What happened in Wall Street when Bud was asked to cover for his client's loss?

Question

In this movie, Wall Street, Bud Fox was having a conversation with his client, it goes something like:

BUD: You are a gentleman, sure it is going down a bit, but

UNKNOWN CLIENT: give it back (not very audible)

BUD: give it to whom? you own it

BUD'S BOSS shows up standing in front of him

BUD: no, my boss is not here right now

BUD'S BOSS wants the phone to talk to this client

BUD'S BOSS: this is the sale's manager, what seems to be the problem?

UNKNOWN CLIENT: I want him to pull my account (not very audible)

BUD'S BOSS: I will discuss with the account executive.

BUD'S BOSS gives the phone back to BUD

BUD'S BOSS: I am closing the account, if he does not pay, you pay.

BUD: Mr. Lynch, I swear to you, he is lying.

BUD'S BOSS: I gave you one of the rich men's accounts, you tell me he is gonna DK for a lousy 1/4 point?

BUD: I do not think it is fair, you assigned me this guy, you know he has got a history of ...

BUD'S BOSS: somebody is gonna pay, it ain't to be me.

What is exactly the problem? Without much background knowledge, I do not understand this scene.

Answer 1

Probably because that's not what they are saying. In your quote there are missing lines.

Howard, the client, made a bad decision and lost money. Bud try to explain that it was Howard decision so he shouldn't be responsible for it. Howard then lie to Bud boss about it and he make a decision that it have to be Bud who need to pay (in real money) for this.

You can read the script Wall Street Script

BTW. Bud have to pay 7K$ in one day. Around 15K in 2018 money.