hours to complete Dale's model. Sullivan discovers that the assumptions underpinning the firm's present risk profile are wrong; historical volatility levels in mortgage-backed securities are being exceeded, which means that the firm's position in those assets is over-leveraged and the debt incurred from those over-leveraged assets will bankrupt the company. Sullivan calls his colleague, Seth Bregman, to return to work with the head of credit trading, Will Emerson. Emerson in turn summons Sam Rogers, his boss, after reviewing Sullivan's findings. Attempts by the four to contact Dale end unsuccessfully due to his company phone having been shut off. Peter and Seth go out to find Eric, while Sam and Will inform the company's senior management of the situation. A subsequent meeting of division head Jared Cohen, chief risk management officer Sarah Robertson, and other senior executives concludes that Sullivan's findings are accurate, and firm CEO John Tuld is called. Upon Tuld's arrival, and after Sullivan explains the problem, Rogers, Cohen, and Tuld spar regarding a course of action. Cohen's plan, favored by Tuld, is a fire sale of the problematic assets. Rogers disagrees, pointing out that the sale will damage the firm's relationships and reputation within the industry and will cause major instability in the markets. Tuld stresses that his desire to avoid the firm's bankruptcy is worth that risk and the cost. After the meeting with Tuld, Emerson is informed by Dale's wife that he has returned home. Emerson travels to Dale's residence with Bregman and attempts to persuade him to return to the firm, but is unsuccessful. During the drive back, Bregman asks if he will lose his job; Emerson responds that he likely will, but, philosophizing on the nature of the financial markets, tells him not to lose faith, and that his work is necessary. Tuld selects Robertson to act as the scapegoat for the firm's over-leveraged position and demands that she resign after the fire sale. Robertson argues that she warned Tuld and Cohen about the situation over a year ago, but fails to persuade him. Meanwhile, Eric Dale is bribed and forced into cooperating with Cohen's plan, with the firm threatening to cut his benefits and severance if he refuses. He spends the day commiserating with Robertson. Despite his misgivings, Rogers rallies his traders and informs them of the fire sale. He acknowledges the damage likely to be done to their reputations and careers, but