Enron arranged for Barclays Bank to provide \($11.4\) million for an Enron employee to acquire 3 percent of the equity capital of the SPE named Chewco, and Enron provided a \($6.6\) million collateral for its repayment. The Powers Report later concluded that Chewco “should have been consolidated into Enron’s consolidated financial statements” because:

(a) The existence of the cash collateral was fatal to Chewco’s compliance with the 3 percent equity requirement.

(b) The SPE had to be controlled by someone independent of Enron to avoid consolidation.

(c) Chewco’s activity was not part of Enron’s main operating activity.

(d) Both (a) and (b).