Margin Call (2011): Realism and the Financial Crisis on Film

Introduction: Cinema as a Lens on the Financial Crisis

Cinema is often used to provide metaphorical insight into society, and sometimes attempts to explain why things are as they are and what led society to its current state. While documentaries are often used to shed light on societal issues, there are fictional films based on true events that not only dramatize what has happened, but do so in a realistic fashion that both informs the audience and allows them to understand a certain situation or problem. Margin Call (2011), directed by J.C. Chandor, successfully explains the events that triggered the economic recession of 2008. Through the film's narrative, aesthetic approach, and overarching message, Chandor is able to effectively explain the influence of large corporations on the economy in a clear, concise, and realistic manner.

It has often proven difficult to portray financial crises in film realistically. In "Filming the Crisis: A Survey," Jeff Kinkle and Alberto Toscano (2011) maintain, "Whether in fiction or documentary, the temptation has been not so much to dramatize as to personify systemic and impersonal phenomena" (p. 39). Kinkle and Toscano believe that while it is easy to dramatize events and people — which can lead to an unrealistic portrayal — it becomes increasingly important to personify events realistically, without overdramatization, in order to effectively communicate a director's message to the viewer.

Margin Call (2011) focuses on a fictionalized trading firm that must determine how to respond to a market crash predicted to occur within 24 hours. Chandor demonstrates how the news of the impending crash is handled from the moment the information is analyzed, through a series of departmental meetings, and finally to a presentation before the firm's CEO. The film also shows the impact of the crash on the firm's employees, resulting in massive layoffs — a trend that would be seen across countless industries in the United States. Ultimately, the film allows viewers not only to better understand the events that led up to the market crash and the decision-making processes within the firm, but also to grasp the cyclical nature of the economy and how the banking industry is as reliant on consumers as consumers are dependent on it.

Narrative Approach and Avoidance of Dramatization

Through the creation of Margin Call (2011), J.C. Chandor attempts to bring to light not only what occurred, but how it occurred and how it was handled. In "How Margin Call Gets It Right About the Financial Crisis," Daniel Krauthammer (2011) explains:

[Margin Call] examines the thoughts and motivations of individuals, resisting the easy narrative shortcut of lumping everyone responsible for the disaster into some monolithic, single-minded group. By doing so, Margin Call manages to do what almost no book, blog, newscast, or Senate hearing had adequately done for the American people: to explain not just how the financial crisis happened — which financial giants failed in what order, which government entities bailed them out, etc. — but rather to explain why it happened.

It is because of this narrative approach that Chandor is able to create a realistic interpretation of the events that led to the 2008 financial crisis and economic recession. Chandor avoids overdramatization by demonstrating how the crisis was managed within the firm, and the difficult decisions individuals were forced to make independently. Had the characters in Margin Call been portrayed as a monolithic, single-minded group, they would have appeared solely focused on personal and firm-level success. On the contrary, the characters recognize that if their firm is not the first to act, another bank will trigger the crisis instead. Ultimately, the crisis cannot be avoided — it can only be controlled in terms of when and how it is set in motion. While Chandor simplifies some of the technical details behind the financial meltdown, he does so deliberately to avoid further complicating an already puzzling and complex subject.

Margin Call's narrative structure is simplistic yet effective, and helps to set the tone of the film. Chandor explains, "What I tried to do was absolutely isolate the viewer with this very limited group of people on a night where they have to stay amongst themselves. There is this obvious sense of paranoia over the story getting out, that this piece of information will be released" (Marks, 2011). Chandor focuses on a core cast of eight key players, listed in descending seniority: John Tuld, CEO and Chairman of the Board; Jared Cohen, Head of Capital Markets; Sam Rogers, Head of Sales and Trading; Will Emerson, Head of Trading; Peter Sullivan, Senior Risk Analyst; Seth Bregman, Junior Risk Analyst; Eric Dale, former Head of Risk Management; and Sarah Robertson, former Chief Risk Management Officer — the latter two of whom are dismissed within the film's 24-hour timeframe (Dale at the beginning, Robertson at the end of the board meeting) (Margin Call, 2011).

By keeping the cast small, Chandor emphasizes the paranoia endemic to the financial industry. The decisions these characters make appear secretive because of the urgency with which they are handled, and because only this small group knows what is about to happen and what must be done the next business day to save the firm. This paranoia reaches its peak in the characters' need to contain the flow of information, leading them to coerce Dale into sequestration for the day, fearing he will warn other firms of the impending crash. Paranoia is also reinforced through the film's mise-en-scène: all critical decisions and meetings take place behind closed doors in confined boardrooms, harshly illuminated by spotlights hanging above the conference table.

Character Realism and Humanization of Wall Street

Margin Call (2011) also avoids the narrative pitfalls of dramatization in which filmmakers resort to familiar tropes to convey their message. Kinkle and Toscano (2011) argue, "Filmmakers have struggled to incorporate economic turmoil into their works without reverting to longstanding and ultimately comforting tropes: families reuniting to overcome hardship, the machismo and malevolence of stockholders, the corrosive power of greed" (p. 39). Margin Call avoids these tropes by emphasizing that the events and decisions depicted — spanning 24 to 36 hours — are essentially routine activities. The film follows risk analysts, traders, and department heads as they perform their professional duties and work together to prevent the firm from collapsing. They are not motivated by personal gain or investor returns; their attention is focused on the firm's survival, even if that survival costs them millions of dollars, so long as they can avoid bankruptcy.

Even if successful, there is no guarantee that any of them will remain employed once the day ends, as illustrated through the characters of Seth Bregman, played by Penn Badgley — a junior analyst who helps bring the impending crash to light — and Sarah Robertson, played by Demi Moore, a Chief Risk Management Officer who had warned the CEO weeks earlier that a crash was imminent. Had the film relied on conventional tropes, these characters would have been treated very differently. For instance, Eric Dale, played by Stanley Tucci, is laid off at the beginning of the film despite having analyzed the formulas and market trends that foreshadow the crash. Under a more conventional narrative, Dale would have been rewarded for passing his findings on to a colleague who could act on them. Instead, he is sequestered for the day by the firm, prevented from warning competitors of the impending disaster.

Another example is Sam Rogers, played by Kevin Spacey, the Head of Sales and Trading. The film not only depicts his professional role, but also humanizes him through moments of vulnerability: Rogers is seen visiting the veterinarian because his dog is dying, and is shown burying his beloved pet at the end of the day. Through this humanization of a stockbroker, Chandor allows the audience to view him as a relatable person rather than a distant financial archetype.

The realism of Margin Call (2011) extends beyond its characters into its portrayal of the financial industry itself. A contemporary review notes that the film "depicts the many banalities that make for a financial meltdown, and the near-silent panic that sets in. Finance is depicted as slippery and amorphous, a creation of not just the banks, but of a whole society oriented toward easy consumption" (J.S., 2011). In this respect, Margin Call strips away the mystical façade often attributed to Wall Street and allows viewers to see how they influence the financial market as much as they are influenced by it. The dialogue and financial terminology used in the film reflect accurate investment banking jargon — a result of Chandor's personal familiarity with the industry. His father worked for Merrill Lynch, giving Chandor an insider's understanding of how the banking world operates and how to present it on screen without confusing audiences (LaRoche, 2011).

Conclusion: Cinema as Education and Reflection

Ultimately, Chandor is successful in conveying his message and allowing the audience to better understand the events and decisions that triggered the economic crisis of 2008. The film's narrative effectively relays how the individuals behind those decisions reacted to the news of the impending market crash, and helps viewers understand the mechanisms that influence the broader economy. Chandor persuasively demonstrates that Wall Street does not simply drive the economy unilaterally; consumers, too, influence Wall Street, creating a symbiotic relationship between the financial sector and the general public.

Additionally, through the film's aesthetic approach, Chandor shows that cinema need not function solely as entertainment. It can serve as a vehicle to educate and even to comfort. He allows viewers to see that people on Wall Street are not single-minded figures consumed by greed and personal gain, but human beings who were themselves affected by the economic crash. In this way, Margin Call (2011) stands as a compelling example of how American cinema can illuminate complex real-world events with nuance, empathy, and restraint.

References

Clover, J. (2012, Spring). Play by numbers. Film Quarterly, 65(3), pp. 7–9. Retrieved from

J.S. (2011, December 2). Finally a realistic portrayal of Wall Street. Prospero. The Economist. Retrieved from http://www.economist.com/blogs/prospero/2011/12/new-film-margin-call

Kinkle, J., & Toscano, A. (2011). Filming the crisis: A survey. Film Quarterly, 65(1), pp. 39–51.

Krauthammer, D. (2011, October 22). How Margin Call gets it right about the financial crisis. New Republic. Retrieved from http://www.newrepublic.com/article/film/96569/margin-call-2008-financial-crisis-banking-reform

LaRoche, J. (2011, October 24). The director of Margin Call reveals the event that inspired the film. Business Insider. Retrieved from http://www.businessinsider.com/margin-calls-director-j-c-chandor-2011-10

Margin Call. (2011). Directed by J.C. Chandor. United States: Lionsgate.

Marks, S. (2011, October 19). Interview: Margin Call writer/director J.C. Chandor. San Diego Reader. Retrieved from

Rabiger, M., & Hurbis-Cherrier, M. (2013). Directing: Film techniques and aesthetics. Burlington, MA: Focal Press.