Footnote 8

extent of its involvement, Arthur Andersen, agreed on the both the objects of the conspiracy and thecourses of action to be taken in furtherance of it. The Bank Defendants knowingly participated inthe unlawful objects – to manipulate and misstate Enron’s financial statements and to facilitate selfdealingtransactions between the Insiders and Enron – and knowingly participated in the courses ofaction taken in furtherance of it – the Insiders’ numerous breaches of fiduciary duties to Enron, andthe Insiders’ fraud against Enron.1599. By virtue of the acts and omissions described in this Complaint, numerous overt actswere taken by the Bank Defendants and the Insiders in furtherance of the conspiracy.1600. As a direct and proximate result of the Bank Defendants’ actions and omissions,Enron was injured and damaged in at least the following ways: (1) its debt was wrongfully expandedout of all proportion to its ability to repay and it became insolvent and thereafter deeply insolvent;(2) it was forced to file bankruptcy and incurred and continues to incur substantial legal andadministrative costs, as well as the costs of governmental investigations; (3) its relationships withits customers, suppliers and employees were undermined; and (4) its assets were dissipated.1601. Enron’s injuries as described in this Complaint resulted from fraud and/or malice onthe part of the Bank Defendants. When viewed objectively from the Bank Defendants’ standpoint,the acts and omissions described in this Complaint involved an extreme degree of risk at the timethey occurred, considering the probability and magnitude of the potential harm to Enron. The BankDefendants had an actual, subjective awareness of the risk to Enron posed by their acts andomissions, but they nevertheless proceeded with conscious indifference to Enron’s rights. Further,the acts and omissions described in this Complaint demonstrate a malicious, reckless, and/or willfuldisregard of Enron’s rights and welfare on the part of the Bank Defendants. The same acts andomissions also were aimed at the public generally and were taken by the Bank Defendants in utterdisregard of the public interest, including without limitation the interests of the many other entities604041v1/007457-506-