Footnote 8

that by investing in these partnerships, whose only business would be with Enron, they wereassisting Enron’s CFO and other Insiders in profiting at Enron’s expense. Importantly, the longerthe Insiders and Bank Defendants were able to maintain the appearance of Enron’s success throughstructured finance transactions, the more opportunities the Insiders and their private partnerships hadto extract ill-gotten gains from Enron.5. For the Bank Defendants, the scheme offered the irresistible temptation of enormousfees plus revenues from equity and debt underwritings, traditional financings, and other unusuallylucrative transactions with Enron, such as the phony “prepays” and the SPEs. For some of the BankDefendants, the sheer frequency of Enron deals – an average of one per month for over fouryears – was sufficient reward for the risk that the scheme might unravel. For other BankDefendants, the Insiders’ unmistakable threat that lenders who refused transactions would be deniedfuture Enron business did the trick. The Bank Defendants were hugely rewarded for theirinvolvement. Between 1997 and Enron’s demise in 2001, they collected hundreds of millions inrevenue from Enron deals – if not more. In addition, those who invested in the private partnershipswith the Insiders received lucrative returns.6. For the Insiders, the scheme provided unparalleled financial and professionalrewards. They received generous compensation packages and bonuses based upon Enron’s financialperformance, as fueled by the scheme. They exercised stock options and reaped millions of dollarsin gains from Enron’s stock prices, which were seriously inflated by the scheme. And some of themmade millions of dollars in profits from their ownership interests in the private partnerships that didbusiness with Enron. Former CFO Fastow and his family members made $60,000,000 from slightinvestments in these partnerships. Former Enron Treasurer Ben Glisan made $1,000,000 in a fewmonths from an investment of only $6,000. Former senior manager Michael Kopper took homealmost $30,000,000. Some of the Insiders such as Kopper and Glisan kept their participation in604041v1/007457-4-