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To: IngotWeTrust who wrote (82585)	2/26/2002 5:20:25 PM
From: long-gone	Read Replies (1) \| Respond to of 116769

<<While I didn't hear THAT phrase, I do disagree with your conclusion, i.e., that "most of the hedging in business today is naked hedging.">> Sorry, Not my conclusion, just reporting what he said while I don't agree or know, this was the claim of Enron's Skilling. <<And a follow-up question: have you been a supplier or in charge of a demand physical commodity, and needed or qualified for a commodity account? >> On the buying side for a corporation. Most of our price hedging was mostly fuel natural gas & plastic(driven by oil price), and done with short - intermediate contracts placed at projected price lows for never more than planned projected demand. Sure, in the end,some contracts were in excess of our demand & had to be sold into the market, but at times demand was greater than planned supply. "Speculation", profit / loss from speculation was never intended, & the planner/ buyer would get called down nearly as hard for a speculation profit as loss. I had it explained to me(loudly) that our business involved the consumption of these items not gambling.

To: IngotWeTrust who wrote (82585)	2/26/2002 5:30:10 PM
From: long-gone	Respond to of 116769

btw, I agree a producer can't "naked hedge". As Enron owned power plants producing KW & oil & gas wells they couldn't be naked unless they were playing markets in which they didn't produce - right? Now, I guess "naked" might be viewed as a relative condition but seen as a "GO - NO GO" condition by others. For the record, Remember Mamma Cass Elliot? If she had been wearing nothing but a Band-Aid & a smile would classify her as having been "clothed"? casselliot.com

To: IngotWeTrust who wrote (82585)	2/26/2002 7:43:11 PM
From: E. Charters	Respond to of 116769

I believe naked hedging is legal in California as long as use sunblock, wear a hat, stand behind the hedge while trimming it and use an electric hedger with a nipple guard and noise reducer. EC<:-}

To: IngotWeTrust who wrote (82585)	2/27/2002 12:33:32 AM
From: long-gone	Respond to of 116769

Tuesday February 26, 7:32 pm Eastern Time Salomon settles fraud case with Calif. county SAN BERNARDINO, Calif., Feb 26 (Reuters) - It was a sales pitch that wound up costing Salomon Smith Barney millions of dollars. The Citigroup Inc. (NYSE:C - news) unit has agreed to pay $7.75 million to San Bernardino County to settle a lawsuit that alleged a former broker offered call girls and other inducements to attract lucrative securities business, the county said on Tuesday. The Southern California county's Board of Supervisors approved the agreement, settling charges that former broker Peter Morrison in addition to offing prostitutes also lavished free trips, cash and expensive meals on three county officials in an illegal exchange for business. San Bernardino County officials said the agreement means that Salomon Smith Barney and Morrison will be dismissed from the litigation filed in August 2000. The lawsuit still targets the three former county officials, who all pleaded guilty to bribery charges in a separate case, said county spokesman David Wert. The litigation also resulted in a settlement of $750,000 with mutual fund company CDC Nvest for its former agent Jeff Jackson's role in arranging the investments. ``These settlements bring the county closer to closing the book on the improper activities committed by former county officials more than four years ago,'' San Bernardino County Board of Supervisors Chairman Fred Aguiar said in a statement. The lawsuit accused Salomon of breaching its fiduciary duty, bribery and fraud. CDC Nvest representatives could not be reached for comment, but a spokeswoman for Salomon said the firm was pleased to put the lawsuit behind it. The settlement opens the door for Solomon to do business with the county again. County Treasurer Dick Larsen had suspended the firm from working on county investments when he began investigating Salomon and its former broker. San Bernardino officials added the lawsuit still targets the three former officials who all pleaded guilty to bribery charges resulting from schemes in which a number of individuals and firms provided county officials with gifts and favors in return for business. Named in the lawsuit were ex-county administrative officer James Hlawek, former treasurer Thomas O'Donnell and ex-investment officer Sol Levin. According to the lawsuit, the three former county officials directed more than $7.5 billion in securities transactions to Morrison and Salomon Smith Barney from 1992 to 1998. But the county alleges that some of these transactions were either illegal or risky and cost millions because the county could have put its money in better investments. During this period assets in the county's investment pool ranged from $1.2 billion to $1.9 billion. With Tuesday's settlement, the county said it has now recovered more than $15.5 million from its probe and litigation stemming from the scandal. biz.yahoo.com