] ?
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yes | no
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| 2005-07-27T00:00:00 |
15,550 | windows xp w / office xp for only $ 80 . chronograph dequeues rapid destuffing apprehensible incrementer
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| 2004-12-13T00:00:00 |
9,423 | your advice is appreciated vince ,
in the morning we were talking about the el paso candidate who thinks he is above something and is not
willing to take certain project or responsibility . in real life , we also occasionally have similar stiuation . ( an
example is attached ) .
i would like to have your guidance when such a situation occurs .
zimin
- - - - - - - - - - - - - - - - - - - - - - forwarded by zimin lu / hou / ect on 05 / 02 / 2001 02 : 07 pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
zimin lu
05 / 02 / 2001 01 : 41 pm
to : paulo issler / hou / ect @ ect
cc :
subject : re : asian option for pavel
our convention is whoever finalizes the model should write the documentation . it does not make sense
to write one when changes are anticipated . you have been working on this almost a year , it never
strikes you that we need a documentation ?
i created exotica . xll , does that also give you an excuse not working on exotica documentation ?
zimin
paulo issler
05 / 02 / 2001 11 : 52 am
to : zimin lu / hou / ect @ ect
cc : tai woo / enron @ enronxgate @ enron , pavel zadorozhny / enron @ enronxgate
subject : re : asian option for pavel
i am surprised that we do not have the documentation ready .
i can make that for you . it is not there because you did not put that together by the time it was created and all the changes i have made did not required changes on the functionality .
paulo issler
zimin lu
05 / 02 / 2001 11 : 29 am
to : tai woo / enron @ enronxgate @ enron , paulo issler / hou / ect @ ect
cc : pavel zadorozhny / enron @ enronxgate
subject : re : asian option for pavel
tai woo ,
here are the c - codes for the crudeapo . ' sig ' is the spot
volatility meaning the price volatility within the delivery period .
you should consult with pavel for the definition of this " extra " parameters . we
would like to see the position monitor once you get it running .
we might have some additional suggestions .
paulo ,
why don ' t we have a documentation on crudeapo you worked on ?
i can not find it in exotica help file . please supply that to tai , thanks .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
from : tai woo / enron @ enronxgate on 05 / 02 / 2001 09 : 55 am
to : paulo issler / hou / ect @ ect
cc : kara maloney / enron @ enronxgate , zimin lu / hou / ect @ ect
subject : asian option for pavel
this morning , zimin told me that pavel is using a special model in evaluating his asian option portfolio .
he asked me to talk to you in order to access to the code so that i can see the difference made to the model .
as i cannot find the doc . describing this model , please tell me what that new input parameter ' sig ' is .
thanks , | 0 | ham | your advice is appreciated | vince ,
in the morning we were talking about the el paso candidate who thinks he is above something and is not
willing to take certain project or responsibility . in real life , we also occasionally have similar stiuation . ( an
example is attached ) .
i would like to have your guidance when such a situation occurs .
zimin
- - - - - - - - - - - - - - - - - - - - - - forwarded by zimin lu / hou / ect on 05 / 02 / 2001 02 : 07 pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
zimin lu
05 / 02 / 2001 01 : 41 pm
to : paulo issler / hou / ect @ ect
cc :
subject : re : asian option for pavel
our convention is whoever finalizes the model should write the documentation . it does not make sense
to write one when changes are anticipated . you have been working on this almost a year , it never
strikes you that we need a documentation ?
i created exotica . xll , does that also give you an excuse not working on exotica documentation ?
zimin
paulo issler
05 / 02 / 2001 11 : 52 am
to : zimin lu / hou / ect @ ect
cc : tai woo / enron @ enronxgate @ enron , pavel zadorozhny / enron @ enronxgate
subject : re : asian option for pavel
i am surprised that we do not have the documentation ready .
i can make that for you . it is not there because you did not put that together by the time it was created and all the changes i have made did not required changes on the functionality .
paulo issler
zimin lu
05 / 02 / 2001 11 : 29 am
to : tai woo / enron @ enronxgate @ enron , paulo issler / hou / ect @ ect
cc : pavel zadorozhny / enron @ enronxgate
subject : re : asian option for pavel
tai woo ,
here are the c - codes for the crudeapo . ' sig ' is the spot
volatility meaning the price volatility within the delivery period .
you should consult with pavel for the definition of this " extra " parameters . we
would like to see the position monitor once you get it running .
we might have some additional suggestions .
paulo ,
why don ' t we have a documentation on crudeapo you worked on ?
i can not find it in exotica help file . please supply that to tai , thanks .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
from : tai woo / enron @ enronxgate on 05 / 02 / 2001 09 : 55 am
to : paulo issler / hou / ect @ ect
cc : kara maloney / enron @ enronxgate , zimin lu / hou / ect @ ect
subject : asian option for pavel
this morning , zimin told me that pavel is using a special model in evaluating his asian option portfolio .
he asked me to talk to you in order to access to the code so that i can see the difference made to the model .
as i cannot find the doc . describing this model , please tell me what that new input parameter ' sig ' is .
thanks ,
| 2001-05-02T00:00:00 |
33,183 | saludos desde caracas saludos ,
nuestra compania abrió un proceso de búsqueda para personas que deseen
aumentar en al menos $ 1000 sus ingresos trabajando a tiempo parcial , o en
su tiempo libre , si conoce a alguien que : necesita trabajo , desea ganar mas o
simplemente quiere mejorar su calidad de vida por favor , envíele nuestra
pagina , www . ingresoya . com en ella encontrará toda la informacion requerida
gracias de antemano ,
luis eduardo garcia & fina grieco
h . b . l international ,
www . ingresoya . com | 1 | spam | saludos desde caracas | saludos ,
nuestra compania abrió un proceso de búsqueda para personas que deseen
aumentar en al menos $ 1000 sus ingresos trabajando a tiempo parcial , o en
su tiempo libre , si conoce a alguien que : necesita trabajo , desea ganar mas o
simplemente quiere mejorar su calidad de vida por favor , envíele nuestra
pagina , www . ingresoya . com en ella encontrará toda la informacion requerida
gracias de antemano ,
luis eduardo garcia & fina grieco
h . b . l international ,
www . ingresoya . com | 2005-06-15T00:00:00 |
17,364 | start date : 12 / 19 / 01 ; hourahead hour : 11 ; start date : 12 / 19 / 01 ; hourahead hour : 11 ; no ancillary schedules awarded . no variances detected .
log messages :
parsing file - - > > o : \ portland \ westdesk \ california scheduling \ iso final schedules \ 2001121911 . txt | 0 | ham | start date : 12 / 19 / 01 ; hourahead hour : 11 ; | start date : 12 / 19 / 01 ; hourahead hour : 11 ; no ancillary schedules awarded . no variances detected .
log messages :
parsing file - - > > o : \ portland \ westdesk \ california scheduling \ iso final schedules \ 2001121911 . txt | 2001-12-19T00:00:00 |
7,809 | december 11 prc meeting please mark your calendars for the december 11 , 2000 prc meeting to prereview
vice presidents in the following organizations :
enron north america
enron industrial markets
enron global markets
enron networks
enron south america
apachi
calme
the meeting will be held at the st . regis hotel , 1919 briar oaks lane ,
houston in the plaza room . the meeting is scheduled from 8 : 00 am to 5 : 00 pm .
for those of you who are part of the enron wholesale services group , please
plan to be there at 8 : 00 am , as the first part of the meeting will be devoted
to discussing prc results of groups below vice president , and manager to
director / sr . director promotion nominations . the vice president rating is
scheduled to begin at approximately 9 : 45 am .
the telephone number of the hotel is 713 - 840 - 7600 .
a complete agenda and details will be forthcoming later this week .
for those of you in the organization units listed above , please be prepared
to present and discuss your vice presidents .
please feel free to contact me at x 36628 in houston , should you have any
questions .
sheila knudsen | 0 | ham | december 11 prc meeting | please mark your calendars for the december 11 , 2000 prc meeting to prereview
vice presidents in the following organizations :
enron north america
enron industrial markets
enron global markets
enron networks
enron south america
apachi
calme
the meeting will be held at the st . regis hotel , 1919 briar oaks lane ,
houston in the plaza room . the meeting is scheduled from 8 : 00 am to 5 : 00 pm .
for those of you who are part of the enron wholesale services group , please
plan to be there at 8 : 00 am , as the first part of the meeting will be devoted
to discussing prc results of groups below vice president , and manager to
director / sr . director promotion nominations . the vice president rating is
scheduled to begin at approximately 9 : 45 am .
the telephone number of the hotel is 713 - 840 - 7600 .
a complete agenda and details will be forthcoming later this week .
for those of you in the organization units listed above , please be prepared
to present and discuss your vice presidents .
please feel free to contact me at x 36628 in houston , should you have any
questions .
sheila knudsen | 2000-12-04T00:00:00 |
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