Footnote 8

transactions in which Merrill Lynch played a key role allowed the Insiders to improperly record$60 million of income at year-end 1999, without which Enron would have missed its quarterlyearnings target, and the Insiders’ scheme would have been threatened. The transactions in whichBarclays participated led to $410 million being improperly recorded as income, $1 billion beingimproperly recorded as cash flow from operations, and $1.7 billion not being included as debt onEnron’s financial statements.702. CSFB’s participation in the LJM1 transactions, including the Rhythms Hedge,enabled Enron improperly to recognize $95 million of income in 1999 – 10.6% of Enron’s originallyreported net income for the year. CSFB’s participation in the December 2000 Prepaid Oil Swap,the September 2001 Prepaid Oil Swap, and the Nile Transaction allowed the Insiders improperly torecord approximately $172.2 million as cash flow from operating activities and improperly tounderstate debt by $150 million in its December 31, 2000 balance sheet. The Toronto Dominionprepays enabled the Insiders to record improperly $1.5 billion in cash flow from operating activitiesand improperly understate debt by $1.34 billion. RBS’s participation in the LJM1/RhythmsHedging Transaction enabled the Insiders to recognize $95 million of income in 1999. The Nixonprepay and the four FAS 140 Transactions in which RBS took a leading role enabled the Insidersto improperly record approximately $191 million of income from gain on sales of assets, receiveapproximately $444 million of proceeds that were erroneously recorded as cash flow from operatingor investing activities, and understate debt by $177 million in 1999 and $273 million in 2000.RBC’s Alberta prepay enabled the Insiders improperly to record Can$294.8 million –Can$147.4 million from the RBC-funded portion and Can$147.4 million from the TorontoDominion-funded portion – as funds flow from operations, and the same amount was improperlynot recorded as debt.604041v1/007457-243-