Wall Street Forum Prep Ash Pabalkar Finance Club 9/16/05

Objective Strong showing at WSF and to make sure everyone makes the most of our time in New York

Agenda 1. WSF S&T schedule 2. WSF do’s and dont’s 3. Markets Discussion 4. Equities & Derivatives (Larry/Shin)

1. WSF S&T How many of us are familiar with NY City? No Michigan Time! 7AM means 7AM. Directions, etc. will be posted on Finclub site soon Dress is always formal

1. WSF S&T Schedule (contd.) Monday, Oct.24 09: :00a.m.Morgan Stanley (1585 Broadway) Participants responsible for their own travel 11AM - 12 noon: lunch break, proceed to meet bus outside UBS ( 299 Park Avenue) Participants responsible for their own travel 1:30PM – 3:30PM: Deutsche Bank (60 Wall St) Chartered Bus 4:30PM – 6:30PM: JP Morgan (277 Park Ave) Chartered Bus

1. WSF S&T Schedule (contd.) Tuesday, Oct.25 7:45AM: Bus leaves Park Central Hotel (7 th Ave/56 th St) 8:30AM – 10:00AM: Goldman Sachs (180 Maiden Lane) Chartered Bus 11:00AM – 1PM: Lehman Brothers (745 7 th Ave) Chartered Bus 2PM – 4PM: Citigroup (388 Greenwich St) Chartered Bus 4:45 – 6:15: Either BOA or Bear Stearns Chartered Bus for Bear Stearns

1. WSF S&T Schedule (contd.) Wednesday, Oct.26 7AM: Meet at Grand Central Station (Main Concourse, by the information booth), tickets covered by clubMain Concourse 7:29AM: Catch the Metro North train to Stamford, arrives 8:18AM 8:30AM – 10:15 AM: UBS Stamford, CT 10:30AM: Catch the Metro North Grand Central Station, arrives 11:36AM at Grand Central Walk to Lehman (~1.2 miles) 12noon – 4PM: Lehman Trading Simulation (745 7 th Ave)

2. WSF do’s and dont’s To do/carry list: Book flight, hotel or friends 3 sets of suits, shirts, shoes Mint/breath freshener Note Pad to take notes, Pen Copies of resume on nice paper Cheat sheet on each bank Flash card containing 4 good, unique questions to ask each bank (Level 2&3)

2. WSF do’s and dont’s (contd.) To do/carry-list (contd.): WSF schedule, directions sheet (website) NYC subway map, street map Cash on hand, metro card Cellphone with , other S&T people phone numbers stored in it (remember to switch off) Warm overcoat over suit (London Fog, etc.) Some energy bars, etc. you can put in your coat pocket. Photo ID for security

2. WSF do’s and dont’s (contd.) Don’t: Not be there at all Be late (no MI time) Stay late partying (except Wed night) Show up under the influence of anything Do: Get a nice workout, you need the energy!

3. Markets this week Refco Largest independet futures brokerage firm in US. $300M CEO scandal involving hidden debt resulted in 72% loss of stock value, junk status and arrested CEO Could this lead to broader market problems? Financial derivatives markets, commodities felt pressure Goldman IPO, BOA, CSFB, DB lenders to Refco LTCM?

3. Markets this week (contd.) CPI – Friday, Oct. 14 Sept CPI up 1.2%, fastest pace in 25 years due to surging energy prices and hurricane after effects Core CPI (ex-food and energy) up 0.1% for the fifth straight month Is inflation a threat? Yes, this will likely reinforce expectations that the Fed will raise fed funds rate at its Nov.1 meeting What’s going on in housing? Housing prices are 40% of the CPI, up 0.4% in Sept hotels and rent fell 0.1% and lodging fell 2.5% Other sectors (auto, food, medical)? Auto Prices up 0.4%, Airline fares down 1.4%, Food up 0.3%, medical up 0.3%

3. Markets this week (contd.) What’s going on with the Budget Deficit? In the fiscal year ended Sept.30, the government racked up a $318B deficit (forecast $341B), down 23% YOY, first annual decline since Bush took office in 2001 ($412 in fiscal ’04). 2.6% of GDP in ‘05 vs. 3.6% in ‘04 Hurricane recovery cost $4B, further red ink to follow Trade Deficit?

4. Equities & Equity Derivatives Larry Thompson & Shintaro Kurita