EFTA01851063

To: Barrett. Paul S1r From: Jeffrey Epstein Sent: Tue 10/4/2011 2:29:19 PM Subject: Re: Update ok„ not so good. On Tuc, Oct 4, 2011 at 4:26 PM, Barrett, Paul S < wrote: Morning Jeffrey SP500 down 4% since yesterday's open. It is now down 13% for the year. We are flat for the year and down S6.9MM since inception. We sold our Wachovia Pfds ING gapped lower. Don't want to chase it down here. Feels over done. Will continue to work it. Will keep you updated. Paul Paul Barrett, CFA Managing Director Global Investment Opportunities Group WMorgan Private Bank 40W 57th Street, 33rd Floor, New York, NY 10019 EFTA_R1_00244519 EFTA01851063 From: Jeffrey Epstein Imailto:jeevacation@gmail.com] Sent: Monday, October 03, 2011 9:55 AM To: Barrett, Paul S Subject: Re; Update ok On Mon, Oct 3, 201i at 3:53 PM, Barrett, Paul S wrote: Jeffrey We are now up S1.IMM for the year and down 55.8MM since inception. We are still seeing more funding stress in European banks. We own 2.5MM face of the ING Pills which I think we should sell. The company tried to call these at par earlier in the year but the Dutch govt rejected this request and the long spread duration embedded here makes us think we should cut. We paid 97 for them. Would work 72 to sell. In the US we should sell the 2MM of our Wachovia Pfds we own. Same story — just looking to reduce financial pfd exposure. Paid 93.50. Would work 83.00 to sell. We have protection on half our MS and Telefonica positions. Corn was down 5% on Friday's inventory report. We are still up 51.5MM on this position. I think we spend some of these profits on a 1 month put. If China fears accelerate there could be significant downside from here and would like to protect these gains. Let me know Paul EFTA_R1_00244520 EFTA01851064 Paul Barrett, CFA Managing Director Global Investment Opportunities Group JPMorgan Private Bank 40W 57th Street, 33rd Floor, New York, NY 10019 From: jettrey epstein Imailtojeevacation(tremaii.coinj Sent: Tuesday, September 27, 2011 2:26 PM To: Barren, Paul S Subject: Re: Update Ok Sony for all the typos .Sent from my iPhone On Sep 27, 2011, at 8:23 PM, "Barrett, Paul S" latimiatia wrote: Jeffrey I think we should take advantage of the recent rally to trim some positions that either have limited upside (like our Barclays Pfds and Citi Pfds) or are at risk for further downside if Europe does not ratify the expanded EFSF. EFTA_R1_00244521 EFTA01851065 Recommendation: - trim our CIT from IOMM to 5MM. Would sell S2.5MM of both the 2016 and the 2017 maturity. We arc up on both positions 2 our MS exposure for I month. This would entail buying a 14 put and - collar /1 selling a 17 call. Cost around 10c/share - collar /1 2 out Telefonica position for I month. 13.50/15 collar. Cashless. I will call you to discuss. Paul Paul Barrett, CFA Managing Director Global Investment Opportunities Group JPMorgan Private Bank 40W 57th Street, 33rd Floor, New York, NY 10019 From: Barrett, Paul S Sent: Wednesday. September 21, 2011 3:52 PM To: 'Jeffrey Epstein' Subject: Update Hi Jeffrey We are still doing some more credit work before we close the SSMM Harrah's note. EFTA_R1_00244522 EFTA01851066 Since the end of August the account is down around $2.7MM (was flat at the end of Aug).This translates into -$6.98MM for 2010 and +$4.25MM YTD for 2011. This has been due to (changes since End of August): SOD down 5% ($500K) INR down 5% ($500K - We switched both of these forwards into options so we have limited downside from here on out CADJPY down 150K [We are long the 83.25 CAD Call and Short the 76.00 Put with a knock in at 71; spot at 76.50; knock in 7% away) Oil call down 140K Corn down 600K ING Pfds down 200K MS Note knocked in down 140K Telefonica note down 300K [Stock is trading below 2009 lows; only 35% of their revenue comes from Spain; would HOLD) I would like to reduce further downside. I think the cheapest protection out there remains buying CDS on Asia. For example Indonesia CDS costs 220bps. It got as wide as 1200bps in 2008. It feels like Asian credit spreads remain one of the few things that have not moved and could provide some cheaper tail risk if things deteriorate further. Financial Pfds remain our largest notional exposure (around $20MM). I think we should reduce some exposure here. Would involve selling some of JPM, Barclays and Citigroup. MC and WFC was downgraded today and would also trim those positions. Do you have time to discuss? EFTA_R1_00244523 EFTA01851067 Paul Paul Barrett, CFA Managing Director Global Investment Opportunities Group 3PMorgan Private Bank 40W 57th Street, 33rd Floor, New York, NY 10019 This email is confidential and subject to important disclaimers and conditions including on offers for the purchase or sale of securities, accuracy and completeness of information, viruses, confidentiality, legal privilege, and legal entity disclaimers, available at http://www.ipmorgan.com/pages/disclosuresiemail. This email is confidential and subject to important disclaimers and conditions including on offers for the purchase or sale of securities, accuracy and completeness of information, viruses, confidentiality, legal privilege, and legal entity disclaimers, available at www jimnorszan corn/pages/disclosures:email. 4.4.4.4.4.4.4.4.4.4.4.4.*4.4c4.4.4, 4.4.4.4.*********4.4c4.*********87.************** , The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this EFTA_R1_00244524 EFTA01851068 communication in error, please notify us immediately by return e-mail or by e-mail to jeevacation@gmail.com, and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return c-mail or by e-mail to ice‘aciiiion (Lurnall coin, and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA_R1_00244525 EFTA01851069