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This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.

Short Answer Questions

1. A sticking point in making mortgage securities work is the homeowner's right to _____ his mortgage.

2. What is the chief occupational hazard of the trading floor?

3. Mark Smith enters the mortgage department in 1985 and is considered a _____ by the author.

4. What book does Conni Bruck write?

5. On Wall Street, there is no theoretical basis for pricing a homeowner's option to _____ his loan.

Short Essay Questions

1. What is the particular need of thrifts in terms of investing in the mortgage bond market?

2. What characterizes Stu Willicker's leadership style?

3. The author is convinced that the worst thing a man can do with a telephone without breaking the law is what?

4. As the author gains more experience working in London, what does he think interests European traders that differs from American traders?

5. What is a tombstone and how does it apply to the German interest warrant created by the author and Alexander?

6. Why do costs at Salomon Brothers seem to suddenly matter in 1985?

7. What is drifting away from Salomon Brothers and toward Drexel Burnham in 1987? Why?

8. How is Howie Rubin thought of at Salomon Brothers? Why?

9. What happens to the average age and the average age at Salomon Brothers in London in 1987?

10. What are the two kinds of friction at Salomon Brothers?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Describe the deal that the author and Alexander create on the security they invent involving German interest rates. How does the "the opportunist" offer to help them? How does "the opportunist" try to take credit for their idea? How does the author retaliate and what is the final outcome of the situation?

Essay Topic 2

Compare the personality traits of Lewie Ranieri and Michael Milken. What is the difference between their careers in regards to their respective companies? Compare the amount of money each person made. Why did one make more money than the other?

Essay Topic 3

Describe the inherent contradictions in John Gutfreund's compensation system. What are the criteria for compensation at Salomon Brothers? Who does he lose as a result of his system? How does this snowball into a bigger problem? Who negotiates a better salary by threatening to leave the company? What reaction does this get from the rest of the company?

(see the answer keys)

This section contains 830 words (approx. 3 pages at 300 words per page) View a FREE sample