Footnote 8

Yosemite IV USD 5/24/01 $775.1 millionYosemite IV GBP 5/24/01 £139 million (approx. $197 million)Yosemite IV Euro 5/24/01 €222.5 million (approx. $190.6 million)June 2001 6/28/01 $250 millionTotal $4.9203 billionThe Yosemite IV transaction consisted of three separate prepay financing transactions, onedenominated in US dollars, another in British pounds and the third in Euros. These transactions,which are collectively referred to as the Yosemite IV transaction, are separately and respectivelyreferred to as “Yosemite IV USD,” “Yosemite IV GBP,” and “Yosemite IV Euro.”278. Citibank structured all eleven prepay transactions and provided transaction support,the shell trading partner and/or a portion of the funds. By doing so, Citibank substantially aided theInsiders’ scheme of reporting the proceeds of disguised loans as income from commodity tradingactivities.279. Five of the eleven Citigroup prepays were completed as a fiscal quarter or year wascoming to a close at Enron. This was not a coincidence. All of the Citigroup prepays were arrangedto inflate Enron’s operating cash flow so that Enron could meet or exceed targeted financial resultsimportant to rating agencies and/or industry analysts. In some cases, the Insiders also used theproceeds of Citigroup prepays to pay off existing indebtedness, thus further manipulating Enron’sbalance sheet and the rating agency credit ratios based on it.280. For each Citigroup prepay, the Insiders set the prepaid amount to enable Enron tofalsely maintain or exceed credit ratios or their vital components. The prepaid amount was in noway determined by any amount of oil or gas that either Enron wanted to sell or the Citigroup affiliatewanted to buy. As the SEC found, “the amount of the commodity subject to a prepay was based onthe amount Enron wanted to borrow. That amount was determined by taking the principal amount604041v1/007457-85-