Questions and Topics We Can Help You To Answer:
Paper Instructions:


Instruction:
"Fire Sale" Memo
In the movie Margin Call, Sam Rogers (played by Kevin Spacey), and his boss, John Tuld (played by
Jeremy Irons) disagree about selling the firm's majority holdings in mortgage-backed securities in a
single day of trading. Sam points out they are knowingly selling something that has "no value," thereby
putting others out of business. Tuld--who predicts that a major financial collapse is imminent--insists
they must do it "to survive." He responds that most of the other Wall Street institutions won't "make it
out."
As a board member, you were listening very carefully during the meeting when the predicament was
explained and the options were discussed. Now, write a memo to John Tuld (and copy Sam Rogers)
stating your position on the plan for a "fire sale." Choose one side or the other--don't sit on the fence.
Focus your memo on the ethical implications of the sale.