Margin Call Analysis

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Recommended: Disadvantages of risk management

Margin Call portrays the last night of good times on Wall Street; when a disastrous speculation in the mortgage markets is leading to the firm’s collapse. Its main focus is the actions taken by the employees during the subsequent financial collapse. The movie begins with the first victim Eric Dale, Head of Risk and Management, being fired from his position. On his way out the door, Eric Dale hands a USB drive to Peter Sullivan, a Senior Risk Analyst, who realizes the firm and the market are clearly trembling on the brink. That night, Sullivan finishes Dale's project and discovers that current volatility in the firm's portfolio of mortgage-backed securities will soon exceed the historical volatility levels of the positions. Because of unwarranted leverage, if the firm's assets decrease by 25% in value, the firm will suffer a loss greater than its market capitalization. Will Emerson, Head of Trading is contacted by Peter, Will takes a look to and calls his boss Sam Rogers, Investment Floor Head. Others are called in for an all-night emergency meeting until the CEO John Tuld arrives to make very drastically decisions. After a series of meetings, Jared Cohen, Investment Division Head, proposes to quickly sell all of the toxic assets before the market learns of their worthlessness, thereby limiting the firm's exposure. Although, management colleagues wrestle with the ethical implications of their decisions it is decided to save the company and go along with the fire sale of the toxic assets. Unfortunately, it was also decided that Sarah Robertson, Chief Risk Management Officer, would be used as the scapegoat stating that she did not communicated or warned the executives about the risks on these mortgages on time.
Sam Rogers, Investme...

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...s indeed deserve a merit for that fact being that she was fired and ask to stay until the end of the situation.
Aasif Mandi a firm in house counsel does not have a very big role in the movie, but does point out the problem and effects. His action is getting his job done and motivate behind that is getting pay. The worldview the influence his action is having bills to pay and a need of a job to support him. I agree with his choice because we are all in the same boat and rely on a job for survival. Lastly, I don’t think merits are needed for him.
Margin Call is about how its characters are concerned only by the welfare of their corporations. There is no larger sense of the public good. Corporations are amoral, and exist to survive and succeed, at whatever human cost.

Works Cited

Margin Call. Dir. J. C. Chandor. Perf. Kevin Spacey. Roadside Attractions, 2011. DVD.

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