"Clay pigeon targets," the fourth, five chapters

"Clay pigeon targets" Chapter IV. .


At the beginning of 1994 was a big popular in Mexico. At that time the United States had just adopted the North American trade agreement, the bankers are full.


Are running ahead to the south of Mexico City. Emerging Markets Traders Association data show that turnover in 1993 reached. .


15 000 million, is twice that of the previous year. The entire Latin American derivatives are the derivatives market in the fastest-growing operations.


Points. Latin American derivatives transactions per month, from 3 billion U.S. dollars in 1993 increased to 250 billion in 1994. .


Yuan. All the major banks are from the two countries in the flow of funds. All of us major banks are preparing to apply to.


Established branches in Mexico, including many banks, including Morgan Stanley, the panel has a temporary office in Mexico. .


A..


Boston had the first experience, I almost considered a veteran Latin American derivatives. Morgan Stanley. .


Already in the derivatives markets in Latin America, the dominant position of now also hired me and another Manager extension.


The company's business, the Latin American bond trading room soon became the most important part. Scarecrow was appointed Latin. .


American derivatives business managers.


I should spend a little time to describe the trading floor of the layout and hierarchy, so you will understand the Latin American derivatives production. .


The location of the goods. It might be worse than you think is more important.


In the trading hall, a team's power depends on its earning power. Over the past few years, Wall Street, the most desirable. .


Work has been the Ministry in derivative products, these teams are generally trading Hall. In General, if you are not in the derivation.


Department of Health and the work product, then, from the government bond trading - the heart of bond trading room - the closer the better. Government bonds. .


Transactions around the middle of work, including foreign exchange, mortgage bonds and corporate bonds transactions. Less desirable work.


To the transaction may not enter the hall. Not very good stock brokers, private clients even worse. One of the worst, take an example. .


The child is in Philadelphia sales money market products, if the branch company in Philadelphia has yet to close it.


Worst of all the work which the number of municipal bonds to the Department of the. Municipal bonds by municipal, state or other local governments. .


Government agencies, is used to pay for roads, education, water and drain off water in the bond of expenses such as this, usually enjoy tax exemptions.


Municipal bond transactions of the Office of the Department is standing water, investment banks wasteland. I attend the first training program in Boston accused before examination. .


Known: "you'd better test point otherwise." I know very well, "otherwise" means "if not, you will.


Department of municipal bonds will fall. ".


Fortunately, I did not fall into the municipal bond Department. I-sphere – an emerging market, near the trading Hall level system.


The top. You may know what the emerging market, but you do not know, it is an effective example of the Wall Street marketing. Very good bond broker. .


In high-risk bonds get confusing name, to make them appear more attractive. One example is described in the 1980s.


"Junk bonds", now euphemistically renamed high-yield bonds. Another example is the emerging markets. .


Like Mexico, Brazil, Nigeria, the so-called "third world" countries that have been referred to as "the 3th.


Sector debt "until the occurrence of the Third World debt crisis. At that time, they are more accurately called a waste. Crisis,..


American commercial backlog billions of such bonds, anxious to "get rid of them, unfortunately, there are no buyers.


Late 80's, U.S. Treasury Secretary Nicholas Brady has launched a program to these wastes and valuable. .


American bond mixed up, come up with a more attractive place for reforming of third world debt, hoping to attract buyers.


Brady "humble" in the name of this mixed Brady bond debt. Regrettably, Brady's name alone is difficult to say. .


Serving investors, podebrady bond market fell into a pool of stagnant water.


The market needs a new, sexy moving name. Third World debt, many ideas broker. The first is "less..


Developed countries "(Less Developed Countries) in the bonds, but the" underdeveloped "implied too negative. Later they again.


Try the "LDC", potential investors want to forget L stands for "less." However, this attempt also failed. Regardless of the outcome. .


How the move to Kentucky Fried chicken has to be renamed "KFC" initiative. Today's fast-food consumers can be spoofed, 80.


BC investors can not. .


Then, the broker had used the "developing countries" and notes that they almost succeeded, but still, and the "underdeveloped" too.


Close to the point. Finally, a recommendation of other brokers with innovative "emerging market." Everyone agrees with excitement,. .


Wall Street all company's departments have been renamed. For example, at first Boston, my Department was renamed the "emerging national capital.


Marketing ", later renamed the entire company," UBS First Boston, "inspired by the spirit, after a lot of bickering and..


Nervously and changed its name to the more concise "emerging markets". Most of the other banks simply called this area for the emerging city.


Field. .


There is no clear "emerging" what, or how the rise of these markets. Nevertheless, it sounds good.


Great, not to mention, it helps to cover up the fact - investors to buy emerging market debt may actually be a world from the 19. .


JI has not paid interest on the loan of Peru.


I do not intend to do this line in emerging market derivatives, I actually was not granted the right candidate. I will not. .


Say no to any foreign languages, international work experience, and my most important emerging markets — limited understanding of Latin America. Real.


In effect, I had no idea emerging markets presence. Boston in the first interview I ask the examiner, which he thought. .


Areas in the next few years is the most popular, he said: "emerging markets". So I ask human resources managers can I to it.


Departments of the interview - whether they are in the end does. .


Have a manager told me that as long as you tell people I'm emerging markets expert, I can become the emerging markets expert, I may be.


With the time to make up for my deficiencies. Surprisingly, this actually is true. This is what I get the best advice ever. At. .


This line made a very short period of time, even the Morgan Stanley derivatives Department, including scarecrow, to think I was.


The authority of emerging market derivatives. I do not intend to stop them. As long as emerging markets, particularly in Latin America remain strong. .


Potential, I like my position there.


Before 1994, Morgan Stanley's derivatives business in Mexico, mainly the Government of Mexico to the U.S. institutional sales. .


Bonds. This strategy makes the millions of dollars in profits, but there is still a very big market. But now, if you want to lead.


All the emerging markets derivatives business, on the need to accelerate forward. .


At that time, many u.s. banks have Mexico Bank as a gift package filled with cash, eager to open it. For decades.


Years, Mexico has been the implementation of state-owned banks to protect them from the threat of foreign competition. The Government of Mexico since 1992. .


Start of privatization of the banking system, but still only allow Mexicans control on foreign bank to continue implementing strict restrictions. As in. ..


U.S. troops assembled at the same time to prevent the flow of illegal immigration, Mexico has established its own, more efficient banking border patrol. .


Logica team. The Mexican border into the United States to farmers than the Bank of America to the Mexican border. Nevertheless, the Bank of America knows.


Road, if they can break through the shell layer of protection, it can get billions of dollars in profits. Mexican market such huge profits. .


One of the reasons is that the Mexican Government to allow 20 to 30 home enormous interest of local banks charge, thereby maintaining the very highest level of profitability.


Mexican authorities also prohibit foreign banks - in addition to Citibank, the only active foreign banks in Mexico - in Mexico. .


Columbia peso loans and other local currency operations. Foreign Exchange and securities trading business is also prohibited. The result is a Mexican bank Carnival:.


Mexico's banks are the least efficient banks in the world, one of the richest Mexicans are bankers. .


The only attempt to bring down the high profits of Mexican Bank Bank of America is Citibank, even it were unsuccessful. Since 20.


Since the last decade, Citibank has been the largest U.S. bank in Mexico, but it is in Mexico, only 800 employees nationwide and six. .


Branch, the biggest achievement was introduced to the credit card. 1980s Mexico debt crisis for Citibank's brutal impact.


Than any other U.S. banks are big, but its millions of dollars in Mexico's debt restructuring plan the response, to drink in Mexico. .


Tap water is similar to that of the reaction of the tourists. In 1992, the Government controls somewhat relaxed, even Citibank also in most.


Near to digest the 8.8 billion U.S. dollars invested in Mexico's foreign investment. However, the unpleasant experience of Citibank also is not. .


Small US banks over appetite.


Including derivatives, including the Department of Scarecrow brokers agree that Citibank and other banks to enter the Mexican market approach. .


And angle are wrong. We do not believe that the Mexican bank is ready to cash gift pack. These banks are not our enemies, even.


They really packs to also far from full. Years, profits have fattened up the Mexican bank, but the recent changes. .


Including the North American free trade agreement, Mexico seizes the banking profits and increased competition.


Our plan is to re-feed fat some of these banks. If they feel hungry, we fed it, not fight it. Pass. .


To a shortcut to the Mexican bank wallet is through the stomach. The feed them? obviously should be high-margin, high-dose.


Things. We want to make as much money. It should also be addictive, so tired of these banks will not greedy. Once it is. .


They eat to heave up, a swallow, beat them easily. At that time, gently at the appropriate time.


A push can make the bloated banking system crashing down in Mexico. .


In 1994, Morgan Stanley is ready to feed to the Bank of Mexico. The previous year, in a successful.


The completion of the first "PLUS Notes" transactions, Morgan Stanley has reached legendary status. "PLUS" is another. .


A short that represents the peso-dollar guarantee instruments linked to them. Since March 1993, PLUS bills have been selling in Mexico.


PLUS notes are denominated in dollars, the dollar paid by the Mexican derivatives, which banks and U.S. investors to Mexico provided. .


They never imagined possible.


The company's first derivatives of Mexico - 500 million U.S. dollars of PLUS Capital Limited, the market is called. .


For the first phase PLUS--is a breakthrough in numerous Symposium called almost perfect intersection of derivative products.


Easy. While the deal seems too difficult to understand for the average investor, in fact not. If you hold the past five years. .


A mutual fund, in particular for the kind of international investment, it is very likely that you are holding the pen Mexico bills or similar to the East.


West. .


PLUS the first phase of the story is from the beginning of 1993. At that time, the National Bank of Mexico--it in Mexico.


Position equivalent to the status of Citibank in the United States - to the U.S. several investment banks asked whether they have been in impairment. .


Lack of liquidity of inflation-linked bonds from the balance sheet, but you can't really sell it. It is difficult to.


Request. Mexico's National Bank wants to cash bonds, so that you can invest in other assets; but it did not want to sell bonds, due. .


To do so it will record losses.


The inflation linked bonds in the market, known as debt adjustment, the Mexican government peso bonds. Bonds to pay for ink. .


"The cost of living index as a standard, depending on inflation rate adjustment method is like the United States social security payments and beauty.


States, like the consumer price index-linked. According to Mexico's central bank announced the inflation index, adjusted every 13 principal amount of debt. .


Week one more in accordance with the formula. When Mexico of more than 100 percent inflation rate, adjusted debt seems like a good idea. However.


In 1993, the inflation rate is close to the number of units, rarely have investors - including the National Bank of Mexico - would like. .


Continue holding the debt adjustment.


It appears that the Mexican National Bank wanted to do something impossible: one will buy the bonds sold to the market, and is not open. .


Recognize its need to sell these bonds. Mexico National Bank's Senior Vice President, gelardo Watts Gus (in Morgan Stanley him.


Known as the "Blade" because he was also wearing dark sunglasses during the meeting) said that the National Bank of Mexico has been a long time. .


Looking for regulating debt transactions can be completed by the Bank of America, but the answer is always "not real anyway.


Now. "Ministry of all derivatives on Wall Street, only Morgan Stanley's DPG claim to be able to complete any of this can not be completed..


Services.


Morgan Stanley has about 50 directors of meritorious claims PLUS notes - it depends on whom you ask the. One of them. .


In the rush power's time quickly and fairly, you really owe a great deal. He was the Marshall SA Rand. Sally Rand,.


Left arm and his clever graphic method, by addressing problems such as the National Bank of Mexico, in Morgan Stanley set up a. .


The Kingdom of derivative products. SA RAND on his calculator, pencils and more specific technical knowledge of derivative products unrivaled trading Hall. In..


Full of dull world of derivatives broker, Sa Lante is king. However, in the Mexican National Bank of the transactions, even. .


SA RAND and his troops also face significant barriers. The first is to convince investors to buy control of debt. Mexican buyers are not.


Energy, and they, like the National Bank of Mexico, just want to get rid of this debt burden. Many European buyers are all Latin America. .


Chau misgivings, unwilling to assume the risk of Mexican sovereignty. Although some American and Asian buyers interested in Mexico, but he.


They need is investment grade bonds (BBB or above), and denominated in dollars. Unfortunately, these two characteristics. .


There is no incompatibility. All Mexico investment-grade bonds, including adjustment of debt, are denominated in pesos; all the beauty of Mexico.


Yuan bonds are rated below investment grade. Mexico bond sale to U.S. buyers, Sa Lante, and he led the "rocket scientists." .


Need to find the Holy Grail of Mexico notes: investment-grade bond US dollar Mexico. This is a difficult challenge, however.


If the DPG can create such a bond, you can create a new multi-billion dollar market. .


In reality there is no such bonds for a reason. Sovereign bond ratings are based on bonds denominated in the currency invoiced.


And many countries, Mexico through a variety of currency borrowing, including the Mexican peso and the dollar. Mexico's peso credit class. .


Don't be high because it can release more pesos for debt repayment of the peso. On the other hand, it's a low dollar credit level because it is.


Depend on manufacturing hard currency to repay dollar-denominated debt, Mexico can not issue dollars. For Mexico, the repayment of compensation than the peso. .


$ Also is much easier, so investors believe that the Mexican peso to repay debts. Credit rating agencies also know, and. ..


Right to know that the fragile economy of Mexico may not be able to create enough hard currency to pay the huge increase of USD debt. .


Services. As a result, the Mexican peso bond was rated very high grade AA-, after a lot of large US companies of AA and beauty.


Government's AAA level. This in sharp contrast to its U.S. dollar debt is rated below investment grade BB level, that is. .


Junk bond rating.


I sometimes doubt the accuracy of these ratings, but U.S. investors follow the rating of the pious. DPG's broker. .


They know that many u.s. buyers in accordance with the provisions, can only purchase the investment-grade bonds in US dollars, but this kind of bond that does not exist in Mexico.


At. They also know that many U.S. buyers bullish on Mexico, and eager to buy Mexican bonds. This helps them focus. .


Concentrated in the National Bank of Mexico. If the DPG creation of u.s. investors could buy, in order to adjust the debts to the branch.


Mexican holding derivative products, then regardless of the level of risk, U.S. investors will buy. We are not the only hold this view. .


Man. Vincent Berri, BEA company (a company in New York, the asset management company, manages three billion dollars of Latin America.


Fund), a portfolio manager also said that sales of derivative products in Latin America, "largely because investment guidelines for those..


Limit cannot invest in actual securities ".


DPG need a little magic, a little financial alchemy to create the new derivatives. First is to adjust. .


Festival of debt is divided into two parts. The most basic method is to set up a new company, bought the adjustment of debt, and then through the issuance of two.


Species and regulation of the new debt-linked securities. In order to avoid offending the Mexican and U.S. regulatory authorities, Morgan Stanley decided to Yang. .


Light beautiful Bermuda register a new company. Bermuda is the famous illegal financial activities and the laundering of heaven. Initially the drug trade.


Business, then the Mafia, is now including investment banks, including Morgan Stanley. 80's and sleeping with the Mount Texel. .


Root Stanley on a downslope, now, the company's activities in Bermuda, behavior and like the mob.


Bermuda can protect the DPG, but it is a price. DPG to abide by rules of the game in Bermuda. First of all, Morgan. .


Stanley hired several quite political relationship network of lawyers to set up a company in Bermuda. These lawyers, as a member of the Board of Directors.


The company issuing special bonds to provide critical political relations. Then, in order to avoid adverse tax effects, Morgan Stanley. .


Need to find a suitable charitable institutions to subscribe shares in the company. Bermuda law requires that the owner of the new company is a qualified tax-exempt.


Entity. Fortunately, Morgan Stanley Capital Trust found, a Bermuda charitable trust, its beneficiaries are women in Bermuda. .


Sub high schools and grammar schools saltus. Morgan Stanley to pay this through investors trust us, you've used.


To purchase stock. .


Finally, the new company must receive the permission of the Bermuda Monetary Authority to regulate the issue of debt to support billion.


U.S. dollar bonds. 12 thousand U.S. dollars in stock just to meet the technical requirements of Bermuda issued. Morgan Stanley real. .


Plan to sell to investors is the new company's bonds. In order to obtain a license to issue bonds, Morgan Stanley.


- Again by investors - promised to pay each year to the Bermuda Government 1600 U.S. dollars. From an outsider's point of view, this. .


Money seems to be the rebate. From beginning to end, Morgan Stanley's behavior and seek appropriate havens laundering drug lords almost no..


Difference. In fact, later that year, PBS television program exposed the first line of the Wall Street money-laundering and how the profits. .


With an offshore tax havens (Scarecrow and I discussed this story, he said that he was honored in the same breath). Morgan.


Stanley and drug traffickers use the exact same steps to avoid the U.S. regulatory authorities, both of which the only real difference is the thousand. .


$ Drug dealing income rarely inflow for the benefit of Bermuda female students charities.


Bermuda's regulatory details of the settlement, the Morgan Stanley need to arrange at least one credit rating agency Bermuda company. .


Debt is rated as investment-grade bonds. There are two major rating agencies Moody's investors service.


Company and Standard & Poor's, as well as numerous second-rate institutions. I always feel that Moody's analysts more than any other sector analysts clever. .


Also more creative. However, when you really need the credit rating, in addition to the standard & poor's ratings services (hereinafter referred to as &), and nothing more.


Election. .


You may find it strange that the private sector was able to spend money to buy credit rating. Most people think that credit rating agencies.


Is to uphold the principle, but also accurate, standard Pouilloux its is impeccable, since it is responsible at least in part on the federal government. .


Of course, the standard & poor and Moody's investors services, Inc. is among the best of the two credit-rating agencies, the Securities and Exchange Commission.


To their respective as "nationally recognized statistical rating organization" supervision. However, the fact that the other side, despite the rating agencies had. .


To provide information and not to the bond issuer for a fee, as of today the situation has changed--the recent 20 years, these machines.


Structure has been there from the issuer credit rating fees charged, and then telling investors they are to what bond rating of the issuer. Comment. .


Level and not cheap costs are generally the sky, like PLUS bills this massive complex transactions. Since.


S & P also must maintain the reputation of some transactions is the money you can not buy rating. So for some time, these Bermuda. .


Big bond seemed to be one of them, it looks like Morgan Stanley regardless of how much the investment grade bonds.


Rating. .


While Morgan Stanley to persuade sandp new company bonds have the right to be awarded the AA-grade, and adjust its debt-to-peer, arguments.


There is the problem. Bermuda's dollar bonds are issued, similar to the ratings of Mexico's dollar bonds is much lower. Mount. .


Root Stanley argument is that because the actual assets of debt is at a higher rating of the Mexican peso to the nominal value of the new debt.


Certificates are actually Mexican peso bonds, rather than the Mexican dollar bonds. But from the perspective of investors, the new bond is. .


$ Par value, and give us dollar denomination sandp Mexico bond rating of AA-level far below.


Morgan Stanley has made two important concessions, eventually persuading the new S & P rated AA-grade bonds. First of all, this 100. .


Admire the large companies will issue two types of bond, sandp only safer for ratings. Mexico National Bank retains high risk.


Outstanding bond rating, making it more secure bond to protect the protection pad, so that full payment for the rating of bonds provided. .


Higher assurance. As an additional security measure, the company also will buy some u.s. Government bonds. This class is more secure to have.


Credit rating of bonds is called PLUS notes. .


Next, Morgan Stanley has agreed in advance of the completion of a foreign exchange trading, regulation by Morgan Stanley would pay the debt of the peso.


Amount into U.S. dollars. Standard Puken Morgan Stanley will be suspected of trying to bond as a new dollar bonds, rather than the peso bonds. .


Sell. As a compromise, sandp requests Morgan Stanley in advertising plus the warning, the bond transaction memorandum must be included.


1 Disclaimer: "The credit rating does not reflect the exchange rate between the dollar and the new peso fluctuations." With this warning, also. .


There are a lot of rating fee sandp finally satisfied with the new bonds rated AA-level.


Morgan Stanley through this compromise to meet the needs of potential buyers. However, the battle is only half finished. Now. .


Morgan Stanley requires dealing with National Bank of Mexico seems to be impossible to reach, so that it can adjust debt "sell".


A Bermuda company, but do not really sell them. Ingenious solution to this problem depends on the reservation that the National Bank of Mexico. .


A class without the ratings of bonds. Surprisingly, this is based on GAAP, generally accepted accounting principles. Its basic points.


If you have a company, you can put all its assets and liabilities as assets and liabilities of your own. If the ink. .


"National Bank can hold the Bermuda company time, and so is not rated bonds, which are considered to be the owner of the company, it is.


Can the company's total assets and liabilities into their own balance sheets, which naturally includes the regulation of all debt. All. .


The right to become clever tricks. Mexico National Bank will own the company that owns the adjustment of debt, even if it has to be adjusted.


Debt for cash, from an accounting point of view, it still has the debt adjustment. .


The power of this game I was so amazed. If the Mexican nationals Bank reserves 20% of the debt adjustment, it can.


Bermuda company to sell bonds to deal with the actual sales behavior. This 20% real equity capital on behalf of the company, and. .


Another part of the school for girls from Bermuda part of you've got thousands of equity capital. The sale will be used as. ..


Transfer treatment, only part of the complex financing. National Bank of Bermuda, Mexico, 20 percent of the company. .


Ownership can be sold to avoid confirmation, so that it can sell 80% of the bonds will not cause terrible accounting loss.


Loss. In addition, the bonds held by the National Bank of Mexico, only in another more secure, have been subordinated notes rating of PLUS. .


You can pay cash, PLUS bills of risk seems to be much smaller. Worried that the peso devaluation of potential buyers now have a hundred.


Per 20 protection. This additional protection pad is called "over-collateralization." Assumed debt adjustment hundred dollars, even if it derogatory. .


The value to 80 us $, PLUS bills will be paid in full, because Mexico National Bank will assume the first twenty-dollar deficit.


Loss. PLUS notes over security - in fact slightly higher than 20 percent - for an attractive potential buyers. .


Force, they sailed. Mexican peso might be devalued, but it is not possible devaluation of 20 per cent of the total, isn't it?.


PLUS is an exciting new instrument securities, unprecedented: it is the AA-level, high interest rates of U.S. dollar bonds, and. .


It also has 20 per cent of the protector. For a large conservative investors, such as a mutual fund to re-position loud, PLUS ticket.


It is to enter Mexico's most perfect entry permit. .


Mexico national commercial bank and other clients that PLUS a huge success and Morgan Stanley final arrangements.


The ten separate issue, the period ranging from six months to 20 months, a total sales value of more than one billion U.S. dollars out of the paper. Mount. .


Root Stanley even declared that "the dollar guarantee instrument linked to the Peso" as a protected service mark to prevent the copying of other banks.


Name. PLUS paper buyers is simply the list of Who's Who in the investment community, including the largest U.S. investment fund (Allianz,..


, Kuda, Merrill Lynch asset management company), a large number of insurance and pension funds (North America general insurance company, American family life insurance.


Insurance company), Japan, and Europe's largest companies (Alps, Osaka and, Qingshan, Aoliweite), and even Wisconsin. .


Counties. The derivatives of the strange one whenever a new product to sell, there are always some misguided vote anywhere.


Information Committee mixture inside. .


However, PLUS notes the most surprising places and not it funds and the company's popularity is high.


These funds and companies to investors and shareholders, is how little information disclosure. Typically, funds and companies do not describe. .


In the details of the investment PLUS bills, as long as the disclosure of which is a Bermuda company AA-grade bonds on the can.


A result, most mutual fund holders, pensioners, shareholders, and even Wisconsin residents and for the Fund. .


The company's investment. PLUS ticket makes some fund managers are able to conceal their investors in Mexico's warehouse.


Bit; make those who are considered low risk and can only invest in investment grade U.S. dollar bond fund real investment in Mexico. It is very. .


To make speculative WisCon New Hampshire to Mexican pesos.


If retail investors know that their retirement portfolio in the short-term AA-rated bonds, the so-called "PLUS votes..


According to the actual tax avoidance by the Bermuda company, Mexican pesos in support of inflation-linked derivative products, they can do.


What? If the state farmers Wisconsin badger was found south of the border state even gamble, they do? If you're fat. .


Now you think safe to invest in mutual funds in the reputation of retirement savings are invested in fact PLUS ticket in your hand.


Do? The only thing you can do is to feel angry, because when you find the truth, it is very likely to be too late -. .


After you have suffered loss. Due to its high credit level, PLUS bills is to allow investment, and you don't have to come to the Fund.


Tell you too much inside. This is shocking, but not as long as the Mexican peso crash, you may never find your pension. .


Be used for gambling in Mexico.


This Mexican trade amazes me. First Boston, Morgan Stanley made a hard act. Department of derivative products. .


PLUS notes on the profit, while the party has just begun.


To March 1994, I am more and more deeply involved in business decisions to the department, while engaged in the delivery of a few stimuli. .


Easy. Now I know most of the people within the Department, and start and trading Hall to network with other colleagues.


The company's morale is high, especially the Department of derivative products. A remarkable year for the past year, the company recently made. .


Record year-end bonus. March is a celebration of the season, is also the squandering of the season. Derivative products division was held in the French Riviera since.


Has been the annual forum, the entire company in West Palm Beach, Florida, held a luxury resort Brecker's brokerage industry. .


A forum for the Treasury.


The year to capture the perfect forum brokerage Morgan Stanley has enveloped the atmosphere. During the day, company executives demonstrated. .


A carefully prepared slides, replete with good news and optimistic expectations. In the evening, you enjoy fast brokers '. Management of the display.


However, feel the atmosphere of this celebration, so one night, they let the hotel ballroom in the Great built a huge "Mount..


Root Stanley sports bar ". The room of the thousands of bottles of beer, prepared dozens of sports games, including.


Can you think of all the indoor sports: basketball shooting machine, hockey, table tennis and billiards tables, and even indoor football and baseball (I..


Are runaway hit hit several times).


This evening there is a strange meal programs: a senior managing director of the poetry recitation. His poems at the end of the case. .


的： 。.


And you'll finally know. .


Morgan Stanley will never wrong.


This poem seems to inspire us, will soon have several large brokers playing a baseball suit, and from time to time to Taiwan. .


Throw the ball to the unsuspecting low-level employees. This event once again proved that broker-dealers and investment banks employees significantly different.


As a broker proud assertion that night: "I bet those damn bankers now fucking sip cognac..


While playing a fucking bridge. " 。.


Sports activities after the end of the Scarecrow to his horse at the local convener favorite strip club "T President." Last year. .


There is a woman and the Scarecrow and a bunch of drunken brokers go there, she witnessed everything that she still shudder at the thought.


Only men can participate in this year. Scarecrow learn more about the club is not limited to South Florida, but also the entire New York. .


Even in the West--the place where he grew up. I once heard him and one of the Midwest to customer details about him in when.


Favorite places, performing arts center called the name. In contrast, even Mr. T are eclipsed. .


In the morning, they came back from Mr. T, I tried to lure one of the few poker. I'd like some help.


Wealthier managers get bonuses to reduce the burden on the latest. I found a few in the lobby to the broker in California, they seem to. .


More than any other ski resort. The stagger lie in luxury sofa, one from time to time to others.


When I proposed that play poker, he cried, trying to ride me. I never liked this game, especially when it comes to riding. .


I weighed 230 lbs. of time.


A hotel employee that saved me. He said 彼德卡奇斯, director of brokerage transactions, should we all go back to the room. Kutch. .


Is our distinguished leadership, so everyone to obey. But a California broker in the hallway said he had a deck of cards and two.


Bottles of whiskey, so we gather to his room and locked the door. Five of us in his room playing cards for hours, odd. .


Weird, I just won a hundred dollars. A brokers stood next to the sweeping Playboy TV channels, full of bad, almost.


Never seen his license; the other in praise of his female customers into bed; others harsh criticism of their wives, is not. .


People seriously. I politely listen, sometimes encouraged a few words, continue to shuffle the deck. I think I'm going to win their money and ashamed.


But I did not. .


The Forum at the end of the morning. Most people coming plane went back, but I want to stay, play a round of golf.


So set a later flight. The night before, I mentioned a few brokers to play, I thought would be very easy to find. .


People play a game of four games. But before I came to the stadium, there is no one. I waited for a while, but a final decision.


Individual play. .


It was a sunny Sunday afternoon, so an empty Stadium seems a bit strange. However I'm fun,.


And does not mind quiet moment alone. After a few holes, I noticed the back of the ninth hole contribution has the ball team cars, dozens of cars ball. .


Car surrounded by a group of golfers. I want to know what these people are also driving past celebrities.


I could not believe my eyes. Hu Waters restaurant chain organizations of their most charming waitress trips. These women. .


People no doubt is the elected representatives of the company Hutt's image. Wearing sexy skirt twenties woman was "auction", no..


Buy a few men playing partner. This explains why I can not find my colleagues, they would have discovered Hu. .


Artes girl and decided to give up playing the game around the Hutt's driving game with man, it seems.


Bond brokers like staged dramas. I laughed and drove back to the fourth hole, so after my ball. .


In 1994, my Department unbroken in PLUS instruments profit-making. At the same time, I began to desire to tear up don't.


Sense of the human face stimulus. In the First Boston, I never really tear to our customers face, I am sure that more have not been banning federal funding. .


Anyone. Now, look at Morgan Stanley derivatives brokerage in action, I am starting to like the idea. Scarecrow.


And the others on my greatest encouragement. .


Morgan Stanley serious training with this customer was there compulsion. So, I picked up this fanatical speed.


Degree is not surprising. Everyone infected by such sentiments, especially the more experienced Managing Director who. Me. .


Supervisors are voracious shooting enthusiasts, they continued in private practice shooting club, organization, and even hunting weekends.


Africa and South America hunting. When they yelled "fire", they think that customers flying from the air. .


This killer attitude has been traced back to the top of Morgan Stanley. General Manager of the corporate personality, the fiery, John.


Is the chief gunman. Knife Meck Meck's nickname is, people know he was a combat leader thrive. Him. .


Tall and strong, was once a small city in North Carolina football star, regardless of the hands have Rob, Philippe is awe-inspiring.


Meck Although the hot-tempered but loyalty, especially for brokers and traders. His last job was director of brokerage and trading business, according to. .


When other sectors is a threat to his site, he simply prohibit others from entering the trading Hall. If he looks in the Hall to see.


Laughing and loose behavior - including eight o'clock in the morning to see the Wall Street Journal - he will tell that person: "If I see..


This kind of thing, I'm with you. " 。.


Meck went through a bitter power struggle to become president of Morgan Stanley. A few years ago, he was stop by a palace coup. .


Chu, President of the former, when Robert Greenhill Greenhill is the resort hospitality clients. He is naturally not a..


However, after a bitter struggle, Shoemaker became the final winner, Greenhill faction was forced to withdraw. .


Philippe is an extraordinary leadership leaders, both charming and deterrence. A Morgan Stanley describes him as a Manager.


"I've seen the best agent." He arranged an informal lunch and Morgan Stanley employees to meet all the minimum level. Him. .


Office in two cans filled with sweets and a chewing gum vending machines to encourage colleagues to drop in and chat. He is on.


The company is full of love public speaking and inspiring talk privately worship the same subject. Even the most stone heart of Morgan Stanley. .


The Manager of the intestines are also moved his exciting speech, in which several even shed a tear. Mexes seems to be practiced.


Resolve any dispute the point. Social celebrity Peach Ruisiduke 1.2 billion U.S. dollars of property in trustees need someone to intervene to solve her. .


Property disputes--even including murder allegations--they please? John Mecklenburg.


In the aggressive pursuit of global dominance of the objectives, Meck Morgan Stanley also earned huge profits. Only. .


A few months, the Ministry in derivative instruments PLUS earn money goes far beyond my imagination for the first time in Boston. Years.


Substantial increase in the final prize, hundreds of employees earn the "right." Even I, chairman of the company's two year's pay more than five. .


Million (later 10 million), while their family assets have been billion. Derivatives department managers to get everyone in..


Millions of dollars, and the rest, including myself, all have six-figure income. At the same time, First Boston employees. .


He also kept them waiting in a queue, poor cheque..


Ten years ago, Morgan Stanley decided to change its philosophy, and now this radical is clearly the investment banks nineties. .


Star. Morgan Stanley from South Broadway theater district, only a few streets, it played a role in all the best--is there.


Is the Merchant of Venice, Shylock is usury - Boston played the first high-Bo the clown is east to. .


Work is in distress.


This aggressive fanaticism is new to me. I had never participated in military organizations, even if First Boston. .


Training programs are not like this is full of war atmosphere. First Boston broker may take customer fun, but they certainly did not.


Discussed the fire to customers, or tore up their faces. In contrast, Morgan Stanley is a brutal fanatics. The company this. .


You quickly grasped the creed of so extreme that it makes me wonder about.


"Clay pigeon targets," chap. .


In the derivatives world, 1994, will become the everlasting shame. The first significant derivative products.


Loss is the day the case was made public. Department of derivatives broker still good luck for the near future complacent. .


So at first we almost didn't notice the event occurs.


First the announcement from the U.S. third-largest greeting card manufacturer - Cincinnati, Gibson Greeting Cards Inc., which announced a 2. .


Million of losses attributable to a pen and bankers trust between the unauthorized transactions. A month before.


Gibson had a low profile and disclosure of the company 300 million loss, and implies that there will be more bad news. .


Gibson's losses hit the entire financial sector. Gibson: the company's Chief Financial Officer William · Flaherty had tried to shirk.


Responsibility, saying "We think this is a non-operational issues, so no further comment." But do not think the stock market. .


So, Gibson's stock price on April 12, the day of the fall in more than 8%. Gibson's counsel is investigating this swap over.


Easy, but the results have no comment. Director of Gibson, Anthony Wright text, openly declared that it is an "illegal." .


Transactions; CEO Benjamin · sautel in bulletin explicitly said that "we have been trusted professional bankers trust was intended.


See, so under what circumstances it should not be placed in this situation. Currently, we are considering legal action. "There were rumors..


Said Gibson intends to prosecute Bankers Trust.


Bankers Trust then issued a brief statement that it and Gibson's transactions are "lawful and proper." Order. .


Surprisingly, little Gibson company swap transactions history seems not short. The company's 1993 report shows that.


Then swap transactions have reached 9600 million, compared to 6 in 1992, seven million U.S. dollars increased by nearly 50%. Not. .


The Gibson for swap is not as sharp as it manufacturing greeting cards, so their trading results. 1993.


Year, it lost 100 million dollars. .


Developments show that at the beginning of 1994, the Gibson company from bankers bought two swap transactions, it is exactly this.


Two transactions resulted in loss later. In a transaction, Gibson incorrectly predicted, the London interbank lending rates did not. .


Will rise to 39%. Each of the more than one basis points (one thousandth), Gibson there will be a loss of $ 72 000. In another.


Transactions, Gibson again wrongly predicted, due in 2005 and similar maturity Treasury swap spreads between not. .


Will narrow. If spreads narrowed to 33. .5 self-sacrifice to 20 point spreads to limit each basic points will make JI.


Dobson loss of 746 000 U.S. dollars. Bankers Trust, estimates Gibson's loss of 1970 million, the company claimed Gibson. .


It swaps the maximum potential loss of up to 2 million. No one mentioned that the purpose of the transaction, as well.


No one explained any transaction cards and manufacture of what possible relationship. .


The second derivative losses are on the same day — 1994, announced on 12 April. P — a..


The 157-year-old household products manufacturer, announced two document failed transactions caused by interest rate swaps 1. .02 Billion dollars losses. .


Transaction is Bankers Trust. Procter's loss is in the United States industrial company in derivatives on the largest.


Loss. Edwin A Zite chairman acknowledged that "such a derivative is dangerous, we suffered a great deal. We do not..


Let such incidents. "Procter and Gamble also imply to prosecution of Bankers Trust Company. In a teleconference, Procter's Chief fiscal.


Services Officer Eric Nelson told securities analysts, these swap transactions in violation of the complexity of the derivatives of P & G policy. .


He stressed that the company's policy requires that "the most basic form (Plain vanilla-type) swaps", "our portfolio there is no other class.


Like a swap contract, and will not come after. "Outsiders do not know whether P & G should be within a specific individual..


Responsible for the loss. Corporate financial officer Raymond · maynes was originally derived products, were later transferred out of the silence, the Finance Department.


Engaged in "special mission." .


Bankers issued another short stated, this is called the p level always know the swap transactions, and. ..


And when interest rates began to rise, Bankers Trust had a "strong and clear," urged P & G open, but P & G officials refused. .


Their recommendations. Bankers Trust is make life difficult for yourself, the Bank is to sell the most complex derivative products is famous for its honey.


By bringing. I learned the hard way by this point, several years ago in my interview at Bankers Trust had paid with a 1 billion U.S.. .


Yuan. Trust is one of the first sales of unusual options and swaps Bank, one of the inventions of leveraged derivative products.


Than a decade ago, Bankers Trust has to understand that it can not, and more banks compete for individual customers, this is why they closed some. .


Branch industrial securities transactions and the large companies provide financial advisory services. By Procter and Gamble like customer sales derived products.


Products, Bankers Trust profit deal, it's wealth makes it a regulator and suffered a loss of customers target for. Procter & Gamble. .


The company's losses, Bankers Trust issued a statement saying that skimp on losses swaps just Procter.


All transactions in a small part. .


And Gibson greeting card company, Procter and Gamble in derivatives trading is also a long time, but a greater amount.


P & G's 1993 annual report disclosed that ended June 30, 1993, the company's balance-sheet derivatives contracts up to par. .


24. .1 billion, significantly higher than the previous year of $ 14. .3. In fact, in 1994, the Procter and Gamble's derivative products turn.


Trade has become such a large scale, so that the purchase of P & G shares, you actually expect the U.S. and German interest rates will be lower. .


Drop, better than expected rise in sales of the cleaning liquid. Procter and Gamble's shareholders should bear the costs of these transactions. Although 12 April.


P & G's share price on that day had good news - a quarterly loss on derivative products to remove profit increased by 15 cents, the market punished. .


Ticket p derivatives losses, low price of admission.


Morgan Stanley, a broker is only recently switched over from other banks, he said he had been selling novel derivatives. .


Products to Procter, earn millions of dollars in commissions. One pen – he claimed — called "regularly swap.


Deal of the yield curve flattening, "which in the end no matter what the commission has up to 250 million. He does not believe P & G said..


The company is not aware of, create derivative works from other brokers. · More than DEM-said the Procter and Gamble's situation as "a man and others.


Women play a man who dates, go to bed after complaining about his date is a man. "Procter & Gamble he called" his mother. .


Idiot, "and also suggested we selling its shares.


These two announcement immediately drew a response from other companies. April 14, DuPont's financial officer to the company's management. .


Ensure that DuPont derivatives policy is not to profit-making purposes. Colgate-Palmolive Company issued a statement, calling it a "strictly.


The policy aims to reduce financial risk, rather than trading profits of financial instruments. "Sri Lanka's chief financial officer, Scott Paper Company..


Besl · Anderson said Procter may "piss derivatives of legitimate uses," but, Scott paper company use.


Computer System "Always watch the whole assembly." .


Other companies make accusations of excessive intervention in the derivative products. McDonald's analyst David · Garrity.


Even said that the Big Three auto companies affiliated finance company to make them "almost became a bank disguised as producers." Chrysler public. .


Division of Chrysler financial companies and 15 million interest rate swap transactions and $ 5. .35 of cross currency swaps.


Yi, the parent company Chrysler, another one billion U.S. dollars of positions. Even the Goodyear Tire & Rubber Company has 5 million. .


Derivative portfolio. I wonder who else no derivative products.


In fact, the potential loss of derivatives has been a large number of warnings. In a January 1992 speech,. .


E.-Gerald Khao-Gan, the then Federal Reserve Bank President, has warned of a series of significant derivative losses.


Loss may lead to a domino effect and cause the financial system crisis. .


A few months later, the main competitor of Morgan Stanley, Goldman Sachs company, has hired on SEO being the international consultants. Too.


Environment to move, or the same Corrigan, warning it cold a lot. To April 1994, people only hear him to. .


To the point of opt-in: "derivatives as United FIFA competitions of the quarterback's praise and criticisms may have some words.


Been a matter of fact. Defense is always the name of the game. "Although Corrigan out of, other members of the Federal Reserve Board, including..


Enclosed President Susan Phillips and John Lovell, continue their warning.


On April 12 before a loss of exposure, the Securities and Exchange Commission's members have repeatedly warned of the possibility of disaster. .


Carter bi, pointed out that under Bankers Trust annual report 1993, derivatives of a position of almost $ 2 trillion. He warned.


That the derivatives market was a ticking time bomb, "the timer is ticking." Richard Roberts is worried about "some derivative products..


The purpose of marketing is the brokerage firm's profits, not suitable for the needs of customers. The Securities and Exchange Commission, former Chairman of the joint.


Charles Debuleideng expressed a similar warning, while the incumbent Arthur Levitt Public Securities Association, the said: "We are on this..


Issues very seriously and we will do our best to make securities companies also pay attention to this issue. "April 11, prosecutors particularly root Lutheran.


Ludwig joined the warning "designer derivatives" ranks. .


Fund ratings company liberty analysis services company Michael liberty said that these warnings are equally applicable to the common fund. 1.


728 stocks, bonds and balanced funds, there are 475 investment in a derivative product, the amount of billions. .


USD. However, the Fund announced to holders of positions, these positions "seems miraculously disappeared. " 。.


Mutual funds, government regulations prohibit the use of financial leverage to buy securities lending. Nevertheless, a Washington fund research. .


Agencies published data show that mutual funds not only holds a value of 75 billion of derivative products (accounting for 8% of total assets.


2.3 a), and holds 1.5 billion U.S. dollars of structured notes, previously mentioned PERLS is one of them. Move. .


For example, fidelity funds, the assets of the Fund management company has $ 10 billion in assets, in the fourth quarter of 1993, one of the eight.


100 million U.S. dollars to invest in structured notes, including Finland, Sweden and the UK interest rate lever gambling. Canadian interest rates have a ticket. .


According to leverage factor is 13 times that of the previous year's rate of return is 33%, but in 1994, the first four months of the same.


A note has dropped 15 percent. To make matters worse, the fund research notes seem to not know the existence PLUS. .


In..


Naturally, in the April 12, 1994, before the voice for the defense of derivative products are also prevalent. In fact, these sound. .


Tone. Fidelity fund the company's Vice President of operations, said: "asset management funds are relatively conservative investors.


Design. "Commodity Futures Trading Commission's former legal adviser, is even more surprising remarks 琼尼曼德罗:" I do not think more. .


More regulation is necessary because I do not believe that regulation will make the market more effective. " 。.


Congress since early in the first case to be made public before the loss of ready. On the same day, the Democrat Henry. .


Facilitate Raimundo González, the House of representatives of the banking, finance and Urban Affairs Committee Chairman, presented his method of preparing derivative products.


Case. His motion included a derivatives speculation tax for the proposal and a will "improper management" line of derivative products. .


Illegal in legislation. Democratic Senator Edward Marge and others joined the war. Madge's Office announced that he ".


Direct the development of derivative markets are worried about, especially from market participants has experienced financial intermediaries and wealth. .


100 large companies to small, lack of experience of end users, including companies and local governments. "April 6, Madge.


He said derivatives and equities, bond market volatility the correlation between the rising anxiety, asked the Securities and Exchange Commission. .


Association for derivative products for more careful study. Republicans Leach said: "people have to derivative products.


Contracts and the relationship between the size of the company to worry about, "he believes that" all directors should be responsible for it. "Gang Salei..


The last of the motion, Congress concludes on this hot political issue "can not wait for disaster to come, we should be dimmed.


Shows the United States leadership on financial issues, take a positive attitude. "The next day, April 13, the House Banking Committee..


George Soros ' Association called on the dangers of derivatives for a hearing. Born in Budapest, the Soros is managing more than one hundred billion dollars.


Assets of the Quantum Fund manager. He, if not the world's most sophisticated derivatives experts, at least the richest. .


One of them. Quantum Fund in its 25 years of history has always been recognized as the world's best Fund.


Soros said that the proliferation of derivative products to investors a special danger: "a large number of derivative products flooding the market, its..


Some of the complexity of the esoteric, most sophisticated investors might not be able to properly understand the corresponding risks. "He believes.


The design of certain derivative products to institutional investors seem to be in other circumstances can not be gambling. He police. .


Sue said: "some of these tools can bring income egregious because they are devoid of seeds. "He also.


Warning of the market collapse, then in order to ensure the integrity of the financial system, regulatory authorities will need to intervene. He concluded. .


How many dotted optimistic, think "no recent crash in the market. " 。.


But even Soros can not persuade Congress to pass any bill. In the end, all the proposals failed. Soros Ye Hao,. .


Gonzalez, Leitch and others, they are faced with fierce competition. It is estimated that only in the last two elections.


Period, legislators from the banks, investment companies and insurance companies have been sponsored by many as 100 million U.S. dollars. Obviously, the more derivative. .


Hygiene products follow a disaster. Dueim section risk management consulting company's Managing Director, Robert Baldoni, commented:.


"There are indications that there will be new derivatives disclosure regulations published," but before, "there will be a very good body for..


A bad deal, but the company does not fully understand these transactions. "Or 13 April day, Witter our analysts protect..


Luoma Qi outside said: "There are many companies will soon be shouting derivatives are brutal murder, Procter & Gamble will not be the only one..


" 。.


I clearly remember the announcement how the deal swept through the Office of Morgan Stanley. Gibson greeting card company? Procter & Gamble? I. .


Whether or not the sale of derivatives has exploded? it seems is no. Bankers Trust is the main defendant, we hide a few bullet.


- At least for now is this. .


Unsurprisingly, other losses soon. In April 1994, derivatives resulting losses multiplied.


Texas, Dell Computer announced a sum of derivatives losses, although a company spokesman defended this loss "and Procter & Gamble..


Would not be of the same type, "Dell's stock price or in a day dropped by 12%, is the second day of trading.


Active stocks. Ohio Mead Corporation, the main industry is paper and electronic data services, also announced a sum of substantial losses. .


In the next few months, almost every day a new derivative products loss announcements. Many victims are home.


Yu household name. Dell? Mead? I can not understand how they will be paid with so much money. When you buy shares of these companies. .


Vote, what to buy is what? a manufacturing enterprise, or a derivatives speculators? how can you distinguish it.


The difference? Each time, DPG brokers have solemnly declared that they did not sell any kind of explosion of derivative products. Each. .


Once, there are rumors spread in the company, then disappear. Morgan Stanley seemed to take a few bullet.


Strangely enough, a shocking announcement that did not make Morgan Stanley's management a loss. If there is even. .


Mody, the victim's screaming can only give our boss's offensive woes. Morgan Stanley Chief Executive John Mecklenburg.


The first reaction is a typical derivative products on behalf of the Department of mercenaries. At first loss shortly after the announcement, Meck to a number of directors. .


General Manager, resulting from: I smell the blood and the smell, we go out to kill. "Our idea is this: If we.


Derivatives customers in trouble, but we can make them believe they need us - for example to increase stake. .


Hope fanben--we can from their plight in earn more money. These victims were euphemistically called "the stranded.


Buyers ", the management of their coveted. As my boss told me repeatedly during this period:" We love most of the stranded. .


Buyers.


However, some of my colleagues and I began to worry about. The boss's reaction seemed overly optimistic, even naive. Yuehanmeike. .


Of the directive seems to be some reckless. I don't want to kill, and I was in law school, training that I think I should.


And the "buyers stranded" arm's length. I decided to keep a low profile, not to those who have already paid with millions of dollars of customers built. .


The new deal. Nevertheless, I am not completely battered. I started on the upcoming annual mud fixed income.


Pigeon target shooting competitions, F. . I. . A. . S. . C. . O, but excited. .


This exciting days in 1994 to 18 April, a notice in the Procter and Gamble $ 100 million derivatives losses.


A few days after the loss. Although the loss from the scale of the case and the prospects for derivatives business I am worried, but that Saturday, when. .


I woke up at the crack of dawn, all worried that all disappear. I am new in the special forces of Morgan Stanley as a member of this.


I am very proud of. I am particularly as to the first F. . I. . A. . S. . C. . O. . Proud. Under the president's orders in Meck, I allowed. .


By visiting sandano that hunting, a New York Club. Despite the rain, I was a brave stand at the door.


Mouth for people to come pick me up. .


My colleague, Alexander "lex" du Tethys, my tiny apartment in Nishimura to pick me up. Lakes are genuine.


The "rocket scientists", and a very young one. Although he claimed to have been early twenties, I suspect he is actually only 10. .


Eight-year-old. Other children are still learning to ride a bicycle, the Lakes have University. He was 27-year-old me.


The is the old man. I saw his large Lincoln sedan from Georgia if W Street drove over, and smiled. .


He stopped the car, opened the huge doors. I go sit on the configuration of the luxury car. Our car.


To Eighth Avenue, 这辆 luxury Lincoln so that we look and Eighth Avenue in the pimps and prostitutes, is proportionality. Their night. .


Has come to an end, but our day has just begun.


Lex explains that Zheliang Lincoln was a great "chick car", I politely nodded in agreement. I agree? Levin heard. .


Alex awkward to say "babes", I can feel the scarecrow effect on his strong. Many young brokers and traders.


Have tried to emulate our predecessors, especially the Scarecrow. However, some things seem very strange - a teenage rocket. .


Scientists have six-figure income, of V-8 car and "chick". I lovingly dashboard, know I do.


Non-totally disagree with Lex said, this is indeed a great woman car vehicles. I can imagine Lex Hu Waters carrying female. .


Waiter/cruising. I can afford a Lincoln?.


We are not talking a while, I would like to change over the past few months, how much I have in the end. Levin has clearly affected the Scarecrow. .


Alex, he is also affected by the Scarecrow's influence is everywhere, I suspect we are becoming more and more like him. I removed.


Playback in the hands of the dashboard. In the end to what, in such a dreary April day, two days of highly intelligent young people are not bright. .


And he arose, and look forward to working through the rain and the muddy road to take a few pounds of clay pigeon target made into pieces-h--if luck.


Is good. We are in the end is how it? I noticed that wearing Tang De Lex starched pants and red shiny brown shoes with. .


Will be destroyed. I wear jeans and boots can also be destroyed, but the costs are lower. The good news is that.


Scarecrow has not suggested that we wear uniforms of World War II, it makes me relieved. .


We drove up to the 8th Avenue on the East of the city district, the shift to pick up two bosses, one of which is Steve Bernard Dai, gang of four.


Most short one. Bonadaite and Scarecrow often go hand in hand to hunt, he told a colleague that he had spent 40,000 in Africa. .


$ Just for playing. Bernard Dai-spacious apartment on the top floor of the Eastern and I 300 square foot Studio apartment formation.


Contrast. Participate in the activities of brokers, many living in Manhattan on the east of the city area. This area usually very quiet, this. .


Time appears to be what military activities. Look strange people one by one from the luxury apartments, they are.


Wearing brand new flannel shirt, yellow raincoat and khaki uniforms, entered the heavy rain in. Many people also own 12 with polished divergence. .


Shotgun. Fortunately, our car is not with weapons. Bernard Dai has lakes, we sang to the North.


Dano then fled. .


Two hours drive, we discussed the recent loss of derivative products. I know that Morgan Stanley as sales evolution.


Health products to the West Virginia Investment Committee and was involved in litigation. We discussed this case, there are several other states of affairs. .


House bought the Investment Committee of derivative products, including new and California wiscon. I would like to know whether the derivative products.


Speculative bubble soon burst. Why are these customers should be willing to take such a conservative high risk? We also. .


Controversial California County the adoption rate of derivative products in big bets. My boss said that as long as we had wind prior disclosure.


Insurance, the customer what to buy and nothing to do with us. Assessment of risk is the customer's own responsibility, if high-risk derivatives lost money. .


It is the customer's own problems. Nevertheless, they still seem to be worried.


To Dasangdanuo that, our worries soon vanished. Sandano that New York is located in the beautiful natural scenery. .


In the field, is a long history of exclusive private clubs. Morning, the Sun from the low hills and dense fir trees.


Rises in four weeks is particularly quiet. We are not a special trip to enjoy the natural beauty here, and we loaded guns. .


Sandano that still biggest outdoor shooting range, we are to come.


Inside our club Scarecrow received. Today is F. . I. . A. . S. . C. . O. .'s Big day anniversary. Ten years ago,. .


.I F.. .A. .S. .C. .O.. at Morgan Stanley was a mysterious abbreviation name. Later, when the facts clearly, public derivated products division.


The profit contribution of the Division will continue to rise, numerous brokers and dealers want to get on board as soon as possible derivatives that express train. Them out. .


White derivative products, no matter what, they found their multiplication. If they need to do this before to sed.


And then, the Department participated in the annual fixed income mysterious clay pigeon target shooting competitions, but also 12 issued shotguns, so do so is. Again. .


This is also very interesting. The 1994 F.. .I.. .A .S. .O .C. has become a legend.


Scarecrow explained the rules of the game. Each group the task of looting and destruction of Sandano that. The next few hours,. .


They will shoot with all things mobile, but you can only shoot skeet score. This is not a timid.


Ghost playing paintball shooting, firearms and ammunition are the real thing. We will learn to shoot the team to promote a man of experience. .


The ultimate way of friendship between (but there are also a few participants in women, after all, we live in the 1990s).


Some have questioned F. . I. . A. . S. . C. . O. . It is the Scarecrow ideas. May not be unique and creative scarecrow of expertise, but in. .


This issue, I need to defend him. This clever acronym may not be his invention, but shooting affirmed that he's home.


Italy. He ordered all the major weapons, hunting and recreational shooting magazine; he has enough weapons and equipment throughout the company. Him. .


Connecticut home, wall decoration, swords, guns and uniforms. Scarecrow on the second world war, more than anything else.


And regularly participate in military fair. I went to Tokyo before I forget his only advice to me: Visit the museum samurai sword. .


It was strange that the Scarecrow's military experience makes him qualified to Morgan Stanley derivatives Department. Sales derived.


Products, most of the men and few women are known as rocket scientists, this is for good reason: they are several. .


Degrees, as well as developed the brain. Derivatives brokerage in the spare time of typical activities are playing chess, and playing computer games, math.


Instead of shooting. Scarecrow is the antithesis of the typical derivatives broker. His nickname literally, he has neither a degree in mathematics. .


Nor developed brain. When the scarecrow aimless whistle "if I have the sense", no one on the front.


Opposed. So, he in the end this line in the derivatives do? As time goes by, more and more people's questions. .


Small. They begin to understand why the scarecrow in the sales success of derivative products. Ultimately, the army has proved to be a scarecrow.


Talent matters more than simple math skills useful for more. He and others made successful firing rocket scientists believe that more than thought. .


More effective. This is Morgan Stanley new philosophy of the key. With the proliferation of the Scarecrow's point of view, the mathematical theorems is through tampering.


National Rifle Association, replaced by the slogan: derivatives can not kill, only people who can kill. When the derivative of the time illegal,. .


Only criminals have derivative products. Traders and brokers to mathematics journals threw them into the trash can, bought the Sun and other forces.


Books matter. The result is satisfactory. Scarecrow-like in on the popular art of war at the same time, the Department of derivatives made a great start. .


Money.


Derivatives brokers have sharp minds, as their ideas began to become more and more violence, they sell securities. .


It is becoming increasingly fierce. In 1986, the typical brokers provide the time magazine (or "Playboy" cardat).


Golf, marketing companies and government bonds. By 1994, with a broker to see the "mercenaries" and "guns. .


And weapons of spare time to shoot the pigeon and sell lever indexation reverse dual currency in the floating structure. This is by no means a coincidence.


In order to motivate young brokers, Scarecrow bought a doll will voice their commandos. He put the doll on the transaction. .


A prominent position on the stage and call it a ' 90s derivatives traders. Scarecrow frequently dolls up to the sky.


Provided to it out loud a number of derivatives issues. Doll chest, he pressed the button, it will be in deep, well-trained. .


Voice answered: "Yes, Yes, Sir!".


I saw dozens of quick striker has been assembled to try it. They are very, very aggressive hunters. 9. .


10 early Native American business competition begins in derivatives, brokers looking for victims to overseas, in particular.


Latin America, the Far East and the Middle East. Company executives to go abroad to find a big derivatives trading, they called business trip. ".


Hunting, the transactions referred to as "elephant". They not only use hunting faults potential sales, and their derived products.


Goods and the real journey is often complement each hunting trip. Have a team of senior directors of public funds organized a lavish trip to Uruguay. .


To play the Dove. These are particularly fond of playing the Dove. Why?, because it's too easy. The team found a few thousand.


Pigeons Uruguay farmers, so he agreed to pay them to hunt on his land. One manager told me that when air. .


Full of pigeons, and the scene like Al Fred Hitchcock's film "the birds". May they enjoy this kind of travel is due.


Hunting becomes very easy, nothing is impossible - and sales of derivative products is almost as easy. They said that overseas safari,. .


There are also F.. .I.. .A .S. .O .C. aim for a business training. This logic is not merely in order to claim the funds, it has its own logic.


Dove hunting is excellent training is more enjoyable for the preparation of the killings - in real life, complex derivatives of shrapnel. .


Will pierce the rich, no doubt people pigeon breast.


Everyone seems to have been infected with fanaticism, including F. . I. . A. . S. . C. . O. .'s Organizers, Sandano that the owner Joe. .


Dead bird. In 1986, boedner break with tradition, his holy land leased to Morgan Stanley held first F.. .I.. .A .S. .O .C.


Subsequent years, Boedner from F. . I. . A. . S. . C. . O. . Last revenue quite good, he decided to break with tradition, the Sandano that from Kawasaki. .


Places uneven village shooting range expansion into high-quality corporate activities Organizer. Since the early 1990s, sandano borrowed a lot of credit.


Shall expand and improve the shooting facilities and clubs. Boedner also began to accept corporate members, and the original limited expansion of the local membership. .


The rich foreign clients. In addition to the F.. .I.. .A .S. .O .C., sandano that also hosted numerous other corporate activities.


By 1994, this change in management philosophy shooting clubs and Morgan Stanley to change as significant. This year. .


.I F.. .A. .S. .C. .O, banquet will take place at the new Club's elegant dining room, the employee sandano that will provide us with the digital game (.


However, calling from elsewhere) and wine. Money is not a problem, Sandano and derivatives that have the same buyers, the maximum limit. .


Degree of leverage strategy addicted.


I noticed F. . I. . A. . S. . C. . O. . Have some power, endless morning began to doubt whether it appears in the Sandano. .


Quite by accident. Sandano that peripheral is not some kind of a tornado, mysterious attracts Morgan Stanley's employees are older.


In 1986, the tornado had already started to attract me? The first F. . I. . A. . S. . C. . O. . At the time, I just graduated high school. .


Industry. Is it ever since, as far back as the Kansas I had felt .A F.. .I. .S. .C. .O. strength? as lifted.


Of F. . I. . A. . S. . C. . O, I graduated from law school, moved to New York, into the First Boston. 1993 F. . I. . A. . S. . C. . O. . After. .


I joined Morgan Stanley, was involved in the company's derivative products division of Whirlpool. This is a coincidence or, said.


No power has been guiding me? . .


Scarecrow caught me, insisted me to join his group. He apparently thinks that since I was from Kansas, gun definitely good.


He was wrong. I dare not tell him when I was a Scout when, because of the repeated failure to have are not available. .


Shooting the spirit of the award-winning medals. Winning requires three rounds of the FA hit the target. Other players are derided-Scouts.


Laugh at me. They are also in Kansas, so often heard on the target of jokes, but never really come across a shot too. .


Not in person.


Lex whispered told me that he heard F. . I. . A. . S. . C. . O. .'s Organizers to give the worst results were issued a special prize. I. .


Frantic, hastened to cross-examine scarecrow specific arrangements. He confirmed that's right, people will receive a prize, no one wants to.


To the silver cup - Croom Cup - his (or her) name will be engraved on it. Richard Croom Croom Cup is life. .


Name, he is a member of the Morgan Stanley special fat one Managing Director. He participated in a .I F.. .A. .S. .C. .O, only to find that.


He, like me, but still have not hit the edge of target, the result angrily announcement never came back. View my side. .


Croom tournament name, imagine my name is forever etched in front. I want to know, if I turn heel,.


Collide with each other three times, is not able to return to Kansas. Scarecrow interrupted my thoughts, that I certainly have nothing to worry about. .


. Our group is outside the collection, F.. .I.. .A .S. .O .C. is about to begin.


Shooting lasted about two hours actually, but my extreme distress had made me feel as if a few days. Initially,. .


The contingent on sandano that wanton air riddled with bullets and broken clay. The woods are repeated shouted.


Shout: a deafening scream "fire!" Followed by 12 rounds of ammunition deafening roar and burst of creative pollution abusive. .


Language. Fired, Slam, a piece of names. Fired, Slam, a verbal abuse.


Range is composed of 11 two fire stations, four groups through the dense woods and muddy paths exchange sites. .


Several times, the sound of the shot and cursed, over a period. Archer began the fanaticism of gambling. Shot, struck to give money. Open.


Guns, bang, collecting money. Each shot has a lot of money changing hands. .


Shortly after it started cheating. Because of the rain, very hard to see someone do hit the target. Even if a..


Shooters are not really hit too, and know very well that if he finished shooting confidence that "eight of ten rounds," after one. .


Muscovy controversy, he also may be able to get, for example, six minutes. Shoot, shoot, collect the money. Fired, no, lie still.


Old money. .


As Archer consume more alcohol and cigars, shooting quality began to collapse. Several hours later, the.


Some are from Uchitori shift the focus to the whiskey and tobacco. Shot, bang, give money, drinking, smoking. Shooting, drinking,. .


Smoking. Drinking, smoking. Drinking, smoking.


Less than noon, brokers have had to Sandano that Gaode rubbish everywhere, bottles, cigar head, or even urine. 10th. .


Time .I F.. .A. .S. .C. .O. victory came to an end.


As I feared, I almost did not hit any target things. I tried to blame my poor performance outside the article. .


Pieces. Raindrops splashed my glasses, I'm not even a gun the other side of the watch. However, the fact of the matter is whether or not, give me.


Is a terrible shooter. When I tried to close their eyes in the shot, hit it down even once. But this repetition. .


After a few times, the service staff began to tense looking at me. I pray that he did not shoot one of them, but I don't.


OK. I even tried to cheat, it may even have failed. .


On the way back to the clubhouse, several brokers to recall past .I F.. .A. .S. .C. .O. Now is a good time in the past and the same.


What? Clearly not. With the popularity of activities, deteriorating the quality of shooting. Ten years later, F. . I. . A. . S. . C. . O. . Has become the company. .


The militarization of new business and killer mentality, all joined the war. Shooting and hunting becomes inevitable amateur.


Hobbies, swept the entire company. Employees to join in groups of firearms and hunting clubs, Morgan Stanley also began to fire. .


In addition to activities as a corporate golf event. While the 1994. .A F.. .I .S. .C. .O. that rain and snow.


Eggplant, gambling and alcohol, but with a strange activities tension. When we come to club, has a broker brought Sed. .


NOK that depression into the hot money in 1993, excessive expansion of the borrowing capacity. It is obviously sandano and many of the derivative products in the near future.


Goods not much different victims. Higher interest rates in early 1994 after the Sandano it faces rising debt, struggling. .


With its huge loan repayment.


Statistics good shooting scores in the club's Grand Ballroom announced. Results of our group right in the middle. Scarecrow is. .


Human race in third place, while a young Manager to impressive 100 fat grades in 1993 to become a winner. Most of the score.


In five or six very. When I score - 35 - was announced, my heart sank. I pray there are points. .


A lower number. God, please help. At least I have not killed anyone. I am nervous of counted in the presence of clothing.


Service personnel, wonder why one less. .


Thank God, is performed under a score, Archer was a woman. She does not receive any preferential treatment of sex. 1994.


When Morgan Stanley is already a very gender-sensitive family of companies, not only hire, promotion of female employees, and trying the system. .


Fixed a number of positive measures to enable women to have more opportunity to expose the promotion's glass ceiling. But that was back in New York,.


Not here. In F. . I. . A. . S. . C. . O. . Activities, men are men, women are women, nine points is nine points. .


I was ecstatic. My score even from win Croom Cup there is still a considerable distance. I survived a bullet. Also.


Hsu my shooting level has increased more than youth. I have seen the humiliation of that target, and a gun to it. .


Edge into hell.


We are on the Lincoln vehicle owners to Sandano that waved goodbye. They also pay tribute to us quite some solemnly. .


They then you may know already, soon it will also be sandano step in the footsteps of the victims of derivative products, into bankruptcy.


Unfortunately, the 1994 F. . I. . A. . S. . C. . O. . Sandano that will be the last, that inability to repay because Sandano excessive. .


Borrowing, where organized .A F.. .I. .S. .C. .O. tradition will end. In late 1994, when Morgan Stanley clean shiheng.


Derivative products all over the battlefield, looking for bargains, when there are several derivatives managing director, the smell of the Sandano that the. .


, An attempt was made to the bankruptcy of the firing range, bought for private use. But in the end they failed to complete the transaction.


F. . I. . A. . S. . C. . O. . The end of the Monday, I came to the company and found the Scarecrow in my table put a 1994. .


April issue of the shooting sports magazine. He must have felt my shooting techniques in need of improvement. On the cover of the magazine is two.


I've seen the most adorable bunny, they snuggle together in a pile of shiny new shotgun in the middle of a hug. Rice. .


Grass along the graffiti above a few words, so that it appears and Bunny Greeting: "Hey, Frank!".


Scarecrow must also wanted me to know exactly, I need to not hesitate to shoot a little bunny bullet between the eyes. Bunny. .


And our customers are no different than the derivatives. If a customer calls to say hello and, if necessary, I..


Shot Hongdiao need to be ready to complete sale of his head, no matter how much I like him or her. I looked at two little bunny started. .


Doubts as to the recent outbreak of derivatives losses. Conspiracy theorists may say that these losses are planned global attack.


Part of hit, and soon I will find it and the fact that not far. .


When I saw the scarecrow, he once again reaffirms its investment banking business as war and derivatives broker is the special forces.


He wanted me F. . I. . A. . S. . C. . O. . Good time, but he convinced me to understand more far-reaching implications. Who have witnessed the evil Scarecrow. .


The battle of derivative products. Once he saw a fire burned themselves former Navy pilot found himself bought bonds does not exist.


At. Scarecrow even random sales calls as a personal battle, before entering the client's office shouting: "We are on!." .


He wants me too .I., F.. .A .S. .C. .O. just one of the training.


According to the Scarecrow's world view, is a combination of brains and bullets, not just rocket science, so that the Department of derivative products to become. .


The world's most profitable sectors. In the other investment banks--such as the Solomon Brothers, famous in the 1980s, the jungle of Plexus.


Forest - their targets brokers called the big guy swaying. But in the decade, the investment banking business from the change. .


. Wall Street is no longer just a jungle jungle, but the precise Center of modern financial weapon; here, you're light.


Swaying is not enough, he needs to shoot. .


I look at the cute Bunny, and reminds me of the first derivatives disaster, this time I breathed a sigh of relief. I've never been.


Morgan Stanley did not tell anyone I interview at Bankers Trust, how to "lose" the billions of dollars, apparently did not. .


Some people find it. In any case, two years have passed, I did not really pay off the $ 1 billion. I'm staring.


With two cute little bunny and next to the weapons, how many unsuspecting feelings of animals wandering in the jungles of Wall Street. Does not. .


There will be a derivative Broker makes them a true loss of us $ 1 billion?.