The Fear Index

said sharply, ‘No, leave them open, Piet, for God’s sake or they’ll think we’re forming a suicide pact in here. Actually, I’d like to see some smiles from you all, gentlemen, if you don’t mind – everybody smile: that’s an order. Even you, Gana. Let’s show the troops a little officer-class sangfroid.’
    He hoisted his feet up on to the coffee table and laced his fingers behind his head in a parody of nonchalance, even though his fingernails were digging into his flesh so sharply the indentations would look like scars for the rest of the day. He glanced around at the personal photographs Rajamani had brought in from home to alleviate the gleaming Scandinavian gloom of the decor: a big wedding group taken at night in a Delhi garden, the garlanded bride and groom in the centre, grinning maniac ally; Rajamani as a student graduating from Cambridge, standing in front of the University Senate House; and two young children in school uniform, a boy and a girl, staring sombrely at the camera.
    He said, ‘Okay, Gana, so what is your recommendation?’
    ‘There is only one option: override VIXAL and put the hedge back on.’
    ‘You want us to bypass the algorithm without even consulting Alex?’ asked Ju-Long.
    ‘I would most certainly consult him if I could find him,’ retorted Rajamani. ‘However, he is not answering his phone.’
    Van der Zyl said, ‘I thought he was at lunch with you, Hugo.’
    ‘He was. He left halfway through in a hurry.’
    ‘Where did he go?’
    ‘Lord knows. He just took off without a word.’
    Rajamani said, ‘That is just breathtaking irresponsibility. I’m sorry. He knew there was a problem. He knew we were scheduled to meet again this afternoon.’
    There was a silence.
    ‘In my opinion,’ said Ju-Long, ‘and I would not say this except among us, I believe Alex is having some kind of breakdown.’
    Quarry said, ‘Shut up, LJ.’
    Van der Zyl chimed in: ‘But he is, Hugo.’
    ‘And you should shut up too.’
    The Dutchman backed off quickly. ‘Okay, okay.’
    ‘Shall I minute this?’ enquired Rajamani.
    ‘No you damn well won’t.’ Quarry pointed an elegantly shod toe across the table at Rajamani’s computer terminal. ‘Now hear me well and good, Gana: if there’s any hint in these minutes of Alex in any way being mentally unreliable, then this company will be finished and you will have to take responsibility for that fact to all those colleagues out there, who are right now watching our every move, and to all our investors, who have made a great deal of money thanks to Alex and who will never forgive you. Do you understand what I’m saying? Let me summarise the situation in four words for you: no Alex, no company.’
    For several seconds, Rajamani stared him out. Then he frowned and lifted his hands from the keyboard.
    ‘Okay then,’ resumed Quarry. ‘In the absence of Alex, let’s try looking at this the other way. If we don’t override VIXAL and put the delta hedge back on, what are the brokers going to say?’
    Ju-Long said, ‘They are just so hot on collateral these days, after what happened to Lehman’s. For sure they won’t allow us to trade unhedged on existing terms of settlement.’
    ‘So when will we have to start showing them some money?’
    ‘I would expect we’ll need to provide a substantial level of fresh collateral before close of business tomorrow.’
    ‘And how much do you reckon they’ll want us to put up?’
    ‘I’m not sure.’ Ju-Long moved his neat, bland head from side to side, weighing it up. ‘Maybe half a billion.’
    ‘Half a billion total?’
    ‘No, half a billion each.’
    Quarry briefly closed his eyes. Five prime brokers – Goldman, Morgan Stanley, Citi, AmCor, Credit Suisse – half a billion to be deposited with each: two and a half billion dollars. Not funny money, not promissory notes or long-term bonds, but the pure crystal meth of liquid cash, wired over to them by 4.00 p.m. tomorrow. It was not that Hoffmann Investment Technologies didn’t have that kind of money. They only traded about twenty-five per cent of the cash lodged with them by their investors; the rest they didn’t need to show. The last time he looked, they had at least four billion dollars stashed in US Treasury bills alone. They could dip into that whenever they needed it. But my God – what a colossal hit on their reserves; what a step towards the precipice …
    Rajamani interrupted his thoughts. ‘I am sorry, but this is