1
IRA a dollar-franc.
Four-ninety-eight, 40, 60.
The market's going against us.
We're exposed on the 100 million.
- We're gonna have to bail out.
- We'll take a whopping loss.
We can't buck the tide any longer.
Let me know the damage
when you've finished.
- Hold the phones!
- Hold on.
Okay, no arguments. Everybody cover
their short-currency positions.
Buy yen, sterling, francs, marks.
Sell dollars.
We've got 100 million to dump.
No haggling over prices.
- Dollar's off.
- How much?
Two percent against the mark
in 20 minutes.
It started in Frankfurt.
No. I think you'll find it started
about 10 blocks from here.
At Borough National, as a matter of fact.
They're in trouble.
Bailing out of their long-dollar position.
Dumping about 100 million.
Keep talking.
Let me know if it slides further...
...or hits the next big number.
Frankfurt? Borough National New York.
A dollar-deutsche mark.
Would you like...?
Can you make me a market of spot francs?
- Give me another market!
- Another Geneva for 30-60. Want it?
- Sell eight at 30!
- Two, two at 20.
Hello, Bern National.
Yeah, how do you trade in French?
- What's your spot on yen?
- Take two!
- Three.
- You'll only do three?
- Five million.
- We want sterling.
- Four.
- Good.
- What's the dollar-yen, please?
- Five at 75.
- Make it two. That's four.
- Okay.
- Take it.
- Four done.
- Do you want it? Forty-60!
- Sell five at 40.
- They'll only take two!
- Take the lousy two!
- All right, that's just one!
- I love you too. You're beautiful.
How about four? All right, two.
- Help me out.
- What do you mean there's no market?
It's coming? So is Christmas.
I can't get Bern!
They're closed for the day!
- We look like we're having trouble.
- Europe and the Street...
...know we're dumping.
The dollar's dropping like a rock.
All right, we'd better go in.
Long on dollars. Start with Paris.
And tell Borough National
they can have 40 mil on Interbank.
We're going to have to find someone
to ride shotgun over there.
I'm not taking this roller coaster again.
Earlier this week,
the dollar slipped 50 points.
It recovered. But a lot of people
say things are going to get worse...
...before they get better.
Others in the banking community
say it was just a flutter.
But if there's one thing all of us
worry about, it's money. Our money.
In this case, of course, the dollar.
Here tonight to discuss the dollar
is Maxwell Emery...
...president of The First New York Bank.
Mr. Emery has sometimes been called
the lion of American banking.
The dollar's been under pressure
so frequently in our history.
I don't think these times are exceptional.
We go through regular cycles of anxiety.
In fact, we're an anxiety-prone people.
But we've never had anxiety
with so much reason behind it.
Since 1974, when the Arabs
started increasing the price of oil...
...they've amassed billions of dollars.
Until now, they've been very kind to leave
that money largely in American banks.
Mr. Emery, has there ever been
such a concentration of wealth...
...in the hands of one group before?
No, I think probably not.
But I assure you, their interests are ours.
Have a good time.
Thank you.
- Wonderful party.
- Charlie will be by later.
- He's working late at the office.
- See you then.
Enjoy yourself.
Want an educated opinion?
You won't get a glamour boy like Hubbell
Smith to run a rescue operation over there.
He won't touch it with a fork.
He might. If the payoff is big enough.
Could I have a white wine
and a Scotch on the rocks, please?
Well, Max, I hear you rode in
on your white horse...
...and bailed out Borough National.
Well, that fellow down there is trying,
but he's overmatched.
I feel sorry for the poor son of a bitch
who tries to fix that mess.
I said I'd help them
but only if they'd take my boy.
Wanna hear the deal?
I don't know, Max.
I did my time in the trenches...
...when I was running
those problem loans for you.
I had enough crash-and-burn.
Hub...
...I'd consider it a personal favor.
With those turkeys at Borough National,
miracle is a better word.
Now, why do you piss cold water on it
when you know you're interested?
What makes you so sure?
The guy who turns them round
is going to be hero of the week.
And we both know
that you're restless, ambitious...
...and a sucker for a chance
at a star play.
- That's the spirit that built the West.
- Has either one of you seen Lee Winters?
Last time I saw her
she was over by the band.
Something wrong?
Charlie Winters has been murdered.
A mugger broke into his office
and knifed him.
Oh, my God.
Isn't it?
I love the way he plays too. Don't you?
- Hello, Bill.
- Lee, could I talk to you alone?
- Would you excuse us?
- Certainly.
What is it, Hub?
Nothing.
I was just thinking about
the illusion of safety.
- Yes. - You were inquiring
about Charlie Winters...
...the other day. I'm sorry to
have to tell you that he's dead.
I was struck by the coincidence.
Charles Winters.
I'm sorry to hear about that.
I'm sorry to hear about it too.
I just wanted you to be aware.
Good night.
Police have concluded Charles Winters
was murdered by a burglar...
...who panicked when Winters,
who was working late, surprised him.
No other motivations
for his murder have been found.
At his funeral yesterday in New York,
his widow, ex-film star Lee Winters...
...was accompanied by leading members
of the corporate and financial world.
So Lee Winters, the poor girl who
came out of the dirt hills of Arkansas...
...to achieve stardom
as the glamorous Ashley Norman...
...one of Hollywood's
most respected actresses...
...who, at the height of her career,
gave it up to become the wife...
...of a great American industrialist...
...played today her toughest role:
Where to go from here.
There are rumors that things
aren't what they were...
...in the troubled petrochemical empire
built by Winters...
...now facing the critical question
of who will become its next chairman.
And now in a...
Don't take too long.
Hurry back down.
- Gaby, did you take my book?
- What book?
Well, Paris, we're seeing
some pressure out of Zurich.
Eleven's ringing. Who's on 11?
But we think it's topping out.
We're all atwitter.
Let me have your dollar-franc, please.
The question is, is he ready for us?
I've had a balance sheet worked up...
...and a summary of assets.
Is there anything else you might need?
Oh, nothing special.
Your interim financials maybe.
Something showing your cash position,
loan position, deposits.
Also a P & L statement, if you've got one.
The maturity schedules on your commercial
paper. Classifications on your loan portfolio.
Maybe the last examiner's report.
Oh, and your current profit breakdown.
You sure that'll be enough?
For a start.
Cheers.
Well, doctor, you've been on the case
for a while now. What's the prognosis?
Will the patient live?
The patient's been dead for six months
and doesn't know it.
Come on, now. It's not that bad.
No?
Roy, I salute you.
Borough National's your masterpiece.
Well, we may have to tighten our belt.
Try it around your neck.
Okay.
- I'll call Emery. You can bail out.
- No, I took this trip without a parachute.
- This is when the fun begins.
- Smith, this is not some sort of game.
Yes, it is. That's exactly what it is.
You keep talking about a system, Roy.
That's your problem.
You can't beat the system,
but you can win a game.
- How?
- First, we have to find a way...
...to get some profit in here now.
Just 3 or 4 million...
...so we can meet that dividend
and give ourselves a little time to breathe.
A nice, hungry customer
so we can give him a big, fat loan.
Say, a couple 100 million.
- Collect the commission.
- Where are we gonna get the money?
I'll find the money.
What we need right now is a customer.
We really need a company even more
in the shithouse than we are.
If that's possible.
Sit down, Roy.
Talk to me about
the Winterchem Petrochemical Corporation.
We're loaned out to them to the legal limit.
No matter how hungry they are,
we can't give them a thing.
Not even lunch?
I'll start with what you're dying to hear.
We don't need to borrow another dime.
Well, I don't know what to say.
All we have to do is scale down a little.
Think in more modest terms,
and we should weather the storm.
I don't think it makes any sense at all.
This is wrong. You can't cut back on this
company and expect it to ever grow again.
The replacement cost
would be astronomical.
We're grateful for your interest
in Winterchem.
All the public relations
you've put in for the company.
And I know how you must feel,
especially now that Charlie's gone.
Henry, don't patronize me.
You know where we went wrong. We let the
competition walk away with the technology.
Instead of cutting,
we must invest in R & D.
Keep the plants going
until new products are developed.
- Financed how?
- We'll just get ourselves a moneymaker.
There's a small petrochemical plant
in Spain at Valencia.
They're in place.
Their balance sheet looks real good.
And they're for sale. We'd have to invest
in some updating and a sure feedstock.
If we get it, we'll be buying ourselves
a real cash-flow machine.
I hear you, but that kind of capital
is simply not available.
Sorry, good people. I'm running late.
Roy, fill me in on the rest of this later.
Ms. Winters.
- Henry.
- Delighted to have met you.
- Warner.
- Good to see you.
That's a hell of a fella. I think
we're gonna enjoy working with him.
Let me speak with Lee Winters, please.
She's at the far corner table.
Lee, you're gonna be opening
the Palm Beach house soon?
Sorry, Mrs. Winters, a call for you.
Thank you. Excuse me, I'm sorry.
Yes, this is Mrs. Winters.
How good are you
at keeping a straight face?
Because your Valencia deal
happens to be full of holes.
Helen, I can't talk now.
I'm at a luncheon meeting.
- Lf you have some messages...
- Try this on Helen.
Number one, what about
currency translation?
A Spanish plant has peseta obligations.
If the peseta goes up...
...your dollar earnings won't be worth
a plate of frijoles.
Two, how about labor stability?
Half the country's busy slipping bombs
in the pockets of the other half.
Three, Winterchem's tapped out
with us at Borough National.
How do you figure to fund
the acquisition?
I see.
Is that all, Helen?
Sorry, but I didn't wanna embarrass you
in front of Tweedledum and Tweedledee...
...since it's obvious that you wanna be
the new chairman of the board.
No, absolutely not. Would you tell him
I'm out of town, please?
I'm sorry. Some people
just don't understand business.
Absolutely.
Of course we're gonna show a profit.
One, their currency may be unstable, but
they have to sell in international markets...
...so our dollar wouldn't be affected.
Two, the Spanish labor market
happens to be relatively strike-free...
...which you would have known
if you'd bothered to check, as I did.
Three, there are other banks that recognize
a sound investment when they see one.
As for that "chairman
of the board" remark...
...Mr. Smith, I don't know
what you're talking about.
How much stock did you say
her husband left her?
You were saying?
I thought we ought to have a drink on it.
On what exactly?
Your future at Winterchem.
Scotch, if you don't mind, with a twist.
Mr. Smith, you must have me confused
with an executive.
They tolerated me on the board
because of Charlie.
But now that he's gone, I'm just
an ex-movie star coasting into the sunset.
Not someone throwing them
a curve ball at lunch...
...about a Spanish petrochemical plant.
I'd say you coast pretty good.
Where'd you learn the moves?
Charlie involved me a lot in the business.
And when I was an actress,
I had my own company.
I made my own deals.
Charlie always says I have...
Charlie used to say I had good instincts.
Well, we're playing the classic scene,
aren't we?
The banker and the widow.
I'm sorry. I guess this is all too soon.
Of course it's too soon.
Everything's too soon, isn't it?
The company's in trouble too soon.
Charlie died too soon.
So what?
It'd be funny, wouldn't it?
If the banker helped the widow
walk off with the chairmanship.
Hilarious.
You mind telling me how?
- Your Valencia deal.
- I thought you said it was full of holes.
I thought you said
you didn't wanna be chairman.
Too bad because Ackerman's
just blowing smoke...
...about all this so-called support.
Nobody really wants to sell off.
Nobody wants to be on the board
of a shrinking company.
You nail that deal, you have a real shot.
Providing they took me seriously.
Come up with the 500 million to buy
that plant, and they'll take you seriously.
All you need is the okay
from Ackerman to go after it.
And I'm in a position to put you
together with the money.
There are risks involved.
I've never been afraid of risks.
That was Scotch with a twist.
For one thing, I'm not gonna get the okay.
Aren't you the man that told me
Winterchem...
...was borrowed out with the bank?
I'm the man.
- Where's the money supposed to come from?
- Private placement. Outside source.
- Direct?
- Through an agent I know.
We'd have to negotiate with his people.
Probably be a joint venture if they put up
the capital and share the profits.
And the bank collects 1 percent
for setting it up.
On 500 million, that's 5 million profit.
No risk to you.
You have a very profitable
sense of humor, Mr. Smith.
You wouldn't deny me a little incentive,
would you?
No.
Was that on the rocks or straight up?
Of course, we do have to handle her
very carefully.
Yes. She is sitting on the largest block
of company stock.
If she sells her stock to some outfit,
we could all be out on our collective ass.
I say to hell with her damn stock.
What's she gonna do, unload
600,000 shares? That's her meal ticket.
This isn't The Washington Post,
and she's not Katherine Graham.
And I'll tell you, that woman is not going
to negotiate any deals for this management.
Ever.
Would you ask Mrs. Winters
to come in, please?
Next thing she'll want
to be chairman of the board.
Now, Lee, we want you to know
you'll always have a home at Winterchem.
Remember, we'll always be happy
to hear any suggestions you might have.
- Mr. Ackerman, please.
- One moment, please.
- At least we didn't overestimate him.
- Hello.
- Warner, this is Hub.
- Hi, what's up?
Nothing special. I just thought
it was time we sat down...
...and had a talk
about rescheduling your loans.
- Maybe lunch next week?
- How about Thursday?
Right, fine.
By the way, I had a talk
with that Japanese conglomerate...
...that's buying up every company in sight.
- Did you?
Yeah, Shigemitsu-Han.
They wanted to talk about
the Winterchem financials.
Of course, I wouldn't,
but I thought you ought to know.
No problem.
They tried to take us over last year...
...but couldn't get enough stock.
Well, in that case, we can all relax.
So where do you guys like to eat?
How about the Bibliotheque
next Thursday at 1?
- Thursday at 1, right.
- See you then.
I can't wait to see their faces
when they think I'm gonna sell my stock.
- Hello.
- Helen.
Would you contact Shigemitsu-Han and ask
if we can have lunch Thursday at 1.
Thursday at 1.
Hi, Lee.
So she won't sell her stock, huh?
Good move, Warner.
Well, I'm starved. How about you guys?
- I could use a drink.
- So could I.
How did I do?
Ackerman didn't eat a bite.
- How long do we have to wait?
- As long as it takes.
- Lf it takes.
- Patience, patience.
They have to huddle first.
Look unconcerned, get back to the office
and argue a little bit.
They're probably flipping a coin right now
to see who has to make the call.
Yeah.
Right, put him on.
Guess who lost.
Hey, Warner, long time no see.
Hi. Listen, Hub,
I know you'll think I'm nuts...
...but we may let Lee Winters check out the
financing on that Spanish thing after all.
She's got an idea she can find
the 500 million somewhere privately.
She'll probably give away the family jewels
to get it.
Would it make you happier
if I kept an eye on her for you?
Jesus, could you?
That would be really terrific.
- We don't want to look like total idiots.
- Consider it done.
Hub, I want you to know
we'll always be grateful.
Just your friendly neighborhood banker.
They'll always be grateful.
We're not there yet.
You still have to meet the agent
for the 500 million tonight at Emery's.
Any ideas on how I should handle it?
Straightforward.
We've got nothing to hide.
Do we?
Please, Ms. Winters, excuse me.
I know this isn't the time or place...
...but did your husband ever mention
Jerry Fewster?
There's someone named Fewster. Did your
husband ever mention anything about him?
In what connection?
- You mean he didn't?
- I don't know. What was it about?
No, if he didn't mention it, that's fine.
It's fine.
- What did you say the name was?
- No, it doesn't matter.
I'm sorry I bothered you.
- Excuse me, does he work here?
- You mean Mr. Fewster?
He's one of the federal bank examiners
who come in.
He's very nervous.
I don't believe Mr. Winters
told her anything.
She looked right at me.
She didn't know what I was talking about.
That's my train.
Well, if you hear from her again,
we expect to hear from you.
Okay?
Not gonna eat your hot dog, huh?
- Well, here they are.
- Oh, Hub.
- I was concerned.
- Courtney, I'm sorry we're late.
- You know Lee Winters?
- Good evening. Lovely to have you.
Would you take her down by Max?
- Good evening.
- Good evening.
- Sorry we're late.
- Don't worry about it. So glad you're here.
- Hello, Hub.
- Sorry, Max, got caught in traffic.
Lee, I'd like you to meet Sal Naftari.
How do you do, Mr. Naftari?
Mrs. Winters, at last. I was beginning
to be afraid I might not get to meet you.
For a few seconds there,
I had doubts myself.
But I can't tell you how happy
I am that we made it.
Oh, Mrs. Winters, I was just telling Max
before you came...
...that I've just come back from Paris.
The state of the dollar is in crisis.
I don't know what you naughty bankers
are gonna do to us next.
Do you know that I couldn't buy
a single thing?
It's awful. I'm gonna have to wear
American clothes all summer.
- Two percent.
- Not this time.
Okay, 2 and a half.
Eight.
Eight? Why 8?
It's a woman. Makes it tougher.
Hub, get it out of your head.
I've got a lock on this.
These people are unpredictable.
They make up their own minds.
I'm only the agent.
I can only make the introductions.
The rest is up to you.
If my deal is too rich, you're always
welcome to try it on your own.
- Okay, 8.
- Plus a fee of 300,000 for contingencies.
- Such as?
- Lf I knew, they wouldn't be contingencies.
I'll get right on it, providing,
of course, that's acceptable.
Also, she'll have to travel.
They'll want a meeting.
- We welcome you.
- Thank you, Khalid.
We're glad to be here.
My associate, Mrs. Winters.
- How do you do?
- Mrs. Winters, welcome. Please.
Come.
I believe you know my father, Ahmed.
Of course.
He thanks you for honoring us
with your visit.
Not at all.
You honor us with the invitation.
And Mrs. Winters.
How do you do?
I feel like a beggar asking them
for alms, and I hate it.
You and the rest of the world.
I thought we had an appointment.
This is an appointment.
Mrs. Winters, please.
Hub, good to see you.
To begin with, I'm sure you will be pleased
to hear we have decided to make the loan.
But first, I think it
best to go over this...
...to make sure we are clear
on the main points.
Point one...
...the sum is to be 500 million,
of course, for the plant in Valencia...
...the money to be drawn
in units of 50 million.
At times to be negotiated.
Yes, of course.
Point two, Winterchem to hold title...
...but profits to be shared
on an equal basis.
Point three, Mrs. Winters' stock
will stand as security...
...for the entire transaction.
- Point four...
- Excuse me.
That means if something happens,
I lose all my stock.
Mrs. Winters...
...I should tell you
there are those in the family...
...who do not think we should be
making this offer at all.
I assume if you could've found
venture capital of this sort...
...for a company like Winterchem
in America...
...you would not be coming
all the way to Arabia looking for it.
If you are able to arrange better terms
elsewhere, you are free to do so.
Shall I continue?
Point four...
...after repayment of the principal
has been completed...
...all interest payments must be made
by the 15th day of each month.
If we're ever cash short when a payment
comes due, I could lose the whole company.
Don't worry. We'll cover you on that.
The bank will cover you.
I don't like the risk.
I guess it depends on how bad
you wanna be the chairman.
Well, I guess I should call the cockpit.
Have them radio the office
with the gory details.
Hey, that can wait.
This can't.
You're really ticked off
about the deal, aren't you?
I'm sorry.
I just don't...
I don't like being dependent, that's all.
I was never dependent
on any one studio.
I didn't depend on Charlie.
And if anything goes wrong, I don't like
being dependent on Borough National.
You mean me.
Here.
If you can't live with the deal, forget it.
Tell New York the terms
are unacceptable.
I warn you, I'm a problem.
I'm a bad person
when I get in a corner.
Fine. If you get in a corner,
tell me to go to hell.
In business, that's the ground rules.
But if you think the only thing we've
been doing together is business...
...one of us is a fool.
Would you radio Winterchem
in New York, please?
Tell them we've come to terms
on the whole package.
Well, you got your deal.
You got what you want.
You don't know
the first goddamn thing I want.
It's not the deal.
The world's full of deals.
A partner's somewhat more rare.
I'm still not sure I trust you, you know.
That's a perfect basis for a partnership.
Thirty thousand.
Just bumped him out of 20 million.
I thought you ought to see that.
They just want us to hold it?
Not roll it over?
Doesn't make sense.
They'll lose a ton of interest
if they don't re-deposit that money.
Must be a mistake.
Ask them to send it again.
You got it.
By the way,
how much is the deposit for?
Altogether, 95 million.
Rebecca, let's get a confirmation on that.
Let me have the maturity schedules...
...on those Saudi Eurodollar deposits
we're holding.
The ones that are due now
or all of them?
- The works.
- What's going on?
Nineteen deposits
worth 5 million each are due...
...and the Saudis didn't
give us disposition instructions.
You got 23 more maturing
in the next three weeks...
...which is 210 million we're gonna
have to come up with...
...if they decide not to roll over.
- Two hundred and ten million?
That's practically every cent we carry.
It'll clean us out.
They can't let that money
sit without earning interest.
Even the Arabs aren't that rich.
Maybe they'll advise us through
their London affiliate, I hope.
Forty-60, anything there?
If you wait five minutes,
I'll have an answer.
That yen deal we lost, who was
the customer, and why did we lose it?
Hapsas Oil. First New York
must have wanted the trade badly.
They bid one point over market.
Mr. Naftari returning your call.
- Put him on. I got five minutes to kill.
- Yes, sir.
I don't know. Some guys will go
anywhere to find a topless beach.
Hey, Sal, how's Monte Carlo, you turkey?
- Not bad. Something on your mind?
- No, nothing special...
...except your friend Dawasir doesn't seem
to have both his oars in the water.
What's going on?
They got a couple of Eurodollar
deposits maturing. No big deal.
But they're just letting them sit.
You happen to know anything about it?
Nobody's talked to me.
I haven't heard a word.
Well, Europe's gonna start
closing in a few minutes.
They work through London and Zurich,
and the interest they're losing...
Well, what about it?
Hub, you got a problem?
Hey, listen, if it's okay with them,
it's just fine with me. What do I care?
Then there's no problem?
Yeah, kid, talk to you.
Shit.
He said you don't seem to have
both of your oars in the water.
You cannot pull $95 million
in one chunk...
...from a bank the size
of Borough National.
When I undertook to manage this plan...
...you agreed to do it gradually
in small amounts.
You're now starting to move billions
in a matter of weeks.
The world economic situation
is deteriorating...
...more rapidly than we had thought.
We don't think we can afford
to wait, Max.
There will be no collapse in the
foreseeable future unless you panic...
...and start it with some
damn fool move like this.
And if you are wrong, what then?
We wake up one morning,
our oil is gone.
We find we have sold all we have in
exchange for paper money that is worthless.
You're risking immediate exposure.
We risk it every day.
If Charles Winters
could stumble on that account...
...it's just a question of time
before someone else finds out.
- And when that happens...
- No one else will find out...
...if you revert to your original timetable.
All right, Max.
We'll think about it.
But I'm not sure
what our answer will be.
You're playing with the end
of the world, you know.
The end of the world as you know it.
Europe's closing.
You're on your own. No dispositions.
I don't want anyone playing hero.
- Give me the FYCB.
- Okay, let's hedge ourselves.
Cover at least half the amount
of the deposits for one day.
First New York and Morgan,
24 million each.
Morgan, this is Borough National.
First New York,
let me have your Fed Funds desk.
Listen, we got room for 24, 25.
- Right.
- No problem, get back to you.
- Morgan's tight today.
- First New York's dry.
Come back tomorrow
if we have a problem.
This could be a real situation here,
Europe closing down.
If we can't find the cash to cover those
Eurodollar deposits we're shit out of luck.
Okay, try Boston and Chase, but that's it.
Let's not blow it all over the street.
As long as nobody else knows...
Now what the hell is that?
Dollar's dropping.
Dropping? It's going through
the basement, for chrissake. Why?
Hey, Hub, it's Paris. They heard some
big Arab money is pulling out here.
- They're gonna start shorting dollars.
- They're nuts.
Negative. Kill those calls
to Boston and Chase.
- That's what they said.
- Tell them we're buying.
- We're buying?
- Tell them.
Dollar dropping fast against marks and yen.
Add sterling and guilders to that.
Okay, just button up. No more calls
go out of here until I tell you.
You better call your mama, both of you.
You're gonna be late for supper.
Vince, this is Gil. I'm bottom-fishing.
You got any ideas?
No, no, nothing definite.
I wanted to flag it at the Fed
just in case.
- Hang up.
- No, not much.
Maybe 100 mil or so.
Hang up that phone, Roy, or so help me
God, I'll tear it out of the wall.
Sorry, I'm getting a little static here.
I'll be back to you.
Look, Smith, you can save the dramatics
for some other time.
Are you crazy?
Are you right out of your fucking skull?
Nobody knows we're broke.
I'm busting my ass
to act like business as usual...
...and you call the Federal Reserve Bank.
Why not take an ad
in The New York- fucking-Times?
Everything is drying up on you.
You can't get it anywhere.
I say we go to the Fed and make a clean
breast of it.
And blow everything.
Look, the Fed will never find out.
We'll issue some domestic CDs
to cover the Eurodollar deposits.
By the time we add up our tabs,
it'll be two weeks from now.
By then, everything will be fine.
So we ran a little behind
on bookkeeping. So what?
You can't do that. That's illegal.
That is criminal, for chrissake.
Mildly. We can get by with it
for one night.
- You don't know what's gonna happen.
- Walk to the Fed...
...let them know,
I'll tell you what's gonna happen.
You won't open tomorrow.
With the performance record you've had,
they'll shut our ass down for good.
We gotta sweat it out and pray
the Saudis roll over that 95 million...
...before Europe opens in the morning.
It's the only chance we got.
Come on, Roy, where's your balls?
You're the one who's crazy.
I don't know anything about this.
I am not losing my deniability.
You can hide in the closet
if you want to...
...but you're staying right here.
If I catch you on the phone,
I'll break your fucking arm.
What are you gonna do
if the Saudis ask for that money?
I'll worry about it in the morning.
I gotta get through the night first.
Sorry, Eurodollar section says the market's
getting worse. Liquidity's drying up.
- How much of this is around the floor?
- Not a lot.
Okay, here's the drill. For the rest of the
afternoon, no strong positions, no exposure.
- Keep it humming. You got me?
- Yes, sir.
Hong Kong opens 8:00 our time.
Maybe they'll run it through them.
You and Betsy stay. I'll get back
from reception as soon as I can.
You're not going to that Winters
reception tonight, are you?
We're expected.
And since the only conceivable reason for
our absence would be a crisis at the bank...
...and since that's what we don't want
people to know we're up to our ass in...
...one of us better be there.
She's only the new chairman of the board
of one of our biggest customers.
Excuse me just a second, Howard, Nancy.
- Hello, Mr. Smith.
- Good evening.
Are you over your jet lag?
- Bankers aren't allowed to have jet lag.
- Oh, no?
I feel lucky. Warner's agreed
to be chief operating officer.
Glad to hear it.
Roy Lefcourt sends his congratulations.
He's a little under the weather.
Oh, I'm sorry to hear that.
I appreciate your being here.
Thanks for your help.
This is gonna work out all right.
Oh, thank you.
N- A...
...blank, blank, L-E.
Cremona.
Me, any joy?
No. Nothing moving here
but the leaves on the trees.
Hong Kong opens in 10 minutes.
Want me to take a sniff?
And have it in Paris through
the back door? Better not.
How's our friend bearing up?
I think he has visions
of numbers on his chest.
He's not the only one.
Let's keep the hatches
battened down. Not a word.
Well...
...that sounds fine.
Just keep tracking.
We could get a move out of it.
I'll check in myself if I get a chance.
Not the bank.
I might have to drift over there
for a couple of minutes.
Tonight?
Nothing they couldn't handle themselves.
But I think I better look in on them.
- Don't wait up for me.
- You're so tense.
Are you all right?
At the peak of my form, lady.
Good night, Nettie.
Would you order the car
to be out front?
Yes, madame.
I think I'll go down
to the office for a while.
Fewster, let me tell you
the reason I'm here.
You know all about Winterchem,
and you know Winterchem...
...depends a great deal on its connection
with Borough National Bank.
I've been very concerned about
Borough National Bank's stability.
Mr. Winters, the fact
that I am the bank examiner...
...I'm not allowed to discuss any findings.
I hired a private detective.
I hired him to check on you because...
On me? You hired him
to check on me personally?
I happen to know...
...that you took
a very low-interest loan. Am I right?
For the purchase of a house
from First New York.
Is that correct, Mr. Fewster?
This low-interest loan, Mr. Fewster...
...some people might consider it
to be unethical.
Others, even as a bribe.
And of course, that would be criminal.
You're asking for information
that concerns something bigger...
...than Borough National Bank.
Fewster, I guarantee you...
...you'll have my protection.
Now you just tell me what you know.
I discovered...
...an account, 21214.
Mr. Winters, is the tape machine running?
Yes.
Please, sir, turn it off.
London branch.
They're rolling over 90 million!
I think we can all go home
and get some rest now.
- Night, guys.
- Night.
Good night.
Why only 90 million?
What about the other 5?
We're gonna pay the balance of 5
to First New York. Account 21214.
Do me a favor, will you?
Get me all our Saudi records.
Look at this slippage.
All over the last couple of years.
Every month, 8 million,
7 million, 7 million...
...all to that same account number,
21214, First New York.
Could be anything.
An adjustment in the general portfolio
or loans.
Be nice to know more about that account.
I'll worry about it later.
Jesus, what a night.
I feel like the sack of Carthage.
What happened at the bank last night?
You act like a man who just had
a reprieve from the electric chair.
No, I don't think it can wait
until you come to New York.
Mr. Fewster, I can come
to Washington today to see you.
Well, I'd like to see you today
if that's possible.
Well, where would you like to meet?
I can meet anywhere you want.
In a parking lot?
No, that's fine.
Brown station wagon.
What's the license number?
Would 2:00 be all right?
Thank you very much. I appreciate it,
Mr. Fewster. Thank you. Yes.
Kay, cancel my 1:00.
I'm gonna take the noon shuttle...
...to Washington. And would you have
a car reserved for me at the other end?
- Mr. Fewster?
- Mrs. Winters, please get in.
I'm sitting on something.
I'm sorry.
Do you always meet people like this?
I don't meet people at all.
Not prime customers of the bank
I've just examined.
I'm sorry you insisted
on coming down here, Mrs. Winters...
...because I can't tell you anything.
I need to know what you told my husband
about Borough National.
I told him nothing.
Mr. Fewster...
...I found the tape.
Now, there's enough on that
to get you in trouble.
But there's not enough to help me,
and I have to know.
I have to know if the bank is rocky...
...if it's losing money.
- It isn't money.
It's where the money is going. And...
...I can't talk about it.
- Well, at least give me your worksheets...
...your notes, your...
- I can't.
They'd know where you got it
in five minutes.
Look, if it's... If it's your job
you're worried about...
...Winterchem will find you something.
- You don't understand.
All...
All I knew was that Borough National
was in trouble, that it had...
...something to do with this account
and some Arab Eurodollars.
But...
...what I didn't know was
how big this must be.
How desperate they are
to keep it all secret.
Because...
...when I started to follow up on it...
...I was told that...
...it was a confidence factor...
...that 21214 was a sensitive area. And...
- What?
- Well...
...I got offered a loan...
...at a very low interest.
A bribe...
...which I took.
God help me.
So...
So, Mrs. Winters,
we're not just talking about my job.
- We're talking about prison or worse.
- Worse?
Mrs. Winters, please, just leave it.
I can't leave it. I need your proof.
Your husband couldn't leave it,
and look what happened to him.
Charlie?
Are you...? Are you saying this
had something to do...
...with Charlie's death?
- I don't know.
I don't know. I don't know.
I can't be sure.
But he found out,
and he died, didn't he?
Mrs. Winters, Mrs. Winters,
they're all over me, and I... I...
If I tell them you came to see me,
what happens to you?
And if I don't, what...?
What happens to...? To me?
L...
I thought...
I thought it was all over
when I took the bribe.
But it's never gonna end...
...is it?
Mrs. Winters.
There's a Dunkin' Donuts
in the Rockville Shopping Center.
I'll meet you there at 4:00.
I'll need some time to get my notes.
This is going to be over, Mr. Fewster.
I promise you.
It's gonna end.
All right. Stand by.
- Hello, Mr. Smith.
- Sam...
...I left some papers
up in Mr. Emery's office.
- No problem. I'll sign you in.
- Thanks.
- Anything up?
- No.
Have a good night.
That's one of the rewards
of working at night, no phone calls.
- Good evening, Henry.
- Evening, Mr. Emery.
You've got a hectic week ahead of you,
there's the IMF conference. Johnson's...
That's one of his problems.
We take count.
Europe development speech
is next Thursday.
Not this year. Mrs. Emery's
taking care of the Girl Guides.
That's enough scouting.
Tell George that when he writes...
...that community trust speech
he can forget Adam Smith.
I know it was enough.
I don't understand how we could've
been so wrong on interest rates.
Warren went long on bonds again,
tried to cover himself.
I'll accept his being wrong
but not his refusal to admit it.
- You gonna talk to him about it over lunch?
- A drink should do it.
Maybe Chase can afford him. We can't.
- Just part of the image.
- What about that little list of yours?
- I'm not gonna need you tonight, William.
- Yes, ma'am.
Hub?
Hey.
I'd just about given up on you.
- Oh, thank God you're home.
- Yeah, where you been?
- Oh, just hold me.
- Oh, I was getting worried about you.
- Just hold me.
- Tell me if you're okay.
Something awful happened in Washington.
What were you doing in Washington?
It was an accident. You know,
one of those close calls.
I feel so silly.
I think I need a drink.
While you're at it, get one for me.
Scotch on the rocks with a twist.
Mr. Emery there? Hub Smith calling.
No. This won't keep. Can't you find him?
Look, I have to talk to him.
If he calls in, tell him...
Tell him we've got to
talk about 21214...
...before anything else happens.
That's right...
...21214.
I can't speak for the president
of the United States.
He runs his shop. I run mine.
But I'll tell you this.
Bankers are more dependable
than governments.
We don't lie to ourselves.
We can't afford to.
Isn't that right, Hub?
I'd like to think so.
We've just been joined by
a most distinguished banker.
About 20 years ago,
he sat where you are...
...drinking in my words with the same
skepticism that I see on some of your faces.
How do you account for the fact
that for 30 years after the Depression...
...there hasn't been
a single major bank failure?
Now there's one every 18 months.
Herstatt in Germany.
Franklin National here.
The international character of banking today
makes everyone vulnerable to everything.
Somebody sneezes in Zurich,
we say gesundheit in New York.
The important thing to realize is...
...that everything is interconnected.
We're all in this together.
- This is Hub Smith with Borough National.
- Professor Aikens, it's a pleasure.
Will you excuse us for a few minutes?
I'll catch up with you later.
Well, you're a surprise.
People will start talking about us, fella.
What are you doing?
As a matter of fact, right now
I'm trying to keep my temper.
See, after that flutter we had
at Borough National yesterday...
...there was one Saudi Eurodollar deposit
that didn't roll over.
It was transferred instead
to First New York.
So I went over and had a little talk with
your computer about that stray 5 million.
You set me up, Max.
You didn't want me
to save Borough National.
You just wanted me to keep them afloat
for you to siphon off that Arab money.
You've been doing it for months.
Is that a fact?
Don't dance with me, Max.
You have 21214 listed
as a foreign-exchange account.
But you don't buy other currency
with those dollars. You buy gold.
But you have to do it slowly because
if anybody finds out what's going on...
...the dollar will drop, and all the Saudi
investments over here won't be worth shit.
You're being a little wild and woolly here,
aren't you, fella?
There have been some
perfectly normal transactions...
...that wouldn't raise an eyebrow
anywhere.
Borough National is just the tip
of the iceberg, isn't it, Max?
I checked the inflows in 21214.
There are billions coming in
on a regular basis...
...from Arab and OPEC accounts you
control in at least 15 other banks.
You're moving the Arabs into gold.
- You're taking them out of the dollar.
- That isn't a crime.
It isn't against the law.
It isn't even a conspiracy.
Just a routine banking operation.
And if we didn't handle it, they'd
find a lot of other people who would.
Goddamn it, Max.
You don't just do this on your own.
You go to the Comptroller
of the Currency...
...the Federal Reserve Board,
the secretary of the Treasury.
- You call the president, for chrissake.
- And start a real panic?
Have you ever seen anyone
in government keep his mouth shut...
...about anything for five minutes?
Go ahead. Call the Treasury.
Call the Comptroller. But I'll tell you
what's going to happen.
When the Arabs learn that word of what
they're doing is out, they may panic...
...move a big chunk of funds
too fast or the wrong way.
Really destabilize the monetary markets.
Then the dollar will collapse.
Whereupon there'll be a lot of jawboning
by the president, and that won't work.
Then they'll go to selling gold,
and that won't work either.
Then they'll have to go to capital
controls. Freeze foreign assets...
...stop any money from going in or out,
and that will be the end of all the markets.
That will really be the finish. Then you'll
see a worldwide depression that'II...
...make the 1930s
look like a kindergarten.
In two months, you'll have breadlines
in Detroit, riots in Pittsburgh.
In six months, you'll see grass
right over Rodeo Drive.
And Michigan Boulevard
and Fifth Avenue.
And I won't have done it, Hub, you will.
All because you tried to stop a movement
that couldn't be stopped anyway.
Listen to me, Hub.
Money, capital has a life of its own.
It's a force of nature, like gravity.
Like the oceans.
It flows where it wants to flow.
This whole thing with the Arabs and gold is
inevitable. We're just going with the tide.
The only question is...
...whether you want to let it go
like an unguided missile and raise hell...
...or whether you want to keep it
in the hands of responsible people.
Keep it channeled, keep it quiet.
Believe me, Hub.
The dollar will hold. Believe me.
The system will be fine,
providing nobody panics.
I'm looking at you, Hub.
Well...
...I've listened patiently to
your somewhat fantastic story...
...with one puzzling question in mind.
If you wish to say something
to the Arabs, say it.
Why come to me?
Because you know how to get to them.
Sometimes. If they wish to be gotten to.
And exactly what is it I'm to tell them?
That I...
...know that they're involved
in a secret financial manipulation...
...and that they want it kept secret.
And so I'm prepared to trade,
Mr. Naftari, my silence...
...in exchange for Winterchem.
But you have Winterchem.
Our contract has to be renegotiated...
...so that if Borough National
goes under...
...I don't lose my company to the Saudis.
My silence is the only leverage I have.
Forgive me...
...but silence about what?
Some secret financial manipulation?
You expect them to believe me
if I use those words?
Just tell them 21214.
You realize, of course, that they may reject
your whole story as preposterous.
They may not even wish to discuss it.
I'll take my chances.
If they don't get back to me,
they'll have to take theirs.
There's something else
they should know.
While I've spoken to no one about this...
...I've taken the precaution of putting
the evidence I have in a safe place.
Very well, then. I will pass it on.
I so enjoyed your work in films,
Mrs. Winters.
What a pity you decided to give it up.
Hello?
Sorry, partner, I missed
the damned 5:00 shuttle from Boston.
I just got into LaGuardia.
Why don't you go ahead.
I'll catch up with you at the opera.
Listen, you're tired.
Why don't you just finesse it.
It's only a benefit.
Well, I am pretty whacked.
Go on home. I'll call you tomorrow.
- You swear?
- In blood.
Hey, maybe we can get off somewhere
by ourselves this weekend.
Just the two of us. Alone.
- Call me. Okay?
- Okay.
Nettie, first thing tomorrow I want
all the locks in the house changed.
Changed my mind.
Mrs. Winters is not here.
That's okay, Nettie, I'll wait for her.
- Hello?
- Is Mrs. Winters there?
I'm afraid she's out for the evening.
Well, then could you give her a message,
please? I'm calling on behalf of Mr. Naftari.
He asked me to say he's been in touch
with the other party...
...in regards to the 21214 matter,
as Mrs. Winters requested.
And they suggest a meeting
at 11 tomorrow.
Eleven tomorrow. I'll tell her.
Hi, Mr. Smith.
Excuse me.
Okay, what the hell have you been
playing with Sal?
I have nothing to say to you.
What do you know about 21214?
- Enough.
- Enough what?
Enough to protect myself.
- Against what?
- Against you.
Borough National can go under.
You're not taking me with it.
I'm through depending on you, Hub.
I went to the Saudis.
I'm cutting my own deal.
Sorry, partner.
I guess I just lost confidence.
- Do you know what you've done?
- What I've done?
- Smile.
- What?
Smile.
I have to go. Have a nice evening.
Leave me alone.
Get out! It's not your driver! Get out!
Get out! He's not your driver!
Get out!
Lee, are you all right?
I didn't know.
I swear to God, I didn't know.
Yes, Emery here.
What? Not possible. They couldn't.
Everything that goes to them
clears through me, personally.
I'm afraid the matter
is out of my hands now, Mr. Emery.
Whatever they're planning
is out of yours too.
- It's not the children?
- No, no. Business.
Absolute nonsense.
Okay.
The Arabs yanked every penny
they had with us.
They hit all the other outfits too,
so it's across-the-board.
Every bank in the country is gonna be
struggling for liquidity...
...trying to cover those cash withdrawals.
We're dumping everything.
Treasury bills, bonds, Fannie Maes,
commercial papers, we want it all sold.
Fed Funds, Eurodollars, borrow
whatever you can find up to 200 million.
Foreign exchange, no positions.
Bullion, grab what you can get.
All right, let's hit it...
...and pray.
Maybe we could try to borrow
in Frankfurt...
...or Zurich.
Swiss International owes us a favor.
It's over, Roy.
Twenty-nine percent for three-month
money with no nibbles.
- We may have to go to 30.
- The market's starting to react already.
One large bank is bidding 27 percent
for six-month Eurodollars.
Dollar down 4 percent
against the sterling.
I'm running low on contracts.
I need contracts!
One thousand!
Gold jumped $ 100 in 30 seconds.
Dollar down by 5 percent
against the franc.
Borrowers stepping up the bids.
Fed doing another round
of repos at 30 percent.
The customers wanna know
what's happening.
Do I tell them what we're doing?
Tell them anything, Barney,
except what we're doing!
Stock market's off 75 points.
The dollar's depreciated 10 percent
and moving down.
They even yanked the Eurodollar
deposits that weren't due.
First New York is practically down
the tubes, and gold just went over 2000.
By tonight, that'll be cheap.
Hi, Virginia. It's me.
I want you to listen
and listen very carefully.
As soon as you hang up,
I want you to go to the closet...
...take the suitcase
and get to the bank.
It began eight days ago
when a group of Arab investors...
...withdrew billions of dollars
from U.S. Banks.
That, in turn, started a chain reaction
on the world money markets.
Dollars, pounds, marks, francs, yen,
not one currency escaped.
This scene, outside a Manhattan bank
was duplicated all over the world...
...as people saw their life savings
become worthless...
...in a matter of hours.
Good evening. I'm George Page
in New York.
And this is another in our series of reports
on the world economic crisis.
The growing paralysis
of the industrial world...
...has left millions without jobs,
without money...
...and without hope.
Crowds of unemployed
poured into Washington yesterday.
They stood in silent protest
before the nation's leaders.
At the same time, more than a million
people packed St. Peter's Square...
...where the pope urged
calm and nonviolence.
The pontiff asked for prayers
for world leaders...
...prayers and peace and reason.
But the last 24 hours
have been marked by growing protests...
...and ever-increasing violence.
Last night, demonstrators burned
American currency...
...in front of the White House.
And attempts to put out the fires
led to a confrontation with police.
Every hour,
from every corner of the globe...
...there are new reports of outraged crowds
demanding action.
A bankrupt world
seems to be teetering...
...on the very edge of anarchy.
And now for continued coverage
from around the world.
A statement was issued
from the OPEC meeting today...
...that the leading oil-producing nations
would resume oil exports...
...as soon as the international
monetary markets have stabilized.
The panic has spread across political
and philosophical boundaries.
The U.S.S.R. And the developed
Eastern European Communist countries...
...dependent on Western trade
and capital...
...have witnessed the same riots
that have taken place in the West.
The economic summit conference
will be attended by leaders...
...of the West, the East
and the Third World.
Said one, "There is a need
for unity of purpose and resolve...
...unequaled since the end
of World War II. "
At this time of crisis, there has been
a turning to the past as well as the future.
Words spoken by Franklin D. Roosevelt
in the depths of the Depression...
...were quoted in the Senate today.
"This is preeminently the time
to speak the truth...
...frankly and boldly.
Nor need we shrink from honestly
facing conditions in our country today.
This great nation will endure
as it has endured...
...will revive and will prosper.
We face our common difficulties. They
concern, thank God, only material things.
Each age is a dream that is dying...
...for one that is coming to birth. "
I've been worried about you.
How are you?
Like everybody else.
Looking for a way to begin again.
You're gonna need a partner.