Footnote 8

ENA accounted for the funds it received as cash flow from operating activities rather than as cashflow from financing activities.d. BT/Deutsche Bank knowingly assisted the Insiders in misstating Enron’sfinancial condition.473. BT/Deutsche Bank’s involvement in the Insiders’ manipulation of Enron’s financialcondition was also necessary to the Insiders’ scheme. BT/Deutsche Bank knew the Insiders wereusing SPE transactions improperly to inflate income on Enron’s financial statements and to removedebt. From at least 1997, BT/Deutsche Bank helped the Insiders achieve their improper goals bydesigning, financing, and/or implementing several important tax transactions. Together, thesetransactions allowed the Insiders improperly to record more than $400 million in income on Enron’sfinancial statements.474. The Enron Examiner reviewed the BT/Deutsche Bank tax transactions discussedhere: Steele, Cochise, Teresa, Tomas, Renegade, and Valhalla. The Enron Examiner concluded thatSteele, Cochise, Teresa, and Tomas were “for the most part, artificial transactions lacking a bonafide business purpose other than the creation of accounting income for Enron,” that BT/DeutscheBank knew these transactions had no purpose except to enable the Insiders to incorrectly reportincome for accounting purposes, and that BT/Deutsche Bank substantially assisted the Insiders’fraud because it “developed [Steele, Cochise, Teresa, and Tomas’s] basic tax and accountingstructures . . . promoted them to Enron, and participated in the transactions, often as the only partyother than Enron affiliates.” Exam. III, App. G at 72-73.(1) BT/Deutsche Bank’s relationship with Enron.475. When Deutsche Bank AG acquired Bankers Trust Corporation (“Bankers Trust”) inJune 1999, Deutsche Bank AG and Bankers Trust each enjoyed a longstanding relationship withEnron. By that time, both were Tier 1 banks. The combined institution was a Tier 1 bank, as well.604041v1/007457-152-