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Mr. Mullin said he disliked making margin calls, although he had no choice.
"Normally, making margin notes in library books is a big no-no.
Still, I do not recommend making margin a part of your long-term approach.
As the market plummeted, Mr. Mullin was making "margin calls" on investors who had bought losing stocks with borrowed money.
Bear Stearns bought out investors' positions after Wall Street firms began demanding repayment by making margin calls on the funds, a rarely used strategy between investment banks.
"The doctor's making margin, the company's making money," said the former salesman, who shared the document and spoke only on condition of anonymity.
Similar(44)
Even the commodity business of PC sales is showing signs of life, making margins of around 3%, while printing and services units are forecast to have margins upwards of 15%.
CME says it makes margin changes regularly.
That would make margin ownership responsible for, at most, 5% of current market cap.
Some of the Wall Street firms that had financed New Century's operations, such as Goldman Sachs and Citigroup, made margin calls.
The most debated of the new rules will change how brokers keep collateral and make margin calls to ensure limits on defaults.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com