Inside Job Page #12

02:
10:49.22

CHARLES FERGUSON: He was the senior advocate for prohibiting the regulation of

credit default swaps; and also lifting the leverage limits on the investment banks.

DAVID McCORMICK:
So a-, again, what –

Inside Job transcript – Sony Pictures – September 2010

53

CHARLES FERGUSON: He mentioned those things? I never heard him mention those

things.

DAVID McCORMICK:
C-, can we turn this off for a second?

{HENRY PAULSON DECLINED

TO BE INTERVIEWED FOR THIS FILM.}

02:
11:13.21

NARRATOR:
When AIG was bailed out, the owners of its credit default swaps, the most

prominent of which was Goldman Sachs, were paid 61 billion dollars the next day.

Paulson, Bernanke, and Tim Geithner forced AIG to pay 100 cents on the dollar, rather

than negotiate lower prices. Eventually, the AIG bailout cost taxpayers over 150 billion

dollars.

MICHAEL GREENBERGER: A hundred and sixty billion dollars went through AIG; 14

billion went to Goldman Sachs.

02:
11:45.17

NARRATOR:
At the same time, Paulson and Geithner forced AIG to surrender its right

to sue Goldman and the other banks for fraud.

CHARLES FERGUSON: Isn't there a problem when the person in charge of dealing with

this crisis is the former CEO of Goldman Sachs; someone who had a major role in

causing it?

DAVID McCORMICK:
Well, I think it's fair to say that the financial markets today are

incredibly complicated.

02:
12:08.28

GEORGE W. BUSH:
– supply urgently needed money so banks and other financial

institutions –

NARRATOR:
On October 4th, 2008, President Bush signs a 700-billion-dollar bailout

bill. But world stock markets continue to fall, amid fears that a global recession is now

underway.

02:
12:28.20 The bailout legislation does nothing to stem the tide of layoffs and

foreclosures. Unemployment in the United States and Europe quickly rises to 10

percent. The recession accelerates, and spreads globally.

Inside Job transcript – Sony Pictures – September 2010

54

02:
12:46.01

CHARLES MORRIS:
I began to get really scared, 'cause I hadn't foreseen the whole

world going down at the same rate at the same time.

NARRATOR:
By December of 2008, General Motors and Chrysler are facing

bankruptcy. And as U.S. consumers cut back on spending, Chinese manufacturers see

sales plummet. Over 10 million migrant workers in China lose their jobs.

02:
13:14.14

DOMINIQUE STRAUSS-KAHN: At the end of the day, the poorest, as always, pay the

most.

{CHINA GRAND LIGHTING FACTORY

GUANGDONG PROVINCE, CHINA}

02:
13:24.14

JOANNA XN:
Here you can earn a lot of money, like, uh, 70, 80, uh, U.S. dollars per

month. As a farmer in the countryside, you cannot earn as much money. The workers

just wire their salaries to their hometown. To give to their families.

The crisis started in America. We all know it will be coming to China.

02:
13:57.19 Some of the factories try to cut off some workers. Some people will get

poor because they’ll lose their jobs. Life gets harder.

{SINGAPORE}

02:
14:16.18

{PATRICK DANIEL

EDITOR IN CHIEF:

SINGAPORE PRESS HOLDINGS}

PATRICK DANIEL:
We were growing at about 20 percent. It was a super year. And

then we suddenly went to minus nine this quarter. Exports collapsed. And we're talking

like 30 percent.

So we just took a hit, you know, fell off a cliff, boom!

02:
14:35.17

LEE HSIEN LOONG:
Even as the crisis unfolded, we didn't know how wide it was going

to spread, or how severe it was going to be. And we were still hoping that there would

Inside Job transcript – Sony Pictures – September 2010

55

be some way for us to have a shelter, and be, uh, less battered by the storm. But it is

not possible. It's a very globalized world; the economies are all linked together.

02:
15:23.09

{FORECLOSURES IN THE UNITED STATES

REACHED 6 MILLION BY EARLY 2010.}

ERIC HALPERIN:
Every time a home goes into foreclosure, it affects everyone who

lives around that house. 'Cause when that property goes on the market, it's gonna be

sold at a lower price; maybe before it goes on the market, it won't be well maintained.

We estimate another 9 million homeowners will lose their homes.

02:
15:50.10

{COLUMBA RAMOS

SAN JOSE, CA}

COLUMBA RAMOS:
{We went out on a weekend to see what houses were for sale.

We saw one we liked. The payment was going to be $3,200.}

{COLUMBA RAMOS AND HER HUSBAND DON'T SPEAK ENGLISH.

THEY WERE DEFRAUDED BY THEIR MORTGAGE BROKER,

WHO WAS PAID BY A PREDATORY LENDER.}

COLUMBA RAMOS:
{Everything was beautiful, the house was very pretty. The

payment was low. Everything was – we won the lottery. But the reality was when the

first payment arrived.

I felt very bad for my husband. Because he works too much.

02:
16:39.23

{"TENT CITY"

PINELLAS COUNTY, FLORIDA}

02:
16:48.02

{ERIC EVANOUSKAS

VOLUNTEER, CATHOLIC CHARITIES}

ERIC EVANOUSKAS:
The vast majority I've seen lately, unfortunately, are people who

have just been hurt by the economy. They were living, you know, day to day, paycheck

Inside Job transcript – Sony Pictures – September 2010

56

to paycheck, and unfortunately, that ran out. And unemployment isn't gonna pay a

house mortgage; it's not gonna pay a car bill.

02:
17:00.15

{STEVEN A. STEPHEN

FORMER CONSTRUCTION WORKER}

STEVEN A. STEPHEN: I was a log-truck driver. And they shut down, they shut down all

the logging systems up there; shut down the sawmills and everything. So I moved down

here, I had a construction job. And the construction jobs got shut down too, so – things

are so tough, there's a lot o' people out there, and pretty soon, you're gonna be seeing

more camps like this around, because there's just no jobs right now.

02:
17:21.29 {PART IV: ACCOUNTABILITY}

{RICHARD FULD

CEO OF LEHMAN BROTHERS}

RICHARD FULD:
When the company did well, we did well; when the company did not

do well, sir, we did not do well.

NARRATOR:
The men who destroyed their own companies, and plunged the world into

crisis, walked away from the wreckage with their fortunes intact.

The top five executives at Lehman Brothers made over a billion dollars between 2000

and 2007; and when the firm went bankrupt, they got to keep all the money.

02:
17:54.03

RICHARD FULD:
The system worked.

ANGELO MOZILO:
It doesn't make any sense for us to make a loan that's gonna fail,

'cause we lose. They lose; the borrower loses; the community loses; and we lose.

02:
18:02.26

NARRATOR:
Countrywide's CEO Angelo Mozilo made 470 million dollars between 2003

and 2008. One hundred forty million came from dumping his Countrywide stock in the

12 months before the company collapsed.

02:
18:17.04

Inside Job transcript – Sony Pictures – September 2010

57

BILL ACKMAN:
Ultimately, I hold the board accountable when a business fails. 'Cause

the board is responsible for hiring and firing the CEO and overseeing big strategic

decisions. The problem with board composition in America is the way boards are

elected. You know, the boards are pretty much, in many cases, picked by the CEO.

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