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Gold/Mining/Energy : Dynegy Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Roger A. Babb who wrote (57)	5/28/2002 2:58:15 PM
From: Softechie	Read Replies (2) \| Respond to of 208

Expanded ChevronTexaco Role Seen In Dynegy Shakeup By BOB SECHLER Of DOW JONES NEWSWIRES AUSTIN, Texas -- ChevronTexaco Corp. (CVX) appears poised to take a more proactive role in the management of Dynegy Inc. (DYN), some observers said, even if it didn't call the shots in Dynegy's executive shakeup Tuesday. "I think they probably will keep a closer lookout" on Dynegy , said Bill Chapman of Victory Capital Management, which owns a stake in ChevronTexaco. Bear Stearns & Co. analyst Raymond Leung also said in a research note Tuesday that the changes at Dynegy "may indicate potential for a more proactive approach by ChevronTexaco to restore some credibility and support" to Dynegy . Still, Victory Capital's Chapman said it remains unclear how big an additional role ChevronTexaco will assume or whether it's likely to include new investment in Dynegy . ChevronTexaco is currently Dynegy's largest shareholder, with a 27% stake in the company. Dynegy announced management changes Tuesday that included the naming of Glenn Tilton, ChevronTexaco vice chairman, as Dynegy's interim chairman. Tilton and two other ChevronTexaco executives had already been serving on Dynegy's board. Dynegy Chairman and Chief Executive Chuck Watson resigned. The Houston energy company faces a Securities and Exchange Commission probe into its accounting and trading, and its stock price has dropped by about 64% since the start of the year. Dynegy shares recently were trading up 8.3%, or 77 cents, at $10.07, while ChevronTexaco shares were off 1.1%, or 97 cents, at $88.13. Updated May 28, 2002 2:22 p.m. EDT

To: Roger A. Babb who wrote (57)	6/12/2002 11:07:21 PM
From: Oeconomicus	Read Replies (2) \| Respond to of 208

Hey, Roger. Long time. Just popped over from the MIR thread and look who I find... Re the legality of round trip trades, it seems clear that this market, like any other commodity trading market in the US, could use a little regulation to keep the traders honest. The CFTC regulates trading of other commodities - why not electricity? But regulation of the trading marketplace is not the opposite of the deregulation of the power industry that lead to the creation of the IPPs. Deregulation of the industry is not what caused some traders and firms to engage in manipulative trading practices or sham transactions, but rather the lack of adequate rules governing the marketplace permitted unethical people to engage in those practices without fear of legal consequences. In any other security or commodity market in the US, these trades would be illegal, but one would not condemn the whole business of trading soybeans, for example, just because two traders engaged in sham trades. Actually, though, as far as the round trip trades go, I see at least two angles for attaching civil or criminal liability to the bad actors. First, if they engaged in these transactions with no real business purpose other than to inflate revenues, then one might make a securities fraud case against them in that they attempted to deceive investors and creditors. Second, if the intent was to create the appearance of market activity at a certain price when there would otherwise be none, or trading would have occurred at a different price, and if this price was to be the basis for a supplier to fix an artificially high price on another power contract, then the buyer stuck with the inflated price might be able to claim they were defrauded. Yes, there were outlaws in the Wild West. But don't give up and send everyone back East - hire more marshals. Regards, Bob