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What were KGB and grammar actually doing? I don't even really get it, or anything about shady loans etc.

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I dont think it mentions what they are actually doing. I think it just mentions in the beginning that KGB is part of the Russian Mafia.

I also agree with the guy above on wondering why Teddy KGB is viewed as so bad. He seemed to run a straight game, without cheating. He didn't beat Mike up for outplaying him on the last hand. He's good at talking trash. Also, from the opening scene, he apparently knows Mike fairly well (well enough to know he always buys for $500), and is fairly friendly toward him. When Mike hangs himself with 9's full, Teddy just calls and sez "Aces full, Mike" in a gentle voice, and that's it. He doesn't rub it in or anything. He's also decent enough to allow Mike to earn extra cash playing, instead of just taking the ten grand, and saying he still owes 5 or whatever.

I'd say Grama is the true bad guy, and gets overlooked as so.