Just little clarification. Things he says like “my loss is your gain” and “I'm coming to you first” are surely negotiation tactics, BUT it's not like he's ripping them off. He sells his $1 for $.83, so he really loses money, but it's not like the buyers are end-customer. They know, that there is something wrong, otherwise, why would they sell it. The buyers will just do the same thing and they can even profit on that or bundle it with some other security. Reason why are they selling all of it under par, is that all of their assets are these dogshits and have no other choice – no diversification. Sure sooner or later the security will have zero to no value and yes, it is scummy to sell them, but I just wanted to clarify, that people he's calling too are not really the victims. Problem is that this bank is 1st tier seller, they affect the market, so if something is happening to them, it means something will happend to the market. Those buyers, can be smaller companies, with other things than just CDOs and if they buy 100mil on .65, they can easily sell immidietly to one of their clients on 0.70 for example and earn 5mil in one trade 🙂 But again, I am not saying it's moraly fair, but it is a trade on a fair market (supply x demand)
not in finance so forgive my ignorance. They are effectively selling off assets at less than their face value to unsuspecting people because they discovered that those assets are going to crash and become valueless, thus taking a large yet smaller loss than the catastrophic loss that would happening they held those assets?
The U.S. Government spent $700 Billion Dollars to bail out the big banks…..Rather than doing that they could have instead simply paid off all those “Troubled” mortgages for around $17 Billion dollars and the big banks would have still gotten their money back to the point where their balance sheets would have been “In the Black” again, they just wouldn't have made the expected amount of profit….They would have still profited….Just not as much…But no….Cause when the Government spends money on common people, that's “Socialism”….Can't go around doing that kind of stuff here.
Maybe there's an unseen protection not shown here, but it seems insane to use insider lingo where the word 'fill' could easily be mistaken for 'kill' on a phone call…and the difference is “I just closed a $350 million deal” vs “I DID NOT just close a $350 million deal” D:
Like a lot of people I came across this movie by accident one night at home watching television. Now watched it four or five times! Just a incredible storyline with incredible acting by most in the movie. A movie from the reality of 2008.