Footnote 8

All three (Deutsche Bank AG, Bankers Trust, and BT/Deutsche Bank) proposed and engaged in awide variety of transactions with Enron, worldwide. One was BT/Deutsche Bank’s $10 millioninvestment in LJM2 in December 1999, which was made at Fastow’s invitation. BT/Deutsche Bankalso placed a designee on the LJM2 Advisory Committee. The six tax transactions discussed belowbecame one of BT/Deutsche Bank’s most important areas of involvement with Enron. In aNovember 29, 2000 internal e-mail, BT/Deutsche Bank described part of Enron’s importance to thebank: “By having this unique access to a very innovative client, we have been able to developproducts that we are aggressively marketing to other clients.” DBG 079773-774 (quoted inExam. III, App. G at 11). From 1997 through 2001, BT/Deutsche Bank received $72 million in feesfrom transactions with Enron.(2) The tax transactions.476. In 1997, Enron Insider Maxey formed a Corporate Tax Planning Group withinEnron’s corporate tax department. Thereafter, the tax transactions became one of BT/DeutscheBank’s most important areas of involvement with Enron. Periodically, BT/Deutsche Bank met withMaxey’s group to consider structures BT/Deutsche Bank developed that would satisfy Enron’sgoals. Among these structures were the highly complex Projects Teresa, Steele, Cochise, andTomas. These tax transactions were designed, developed and promoted to Enron by BT/DeutscheBank, which acted as Enron’s exclusive advisor and retained and worked in combination with ArthurAndersen to manipulate the potential accounting effects of these deals.477. Because Enron had huge amounts of net operating losses available to it prior toentering into any of the tax transactions, they were not designed to save current or near-term futuretaxes. Indeed, the tax transactions had nothing to do with “normal tax savings techniques” and wentwell beyond “typical corporate ‘tax shelter’ transactions.” Exam II, App. J at 1. Rather, these werea “new genre” of transactions designed to “generate” accounting income from projected future tax604041v1/007457-153-