EFTA01775143

From: Barrett, Paul S ile> Sent: Wednesday, September 21, 2011 7:52 PM To: Jeffrey Epstein Subject: Update Hi=Jeffrey <= class=MsoNormal>We are still doing some more credit work before we close the=55MM Harrah's note. &nbs=; Since the end of August the account is d=wn around $2.7MM (was flat at the end of Aug).This translates into - $6=2E98MM for 2010 and +$4.25MM YTD for 2011. This has been due to =changes since End of August): &n=sp; SGD down 5% ($500K)<=p> INR down 5%($500K - &nb=p; We switched both of these forwar=s into options so we have limited downside from here on out CADJPY down 150K [We are long the 83.25 CAD Call a=d Short the 76.00 Put with a knock in at 71; spot at 76.50; knoc= in 7% away) Oil call down 140K<=o:p> Corn down 600K ING Pfds down 200K MS =ote knocked in down 140K Telefonica n=te down 300K [Stock is trading below 2009 lows; only 35% of their revenue =omes from Spain; would HOLD] &nb=p; I would like to reduce further downside=2E EFTA_R1_00088942 EFTA01775143 I think the cheapest protection out there remains buying CDS on=Asia. For example Indonesia CDS costs 220bps. It got as wide as 1200bp= in 2008. It feels like Asian credit spreads remain one of the few thing= that have not moved and could provide some cheaper tail risk if things de=eriorate further. Financial Pfds remain our largest notional expo=ure (around $20MM). I think we should reduce some exposure here. Would=involve selling some of IPM, Barclays and Citigroup. BAC and WFC was dow=graded today and would also trim those positions. <= class=MsoNormal> Do you have time=to discuss? <=p> Paul Paul Barrett, CFA Man=ging Director Global Investment Oppor=unities Group JPMorgan Private Bank , New York, =Y 10019 (W) (F) This email is confidential and subj=ct to important disclaimers and conditions including on offers for the pur=hase or sale of securities, accuracy and completeness of information, viru=es, confidentiality, legal privilege, and legal entity disclaimers, availa=le at http://www.jpmorgan.com/pages/disclosures/email. 2 EFTA_R1_00088943 EFTA01775144