Tavakoli Structured Finance LLC

The Financial Report

By Janet Tavakoli

spe-disguised-loan-diagram

Diagram of the cash flows of the circular transaction between a Bank representing JPMorgan, two special purpose entities representing Mahonia and Stoneville which were, in substance, the same entity, and a Corp representing Enron.

This simplified generic diagram illustrates the cash flows of the circular transaction between JPMorgan, Enron, and two special purpose entities that were in substance the same entity (Mahonia and Stoneville) to disguise a $330 million loan as commodity trades. In the diagram, the Bank represents JPMorgan, Corp represents Enron, and Sham represents the sham commodity trade.

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