Dead Cat Bounce

**Dead Cat Bounce** is the second episode of the Season 2 of *Billions*. The episode was written by Wes Jones and directed by Anna Boden and Ryan Fleck.

## Plot Summary

Axe publicly spars with a rival hedge fund manager and with the help of a talented intern initiates a new financial play to hurt the competition. Chuck deploys his team to quickly find a high-profile case that might save his sinking status. Wendy navigates a minefield of questioning that could result in disaster for Chuck.

## Plot

Todd Krakow, Bobby Axelrod, and other titans of finance speak at an open forum hosted by Spartan-Ives. Lawrence Boyd, head of Spartan-Ives, is acting as a debate moderator, but Axe and Krakow are both itching to get in some jabs. Bobby insults the notion that Krakow is held in such high esteem and Krakow counters that he should be lauded for earning his living without ending up in the cross-hairs of the Attorney General's offices. Bobby counters that it wasn't too long ago Krakow had to pay the United Kingdom $45 million in fines. Bobby draws Lawrence into the mess by questioning if he has ever been fined for breaking international law, something he admits has never happened, but Krakow directly states that its Boyd's team of lawyers, domestic and abroad, that ensures he never is penalized. Axelrod clearly has the upper-hand and leaves the stage, telling Krakow that this is payback for trying to poach his people. Krakow responds that Bobby knows full well who made a mess of things and caused Wendy to leave.

Krakow leaves the event and Bobby stays behind amidst the crowd networking with one another. He apologizes to Boyd for going too far but Boyd is thrilled that Bobby made such a spectacle of their event today. Boyd believes Spartan-Ives will be the talk of the town, but as he turns away, Bobby's face reveals his distaste for the man. Meanwhile, Chuck Rhoades meets with Ira Schumer to discuss the plethora of lawsuits against him. Chuck is worried, but Ira assures him that he will make it all go away. Ira is shocked to hear that his bosses will not back him up, and Chuck reveals that he is likely to be fired once he goes to Washington. Ira tells Chuck he has to give the Attorney General a win, one that only he can pull off, but Chuck says there isn't enough time. Ira presses on the importance though as it may be Chuck's last hope. He tells Chuck that the Attorney General must have a lot of enemies, so there must be something he can do to bring down one of them that no other "loyal soldier" is able to do. Chuck has only three days till his meeting in Washington, so he leaves to see his team.

Bryan Connerty, Kate Sacker, and Lonnie Watley are gathered together and given a task by Chuck Rhoades that takes priority over anything else. Chuck tells them to bring him a case that only they can win and that will deal a great victory for "justice". Chuck says they should start with the "c-suites", the CEO's that pride on defrauding America on a scale so grand they almost seem untouchable. He says they've failed during the financial crash to net someone important, and its time now to make that up for that. Bryan asks for more specific leads and Kate suggests they focus back on Axelrod, but Chuck shuts down the idea, saying focusing on Axe Capital won't help him right now. Bryan questions what he means exactly, revealing Chuck's staff is unaware of how close to losing everything he really is, but Chuck chooses to avoid the question. Chuck locks eyes with Oliver Dake, who is observing the meeting, and Chuck decides to leave them to it, informing the team they have 24 hours to come up with something.

Back at Axe Capital, Mafee praises Bobby on destroying Krakow earlier at Spartan-Ives and tells his leader he has an idea to really bring the pain to the man. He brings up Krakow's comments on China, but Axe stops Mafee before he gets any further, questioning how exactly Mafee knows this when he spends more time watching "Ali G reruns" then he does focusing on Krakow's speeches. Mafee reveals its really his analyst that has come up with the plan and Bobby demands that he bring them in so he can hear the master plan straight from the analyst's mouth. Mafee introduces Taylor Mason to Axelrod and Bobby tells them they have two minutes to give their pitch. Mason states after learning of the bad blood growing between Krakow and Axelrod, they decided to start going over Krakow's statements in the last two years. Of note, is the change Krakow made on his stance with China in January 2016. Krakow was more "bullish" about the Chinese market and Mason speculates its all due to Krakow's access to satellite imagery. Bobby is not impressed as this is something all top hedge funds actively engage in, comparing the Walmart parking lot occupancy to be a good indicator of their profits. Mason pauses and Axe realizes that they must have actually discovered the specific source of Krakow's satellite images to be bringing this up. Mason confirms his suspicion, revealing the source is AR Metrics, and if the assumption is made that Krakow is their biggest client, then it is likely that the images that yield the highest number of hits at AR Metrics is the answer to why Krakow has changed his tone. Mason states that image is of a microchip factory in the Pearl River Delta.

Bobby is clearly impressed and gets up from his seat. Mafee states that China is cooking the books so chances are that the microchip factory's financials are falsely bloated, but Bobby says everyone knows China is doing that and turns to Taylor. He asks them what what happened in January 2016 and Mason reveals that in that time frame the microchip factory went from dormant to bustling with business. Bobby follows up that foreign investment must have followed and presses Mason on what really happened. Mason states that an article came out showing "satellite detected discrepancies" between what China's government reported and what was actually going on. China has decided to put on a "show". Bobby surmises that the factory is a fake, that this must be what they know, and that Krakow has failed to realize it himself. Mason says they should short the parent company Krakow is invested in, but Bobby says it isn't enough for him and that China is unpredictable. He tells Mason to start researching what the factory is actually up to, not just what they say they are doing on paper, and in doing so they will learn what Krakow has really invested himself in. Before Mason leaves, Bobby asks how long they have been working at Axe Capital. Taylor reveals they are only an intern, have been there for three months, and will be leaving soon for graduate school.

Wendy returns home to relieve the babysitter but also finds Chuck Rhoades Sr. waiting at the dinner table for her. He questions Wendy on their recent separation but she takes offense to why it is any business of his. Chuck Sr. reveals that someone at his favorite hotel "messed up" and sent a charge for breakfast to him on a day he wasn't there. After seeing most of Chuck Jr.'s clothes missing at home, Chuck Sr. was able to piece together what happened. He accuses Wendy of being selfish and says this will damage the children. Wendy says they don't plan on uprooting the kids, but Chuck Sr. says its about their legacy and "station in life". He asks Wendy if three nights a week of freedom from Chuck in her own home is worth not being the First Lady of New York, but Wendy says tells him it is after what Chuck's done. She ends the conversation saying they won't discuss this further.

Bobby goes to meet Bruno at the pizzeria and is introduced to the mans nephew, Marco Capparelo, an executive at Sandicot. They offer that Bobby should join them to eat and drink, but Bobby says the kids are hungry and grabs his to-go order and leaves. Bruno tells his nephew to relax as Axe is a busy man but "there will be time" for the two to talk. The following day, Wendy and Chuck sit outside their marriage counselors office. Chuck is upset Wendy told his father about their separation, but Wendy says he deduced it himself, she only confirmed it. She responds back that Chuck should have told her about the lawsuits and about Oliver Dake, but Chuck says its not something he wants to put on her plate. Wendy says it isn't up to either of them as Dake has asked to speak to her, shocking Chuck, as the marriage counselor beckons them inside. Chuck is clearly too distracted now to focus on the session so Wendy asks for five minutes. When the counselor leaves, Wendy talks to Chuck and the two agree that the narrative Dake is pushing will end his career. Wendy asks Chuck what she should say and what language she should use, but Chuck tells her to just speak truthfully. He tells Wendy that the kids need one of them and he doesn't want her to go down with him. Wendy is surprised to hear this but before she can say anything else, Chuck tells her they should call the counselor back in and continue the session.

In their interview, Dake grills Wendy thoroughly on the separation, on the enormous amount of her "bonus", and on all the interesting things that happened to coincide on the day she left Axe Capital. In particular, he questions if the amount of her bonus came as a result of Wendy providing critical information to Axe Capital and whether or not Chuck really recused himself from the Axelrod case the Southern District was working on. Wendy doesn't divulge anything, but she grows increasingly uncomfortable with how close Dake is to the truth. After the meeting, Dake calls Bryan and says he wants him to confirm that Chuck was directing him during the investigation into Axe Capital, despite his claim of recusal. Bryan says he doesn't want to be involved any further, but Dake threatens him, stating that Bryan's career and future hangs in the balance. When the call ends, Bryan finds a private place and calls Orrin Bach.

Mafee tells Axe theres more information on Krakow, but Bobby wants to hear it from Mason and demands they come in. Mason says its all about Anata-Tek, a producer of wearable computer technology that is growing rapidly in the financial world. Mason states the IPO was "lukewarm" two years ago but the stock is now soaring ahead of their flagship product "the ring". Bobby says everyone has heard of it but questions them if the prototype can really carry the company forward. He asks if they can scale up and meet the demand that is following, but Mason answers it won't happen if they are being supplied by a fake Chinese factory. Bobby tells them to short the company by $2 million dollars and to get him immediately once the stock is down 10%. Once Mafee and Mason leave, Bobby tells Stephanie Reed, who is indeed sitting in on all his meetings, to release a tweet sowing the seeds of discontent about Anata-Tek. Stephanie says doing that won't exactly be subtle, but Bobby says he wants everyone, particularly Krakow, to know it was him. Stephanie agrees to do it and informs Axe that Dr. Gus, Wendy's replacement, has arrived. Bobby says to start pushing the staff to have sessions with the new performance coach and to make it mandatory. Dr Gus's style is a lot more aggressive then Wendy's though and his first session with Ben Kim doesn't instill a sense of confidence about the new coach.

Dake arrives at Axe Capital and is escorted by Stephanie to Bobby's office where Axe and Orrin wait for him. Dake questions Bobby regarding the counter-suits recently brought up against Chuck, but he takes it all in stride and the has Orrin deflect the other questions by Dake that he refuses to comment on. It is then that Dake reveals he is interested in offering Bobby immunity in exchange for testimony revealing the $5 million given to Wendy Rhoades was a bribe for Chuck to drop the Axe Capital case. He states that while hedge funds are known to engage in illegal activities, and will likely continue doing so well after this case, Chuck is to be held to a higher standard as head of the Southern District. Orrin tells Dake they will get back to him, and Dake takes his leave. Orrin reveals to Bobby that this is the answer to all their problems; Chuck will go to jail and Bobby will only have to endure a small amount of damage to his public profile. The facts all line up, even though the truth of the matter is far more complicated, but there is a problem. In doing so, Bobby will also have to accept that Wendy Rhoades will go to prison for her part in the "bribe", something Bobby has trouble stomaching.

Kate buys Lonnie lunch and pitches that he be the one to deliver her idea to Chuck. Lonnie doesn't want to though as he understands whoever presents the "impossible case" will then be responsible for winning it. Meanwhile, Ira and Chuck discuss his Washington problems over dinner. Ira states that numerous former ADA's that worked under Chuck will testify against him and advises Chuck to consider putting his money offshore. Chuck says its a blind trust and he took a vow not to handle or direct the money in any way, but Ira says that won't be important if he's kicked out of office and if things go too poorly, they will come after his money. The conversation ends when Ira hand motions Nicole and Taiga to come join them. To Chuck's surprise, Ira has set up Chuck with an attractive young woman and the attorney client dinner becomes a double date.

The following day at Axe Capital, Mafee shares with Bobby and Stephanie that Anata-Tek had a sudden sell-off after hours when the markets were closed. Bobby tells Mafee to short it again, citing that if a tweet frightens them this much, they will fold very quickly with more pressure. In his office, Wags joins them and Mafee leaves. Stephanie informs Wags and Bobby that their Krakow play may be too much. Wags tells her that she is to keep Bobby safe from outside investigators, not to make him ease up, but Bobby tells her to continue. Stephanie reveals that she believes Krakow may have assumed all this risk in his investments and that this all could be a trap. Bobby is uncertain now and tells Stephanie to inform Mafee to hold off on his Anata-Tek trading until after they get more information from Dollar Bill Stearn. When she leaves, Bobby asks Wags to help him "diversify" cause they need to improve their public profile.

The 24 hours are up and Chuck meets with his team inside his office. Chuck is unimpressed with their work and when Bryan suggests going after tech companies, Chuck shuts it down again stating its not the right direction to go in. Chuck states he wants a case with a narrative, one where there are clear heroes and villains, and Kate interrupts to present her idea; make a case against Spartan-Ives. Lonnie says it isn't a good idea as many treasury secretaries have worked there in the past. Chuck sides with Lonnie and says they don't need that kind of negative attention. He tells his team to keep going and find him something, but as they leave, he keeps Bryan behind. Chuck asks Bryan, his star player, why he doesn't have anything better yet, but Bryan says its only a matter of time till he comes up with something better. Chuck wants something by end of day from Bryan that is up to his usual standard, and Bryan clarifies with Chuck that it must be because he'll be in Washington D.C. this time tomorrow. As Bryan leaves, Chuck looks uncomfortable.

Outside the office, Kate tells Lonnie that not helping her is one thing, but that she expects him to not "shit" on her ideas. Lonnie says he was helping her and directs her to close the door to his office so they can speak privately. Lonnie says that Spartan-Ives is too closely linked with the Administration and cites how Lawrence Boyd and the Attorney General went to Horace Mann together. Kate understands and says Chuck is looking for an "enemy" and Lonnie tells her he believes he found the case he wants. He hands Kate a USB and tells her its about e-mails leaked by a whistleblower. Kate questions why Lonnie doesn't want to present it to Chuck himself and suggests that he is assuming no risk and keeping it from Bryan so he doesn't get any credit if it goes well. Lonnie tells her in not so many words that she is correct, he is insulating himself while at the same time believing Kate will take care of him if it goes well and she is rewarded.

Lara and her cousin Mo are having a boxing workout session together. Lara tells Mo she is right about taking her career in a different direction and suggests they start a business together. Mo wonders what they could do, and Lara says it has to be something unique. At Axe Capital, Stearn returns to Bobby and shows him images of empty warehouses. Wags believes this is proof and jokes that "Anana-Tek is company with no tech". Out on the floor, Dr. Gus is finishing another employee session in his usual loud and aggressive manner. Wags runs into him and Dr. Gus says they should have a session together. Wags denies but Dr. Gus wants to show him thanks as he believes it was Wags that helped him get this new job. He pitches a dinner at "Omakase menu at Nakazawa" and Wags is too turned on by the offer to say no.

Kate presents the e-mails to Chuck who is impressed. She tells him it gets worse; CEO Kurt Williams knew what was going on and, rather then stop it, directed it to continue. Chuck says they are still not ready to present this and to continue researching it. Afterwards, Chuck calls Adam DeGiulio and he decides to do his "final favor" for Chuck by connecting him to Fred Reyes, someone who has a positive relationship with the Attorney General. Chuck tells Reyes he just wants his help to make sure the Attorney General is aware of his case before he arrives tomorrow. The retail giant Goodstop has been stealing overtime from employees and he can tie it all back to the CEO Kurt Williams. Adam is on the three way call still and reminds Reyes that this is the same CEO that is currently funding a super-pac against the Attorney General. Reyes tells Chuck to give him some time and he will pitch to to the AG.

Bobby watches the news as the media shows Anata-Tek stock collapsing. Stephanie informs Bobby that Krakow has fired the companies CEO after the stock lost half its value. Bobby congratulates Taylor on helping them achieve this win, but is skeptical about their motives. Axe states that Taylor has already turned down a job offer here so it must have all been done because they wanted to prove something to him. They continue their talks in private and Taylor confesses they wanted to see if Bobby was as good as everyone says he is, and that Bobby passed the moment he identified that Taylor was behind the pitch, not Mafee. Bobby offers $750,000 to Taylor, double the usual amount for new employees at his fund, but Taylor cites their educational pursuits and doesn't show interest. Bobby is frustrated at them but recognizes the real problem. He tells Taylor that they like to retreat because they feel they are outsiders, likening Taylor's position to an observer watching fish on the other side of aquarium glass. Bobby says they shouldn't be afraid of it and that its an asset, not a character flaw. Its the reason they are so good and he wants to help them flourish. Taylor decides to agree to a "week-to-week" contract with Axe Capital, and Bobby and them hash out terms.

Wags and Bobby are working well into the night while everyone else has left. Wags ends a call and tells Axe he believes he has a football team opportunity for Bobby that will help elevate his position and make him appear "diversified" as he requested earlier. Bobby tells Wags to get on it, and as he leaves, Bobby receives a call from Todd Krakow. Krakow jokes with Bobby, asking him how long he obsessed over his positions on Anata-Tek, but Bobby says it was all worth it as he got him. Krakow admits to the loss but tells Axe that he'll get him back in due time. Meanwhile, Orrin and Bryan meet in private. Bryan tells his former mentor how life isn't as clear cut as it once was and it bothers him. He tells Orrin that when he looks out into the offices now, he no longer sees any friends. Orrin states that Bryan chooses to stay with them though because he believes in justice and it'll all be worth it once he's Head of Criminal investigations, but Bryan worries that if he is this conflicted now, it will only get worse the higher up he goes. Orrin says no man has ever existed who had a position in high office that wasn't conflicted. He tells Bryan that he can himself resolve some of those "conflicts" by moving higher up and being in a position of significant change, and Bryan decides Orrin is right and will stay a little longer.

At the Nakazawa restaurant, Wags thanks the chef personally for his delicious meal, but the mood is immediately soured by an arrogant patron who is cursing loudly and discussing business on his cell phone. Wags likens this place to a "temple" and decides to confront the man. As things get heated and everyone jumps out of their seats, Dr. Gus tells Wags to take it easy. Once the men hear his name and realize who it is, they return to their seats, understanding that offending one of the top heads of Axe Capital is a death sentence for them. Wags apologizes to the chef and to Dr. Gus, but the doctor says he loved seeing his passion. He tells Wags that the other employees at Axe Capital are like "middle school children" and that Wags is the real prize. He tells Wags they need a session as something major must be happening in his life if a "guppy" like that patron can get under his skin, but Wags is uncomfortable with the conversation and chooses not to answer.

Chuck meets with his father and decides to talk to him about regarding his problems with Wendy. Before Chuck can get started, Chuck Sr. tells him the real issue is that Wendy has more money then Chuck and that is "outside the natural order". He tells his son he will sign the money over to him, but Chuck wants to keep things the way they are. Chuck Sr. presents his son with a ring, bought with the money from the blind trust, and it is extremely lavish. He tells his son to give it Wendy to show how "serious" he is about their marriage, but Chuck states it isn't the right play. Chuck Sr. says its a six figure ring and that its precisely what all woman are after. Before they can argue about it further, Chuck gets a text message from Fred Reyes stating there is bad news. In a panic, Chuck apologizes to his father, taking the old man off guard. He tells Chuck Sr. to take back the ring and that he doesn't plan on betraying his oath to the public regarding his trust. Chuck Sr. is shocked to see his son's demeanor change but is quickly ushered out of the office. In private, Chuck calls Fred who apologizes for miscalculating things. The AG is interested in the case but wants to hand it off to Chuck's successor.

Back at home, Wendy tells Chuck about her talks with Oliver Dake. She says the man has no intention of stopping and that his particular focus will be on Chuck's false recusal. Wendy counsels Chuck telling him that his usual strategies aren't working and he needs to implement a 180 degree turn immediately if he wants a fighting chance. After Wendy leaves, Chuck is hit with a sudden burst of inspiration from the advice given and decides to do that 180 degree turn. He calls Ari Spyros and tells him to leak to the press that there is an active investigation happening right now between Spartan-Ives and the Attorney General of the Southern District of New York. When Kornbluth, a reporter at the The Financial Journal, reaches out to Chuck for comment, Chuck refuses to confirm that there is an active investigation and underhandedly tells the reporter that if he would pursue such a case against a powerful "bed-rock" institution like Spartan-Ives, he would only do so with the blessing of the Attorney General.

At Washington D.C., Chuck enters the office of the AG as Fred Reyes opens the door for him. The Attorney General congratulates Chuck on his play, stating that if she fires him now, it will look like the Administration is protecting Lawrence Boyd and obstructing justice. She berates Chuck for dragging her into this mess, informing him that he went from just losing his office to ending his career in law all together, but Chuck doesn't see it that way. He tells the Attorney General that if he wins, they can take the praise together, but if he loses, the blame will solely be his. Reyes questions the enormity of the task before Chuck in taking down Spartan-Ives and the Attorney General agrees. She tells Chuck he has bought himself several more months in office, but his days are numbered either way. Chuck leaves with a smile on his face though as he considers this a win.

Lawrence Boyd meets with Bobby in private. He tells Axe that despite elevating himself as the "gold standard" and exemplary figure in the financial world, Chuck is now launching an investigation into him. He asks Bobby for advice, saying he is the only one that has ever dealt with Chuck Rhoades and "walked away unmarked". Boyd asks Bobby for his assistance, but Bobby reminds Boyd that when he needed his help in the aftermath of his dealings with Chuck, Boyd steered clear from him and his firm. Bobby says his next question will determine if he will do anything for the man. Axe questions Boyd if he is a bastard, because, despite the rules, he will have to be prepared to do anything and everything outside conventional morality to defeat Chuck as nothing else is good enough. Boyd assures him that there was no other way for him to get to the top of Spartan-Ives and the men shake hands. Bobby agrees to help Boyd.

## 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

* Jeffrey DeMunn as Chuck Rhoades, Sr.
* 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
* Ben Shenkman as Ira Schirmer
* Marc Kudisch as Dr. Gus
* Stephen Kunken as Ari Spyros
* Kelly AuCoin as "Dollar" Bill Stearn
* Rob Morrow as Adam DeGiulio
* Eric Bogosian as Lawrence Boyd
* Ian Kahn as Fred Reyes
* Dan Soder as Dudley Mafee
* Shaunette Renée Wilson as Stephanie Reed
* Arthur Nascarella as Bruno Capparelo
* Shannon Koob as Marriage Counselor
* Erinn Ruth as Mo
* Petronia Paley as Attorney General
* Tony Yazbeck as Marco Capparelo