Status Updates From Liar's Poker : Rising Throu...

86-88, the crash. Traders are bought out by other firms. CMOs (paid investors in tiers to solidify maturity timeline) made mortgage bonds like other bonds: the market became informed and harder to sell at insane margins, buyers increased, old Salomon traders at new firms knew these old tactics; revenues dropped. Upper management issues, a bond crash that a director offset with other profits, and Renieri’s firing

81-86. Description of a tax break that caused the thrift sale of mortgage loans and how Salomon was in the perfect position to buy. Salomon’s loose management allowed Ranieri to make it profitable. Description of him, how the trades worked, how the team developed. A part on traders compensation and how they weren’t getting paid as much for what they brought in, and how they were easily poached by other firms

A cruelty ritual the mortgage dept played on a new member in 85. Then to 78, where Mortgages made no sense to trade since they were small and could be paid back any time. But grouping them through a bank and selling them to front the bank, then collect the loan as it matured, could work. A summary of Dall and Ranieris personalities, the failure of the dept to be profitable from 78-81, and its Italian homogeneity