Understanding the Ending of ‘Arbitrage’: An Explanation

Terms like arbitrage, dividends, profit sharing, and fraud flood the finance world. But what do these terms actually signify? Fortunately, there’s clarity, although one term represents a notorious crime that Richard Gere’s character in the film “Arbitrage”knows too well. Let’s delve into the film’s conclusion and unravel the complexities involved.

The books, and the goose, are cooked

The narrative centers on Robert Miller, a hedge fund manager with a troubling penchant for illegal activities. As he approaches retirement, one might expect him to ease up and retreat to a luxurious life on Long Island, but that’s far from his reality. Early in the film, this seemingly “happily married” executive finds himself involved in a catastrophic car accident that kills his mistress. Feeling cornered, he calls his associate, Jimmy, to assist in the cover-up. Meanwhile, Miller’s hedge fund faces a staggering $400 million deficit, and federal investigators are onto him, suspicious of fraudulent activities. What’s worse is that Miller manipulated the company’s financial records to secure this very sum to shield himself from looming bankruptcy. His world, both professionally and personally, is barreling toward inevitable disaster.

In a conversation filled with “hypothetical” scenarios, Miller and his attorney explore the possibility of him coming clean to the authorities. However, Miller chooses a different path. Through a web of financial tricks, he manages to sell his company before the feds can probe into the hedge fund’s finances and expose him for fraud. Simultaneously, he employs similar tactics to persuade a grand jury that neither he nor Jimmy bears responsibility for his mistress’s death or the ensuing scandal that could lead to manslaughter charges.

Even without any charges against him, Miller’s wife, Ellen, uncovers the truth about his infidelity. She confronts him with a choice: either agree to a separation deal that directs his assets to their daughter’s charity, or she will disclose the accident details to law enforcement, resulting in Miller’s arrest. Ultimately, he concedes and signs the document.

In the film’s climactic scene, an elaborate banquet is staged in Miller’s honor. Amidst the celebrations, the palpable tension between his wife and daughter goes unnoticed. Just as Miller prepares to deliver his speech at the podium, the screen abruptly cuts to black. This moment signifies a lack of authenticity—his words would merely be further deception, yet he will say them regardless. This film encapsulates a critical commentary: affluent individuals within the finance industry often evade accountability, even in the direst of circumstances. Miller serves as a representative of a broader issue—one that persists as long as wealth remains concentrated among a privileged few.

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