Other People's Money


 

Cast & Credits
Larry Garfield: Danny DeVito
Andy Jorgenson: Gregory Peck
Kate Sullivan: Penelope Miller
William Coles: Dean Jones

Directed By Norman Jewison.
Written By
Jerry Sterner.

Running Time: 131 Minutes.
Rated PG.

BY ROGER EBERT / October 11, 1991


Lawrence Garfield doesn't really have to say that he loves money; it's obvious from the sparkle in his eyes when he talks about accumulating big piles of it, particularly other people's money.  Proprietor of one of the largest and most powerful securities firms on Wall Street, Garfield is one of the most successful players in the 'game of capitalism' in America.  He makes his money through leveraged buyouts of undervalued companies.  Companies he takes over, shuts down, breaks up, and sells the pieces to the highest bidder.  "Larry the Liquidator" is a well-earned nickname.

 

Larry's latest project involves the takeover of New England Wire and Cable, a second-generation family firm that has fallen on hard times.  The company has a treasure trove of real assets, a pension fund brimming with cash, and best of all in Larry's eyes absolutely no debt.  Larry's plan is to raid the company, strip the assets, and sell off the unprofitable divisions.  In exchange for a sizable 'golden parachute' of severance pay, Garfield has arranged for the clandestine support of the company's CEO, Bill Coles.  Unfortunately, the Chairman of the Board, an old-fashioned stalwart named Andrew Jorgenson, wants to continue making wire and cable.  "Jorgy" is intent on running an ethical business, and protecting the jobs and livelihoods of his employees.  He calls in Kate Sullivan, a high-priced Manhattan attorney, to block the hostile takeover.  Garfield finds himself legally stymied; Kate is the only obstacle that stands between him and the acquisition of New England Wire and Cable and the millions of dollars it could bring him.

 

Garfield eventually arranges a shareholders' meeting in which the fate of the company will be decided by the actual owners of the corporation--the stockholders--through a proxy vote between Garfield and Jorgenson.

 

ASSIGNMENT

Summarize the points that Garfield and Jorgenson make in their speeches to the stockholders after watching the film clip or reading Garfield and Jorgenson's speeches online.  Does Garfield's defense of capitalism ring true to you, or does Jorgenson have a point about taking into consideration the workers and thinking long-term?  Who would you have given your proxy to in the shareholders' meeting? Watch the 60 Minutes profile, and read the Newsweek article "Malden Mills: A Study in Leadership" by Art Boulay.  Does this incident change your mind at all?  Why or why not?

Discuss and give your opinion on the essay using examples from the film using the correct economic and finance vocabulary terms.

Write out your answers on the Economics Blackboard Discussion Board no later than midnight Sunday, September 30.
 


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