Welcome everyone, I must apologize for dragging all here at such an uncommon hour

But from what I've been told this matter needs to be dealt with urgently

So urgently in fact probably should have been addressed weeks ago but that is spilt milk under the bridge

So, why doesn't somebody tell me what they think is going on here

Mr. Tuld as i had mentioned earlier if you compare the figure at the top of page 13

Jerry, it's a little early for all that just speak to me in plain English.....ok

Infact, i would like to speak to the guy put this together..

Mr. Sullivan is it? Does he speak English?.... Sir?

I'd like to speak to the analyst who seems to have stumbled across this mess...

certainly that would be Peter Sullivan right here. Oh, Mr. Sullivan you're here

Good morning, maybe you could tell me what you think is going on here

and please speak as you might to a young child or a golden retriever

it wasn't brains that got me here I'll assure you of that. Well um..... sir as you may or may

not know I work here for Mr. Rogers as an associate in the risk assessment and

management office and MBS..Please just relax, stand up and tell us the cowboys

what is the nature of the bone? okay uh.. well as you probably know over the last 36 to

40 months the firm has begun packaging new MBS products that combine several

different tranches of rating classification in one tradable security

this has been enormously profitable as I imagined you noticed.... I have

well the firm is currently doing a considerable amount of this business

every day

Now the problem, which is I guess why we are here tonight is, that it takes us

the firm about a month to layer these products correctly thereby posing a

challenge from a risk management standpoint... and Mr Sullivan that challenge is?

Well, we have to hold these assets on our books longer than we might ideally

like to

yes? but the key factor here is these are essentially just mortgages so that has

allowed us to push the leverage considerably beyond what you might be

willing or allowed to do in any other circumstance there by pushing the risk

profile without raising any red flags now....

Thank you Mr. Sullivan, sit down.. what I'm guessing your report here says and I give me

some rope here

what I'm guessing it says is that considering that shall we say a bumpy

road we've been on the last week or so that the figures you're brilliant

co-workers up the line ahead of you come up with

don't make much sense anymore considering what's taking place today

actually not what's taking place today but what's already taken place over the

last two weeks

so you're 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 projection..but...um...

You're speaking with me Mr. Sullivan.

well sir... if those assets decreased by just twenty-five percent and remain on

our books, that loss would be greater than the current market capitalization

of this entire company

so, what you're telling me is that music is about to stop and we're going to be

left holding the biggest bag of odorous excrement ever assembled in the history

of capitalism

Sir i'm not sure that i would... put it that way but let me clarify using your

analogy

what this model shows.. is the music so to speak

just slowing..if the music would have stopped as you put it

then this model wouldn't be even close to that scenario it would be

considerably worse

let me tell you something Mr.Sullivan, do you care to know why i'm in this chair with

you all I mean why i earn the big bucks

yes.... I'm here for one reason and one reason alone I'm here to guess what the

music might do a week, a month, a year from now

that's it nothing more

I'm standing here tonight

i'm afraid that i don't hear a

thing ....just

silence....

so

now that we know the music has stopped what can we do about it

Mr. Cole, Miss Roberts I'm afraid I think this is where you were supposed to step

back in

Lord knows we've relied enough on Mr.Sullivan tonight

what do you have for us?

what have i told you since the first day you stepped into my office?

there are three ways to make a living in this business

the first is smarter or cheat

Now I don't cheat and although i like to think we have some pretty smart people

in this building

it sure is a hell of a lot easier to just be first... Sell it all, today

Is that even possible, Sam? Yes, but at what cost?

I have to pay... really?.... i think so

where is this gonna come back to us?... everywhere

Sam I don't think you've seem to understand what your boy here has just said..... if

I made you

how would you do it?

well you call the traders in for the normal 6:30 meeting and you be honest

with them because they're gonna know it's the end either way, so you're gonna

have to throw him a bone and a pretty big one and then you've got to come out

of the gate storming no swaps no nothing

forty percent done by 10:15 by eleven o'clock all your trades have to be gone

because by lunchtime words going to be out and by two o'clock you're gonna be

selling at 65 cents on the dollar if you're lucky and then the feds are gonna

be in here up your ass trying to slow you down

Ramesh? they can slow you down but they can't stop you

she wants to sell ..but John even if we manage to pull that off and that's

saying something....

the real question is, who are we selling this to? same people we've been setting it to

the last two years and whoever else will buy it ...but John if you do this you will

kill the market for years it's over and you're selling something that you know

has no value

we are selling to willing buyers at the current fair market price... so that we may

survive... You will never sell anything to any of those people ever again

I understand... do you? - do you?

this is it.... I'm telling you, this is it...

that's four o'clock... Jared, you got till five to break this down, draw me up a plan

Is there anybody else who knows what's in here at the moment block by

block?

Eric Dale.. and where is he?

as of today he's no longer with the firm

we have been trying to locate him

Carmelo? yes... get me Eric Dale here by six...It's done...We meet back here in an

hour