Inside Job

01:
00:00.00

{START}

{TITLE:
SONY PICTURES CLASSICS}

{The global economic crisis of 2008

cost tens of millions of people their

savings, their jobs, and their homes.

This is how it happened.}

01:
00:41.18

{ICELAND

POPULATION:
320,000

GROSS DOMESTIC PRODUCT: $13 BILLION

BANK LOSSES:
$100 BILLION}

01:
01:07.00

NARRATOR:
Iceland is a stable democracy with a high standard of living; and until

recently, extremely low unemployment and government debt.

ANDRI MAGNASON:
We had the complete infrastructure of a modern society; clean

energy, food production, fisheries, with a quota system to manage them.

GYLFI ZOEGA:
Good healthcare, good education; you know, clean air; uh, not much

crime; uh, it's good, a good place for families to live.

ANDRI MAGNASON:
We had almost, uh, end-of-history status.

01:
01:40.15

NARRATOR:
But in 2000, Iceland's government began a broad policy of deregulation

that would have disastrous consequences; first for the environment, and then for the

economy. They started by allowing multinational corporations like Alcoa to build giant

aluminum-smelting plants, and exploit Iceland's natural geothermal and hydroelectric

energy sources.

ANDRI MAGNASON:
Many of the most beautiful areas in the highlands, with the most

spectacular colors, are geothermal. So nothing comes without consequence.

01:
02:38.19

[BOOM!]

01:
02:53.15

Inside Job transcript – Sony Pictures – September 2010

2

NARRATOR:
At the same time, the government privatized Iceland's three largest banks.

The result was one of the purest experiments in financial deregulation ever conducted.

01:
03:09.20

{SEPTEMBER 2008}

DEMONSTRATOR:
We have had enough! But how could all of this happen?

GYLFI ZOEGA:
Finance took over. Um, and uh, more or less wrecked the place.

NARRATOR:
In a five-year period, these three tiny banks, which had never operated

outside of Iceland, borrowed 120 billion dollars, ten times the size of Iceland's economy.

The bankers showered money on themselves, each other, and their friends.

01:
03:35.27

GYLFI ZOEGA:
There was a massive bubble. Stock prices went up by a factor of nine;

uh, house prices more than doubled.

NARRATOR:
Iceland's bubble gave rise to people like Jón Ásgeir Jóhannesson. He

borrowed billions from the banks to buy up high-end retail businesses in London. He

also bought a pinstriped private jet, a 40-million-dollar yacht, and a Manhattan

penthouse.

01:
04:01.17

ANDRI MAGNASON:
Newspapers always had the headline: this millionaire bought this

company, uh, in the UK, or in Finland, or in, in France, or wherever; uh, instead of

saying, this millionaire took a billion-dollar loan to buy this company, and he took it from

your local bank.

01:
04:22.15

GYLFI ZOEGA:
The banks set up money market funds. And the banks advised deposit-

holders to withdraw money, and put them in the money market funds. The Ponzi

scheme needed everything it could, huh?

01:
04:33.05

NARRATOR:
American accounting firms, like KPMG, audited the Icelandic banks and

investment firms, and found nothing wrong; and American credit-rating agencies said

Iceland was wonderful.

SIGRÍ.UR BENEDIKTSDÓTTIR: In February 2007, the rating agencies decided to

upgrade the banks to the highest possible rate – AAA.

Inside Job transcript – Sony Pictures – September 2010

3

GYLFI ZOEGA:
It went so far as the government here traveling with the bankers, as a,

as, as a PR show.

01:
05:03.15

NARRATOR:
When Iceland's banks collapsed at the end of 2008, unemployment tripled

in six months.

ANDRI MAGNASON:
There is nobody unaffected in Iceland.

01:
05:22.24

CHARLES FERGUSON: So a lot of people here lost their savings.

GYLFI ZOEGA:
Yes, that's the case.

NARRATOR:
The government regulators who should have been protecting the citizens

of Iceland had done nothing.

GYLFI ZOEGA:
You have two lawyers from the regulator, {STUTTER} going to a bank

to talk about some issue. When they approach the bank, they would see 19, uh, SUVs

outside, heh, outside the bank. Right? So you got to the bank, and you have the 19

lawyers sitting, uh, in front of you, right? They are very well prepared; uh, uh, ready to

kill any argument you make. And then, if you do really well, they offer you a job, right?

01:
06:01.24

NARRATOR:
One-third of Iceland's financial regulators went to work for the banks.

GYLFI ZOEGA:
But this is a universal problem, huh. In New York, you have the same

problem, right?

01:
06:13.25 {MUSIC CUE}

{SONY PICTURES CLASSICS

PRESENTS:

A REPRESENTATIONAL PICTURES FILM

IN ASSOCIATION WITH

SCREEN PASS PICTURES

A CHARLES FERGUSON FILM}

{INSIDE JOB}

Inside Job transcript – Sony Pictures – September 2010

01:
06:44.22

CHARLES FERGUSON: What do you think of Wall Street incomes these days?

PAUL VOLCKER:
Excessive.

{PAUL VOLCKER

FORMER FEDERAL RESERVE CHAIRMAN}

01:
06:51.17

CHARLES FERGUSON: I have been told it's extremely difficult for the IMF to criticize

the United States.

DOMINIQUE STRAUSS-KAHN: I won't say that.

{DOMINIQUE STRAUSS-KAHN

MANAGING DIRECTOR

INTERNATIONAL MONETARY FUND}

MARK BRANSON:
We deeply regret our breaches of U.S. law.

{NARRATED BY MATT DAMON}

01:
07:12.18

JONATHAN ALPERT:
They’re amazed at how much cocaine these Wall Streeters can

use, and get up and go to work the next day.

{MUSIC BY ALEX HEFFES}

01:
07:21.21

GEORGE SOROS:
I didn't know what credit default swaps are. I'm a little bit old-

fashioned.

{GEORGE SOROS

BILLIONAIRE INVESTOR, PHILANTHROPIST}

{MUSIC SUPERVISOR: SUSAN JACOBS}

CHARLES FERGUSON: Has Larry Summers ever expressed remorse?

REP. BARNEY FRANK: Um, I, I don't hear confessions.

Inside Job transcript – Sony Pictures – September 2010

{BARNEY FRANK

CHAIRMAN, FINANCIAL SERVICES COMMITTEE

U.S. HOUSE OF REPRESENTATIVES}

{DIRECTORS OF PHOTOGRAPHY

SVETLANA CVETKO &

KALYANEE MAM}

{RESEARCH:
KALYANEE MAM}

01:
07:52.07

KENNETH ROGOFF:
The government's just writing checks. That's Plan A, that's Plan

B, and that's Plan C.

CHARLES FERGUSON: Would you support legal controls on executive pay?

DAVID McCORMICK:
Uh, I, I would not.

{DAVID McCORMICK

UNDER SECRETARY OF THE TREASURY

BUSH ADMINISTRATION}

01:
08:07.00

CHARLES FERGUSON: Are you comfortable with the level of compensation in the

financial services industry?

SCOTT TALBOTT:
If they’ve earned it, then yes. I am.

CHARLES FERGUSON: Do you think they've earned it?

SCOTT TALBOTT:
I think they've earned it.

{SCOTT TALBOTT

CHIEF LOBBYIST:

FINANCIAL SERVICES ROUNDTABLE}

01:
08:17.00

CHARLES FERGUSON: And so you've helped these people blow the world up.

SATYAJIT DAS:
Oh, you could say that.

{GRAPHICS BY BIGSTAR}

01:
08:31.00

Inside Job transcript – Sony Pictures – September 2010

ANDREW SHENG:
They were having massive private gains at public loss.

{ANDREW SHENG

CHIEF ADVISOR:

CHINA BANKING REGULATORY COMMISSION}

{EDITORS

CHAD BECK & ADAM BOLT}

01:
08:43.20

LEE HSIEN LOONG:
When you start thinking that you can create something out of

nothing, it's very difficult to resist.

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