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placed on Fastow’s participation in LJM1), and that RBS benefited from Fastow’s conflict ofinterest when Enron repurchased the Cuiaba asset at a profit to LJM1. Exam. IV, App. E at 3, 7-8,59-62. With respect to the FAS 140 transactions, the Examiner concluded RBS obtained “verbalassurances” of repayment from the Insiders, which made the accounting for the RBS FAS 140transactions improper. The Examiner found that RBS understood the verbal assurances “couldneither be documented nor publicly disclosed.” Exam. IV, App. E at 9. With respect to the Nixonprepay, the Examiner found that RBS participated in a transaction that the bank “internallyrecognized was simply a loan,” and did so “with the knowledge that the proceeds of loantransactions such as the Nixon prepay were booked by Enron as cash flow from operating activities.”Exam. IV, App. E at 10-11. In short, RBS aided and abetted the Insiders in breaching their fiduciaryduties.(1) RBS’s relationship with Enron.630. When Royal Bank of Scotland acquired NatWest in March of 2000, each bank in itsown right enjoyed a longstanding relationship with Enron. As early as 1995, NatWest boasted: “Weare one of Enron’s prime relationship banks worldwide . . . .” RBS 1115546 (quoted in Exam. IV,App. E at 13). Royal Bank of Scotland also had a substantial relationship with Enron, participatingin 14 Enron transactions between 1997 and the merger in March 2000. Exam. IV, App. E at 14.631. RBS, the post-merger entity, retained the Tier 1 bank status NatWest had establishedprior to the merger. RBS viewed the Enron relationship as “extremely strong,” boasted of its “verycoveted position” as one of Enron’s Tier 1 banks, and called Enron “one of the bank’s mostremunerative clients.” RBS 3088328 (quoted in Exam. IV, App. E at 15). From 1997 through 2001,RBS completed approximately 53 transactions with Enron – most of which, as RBS noticed, tookplace near the end of quarterly reporting periods. See Exam. IV, App. E at 16. These transactionswere extremely lucrative for RBS: The bank received over $60 million from Enron transactions604041v1/007457-216-