1978-1981 Bob Dall proposed the establishment of a mortgage bond department based on his prediction that there will be an increase in demand for mortgage bond trading. Lewis Ranieri was tapped to lead the trading desks. He soon replaced Bob and was put in charge of the entire mortgage department. In the beginning, there was little trade and the department didn't make much money. It was viewed as the backwater of the company. There is tension between the departments (mortgage, corporate and government), but the mortgage department is essentially a separate entity with its separate support staff.
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