StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Margin Call: MBS Analyses - Movie Review Example

Cite this document
Summary
The present paper aims to analyze the MBS Company presented in the movie ‘Margin Call’. The company had direct knowledge that their investments would be rendered worthless and that the company will go down with the loss being greater than its entire market capitalization…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98% of users find it useful
Margin Call: MBS Analyses
Read Text Preview

Extract of sample "Margin Call: MBS Analyses"

The company in the film ‘Margin Call’ had direct knowledge that their investments would be rendered worthless and that the company will go down with the lost being greater than its entire market capitalization. Through the work of Eric Dale as finished by his protégé Peter Sullivan, the company gained firsthand viable information that they will soon be in trouble. Instead of finding another way out of their conundrum, John Tuld decided to take the easier way out and instigated the MBS team to sell as much of their stocks as they can even at a lost to unknowing buyers who will later find out they have been deceived.

The fire sale that occurred prompted the buyers to grab the chance of what seemed to be a good opportunity of purchasing stocks mostly at a price lower than its current market value. In the film, the timeframe of the sale interestingly enough also determined the value of the stocks. In the first hours the price still ranges within 90 cents to a dollar but in the subsequent hours, their cost eventually plummeted where one sale by Will Emerson went down to as low as 65 cents to a dollar. These are clear indications that there was a scheme to defraud.

The victims represented by the State, through the federal government’s investigation, will win in the court of law given the circumstances prior to the fire sale and during the execution of their scheme. There were a series of overt acts committed by the executive committee and even the sales team who were informed by their boss Sam Roger during their meeting of what will go down. In fact, they have been offered an incentive if they are able to sell 93% and another incentive if the whole team reaches the same goal.

In the phone conversations Emerson had with several clients, some were asking him what they were up to aware of the buzz that they are selling massive company holdings. He kept mum about the situation and insisted “my lost is your gain” prompting them to buy immediately (Chandor, Margin Call). The company committed Fraud through inducement rendering the contract voidable with the presence of the following elements: a. False representation positive statement or conduct that misleads b. Fact an event that occurred or thing that exists c.

Materiality of substantial importance d. Knowledge of falsity and intention to deceive (called scienter) and includes (1) actual knowledge, (2) lack of belief in statement’s truthfulness, or (3) reckless indifference to its truthfulness. e. Justifiable reliance a defrauded party is reasonably influenced by the misrepresentation. Based on the facts, the elements of Fraud were present rendering MBS liable to the victims thus the agreement is voidable. There was false representation by the brokers through false statements misleading the buyers.

They defrauded by claiming that there was no catch in their sale as it was a straightforward dealing. There was deliberate intent to deceive by withholding information regarding the truth of the holdings’ worthlessness. Sullivan had in fact already found that the crash had already taken place two weeks ago and the projection merely pertains to the company’s investment losses computed according to market shift (Chandor, Margin Call). Finally, the defrauded parties relied on the company’s misrepresentation to buy the assets.

Given the facts of the case and the elements of the law defining Fraud, the victims have a chance of winning the case in court. Work Cited Margin Call. Dir. J. C. Chandor. Perf. Kevin Spacey and Paul Bettany. Lionsgate, 2011. DVD.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Margin Call: MBS Analyses Movie Review Example | Topics and Well Written Essays - 500 words”, n.d.)
Retrieved from https://studentshare.org/visual-arts-film-studies/1620649-business-of-law-please-watch-the-movie-then-finished-the-essay
(Margin Call: MBS Analyses Movie Review Example | Topics and Well Written Essays - 500 Words)
https://studentshare.org/visual-arts-film-studies/1620649-business-of-law-please-watch-the-movie-then-finished-the-essay.
“Margin Call: MBS Analyses Movie Review Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/visual-arts-film-studies/1620649-business-of-law-please-watch-the-movie-then-finished-the-essay.
  • Cited: 0 times

CHECK THESE SAMPLES OF Margin Call: MBS Analyses

Decision-Making Styles for the 3 Directors of Midland Barometer Company

Making Management Decisions: Case for Midland Barometer Company Name: Course: Tutor: Date: Question 1: Decision making styles for the three directors of MBC Decision making is not an easy task within an organization and the management needs to apply various decision making styles based on the nature of the situation....
7 Pages (1750 words) Essay

Czech Republic Attractiveness for Investments

The UK's membership in the EU as well as the expansion of the recent expansion of the EU can be expected to have significant implications for UK companies doing business in newly admitted countries.... For example, Pain and Young (2004: p.... 390) quoting from Blair (1987) and the… ited Nations (1993) asserts that the relative performance of the UK in attracting inward Foreign Direct Investment witnessed a significant improvement following her admission into the EEC in 1973 helped by the fact that foreign firms who wanted to use the UK as a base for Recently, the Czech Republic and other Eastern European countries were admitted into the European Union....
6 Pages (1500 words) Essay

Business of ABS & Associates

Our Objective: ABS & Associates short term objectives are to generate a margin of profit, grow at a challenging and manageable rate, and make a margin of 12% within the first few years of operation.... ABS & ASSOCIATES is a full-service consulting and accounting business born to provide high customer satisfaction by rendering excellent services, standard accounting, financial planning and management consulting services, and creating an enjoyable atmosphere at a very moderate… In ABS & Associates, we will maintain a friendly, fair, creative and innovative work environment, which respects diversity and new ideas....
11 Pages (2750 words) Essay

Financial Analysis of two companies- Iggle and Piggle

The net profit margin of the company that is, the profit after interest but before payment of tax is said to be 15%.... The stock holding period of the company is 88 days with a gross profit margin of 44%.... This paper tells that the financial analysis involves systematic knowledge of financial management which entails future planning of individual or business enterprise to guarantee positive cash inflows....
14 Pages (3500 words) Essay

Operations Management for Competitive Advantage

The paper “Operations Management for Competitive Advantage” seeks to evaluate the improvements in operations, which cannot lead to any success until and unless an improvement in quality is witnessed which is of utmost importance in the service sector.... hellip; The author of the paper states that the toggling of the workforce, the arrangement of tables & selection of ovens can result in various scenarios other than the ones simulated and analyzed at the store but none of them would be optimal nor would they result in improved learning curves....
3 Pages (750 words) Assignment

Critcial Thinking ID301 Bachelor's

The sound claims and arguments presented by Kathleen Rice in Martin Heidgen's case, call for a revision in the laws pertaining to homicides.... The increasing number of victims of drunk driving makes it a point of debate in the recent years.... Many lives are lost every year for the intentional or unintentional acts of… The legal debate regarding the issue is to identify the level of punishment that court should legally implement for such drivers....
4 Pages (1000 words) Term Paper

Margin Call Directed by JC Chandor

The owner is informed of the financial crisis which the company was facing over the past 40 months the company have packaged a series Mortgage Backed Securities (mbs) into one tradable commodity.... The company's (mbs) have decreased by 25%, and that was the rate at which the losses will exceed even the current value of the company....
4 Pages (1000 words) Movie Review

Ratio Analysis and Calculations

The Gross Profit margin of the company increased from 20.... The net profit margin increased from 6.... 3% to 21.... 2% between 2013 and 2014 which gives a difference of 1.... 1%.... This could have been caused by… This means that the business has managed its cost of sales effectively and improved its sales or marketing approach (Anthony and Breitner, 2003)....
6 Pages (1500 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us