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675. Enron became a profitable and important client for RBC. In October 2000, as theformer NatWest bankers were seeing results from their strategy to enhance RBC’s relationship withEnron, one former NatWest banker boasted: “We are acting (marketing) as if we are a Tier 1 bankand they are starting to treat us like one.” RBC NY 0013003 (quoted in ENA Exam. at 103). Asof late 2001, Enron accounted for approximately 30% of the revenues of RBC’s Global StructuredFinance Group. See ENA Exam. at 107. In addition to Alberta, discussed in detail below, RBCparticipated in several other Enron-related transactions such as a $105 million bridge financing anda $105 million credit wrap to an Enron-related off-balance sheet structure known as Bob WestTreasure, a $37 million Enron-related SPE transaction called E-Next, and a $10 million loan to theLJM2 structure. RBC also participated as a $20 million lender in the Hawaii FAS 140 financing.676. RBC’s relationship with Enron gave it a more detailed understanding of Enron’sfinancial condition, including an understanding of Enron’s off-balance sheet liabilities, than couldbe gleaned from Enron’s financial statements alone. As of 2000, RBC knew that through a swapagreement Enron was effectively guaranteeing a substantial amount of the off-balance sheet debtof JEDI I, and RBC also knew of an off-balance sheet financing using JEDI I and Chewco. SeeENA Exam. at 100. In early September 2000, RBC estimated Enron’s off-balance sheet obligationsat up to $16 billion – at a time when RBC knew Moody’s and Standard and Poor’s calculatedEnron’s off-balance sheet obligations at a far lower level. See ENA Exam. at 100-01. RBCsurmised that the rating agencies were unaware of Enron’s exposure from prepaid oil and gascontracts because of the difference between its own internal estimate of Enron’s off-balance sheetliabilities and the rating agencies’ calculations. See ENA Exam. at 101. RBC even had access tothe Insiders’ own views on Enron’s financial condition. In October 2000, several RBC executives,including many who had longstanding relationships with the Insiders from their time at NatWest,met with Insiders including Fastow and Glisan to better understand Enron’s financials. See ENA604041v1/007457-234-