MovieChat Forums > Wall Street (1987) Discussion > Did Gordon Gekko report Bud for Insider ...

Did Gordon Gekko report Bud for Insider Trading as payback?

posted 9 years ago by Matthew7819
10 replies | jump to latest

Gordon Gekko was furios with Bud Foxe after he found out that Sir Larry had bought a large number of Bluestar stocks and secured ownership of the airline, so did he just get on the phone and rat Bud out to the SEC as a form of revenge and explain how Bud broke their business deal by sharing information with Sir Larry and raising the price up and then dumping it knowing that Sir Larry would buy it?

Seems like Gordon was the tipster who got Bud arrested the day after the Bluestar was bought, he basically got on his phone and reported Bud's actions and that little bit of information along with what Bud had already been checked out for was enough to cause Bud to go to prison, but Gordon did not realize that he was also being looked at for insider trading which causes him to be arrested later on too as we see in Wall Street:Money Never Sleeps.

I also dont know why Gordon and Bud were friendly in the second movie when they saw each other, why Gordon didnt tell Bud to go to hell and say that he still hates him for screwing him over, instead of being pally and acting like he barely remembers the past or doesnt care about it anymore, which most people would not do.

[–] dl4060 9 years ago

I doubt it. If you watch the movie you will notice the folks at stock watch and the SEC talking about a guy buying large amounts of Teldar (I think) Paper from an offshore account. Also, James Spader calls Bud in late in the movie and tells him the SEC wants to look at his files. They were definitely on him before Gekko would have ratted him out.

[–] Matthew7819 9 years ago

Well the arrest happens the day after Sir Larry bought Bluestar, clearly Gekko called them and reported it, no way was it a coincidence that he got arrested the next day and they wouldnt be aware of his involvement in that so quickly, only Gekko would know because Sir Larry was involved, its obvious.

[–] dl4060 9 years ago

They were arresting him for other things. They would not have enough information about the Wildman/Bluestar deal yet to make a case. These cases take a long time to build. If you rewatch the movie again you will notice just how long they were on Bud's tail for, they were really tracking him, they just happened to arrest him after Bluestar, it was not FOR Bluestar, as they would not have had enough evidence for that. Gekko reporting him for insider trading would have been enough to start an investigation about the Bluestar deal, but not enough for an arrest. Think about the next to last scene in the movie, when Bud wears a wire with Gekko. Bud's testimony about all the insider dealings with Gekko would not have been enough, they needed Gekko to say some incriminating things on tape. Bud's testimony alone would not have guaranteed a conviction, that's why the SEC wanted Bud to wear a wire.

Even so, it would not have made sense for the SEC to be on to Bud because of Gekko. Gekko was the big fish, the guy they wanted. That is why they have Bud wear a wire at the end. Bud Fox was the mid-level drug dealer, they were trying to get to the high level dealer.

Also, as one poster below me noted, it would not have made sense for Gekko to have reported Fox. Fox was doing lots of illegal things for Gekko, so Gekko reporting him would have shed light on the numerous other illegal things Bud had done at Gekko's request. It would have been a very unsafe thing for Gekko to do. When you are the top drug dealer, you don't report one of the people down below you.

Like I said, Bud was not being arrested for Bluestar, he was being arrested for the other things in the movie. They would not have been able to build a case on Bluestar in one day. The movie just has it happen the next day to show the contrast between Bud doing the right thing and Bud paying for the sins he had already committed. Stone should have had a few weeks pass between the two incidents, but that would have made for a boring movie, as they had nothing else to add to the story between those two events.

[–] fc31 (5400) 2 years ago

Gekko reporting him for insider trading would have been enough to start an investigation about the Bluestar deal, but not enough for an arrest.

Agreed, that would have been way too fast. I also thought Gordon had something to do with it, but what you said makes more sense.

[–] ncdwbmk6 9 years ago

It's doubtful that Gordon would report Bud to the SEC, knowing that he could get implicated himself (which happened anyway).

At the party, Gordon and Bud exchange a few words of conversation. That doesn't mean they're friends. Gordon probably does business with lots of people he doesn't like. That's the reality of doing business. As he told Bud, "If you need a friend, get a dog."

---
Choocheechoo choocheechoo choocheechoo ya ya pow!

[–] Garys1266 9 years ago

The turning point in the movie is when Bud Fox is in Gordon Gekko's backyard near the pool with Gekko's lawyer. It was clearly stated that all trades that Fox made stops with him. Gekko from that point forward had no knowledge, Fox was on his own at that point. They gave Fox full power of attorney to make trades and basically let Fox twist in the wind. Gekko telling Fox to spread the buy orders out was just a smokescreen. This is also why Fox had to approach his lawyer friend James Spader and others like his co-workers to trade shares for Gekko. Keep in mind, it is very difficult to buy stocks on a large scale from an individual basis, even Gekko had to use offshore accounts to purchase stocks. As a large stock purchase from one individual means one thing, takeover.

[–] Ace_Spade 9 years ago

I got that vibe.

I figure you're right based on the scene where Gekko and his lawyer give limited PoA to Bud (the buck stops with you) and then later when Bud reassures his friend that Gekko gets investigated all the time and nothing comes of it (we're invulnerable). I figure Gekko uses a lot of money, bribing and buying trust, to keep himself (and those he employs) safe from StockWatch. When Bud crosses him, he fires back, drops protection, and allows the red flags to become the real deal.

[–] manofsteel4455 9 years ago

Am I the only one that always just wants to reach through the tv, and "pimp slap" Bud for being so naive?

[–] Ace_Spade 8 years ago

Bud got blinded by the green.

[–] dl4060 (58) 4 years ago

Gekko would not have blown the whistle.

After Bud gets arrested, he goes to see Gekko wearing a wire in Central Park. The purpose of this is to get Gekko to talk, hopefully to say something incriminating.

While the meeting with Gekko's attorney to give power of attorney might appear to sever the responsibility Gekko had, Fox was still acting for Gekko. All that meeting did was prevent a paper trail. It would make no sense for Gekko to turn in someone who could then testify against him. The SEC was happy to flip Bud and go after the big fish. There is absolutely no way Gekko would turn in someone who could testify against him.

It is the StockWatch guys who are in the room when Bud comes in and takes off the wire, after meeting with Gekko. Watch the movie again, you will see it is the same guys. Gekko is their primary target, not Bud.