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

the illicit SPEs and partnerships Enron controlled which were primary vehicles utilized by Enron to
falsify its reported financial results. It engaged in transactions with Enron to disguise loans to Enron
and help Enron falsify its true financial condition, liquidity and creditworthiness.
654. In interacting with Enron, JP Morgan functioned as a consolidated and unified entity.
There was no so-called "Chinese Wall" to seal off the JP Morgan securities analysts from the
information which JP Morgan obtained rendering commercial and investment banking services to
Enron. Alternatively, even if some restrictions on the information made available to JP Morgan's
securities analysts existed, those unilateral and self-serving actions are insufficient to prevent
imputation of all knowledge and scienter possessed by the JP Morgan legal entity, as its knowledge
and liability in this case is determined by looking at JP Morgan as an overall legal entity.
655. JP Morgan acted as an underwriter (or reseller) of billions of dollars of Enron
securities. For instance:
DATE SECURITY
10/97 $100 million 6-5/8% Enron notes
5/98 35 million shares Enron common stock at $25 per share
7/98 $500 million 6.40% and 6.95% Enron notes
2/99 27.6 million shares Enron common stock at $31.34 per share
2/01 $1.9 billion Enron zero coupon convertible notes
656. In addition, JP Morgan acted as underwriter of billions of dollars of other Enron-
related securities. For instance:
DATE SECURITY
10/00 27.6 million shares of New Power at $21 per share
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