This is precisely what happened in margin call the

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This is precisely what happened in Margin Call . The firm had an enormous amount of mortgage-backed securities ( referred to as MBS in the movie ). Once the firm’s model was adjusted it showed that the firm’s potential losses would spell the end of the firm. The film is fictional but in 2008 Bear Stearns was forced to sell itself, Lehman Brothers went bankrupt due to mortgage holdings, and Fannie Mae and Freddie Mac, the two largest mortgage investors, were taken over by the federal government. Consider the ethical dilemmas faced by the following persons: o John Tuld ( Jeremy Irons ) o Sam Rogers ( Kevin Spacey ) o Eric Dale ( Stanley Tucci )
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What value conflicts did they have to grapple with and what ethical principles were used to resolve those conflicts? Do you believe that Peter Sullivan ( Zachary Quinto ) faced ethical issues in communicating his research findings to his superiors? In accepting a promotion at the end of the movie? Do you believe that top management in the firm understood what position the firm was in? Was this in itself a failure of corporate governance? Do you think Sarah Robertson ( Demi Moore ), the chief risk officer, understood the risks? Did it take a “rocket scientist” like Peter Sullivan to make sense of things? Do you think anyone in the firm was concerned with corporate social responsibility?
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  • Fall '12
  • peter
  • Subprime mortgage crisis, subprime mortgages, Peter Sullivan

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Christopher Reinemann
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