Chapter Summary Of Solomon Brothers Chapter Summaries

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Summary Chapter 1 & 2 This book narrates a firsthand experience of the author of working on a trading floor in Solomon Brothers. The story starts with Mr Gutfreund, chairman of the company, going to John Meriwether, a board member, and asking him to play a single hand of Liar’s Poker for a million dollars. Meriwether was considered one of the best traders on the Solomon Brothers trading floor and Gutfreund had the reputation of being a shrewd manager who always had a purpose behind whatever he did. Meriwether was shocked when Gutfreund made him the offer but sensing that it must be a bluff he increased the money to 10 million dollars. Poker is a game of bluffs and double bluffs. Meriwether had started bluffing even before the game started. Gutfreund took a step back and declined the offer and hence Meriwether won the mind game his chairman was playing with him. Michael Lewis was finishing a degree in economics from London School of Economics when he got a chance to dine with the Queen. It was here that he got an offer to work for Solomon Brothers. In the party he met with the wife of a very senior executive of the company who offered him a job and asked him to come to the trading floor of Solomon Brothers. After a few days…show more content…
Because there were no other buyers the prices of the commodity was not adjusting itself according to the market price. Something worth 85 cents could be bought at 50 cents by Solomon Brothers and sold for 90 cents just because no one knew the correct price. The tax breaks seemed tailor made for the Ranieri & Co. In 1984 Steve Baum a mortgage trader broke a Solomon Brothers trading record by trading $100 million in a single year. Lewie Ranieri made huge profits in the period from 1981-86. As a result he was promoted to the office second only to John Gutfreund. It was also claimed that 40% of the 7000 strong Solomon employee base reported directly or indirectly to

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