Margin Call

Short reviewed by Nindina Jatiningtyas

This film tell us about a financial company that do massive dismissal to face the
enocomic crisis. One of the fired people is Eric (Head of risk management). He was so sad then
give his unfinish work to his partner, Peter. Peter continue Eric work and find that the firm is in
the ‘margin call’ situation. He was shocked to find that the company was on the verge of
bankruptcy because of the limit value of capital beyond the normal limit that would destroy the
value of the stock.
After that, Peter told his manager, William. William then tell the CEO, John Tuld. At
the time Tuld call all of the executive director to come to the office at 2 am. That night, the
executive directors had a discussion, and the discussion went very hard. The result from this
disussion is that the firm will sell all of the stock which now has no price anymore. For staff that
can sell this stock until 93% will get $1.300. They are also get fired after the firm sell all of the
stock because the firm were bankrupt. The impact of this decisions is that the firm will not
trusted by the investor because they had sell something that have no price.

If I were the CEO :

1. I will not sell all of the stock, because I wanna retaining the client trust. This decision
also impact on national economic situation.
2. Think more before doing dismissal to staff, because the firm must prioritize the business
ethics. Many lives depend on the job at that company.
3. Theoretically, margin call forms because the habit of the people that doesn’t want to limit
the lossess. So the solution is Personal Quality Management to change the habit by
always using cut loss.
4. Always maintain the risk management division, because the risk management is one of
the method to avoid the loss.