Risk Management

**Risk Management** is the first episode of the Season 2 of *Billions*. The episode was written by Brian Koppelman and David Levien and directed by Reed Morano.

## Plot Summary

Chuck faces scrutiny within his office and from the Attorney General. Axe refortifies Axe Capital, and weighs his options for retaliation. The fund wrestles with a precarious economic landscape that threatens the very existence of Axe Cap. Wendy entertains an offer from a rival hedge fund manager. Lara intervenes in an emergency at her children's school.

## Plot

Orrin meets with Bobby at an empty horse racetrack stadium in the dead of night. He apologizes about the late hour, but Orrin says Bobby never needs to be sorry when he summons him. Bobby shares with Orrin that he has a plan for how they will win, but before he reveals anything further, the show flashes back to three days earlier.

Axe Capital employees amass outside the company offices. Mafee wants to get inside to start the day, but Deb tells her that Axe wants no one inside till he gives the word. Dollar Bill Stearn tells Mafee he is just as eager to get inside as he's had to work from home for three weeks. Though the Axe Capital employees are unaware of the real reason, the audience knows this is how long it took for Axe to reverse the damage done to the building while searching for Chuck's fake wiretap. The employees discuss the story fed to them about how there was some type of "fire extinguisher malfunction flood" at the offices. Meanwhile, Axe is informed by Stephanie Reed, his Chief of Staff at Axe Capital, that they should get started. Axe says he won't do it until Wags is here and Reed says she will get on it. Wags is in the restroom and completes his "morning routine" of drugs just as Stephanie informs him that Axe is waiting. Wags agrees that its "showtime" and exits the restroom with her.

Chuck is engaging in some type of martial arts training exercise. His mentor advises Chuck on the best way to attempt an escape after the two struggle on a gym mat, but it is clear that Chuck is only using this session as a type of substitution for his BDSM needs now that Wendy is shunning him.

Oliver Dake, from the Office of Professional Responsibility, has arrived in New York and heads straight to the Southern District for a surprise meeting with Chuck Rhoades. Chuck walks Dake over to an office and makes note how they already have one setup for him with his own name plate. Dake is not flustered by this though and tells Chuck that even with forewarning of his coming, he will inevitably get to the truth of the matter. Chuck says he has nothing to hide and promptly leaves.

Axe and Wags allow the team to enter the offices, but as the crowd of employees rush in, they are inundated with information about the new security measures. No personal electronics will be allowed inside the work premises. Each person coming in must be accounted for and will be provided an electronic bracelet to monitor when they enter/exit the building. A slew of Axe Capital security personnel work slowly and it clearly bothers the employees who are all desperate to get the day started.

Todd Krakow, head of Krakow Capital, is hosting a seminar to a packed room and introduces the real main attraction, Dr. Wendy Rhoades. Wendy opens with the difficulty of performing that some of them may face, but is heckled immediately when someone says he never has issues performing. She recovers quickly though and states that their work performance is not too different from how they perform in bed. She takes out a bottle of Viagra and notes that those people who need it to perform should not be ashamed that they are using it. She recognizes that no one will publicly want to admit to using it, but its important that they get the aid they need to perform, because much like work performance, how they get there isn't important. They must be able to meet the challenge when the time comes and if that means overcoming their suspicions on therapy, then so be it. Meanwhile, Axe hosts his own seminar and discusses with his employees that his unequivocal trust nearly brought down their fund and things will change. In addition to the new security measures, which everyone must be on board with, any conversation with Bobby must now involve the presence of Stephanie Reed.

Krakow provides Wendy a check for $75,000 in his personal offices for the seminar she just did with his hedge fund. He questions Wendy on her in depth knowledge of Bobby, but Wendy states that if this is what Krakow wanted the whole time, she will be leaving. Krakow tells Wendy she passed his little test and, now that he knows he can fully trust her, wants her to come on board full-time and join Krakow Capital. Wendy says she has setup her own practice since leaving Axe Capital. Krakow notes that Wendy didn't say no and the two agree to keep their options "open" for the time being. As Wendy leaves and enters a vehicle, Hall watches her intently.

Lara drops off the kids at school and heads to the administrative offices to drop off some papers. When she sees a crowd of kids huddle together, she comes over to see what they are looking at. A student, who Lara recognizes as Katie, has collapsed on the floor and a teacher is calling 911. Lara knows thats its an allergic reaction and pulls out an epi-pen from the students backpack as evidence of her condition, but the teacher refuses to use it, saying they aren't the ones to make that judgement call and must wait for the ambulance to arrive. Lara doesn't care and administers the epi-pen. In the aftermath, the school gives Lara trouble for this, but Lara says if the school needs a medical professional at all times to take care of such things, then they should have one. She calls Mo, her cousin and a registered nurse, and asks her to come to the school for the rest of the day. Mo agrees and the school decides not to press the matter.

Back at home, we see Axelord has installed security cameras and personal at his residence as well. Orrin, Hall, and Wags have a private meeting with him where Orrin shares with the group that Rhoades is being investigated by Washington D.C. now. Bobby makes note that as long as Chuck sits in his office, him and his family will not be safe. He instructs Hall to start gathering intel to ensure the investigation against Chuck is successful and tells Orrin to file a suit against Chuck. Orrin is not comfortable with this though and tells Bobby that it's not worth the publicity. Wags also suggests that if they go after Chuck personally, it may quash whatever chance Bobby has of getting Wendy back. Hall informs Bobby that Wendy and Chuck are "nesting", meaning that while they continue to live in the same home, neither see's each other. He also informs everyone that Krakow and Wendy met with one another, something that Bobby finds insulting as he considers Krakow beneath him. Bobby tells Hall to get more information on what Wendy is doing and calls the meeting to a close.

Chuck is giving a speech at Bart Schooner's retirement party where a fancy dinner is being held. Lonnie, Kate, and Bryan are in attendance, as are numerous other people. Lonnie makes note that whoever gets the seat of the now vacant position of "Head of Criminal Cases" will have an easy life. Not only can they merely delegate, but upon leaving office, they will easily acquire a 7-figure salary. Kate states that with 75 other Assistant US Attorney's gunning for it, the odds are against anyone in particular, but Bryan says a person with more "experience" and who has won "big cases" will have a better shot. She asks if they are saying its impossible for her to get it then, and the two admit that is precisely what they are saying as she is too young. The conversation moves to Dake and Lonnie questions the two on what exactly the man has on Chuck, but before anyone can answer, Chuck arrives to their dinner table. He see's it on their faces, they all wanna know if anyone is tapped to become the new Head and Chuck tells them a story.

He tells them he was in the park watching a chess player who makes a living hustling tourists. When it was Chuck's turn to play, the game became a spectacle and a crowd forms. Chuck was beginning to get the upper hand as he was a former chess prodigy himself, but then he noticed something alarming. Due to the speed at which they were playing, the other player had swiped two of Chuck's knights during a capture of one of his pieces. Every fiber of his being was ready to call him out and have the hustler banned from the park, but Chuck says he saw the crowd and decided to "reframe" his approach. Chuck toppled his own king and declared his surrender, but while paying the hustler, informs the cheat that he can make his life very difficult. Chuck tells the hustler that this is the last time he will cheat anyone and that his next opponent is a boy in the crowd and he wants to ensure its a fair game. The hustler "thanks" Chuck.

Chuck notes that he got something greater then revenge, he enacted real change by acting with purpose. He says that his actions created a more "just" environment and that if any of them wish to become the new Head, they must act accordingly as it is the new way they will be conducting themselves now. Bryan questions how Chuck knows the hustler did the right thing after he left, and Chuck admits to watching from a park bench the following game with the boy. What Chuck does not tell them is of his private meeting with Spyros. It is here, in the park, that Spyros informs him that Oliver Dake is coming for him and the investigation is focused on the Chuck's vendetta with Axelrod. Before leaving the dinner table, he tells his team to "handle themselves" with Dake on his investigation as they have nothing to hide. Kate speaks what everyone is already aware of, if they aid Chuck in ensuring Dake is unsuccessful, one of them will become the new Head of Criminal Investigation, but if they decide to help Dake, they will have to start-over with whoever ends up replacing Chuck.

In the morning, Bryan is questioned by Dake, but Bryan only feeds him answers singing Chuck's praises. Dake decides to pursue another line of questioning and asks Bryan about his private meeting with Axelrod at the pizzeria. Bryan asks why that is relevant, but Dake tells him that he will consume all information related to their offices in his investigation into the Southern District. Bryan says he reported it immediately and has the paperwork to prove it, but Dake says that Bryan waited till the following afternoon to do so, and states that by then, Bryan had decided what information to include and exclude from the report. Bryan says he left no information off the record and that Axe offered him a job, which he turned down. Outside Dake's office, Chuck observes their interactions with curiousity.

Wendy opens her door to let her next appointment in but finds Bobby Axelrod waiting outside. Wendy is upset at being ambushed and tells Bobby that he should've known better then to come, but Axe says he couldn't help himself. He tells Wendy he needs her back at Axe Capital and states that he has made big changes to how he operates, but now is getting conflicting advice from people in his inner circle. Bobby states he needs her to guide him, like she has done in the past, but Wendy says that chapter of her life is in the past. She says that she is confident that, at the end of the day, Bobby will be able to connect the dots himself, but he'll have to do it without her. The two fight about her future, Bobby saying that these new patients are beneath her compared to what they had, but Wendy counters by saying she is fielding offers at other hedge funds as they speak. This infuriates Bobby, but Wendy asks him to respect her wishes and he begrudgingly says he will as he leaves.

Wags and Stearns are fielding new investment ideas, but are unexcited by the prospects all the team members pitch at them. Wags warns the team that they need to cough up something better as he can't bring any of this "garbage" to Axe, and that they better do so soon if they value their jobs. Meanwhile, Mafee brings Taylor Mason into a trade deal he is initiating and asks for her advice. He wants to sell 5 million shares of Bluudhorn Steel at $40 but no broker will agree to the exact time of the trade and guarantee him the price threshold he is asking for given his large quantity of shares. Mafee says his solution was to get 5 brokers that don't know one another to sell a million each, but Mason questions the way he is going about it. Mason suggests he use options to protect the sale and explains how he can lock in the price at $40, but potentially make $45 via the options. Mafee remarks that Mason is correct on that being the safer course and that doing so will save them $10 million on this single trade. He explains how he wants Mason to continue with Axe Capital after their internship ends as insight like this is invaluable, but Mason states there is nothing Mafee can do to sway their mind one way or the other. The decision to stay will be separate of however much money or perks Mafee decides to throw at Mason.

At the Axelrod residence Bobby hosts a barbecue but things are still awkward with Lara's family. Lara's brother Matt doesn't want to grill with Axe now that he knows about the 9/11 story, but Lara says she will have it her way, just as she did when they were young kids, and its better that he avoid the pain and just agree to her terms. Matt reluctantly agrees and goes to Axe who is having a conversation with Raul Gomez. Matt makes good company as he and Raul both operated in the same police precinct as detectives, albeit at different times. Raul shares a story of an operation gone wrong that brought him vulnerable among a bunch of Hells Angels bikers. Following the beating he received, the entire precinct enacted revenge and beat every biker in the bar with a nightstick. Raul says life was simpler back then as it all came down to numbers. The bikers had him when he was alone, but ultimately greater numbers won the day and, as a result, the Hell's Angels lost a critical drug dealing spot. Inside the house, Lara pushes her cousin to work with the school and says the job will be a great move for her, but Mo doesn't want to leave her current job unless it means making significantly more money.

Wags summons their IT technician to undergo a task for him. One of the "garbage" investment ideas that the Axe Capital employees pitched earlier has gotten under his skin. Wags wants to be a member of the elite dating app called "Raya" and tells the IT guy to hack into their systems and set him up with an account. The IT guy says it's far too difficult a task for him to do while performing his other duties but Wags tells him to get on it and he won't let him take on any other assignments until then. The IT tech sits in the chair and begins working as Wags watches on.

Chuck calls Adam DeGuilio to learn who specifically sent Dake. Chuck asks for the favor but Adam makes it clear that he isn't interested in doing his bidding, but that he intends to conduct himself as a neutral and efficient Judge. Chuck says "please" and reminds Adam that he helped ensure he got the Judge position and that this will be the final favor he asks of him. Adam tells Chuck to come by Friday morning and he will have more information for him then. Meanwhile, Stephanie intercepts Wags during his morning routine and tells him that his claim over the IT guy is having detrimental effects for Axe Capital. She takes Wags phone and provides him with access to Raya, indicating that she was a member all along. Wags is thrilled, but Stephanie tells him to return the IT tech to his duties and that if Wags see's her profile on the app, that he should not select the heart indicating his interest.

Dake goes over Wendy Rhoades's financials and is shocked to see the $5 million dollar deposit made into her account. He rubs it in Chuck's face, entering his office during lunch, and states it's very interesting that the same day he dropped the Axelrod case, Wendy received such a large sum of money on an account that he is also a signer on. Dake tells him that it has all the appearances of a plain and simple bribe, but Chuck is speechless and says nothing, so Dake leaves. When Chuck returns home he brings up the matter with Wendy stating how, despite the fact that they are undergoing a "temporary separation", she should have told him about the money as it all looks so suspicious and may cost Chuck his job. Wendy is shocked and admits, with everything going on, she hadn't considered that, but Chuck presses forward by continuing to harass Wendy on her decisions and how just being in "proximity" to Axe's dirty money will cost him his career and potentially land him in jail. Wendy reminds Chuck she is no longer working for Axe, then leaves before things get further heated.

Back in present time, Axe shares with Orrin at the racetrack that it was here he learned how to make trades. He said the people that were the best didn't make a trade based on what they saw when looking at the horses but rather on the numbers shown on the stats boards. Axe understood that the numbers had to be on his side and started making real money at the racetrack before moving into the world of finance. The two watches as a jockey trains with his newest horse. Axe tells Orrin he knows that its risky to bring suit against Chuck, but he won't do it without the numbers being on his side. He tells Orrin that he should find everyone Chuck has screwed over and convince them to join Axe on a massive class-action suit, even if it means paying them for their support. Orrin agrees with Axe that the publicity will not be on Axe if that were to happen, but on Chuck. He gets up and tells Axe he understands what he has to do and Bobby tells him to get started on it tonight.

The following day, Chuck is texting while walking down the street to his job and a kid falls on his bike right in front of him. The kid hands Chuck his backpack as he helps him up, but the tables soon turn as he is informed that the backpack is filled with 127 lawsuits and that he's been served. Chuck has his meeting with Adam and tells him that he's being sued by everyone he's ever met apparently. He tells Adam its no shock as Axelrod's name is all over it and is accusing him of "malicious prosecution" among other things. Adam says he's sorry to see him in trouble but there isn't much he can do. The Attorney General calls Chuck right then and there and tells him that he is being summoned to Washington over Dake's findings and the recent publicity on the 127 lawsuits. Chuck tells Adam that he believes this is the end of the line for him as he will be fired once he takes that meeting at Washington.

Dake intercepts Bryan on his way to work. He tells Bryan the real reason he pressed him on the pizzeria meeting with Axelrod. He tells Bryan that he knows he is the one who tipped his offices of Chuck's wrongdoing. Bryan says he has no proof, and Dake admits it is just a hunch based off a cell tower ping but that the timing of it all suggests it happened almost immediately after Bryan's private meeting with Axe at the pizzaria. He tells Bryan that whatever happened in the meeting that pushed him to it, he was right, Chuck is indeed dirty. Dake states that he wants Bryan's help to end Chuck's career once and for all, but Bryan doesn't say he will and doesn't admit to being the tipster, though his face betrays him once Dake leaves.

## Cast

### Starring

* Paul Giamatti as Chuck Rhoades
* Damian Lewis as Bobby Axelrod
* Maggie Siff as Wendy Rhoades
* Malin Åkerman as Lara Axelrod
* Toby Leonard Moore as Bryan Connerty
* David Costabile as Mike Wagner
* Condola Rashad as Kate Sacker

### Guest Starring

* Rob Morrow as Adam DeGiulio
* Terry Kinney as Hall
* Ruben Santiago-Hudson as Raul Gomez
* Glenn Fleshler as Orrin Bach
* Asia Kate Dillon as Taylor Mason
* Malachi Weir as Lonnie Watley
* Danny Strong as Todd Krakow
* Christopher Denham as Oliver Dake
* Stephen Kunken as Ari Spyros
* Kelly AuCoin as Dollar Bill Stearn
* Nathan Darrow as Mick Danzig
* Ilfenesh Hadera as Deb Kawi
* Dan Soder as Dudley Mafee
* Shaunette Renée Wilson as Stephanie Reed
* Kevin Isola as Matthew
* Christopher Paul Richards as Dean Axelrod
* Jack Gore as Gordie Axelrod
* Erinn Ruth as Mo
* Petronia Paley as Attorney General