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Non-Tech : Derivatives: Darth Vader's Revenge -- Ignore unavailable to you. Want to Upgrade?

To: Joan Osland Graffius who wrote (1023)	12/2/2001 10:28:20 AM
From: Henry Volquardsen	Read Replies (1) \| Respond to of 2794

Joan, There has been some good recent reporting by the Wall Street Journal. There have also been several lawsuits filed specifically related to the management and reporting of several limited partnerships. There was a late Oct article on CFO.com cfo.com that referenced one of these suits. They mention that the suits claim, among other things, that: The company's Broadband Services Division was experiencing declining demand for bandwidth, and the company's efforts to create a trading market for bandwidth were not meeting with success, as many of the market participants were not creditworthy. The company's operating results were materially overstated, since Enron failed to write down in a timely fashion the value of its investments with certain limited partnerships — the partnerships that were managed by Fastow. *Enron was failing to write down impaired assets on a timely basis in accordance with GAAP. Fastow was the CFO. There have been other allegations but without an online reference I'll let them pass for the moment but they are similar in tone. The answer to Enron is in their Broadband business and in unraveling what is in these MLPs and how they were managed.