- Title: Capital
- Duration: 114 min.
- Country: France
- Director: Costa-Gavras
- Script: Costa-Gavras, Karim Boukercha, Jean-Claude Grumberg (Novel: Stéphane Osmont)
- Year: 2012
- Trailer: https://www.youtube.com/watch?v=0cyT5zo0_mE
- Synopsis: Marc Tourneuil (Gad Elmaleh) is a cynical bank employee, a sector that is in economic crisis worldwide. From nowhere, Marc begin an unstoppable ascent into the intricacies of the world of banking to become one of the most powerful and influential people in the country.
'Banking and Finance' in the film
Scene 1 (1:48 to 1:58) 'Claude All right, all right. Come back to the bank with Sieg and you watch the rumors. Total discretion. - Yes, of course.'
This scene refers to the customers' confidence in the bank as a prerequisite for the proper functioning of the process.
Scene 2 (8:50 to 9:27)' We offer a fixed annual salary of 1,800,000 […] the Committee has also considered remuneration with variable rates. If the price of Phenix is in the head of values will receive a bonus of 2,000,000; if, however, ranks second 1,000,000, if in the third 500,000 and nothing if you are in the fourth.'
This scene refers to performance variable rate, which depends on the stock market price to make a profit, as with structured deposits.
Scene 3 (15:47 to 15:58) 'We will reduce by 30% credit to SMEs. Profit is ridiculous. - But the government requires that we increase. -Do you work for the government?'
This scene indicates that the Phenix bank belongs to traditional banks, whose main objective obtaining high yields providing benefits for its shareholders. In addition, Phenix wants to stop being a retail bank (dedicated to individuals, businesses and SMEs) to become a bank wholesale.
Scene 4 (16:25 to 16:53) 'I want to regroup and bring to market all toxic products, liquid and hybrid securities; the legacy of the past […] they will be excluded from our activity weapons, chemical pollutants, bleaching. Inform the press that we will behave ethically. They insist our top priority is the growth of Europe'
In this scene Phenix president wants to show a good image of your bank, to keep the confidence of depositors lost. Therefore he defines as an ethical bank Phenix whose goal is to create a social utility for the surrounding environment, beyond the pursuit of profit.
Scene 5 (22:55 to 23:00) 'We have indebted to acquire Phenix, we need performance'
In this scene we speak of deposits banks (interbank lending), which belongs to the external resources of the entity. (Unit 2.0)
Scene 6 (27:23 to 27:34) 'A hedge fund brutal. I think his plan is to convert into a bank Phenix American. They mentioned their relocation. They like Paris but France, too many social laws.'
They want to make a more tolerant Phenix bank and this reducing regulation to get more flexibility in their operations. This is what is known as deregulation.
Scene 7 (48:00 to 48:12) 'You haven´t answered my note about the indicators. -No, but the figure isn´t negotiable. Markets, tell me. -Ah, the markets very well, 16% thanks to your new financial products that your mathematical geniuses have developed.'
In this scene new financial products (warrants, structured, ...) appears as a result of disintermediation; loss process presence of traditional financial intermediaries that makes banks compete with each other on price, requirements, etc.
Scene 8 (55:04 to 55:37) 'The problem of Japan, soon to be ours, it is the elderly. The KRM10 group is introducing this collection of operators robots. -We have the top quality of ADMs. -Operators robots are already prehistory, barely cover 10% of transactions. The KRM can cover up to 40% of all securities transactions without human intervention and aren´t subject to any regulation.'
This scene is a clear example of disintermediation that occurs in banks because the intervention of operators robots will make that human intervention be less and less necessary. In addition, deregulation will provide greater flexibility for transactions.
Scene 9 (1:03:49 to 1:03:58) 'I have good news, we will buy the bank Mitzuko thus to increase the presence of Phenix in Asia.'
This time we talk about the absorption of banks. Phenix acquire Mitzuko and this will allow you to enhance its presence in other countries. (Practice "Evolution of banking in Spain").
Scene 10 (1:20:54 to 1:21:15) 'According to the asymmetric information we have, the Mitzuko bank has eroded its market capitalization and assets. Stress test indicates that may collapse and, most importantly, back afloat.'
This scene refers to a test consisting of simulations about the ability of banks and savings banks to face a general deterioration of the economy; It is what is known as a stress test.
Scene 11 (1:25:01 to 1:25:13) 'If he wants to buy Mitzuko is to Phenix subsides. -They have actions, why devalue them?. -For the remaining shares at low prices and take control of Phenix.'
This scene reflects the devaluation actions before suffering a massive selling them to the bank solvency problems.
Scene 12 (1:32:30 to 1:32:45) 'I advertise Mitzuko’s purchase. Phenix´s shares down; Miami sells its part, shares fall off more, that causes panic. Other shareholders sell, there will be a huge package of shares to buy but Miami wait for fall to buy in bulk.'
This scene refers to the devaluation of shares, same as the previous scene but, as a result of the banking panic in a situation of uncertainty. This may cause the bank to fail.
Personal commentary
'Capital' tells a universal story from the point of view of bankers, where it is seen as deception of banks and investors that cause economic crises and enriched at the expense of the poorest with no legitimate procedures. A world full of boundless ambition, with whimsical players, addicted to luxury and power. This story is set in a very current and concrete situation, as is the tyranny of banks on the institutions and citizens and deceit posed some stock products.
It is a very necessary film that helps explain situations of corruption that we are today, in addition to the trap posed some investment funds. The coldness of the protagonist makes it an unscrupulous be that covets climb to the top of the stock market peak, surrounded by others who have their same intentions.
'The bank always wins', a phrase that perfectly defines this film.
