Footnote 8

ankruptcy. By the late 1990s, Barclays was among Enron’s top three banks. Enron, in turn, wasBarclays’ top oil and gas client worldwide from the late 1990s through 2000. From 1996 through2001, Barclays led 33 financing transactions and participated in 16 more. Barclays also proposedor considered 27 others during that same time. In connection with the transactions Barclayscompleted, Barclays was paid over $40 million in fees – a figure that does not include interestBarclays earned on the money it loaned.393. Because of its close relationship with the Insiders, Barclays had better access toEnron’s true financial information than many other banks, not to mention the rating agencies.Barclays examined Enron’s creditworthiness every year based on information to which it was privyby virtue of that relationship. Its access was such that by the end of 1998, Barclays’ seniormanagement had already concluded that the increasing reliance on structured financings to handleEnron’s off-balance sheet liabilities “was having a material impact on Enron’s financial statements.”Sworn Statement of John Meyer at 154-57 (quoted in Exam. III, App. F at 11).(2) J.T. Holdings.394. Since at least the early 1990s, Barclays has known it is improper not to consolidatea synthetic lease structure unless the lessee-SPE that owns the assets is capitalized with 3%independent, at-risk equity. As a result, when the Insiders approached Barclays in the fall of 2000about participating in an unconsolidated structure involving four distinct synthetic lease transactions,Barclays knew the assets to be leased had to be owned by an SPE capitalized with at least 3%independent, at-risk equity. Nevertheless, as a condition to its equity participation in the J.T.Holdings synthetic lease structure, Barclays told Glisan in November 2000 that Barclays would notparticipate unless Glisan would guarantee Barclays’ equity interest would be returned. Barclaysrequired the promise because it questioned the residual value of the assets underlying thetransaction.604041v1/007457-131-