Quote:
Originally Posted by jackwesq
Hi everyone. There's a great scene in the movie Margin Call where Risk Analyst Peter Sullivan (played by Zachary Quinto) tells CEO John Tuld (played by Jeremy Irons) that if the company's assets of mortgage-backed securities were to drop by just 25% and remain on the books, that loss would be greater than the current market capitalization of the entire company.
With that in mind, I wonder if PSA were to pay out on their guarantee on every single altered card, if that payout would be greater than CLTC’s current market capitalization of $217M. Based on what I have read here and on Blowout Cards, I’m not confident it would not.
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But they aren't paying on the guarantee. They've successfully deflected the responsibility back on the sellers, reducing their liability.
For example, card graded A =200 graded 5= 1000 graded 6= 2000
Instead of paying the owner 1800 for a card altered from a 5 to a 6, they have them return it, and maybe pay the scammer 800. Unless they have some excuse to not pay the seller, perhaps referring them back up the chain to whoever altered it who they probably don't have to pay.
Brilliant, but scummy.