Gekko has purchased a controlling share in the Bluestar airline company following Bud's advice -- but not with the intention to turn the fortunes of the airline around and secure the thousands of jobs.
While Bud meets with his lawyer friend (James Spader), who has refused to play any part in Bud's schemes as he is under review pending a full investigation, he is invited into a Bluestar company meeting - where it is revealed that Gekko has planned to dissolve the company and sell the assets - earning himself $80million in the process.
Bud's world falls apart, and he soon learns that his father has suffered a heart attack. While in the hospital, Bud tells his old man that he will turn it around - and he wants to be a son to make his father proud. As he plans his mission to take down his mentor, Darianne (Daryl Hannah) walks out on him, and he must return to his old station to ask a favour from his old friend Dr. Cox.
Raising the stock price for Bluestar, and getting all his trader friends to get their clients in on it, he uses Gekko's men on the inside to spread the word. Then, just as easily, he negotiates a firesale that dramatically reduces the share value - and with the instant bad reputation no one is going to take a risk on Gekko's shares that he is unable to offload.
Terence Stamp steps in with a low offer, and Gekko has no choice but to accept it.
Feeling on top of the world, Bud walks into the work the next day - but the office is strangely quiet. Waiting for him are the Feds and he is led out the office in handcuffs, he can't fight the tears as he leaves in shame.
Fox then meets with Gekko in Central Park for some angry advice, and is punched square in the jaw. As Fox exits, he meets his FBI handlers and it is revealed that he was wearing a wire - and they have Gekko on record now to be tried for insider trading himself.