Friday, October 18, 2019
International business Movie Review Example | Topics and Well Written Essays - 1000 words
International business - Movie Review Example Among those victims is a senior risk-management executive, who was working on a major analysis just when he was let go. As the person is leaving he hands a USB drive to an analyst who works late in the night. The data on the usb disturbs him and turns out to be first rumbling of the storm. He unlocks information that could prove to be the downfall of the firm and further finds out that both the market and the company are about to crash. On this he calls his seniors and colleagues in and informs them about the companys financial disaster which follows an emergency meeting and a long panicked night until dawn when the owner of the company John Tuld arrives. 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 idea was quite profitable but it requires a month to layer the products that is, they have to hold the products for a longer time than desired and they are based on mortgages and risk is elevated. The companyââ¬â¢s (MBS) have decreased by 25%, and that was the rate at which the losses will exceed even the current value of the company. The company based on historic patterns, had exceeded their levels of volatility that is their historic volatility has exceeded the limits. They were already facing the crisis as the company has broken through for the past 5 days. The owner was told it will take weeks to clear the problem and if they stop buying it will be noticed and they were left with 60 traders only. The owner inquires how bad the situation was and he was told that the company was al ready in a crisis, the young analyst also informs him that him if the assets were to be decrease by just 25%, it will exceed the value of the company. The decision made by the owner was to
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