Directed By: J.C. Chandor
Written By: J.C. Chandor
Starring: Kevin Spacey, Zachary Quinto, Paul Bettany, Jeremy Irons, Demi Moore, Stanley Tucci, Simon Baker, Penn Badgley
Running Time: 109 minutes
Premise: The story takes place over a 36-hour period at a large Wall Street investment bank and highlights the initial stages of the financial crisis of 2007–08. In focus are the actions taken by a group of employees during the subsequent financial collapse.
Why You Should See It: Tightly written, well-paced, and superbly acted, Margin Call helps audiences understand some of the causes of the late 2000s recession. With the command of a veteran director, rookie filmmaker J.C. Chandor executes this complex story with great precision. It's not hard to see why so many talented actors agreed to be in this low-budget film,
Written By: J.C. Chandor
Starring: Kevin Spacey, Zachary Quinto, Paul Bettany, Jeremy Irons, Demi Moore, Stanley Tucci, Simon Baker, Penn Badgley
Running Time: 109 minutes
Premise: The story takes place over a 36-hour period at a large Wall Street investment bank and highlights the initial stages of the financial crisis of 2007–08. In focus are the actions taken by a group of employees during the subsequent financial collapse.
Why You Should See It: Tightly written, well-paced, and superbly acted, Margin Call helps audiences understand some of the causes of the late 2000s recession. With the command of a veteran director, rookie filmmaker J.C. Chandor executes this complex story with great precision. It's not hard to see why so many talented actors agreed to be in this low-budget film,
Synopsis
Junior risk analyst Seth Bregman, his more senior colleague Peter Sullivan, and trading desk head Will Emerson watch as human resources staff of their (never-named) firm, along with building security, conduct an unannounced mass layoff right on their trading floor, at the start of an otherwise normal business day. One of the fired employees is Peter and Seth's boss, Eric Dale, head of risk management on the floor. Dale attempts to tell his now former employer that the firm should look into what he has been working on, but the contracted human resources staff have no interest other than him quickly leaving the building. While Dale is being escorted out, he gives Peter a USB memory stick with a project he had been working on, telling him to "be careful" just as he boards the elevator.
That night, Sullivan finishes Dale's project and discovers that current volatility in the firm's portfolio of mortgage backed securities will soon exceed the historical volatility levels of the positions. Because of excessive leverage, if the firm's assets decrease by 25% in value, the firm will suffer a loss greater than its market capitalization. He also discovers that, given the normal length of time that the firm holds such securities, this loss must occur. Sullivan alerts Emerson, who calls floor head Sam Rogers.
The employees remain at the firm for a series of meetings with progressively more senior executives, including division head Jared Cohen, chief risk management officer Sarah Robertson, and finally CEO John Tuld. Cohen's plan is for the firm to quickly sell all of the toxic assets before the market learns of their worthlessness, thereby limiting the firm's exposure, a course favored by Tuld over Rogers's strong objection. Rogers warns Cohen and Tuld that dumping the firm's toxic assets will spread the risk throughout the financial sector and will destroy the firm's relationships with its counterparties. He also warns Cohen that their customers will quickly learn of the firm's plans, once they realize that the firm is only selling the toxic securities.
They finally locate Dale, who had been missing after service to his company phone was deactivated. He has been persuaded to come in with the promise of a generous fee and the threat of having his severance package challenged if he didn't. Meanwhile, it is revealed that Robertson, Cohen, and Tuld were aware of the risks in the weeks leading up to the crisis. Tuld plans to offer Robertson's resignation to the board and employees as a scapegoat.
Before the markets open, Rogers tells his traders they will receive seven-figure bonuses if they achieve a 93% reduction in certain MBS asset classes in a "fire sale". He admits that the traders are effectively ending their careers by destroying their relationships with their clients. Meanwhile, Robertson and Dale sit in an office, being paid handsomely to do nothing for the day; Robertson vigorously defends herself that she warned of the risks although perhaps not loudly enough. Emerson keeps on closing the positions, but his counterparties become increasingly agitated and suspicious as the day wears on. After trading hours end, Rogers watches the same human resources team begin another round of layoffs on his floor. He confronts Tuld in the executive dining area and asks to resign, but Tuld dismisses his protests, claiming that the current crisis is really no different from various crashes and bear markets of the past, and that sharp gains and losses are simply part of the economic cycle. He persuades Rogers to stay at the firm for another two years, promising that there will be a lot of money to be made from the coming crisis. Rogers notices Sullivan meeting with Cohen; Tuld informs Rogers he will promote Sullivan.
In the final scene, Rogers is shown in his ex-wife's front lawn late at night, burying his dog that has died of cancer—thinking that since the dog had spent most of its life there that it should be buried there. His ex-wife comes out and reminds him that he doesn't live there anymore. She reassures him that their son, who is implied to also work on Wall Street, took a hit from the day's trading but will be okay. As the credits roll, Rogers continues to dig.
Junior risk analyst Seth Bregman, his more senior colleague Peter Sullivan, and trading desk head Will Emerson watch as human resources staff of their (never-named) firm, along with building security, conduct an unannounced mass layoff right on their trading floor, at the start of an otherwise normal business day. One of the fired employees is Peter and Seth's boss, Eric Dale, head of risk management on the floor. Dale attempts to tell his now former employer that the firm should look into what he has been working on, but the contracted human resources staff have no interest other than him quickly leaving the building. While Dale is being escorted out, he gives Peter a USB memory stick with a project he had been working on, telling him to "be careful" just as he boards the elevator.
That night, Sullivan finishes Dale's project and discovers that current volatility in the firm's portfolio of mortgage backed securities will soon exceed the historical volatility levels of the positions. Because of excessive leverage, if the firm's assets decrease by 25% in value, the firm will suffer a loss greater than its market capitalization. He also discovers that, given the normal length of time that the firm holds such securities, this loss must occur. Sullivan alerts Emerson, who calls floor head Sam Rogers.
The employees remain at the firm for a series of meetings with progressively more senior executives, including division head Jared Cohen, chief risk management officer Sarah Robertson, and finally CEO John Tuld. Cohen's plan is for the firm to quickly sell all of the toxic assets before the market learns of their worthlessness, thereby limiting the firm's exposure, a course favored by Tuld over Rogers's strong objection. Rogers warns Cohen and Tuld that dumping the firm's toxic assets will spread the risk throughout the financial sector and will destroy the firm's relationships with its counterparties. He also warns Cohen that their customers will quickly learn of the firm's plans, once they realize that the firm is only selling the toxic securities.
They finally locate Dale, who had been missing after service to his company phone was deactivated. He has been persuaded to come in with the promise of a generous fee and the threat of having his severance package challenged if he didn't. Meanwhile, it is revealed that Robertson, Cohen, and Tuld were aware of the risks in the weeks leading up to the crisis. Tuld plans to offer Robertson's resignation to the board and employees as a scapegoat.
Before the markets open, Rogers tells his traders they will receive seven-figure bonuses if they achieve a 93% reduction in certain MBS asset classes in a "fire sale". He admits that the traders are effectively ending their careers by destroying their relationships with their clients. Meanwhile, Robertson and Dale sit in an office, being paid handsomely to do nothing for the day; Robertson vigorously defends herself that she warned of the risks although perhaps not loudly enough. Emerson keeps on closing the positions, but his counterparties become increasingly agitated and suspicious as the day wears on. After trading hours end, Rogers watches the same human resources team begin another round of layoffs on his floor. He confronts Tuld in the executive dining area and asks to resign, but Tuld dismisses his protests, claiming that the current crisis is really no different from various crashes and bear markets of the past, and that sharp gains and losses are simply part of the economic cycle. He persuades Rogers to stay at the firm for another two years, promising that there will be a lot of money to be made from the coming crisis. Rogers notices Sullivan meeting with Cohen; Tuld informs Rogers he will promote Sullivan.
In the final scene, Rogers is shown in his ex-wife's front lawn late at night, burying his dog that has died of cancer—thinking that since the dog had spent most of its life there that it should be buried there. His ex-wife comes out and reminds him that he doesn't live there anymore. She reassures him that their son, who is implied to also work on Wall Street, took a hit from the day's trading but will be okay. As the credits roll, Rogers continues to dig.
Analysis
Peter Sullivan
"Look at these people. Wandering around with absolutely no idea what's about to happen."
Peter works very hard and keeps his nose to the grindstone at the firm. He also shows sympathy for his coworkers that get laid off, specifically his boss Eric Dale. Unlike Seth, Peter cares about the “how” and “why” he makes money and he doesn’t care about the money that his coworkers make. After figuring out that the company is in serious danger, he immediately notifies Will Emerson. His work lands him in the board room on the top floor where the heads of the company meet.
He shows his inexperience when he tries to explain that the firm’s financial mismanagement can be mitigated. John Tuld quickly shuts him down by remarking that the “music has stopped” and the company must sell everything they have. However, at the end of the fire sale, Tuld promotes Peter for essentially saving the firm.
Peter Sullivan
"Look at these people. Wandering around with absolutely no idea what's about to happen."
Peter works very hard and keeps his nose to the grindstone at the firm. He also shows sympathy for his coworkers that get laid off, specifically his boss Eric Dale. Unlike Seth, Peter cares about the “how” and “why” he makes money and he doesn’t care about the money that his coworkers make. After figuring out that the company is in serious danger, he immediately notifies Will Emerson. His work lands him in the board room on the top floor where the heads of the company meet.
He shows his inexperience when he tries to explain that the firm’s financial mismanagement can be mitigated. John Tuld quickly shuts him down by remarking that the “music has stopped” and the company must sell everything they have. However, at the end of the fire sale, Tuld promotes Peter for essentially saving the firm.
Will Emerson
"Listen, if you really wanna do this with your life you have to believe you're necessary and you are. People wanna live like this in their cars and big f***in' houses they can't even pay for, then you're necessary. The only reason that they all get to continue living like kings is cause we got our fingers on the scales in their favor. I take my hand off and then the whole world gets really f***in' fair really f***in' quickly and nobody actually wants that. They say they do but they don't. They want what we have to give them but they also wanna, you know, play innocent and pretend they have no idea where it came from. "
Will Emerson is the guy with the thousand yard stare. He has seen the worst parts of the business and looks out for others. Will informs his junior colleagues to not focus on HR laying people off and just get back to work. When Eric starts to get riled up about Sarah Robertson, Will calms him down and implores him to act rational. Although Eric wants to finish up his project, Will tells him that it isn’t his concern anymore. Later, Eric refuses to go back to the firm as a confirmation to keep his mouth shut. In order to help his friend retain his severance benefits, Will persuades him to come back. Additionally, Will shows loyalty to Sam when Jared Cohen tries to bribe him to instruct the traders to sell everything without Sam’s permission.
He acts a proxy for Seth and Peter, frequently informing them of everything going on behind the scenes. Along with informing Seth of his future termination, he teaches him a valuable lesson. The people will love the firm because it allowed them to borrow money when credit was loose and they live the high life for a short while. However, the same people do not want to be accountable for the money they borrowed. So, when the market drastically falls, and the people are in massive debt, they blame the recklessness of the firm.
Will has a calm, cool, and collected exterior, but he has his vices. Every scene he's in, he’s chomping on Nicorettes, with the exception of him smoking a cigarette on the roof. Also, he explains how he spent $76,500 on hookers and alcohol in a year. Emerson carries out the unenviable task of selling worthless assets to loyal customers. Even though this damages his career, he does this as a favor to Sam and for the $1.4 million bonus.
"Listen, if you really wanna do this with your life you have to believe you're necessary and you are. People wanna live like this in their cars and big f***in' houses they can't even pay for, then you're necessary. The only reason that they all get to continue living like kings is cause we got our fingers on the scales in their favor. I take my hand off and then the whole world gets really f***in' fair really f***in' quickly and nobody actually wants that. They say they do but they don't. They want what we have to give them but they also wanna, you know, play innocent and pretend they have no idea where it came from. "
Will Emerson is the guy with the thousand yard stare. He has seen the worst parts of the business and looks out for others. Will informs his junior colleagues to not focus on HR laying people off and just get back to work. When Eric starts to get riled up about Sarah Robertson, Will calms him down and implores him to act rational. Although Eric wants to finish up his project, Will tells him that it isn’t his concern anymore. Later, Eric refuses to go back to the firm as a confirmation to keep his mouth shut. In order to help his friend retain his severance benefits, Will persuades him to come back. Additionally, Will shows loyalty to Sam when Jared Cohen tries to bribe him to instruct the traders to sell everything without Sam’s permission.
He acts a proxy for Seth and Peter, frequently informing them of everything going on behind the scenes. Along with informing Seth of his future termination, he teaches him a valuable lesson. The people will love the firm because it allowed them to borrow money when credit was loose and they live the high life for a short while. However, the same people do not want to be accountable for the money they borrowed. So, when the market drastically falls, and the people are in massive debt, they blame the recklessness of the firm.
Will has a calm, cool, and collected exterior, but he has his vices. Every scene he's in, he’s chomping on Nicorettes, with the exception of him smoking a cigarette on the roof. Also, he explains how he spent $76,500 on hookers and alcohol in a year. Emerson carries out the unenviable task of selling worthless assets to loyal customers. Even though this damages his career, he does this as a favor to Sam and for the $1.4 million bonus.
Sam Rogers
"It's gonna get worse before it gets better."
Sam Rogers is the moral center of the story. He is depicted as being the most human due to the care he has for his terminally ill dog. Conversely, Emerson appears desensitized as he awkwardly stares at Sam after he laments his sick dog. Sam keeps the morale of the floor’s traders high through a pep talk telling them that because they were not laid off, they are necessary. It doesn’t matter if he believes or not. The only thing that matters is if the workers themselves believe it.
When Sam’s boss, Jared Cohen, first proposes the idea of a fire sale, Sam is dumbfounded. Liquidating all of the firms MBS (mortgage-backed securities) stock is not in the best interests of its clients. Sam wants their clients to be protected although the firm faces bankruptcy. However, Sam does learn that both Jared and Sarah knew of the risks of the MBS stock. He quickly leaves after saying that he has stuck around for so long because he has never taken or known of risks that could have gotten him fired.
It is clear that Sam is unfulfilled at his job. The money is great, but he does not enjoy what he does. He says he doesn’t work as hard as Peter because his job requires oversight, and not much hands on stuff.
In the end, Sam goes along with Tuld’s plan to liquidate all of the MBS assets with the assumption that he will be fired, but Tuld keeps him. Sam angrily confronts Tuld because he no longer wants to be associated with the company that screwed over a lot of people in order to survive. His anger is quickly calmed by the amount of money Tuld offers for two more years which Sam needs due to his divorce.
"It's gonna get worse before it gets better."
Sam Rogers is the moral center of the story. He is depicted as being the most human due to the care he has for his terminally ill dog. Conversely, Emerson appears desensitized as he awkwardly stares at Sam after he laments his sick dog. Sam keeps the morale of the floor’s traders high through a pep talk telling them that because they were not laid off, they are necessary. It doesn’t matter if he believes or not. The only thing that matters is if the workers themselves believe it.
When Sam’s boss, Jared Cohen, first proposes the idea of a fire sale, Sam is dumbfounded. Liquidating all of the firms MBS (mortgage-backed securities) stock is not in the best interests of its clients. Sam wants their clients to be protected although the firm faces bankruptcy. However, Sam does learn that both Jared and Sarah knew of the risks of the MBS stock. He quickly leaves after saying that he has stuck around for so long because he has never taken or known of risks that could have gotten him fired.
It is clear that Sam is unfulfilled at his job. The money is great, but he does not enjoy what he does. He says he doesn’t work as hard as Peter because his job requires oversight, and not much hands on stuff.
In the end, Sam goes along with Tuld’s plan to liquidate all of the MBS assets with the assumption that he will be fired, but Tuld keeps him. Sam angrily confronts Tuld because he no longer wants to be associated with the company that screwed over a lot of people in order to survive. His anger is quickly calmed by the amount of money Tuld offers for two more years which Sam needs due to his divorce.
John Tuld
"If you're first out the door, that's not called panicking."
"There are three ways to make a living in this business: be first, be smarter, or cheat. "
Tuld may be one of the most immoral people in the film. Without hesitation, he makes the decision that the firm will liquidate all of its assets and kill the market because the company must survive. Tuld knew of the risks of MBS stock as well, but he gave it the go-ahead because he knew that if it did fail, he was not going to be a casualty. After Sarah threatens to disclose the information that she warned Tuld and Cohen of the risks, Tuld calmly fires back by merely stating that “it wouldn’t be the best course of action” for her.
There is one small problem with Tuld’s master plan: he does not know if Sam Rogers will go along with him. Tuld actually concedes that he needs Sam because the employees will listen to him. Preaching that buyers must beware, Tuld is fine with severing most of his professional relationships with his clients. The fire sale is just part of the economic cycle.
"If you're first out the door, that's not called panicking."
"There are three ways to make a living in this business: be first, be smarter, or cheat. "
Tuld may be one of the most immoral people in the film. Without hesitation, he makes the decision that the firm will liquidate all of its assets and kill the market because the company must survive. Tuld knew of the risks of MBS stock as well, but he gave it the go-ahead because he knew that if it did fail, he was not going to be a casualty. After Sarah threatens to disclose the information that she warned Tuld and Cohen of the risks, Tuld calmly fires back by merely stating that “it wouldn’t be the best course of action” for her.
There is one small problem with Tuld’s master plan: he does not know if Sam Rogers will go along with him. Tuld actually concedes that he needs Sam because the employees will listen to him. Preaching that buyers must beware, Tuld is fine with severing most of his professional relationships with his clients. The fire sale is just part of the economic cycle.
Eric Dale
"I run risk management... it just doesn't seem like a natural place to start cutting."
Eric has every right to be frustrated with the firm due to being let go after nineteen years, but he still shows loyalty by handing Peter the USB flash drive that helps save the company. Before going back to the office, Eric remembers how he helped people’s lives when he built bridges. It provides a contrast to how the firm will be perceived as harming lives after they sell everything.
"I run risk management... it just doesn't seem like a natural place to start cutting."
Eric has every right to be frustrated with the firm due to being let go after nineteen years, but he still shows loyalty by handing Peter the USB flash drive that helps save the company. Before going back to the office, Eric remembers how he helped people’s lives when he built bridges. It provides a contrast to how the firm will be perceived as harming lives after they sell everything.
Themes
Greed and Integrity
Greed is extremely prevalent throughout Margin Call. Tuld, Cohen, and Robertson all personify greed. These three all knew the high risk involved in trading MBS stock but they confidently went along with it because of the possible high reward. Robertson doesn’t express her dissent until the company is on the verge of bankruptcy and she tries to save herself by saying she warned the other two. Later on, she bemoans how vague her warnings really were. Even the more honorable characters are corrupted by the dollar signs. Eric Dale keeps his mouth shut about the firm’s mismanagement so that his severance benefits are not challenged. Will Emerson makes his bonus by selling ninety-three percent of his assigned assets. Finally, Sam Rogers decides to stay with the firm for two more years because he needs the cash.
Accountability
Ultimately, the higher-ups of the company are responsible for the mismanagement but the traders are held accountable. However, Will does emphatically state that the people who borrow money should be held accountable as well. They are completely willing to enjoy the highs of borrowing too much money and not the lows.
Greed and Integrity
Greed is extremely prevalent throughout Margin Call. Tuld, Cohen, and Robertson all personify greed. These three all knew the high risk involved in trading MBS stock but they confidently went along with it because of the possible high reward. Robertson doesn’t express her dissent until the company is on the verge of bankruptcy and she tries to save herself by saying she warned the other two. Later on, she bemoans how vague her warnings really were. Even the more honorable characters are corrupted by the dollar signs. Eric Dale keeps his mouth shut about the firm’s mismanagement so that his severance benefits are not challenged. Will Emerson makes his bonus by selling ninety-three percent of his assigned assets. Finally, Sam Rogers decides to stay with the firm for two more years because he needs the cash.
Accountability
Ultimately, the higher-ups of the company are responsible for the mismanagement but the traders are held accountable. However, Will does emphatically state that the people who borrow money should be held accountable as well. They are completely willing to enjoy the highs of borrowing too much money and not the lows.