Footnote 8

(1) Chase’s relationship with Enron.341. Chase had a long history with Enron. During the 1990s, as Enron’s core businessevolved from regional natural gas provider to commodity and financial product trader, therelationship between the two grew in size and strength. Chase achieved Tier 1 status in 1994 andretained it thereafter. In turn, Chase labeled Enron a “Blue” client – that is, one that could“prospectively generate $5 million or more in deal revenues over an 18-month period.”JPMBKR-E 0515593 (emphasis in original). In fact, by 1999 Enron was generating fees of morethan $15 million annually for Chase’s Global Oil and Gas Group. As Chase documents written inHouston show, Chase thought of itself as “Enron’s major financing firm.” JPMBKR-E 0016226.Enron’s value to Chase was substantial. Even in 1995, Chase documents show that Chaserecognized Enron as “a bonanza in terms of deal flow.” JPMBKR 0315455. Chase both contributed$20 million in equity capital to LJM2 and led a $65 million revolving credit facility for it.342. The close relationship between Chase and Enron was also such that Chase had adeeper and more detailed understanding of Enron’s capital structure and financial position, includingsome of Enron’s structured transactions and off-balance sheet obligations, than could have beengleaned from an analysis of Enron’s financial statements alone. In May 1999, Chase knew enoughto annotate Enron’s financial statements for a meeting with Enron Capital Management officials inHouston, accurately describing where a large number of the off-balance sheet structures, includingprepays, were hidden. JPMCBKR 0017571-78; PSI Exhibit 187mm. Over the years, Chase alsoworked on a long-term project with Enron to restructure Enron’s balance sheet. Although theproject was never completed, Chase gained valuable insight into Enron’s financial condition as aresult of it. In October 2001, as the financial world began to become concerned with Enron, Fastowwrote to Richard Walker at Chase: “I think you know the credit and the businesses as well as (andbetter) than anyone in the world, so I’m counting on you to lead the way.” JPMBKR-E 0164513.604041v1/007457-113-