Enron Corp. - University of California | Office of The President

of things – the LJM transactions were reviewed by internal and external auditors
and lawyers, approved by Enron's Board of Directors.
• Lay and Enron's Board of Directors continued to have the highest faith and
confidence in Fastow and believed he was doing an outstanding job as CFO.
• Enron remained well positioned for continued success.
• The transactions that were done with the partnerships could have been and would
have been done with other parties and there would have been no change in the
earnings recognized from the transactions.
• Enron was not trying to conceal anything. Enron was not hiding anything.
• There was a Chinese wall between LJM and Enron. The Board put in place and
the Company adhered to some very strict procedures which would ensure that
anytime anybody inside Enron was dealing with LJM, there would be a process
whereby Enron and its shareholders' interest would be paramount. And again,
keep it in mind that they did not have to put any projects or investments in LJM or
any of the other vehicles related to LJM so it was strictly discretionary and
obviously it had to be in Enron's best interest before those investments or projects
were put in there.
378. On 10/23/01, CS First Boston issued a report on Enron. The report continued to rate
Enron a "Strong Buy" and continued to forecast 01 and 02 EPS of $1.80 and $2.15 for Enron. It also
stated:
ENE held a conference call this morning with information to address the recent
decline in its share price and the financial and financing implications of the SEC
request for information regarding "related party transactions."
With committed bank credit lines of $3.35 billion un-drawn, $1.85 billion of which
support already issued commercial paper, ENE has $1.5 billion available for new
commercial paper issuance.
* * *
ENEs debt ratings are generally three steps above "junk" status.... [W]e regard ENEs
credit ratings and balance sheet issues as unlikely to worsen materially.
379. On 10/23/01, Lehman Brothers issued a report on Enron. The report continued to rate
Enron a "Strong Buy" and continued to forecast 01 and 02 EPS of $1.82 and $2.18, as well as a 20%
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