Conflict on Trading Floor

1. Define the main responsibilities of the junior salesperson at FirstAmerica.

Junior salesperson works on the non-dollar derivatives product desk and specializes in cross-currency interest rate swaps.

Was an assistant for three vice-presidents, including a top salesperson named Linda. Such support would include doing various research projects, putting together proposals and presentations, increasing client interaction (by telephone, visits to client offices, social interactions), using existing pricing models and helping to develop new structures and applications, interaction with Risk and Compliance as well as the Relationship Managers for the overall account.

While doing all of this, junior salesperson needs to ensure that all activity is legal, is in full compliance with accepted internal policies and procedures and is ethical.

2. How would Carr advise the junior salesperson at First America?

Carr would advise the junior salesperson that bluffing in business is expected and is part of the game. Furthermore, if you do not bluff, you are disadvantaging yourself and that morals/ethics that may govern your private life and personal relationships have no place in business. He would go on to say that business compels you to practice some form of deception to be successful.

Essentially, Carr would say that so long as you are not doing anything illegal, you are justified in doing it as "business has the legal right to shape its strategy without reference to anything but its profits". He would, however, qualify that statement by pointing out that:

(i) there are always consequences to your decisions and you need to consider them carefully;

(ii) take a long-term view of its profits and preserve amicable relations ("a wise businessman will not seek advantage to the point where he generates dangerous hostility among employees, competitors, customers, government or the public at large").

On the assumption that the junior salesperson fully describes the situation and that Carr fully believes the junior salesperson, Carr would advise the junior salesperson that one needs to take a long-term view of the potential consequences of the relationship (will possibly generate dangerous hostility with the client when they determine they have been taken advantage of in a most egregious manner) and that it would appear that fraud is being committed. Accordingly, Carr would advise the junior salesperson to not send the fax.

3. What is your appraisal of Carr's argument?

While I understand and appreciate a lot of what Carr has to say, my own experience is that:

(i) Business is not just a game;

(ii) There is way more to it than meeting the minimum applicable legal