LISTENING COMPREHENSION EXERCISE – CLIP FOM MARGIN CALL

-Well as you probably know over the last (1)___________ months the firm has begun
(2) ___________ new MBS products that combine several different tranches of rating
classification in one (3) ___________. This has been enormously (4) ___________ as I
imagine you noticed.

-I have.

-Well the firm is (5) ___________ doing a considerable amount of this business every
day. The problem, which is I guess why we are here tonight, is that it takes us, the firm,
about a month to layer these (6) ___________correctly thereby posing a challenge
from a (7) ___________standpoint.

-And Mr. Sullivan that challenge is?

-We have to hold these (8) ___________on our (9) ___________ longer than we might
ideally like to. […] But the key factor is here is, these are essentially just (10)
___________. That has allowed us to push the (11) ___________ considerably
beyond what you might be willing or allowed to do; in any other circumstance, thereby
pushing the (12) ___________without raising any red flags.

-Now, thank you, sit down. What I am guessing, your (13) ___________ here says;
give me some rope here, what I am guessing, it says is that considering the, shall we
say, bumpy road we've been on the last week or so that the (14) ___________your
brilliant co-workers up the line ahead of you had come up with don't (15)
___________anymore, considering what's taking place today.

-(16) ___________ not what’s taking place today but what's already taken place over
the last two weeks.

-So, you are saying this has already happened.

-Sort of.

-Sort of…and Mr. Sullivan, what does your model say that that means for us here?

-Well, that's where it becomes a (17) ___________. But... ummm..

-You're speaking with me Mr. Sullivan.

-Well... sir... If those (18) ___________decrease (19) ___________, and remain on our
(20) ___________…that (21) ___________ would be greater than the current (22)
___________of this entire company.

-So what you're telling me is that music is about to stop and we are going to be left
holding the biggest bag of odorous excrement ever assembled in the history of
capitalism?

-Well sir, I'm not sure I'd put it that way, but let me clarify using your analogy, what this
(23) ___________ shows is the music, so to speak, is just slowing. If the music were to
stop, as you put it, then this (24) ___________ would not be even close; to that (25)
___________. It would be considerably worse.