Inside Lehman Brothers (2019) Documentary

  • last year
In the autumn of 2007, Matthew Lee, a worried accounting executive at Lehman Brothers, began to notice serious financial irregularities in the company's practices. When he refused to approve tens of billions of dollars' worth of suspicious transactions, he was fired. Six months later, Lehman Brothers sank with 631 billion dollars of debt. Lee, who has since emerged as a crucial figure in Lehman's downfall, and other whistle blowers recount their personal stories of fraud and deception that went right to the top of the bank. Ultimately, they paid the price for trying to expose the 2008 subprime mortgage crisis.
Transcript
00:28Wall Street was destined for where
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined3
undefined:undefined
undefined:undefinedand it did burst,
00:47and Lehman helped to burst.
00:52I don't tell people I used
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined8
undefined:undefined9
undefined:undefined
undefined:undefinedof things all happening
01:11and I don't think
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined13
undefined:undefined14
undefined:undefined
undefined:undefineda bit aggressive.
01:57I quickly learned the culture is
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined18
undefined:undefined19
undefined:undefined20
undefined:undefined21
undefined:undefined22
undefined:undefined23
undefined:undefined
undefined:undefined
undefined:undefinedan electric feeling, but...
02:50I'd never felt so...
02:53..intense, all day, as I did
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined29
undefined:undefined30
undefined:undefined31
undefined:undefined
undefined:undefinedin what they were doing.
03:16They thought they were going to hit
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined35
undefined:undefined
undefined:undefinedwho were greatly concerned
03:27and believed that Lehman
03:28was putting itself at enormous risk,
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined40
undefined:undefined41
undefined:undefined
undefined:undefinedwhat was it they were doing
03:46and how did they end up
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined45
undefined:undefined46
undefined:undefined
undefined:undefinedso they could advise us.
04:02I had no sense in the beginning
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined52
undefined:undefined
undefined:undefinedof billions of dollars.
04:24But it wasn't just the size
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined57
undefined:undefined
undefined:undefined
undefined:undefinedlarge part of the financial economy,
04:41at least for a short period of time,
04:43and we're still living with the
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined64
undefined:undefined65
undefined:undefined
undefined:undefinednewer bank.
05:20It did have a reputation
05:22as an exciting up-and-coming
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined70
undefined:undefined
undefined:undefined
undefined:undefineddone
05:40without an undue risk
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined79
undefined:undefined
undefined:undefinedin that entire chain.
06:06We did have one of the best real
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined83
undefined:undefined84
undefined:undefined
undefined:undefinedindustry in 1981...
06:34..as a receptionist.
06:38And I felt that it was really
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined90
undefined:undefined
undefined:undefined
undefined:undefinedto fulfil the American dream...
07:15..to have a home where a family
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined97
undefined:undefined98
undefined:undefined
undefined:undefined
undefined:undefinedindustry
08:04was the freedom that it offered.
08:07I was able to work the hours
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined105
undefined:undefined106
undefined:undefined
undefined:undefined
undefined:undefined
undefined:undefinedin another industry?
08:40Where can I go without a degree?
08:44I started somewhere from the bottom
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined118
undefined:undefined119
undefined:undefined
undefined:undefinedthey were stable
09:18and that they were reputable,
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined123
undefined:undefined
undefined:undefinedfinancial institutions in the world
09:30and so I felt very confident
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined128
undefined:undefined
undefined:undefinedand opportunities
09:47that are going on here.
09:49I can assure you that you'll get
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined134
undefined:undefined
undefined:undefined
undefined:undefinedfrom November of 2003
10:16and I was an underwriter.
10:20When I got into the business,
10:22underwriter's job was to go
10:25into the file and either
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined142
undefined:undefined
undefined:undefined
undefined:undefinedon our back.
10:50That's what puts the pressure on us,
10:53when there is a shop that are not
10:57doing all of their deals
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined149
undefined:undefined
undefined:undefinedeasy and understandable.
11:08It's a strong market.
11:10People still need a place to live.
11:11Do you own a house?
11:13Are you looking for lower
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined156
undefined:undefined157
undefined:undefined
undefined:undefinedthe largest investment
11:26of your life, you're going to go
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined161
undefined:undefined
undefined:undefinedis cheaper than rent!
11:35And new home sales
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined165
undefined:undefined
undefined:undefined
undefined:undefinedexpansion and development
11:51of new forms of lending,
11:53subprime lending,
11:55and there was a realisation
11:56that this was a market
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined173
undefined:undefined174
undefined:undefined175
undefined:undefined
undefined:undefinedgullible
12:26and sales is sales.
12:27You know, if you've got the gift
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined181
undefined:undefined
undefined:undefined
undefined:undefinedlow credit or high debt.
12:44It's called a subprime mortgage.
12:47Many of these loans entice borrowers
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined187
undefined:undefined
undefined:undefinedto make
13:05and then they would charge an
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined192
undefined:undefined193
undefined:undefined
undefined:undefined
undefined:undefinedadministratively,
13:26the company,
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined198
undefined:undefined
undefined:undefinedbook
13:52that people don't focus on.
14:02I focus on it all the time
14:04because I'm waiting for justice,
14:06which hasn't happened yet.
14:10Since 2008, nobody of importance
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined206
undefined:undefined207
undefined:undefined208
undefined:undefined
undefined:undefinedwho have ethical or moral standards,
14:36may seem quite illegal.
14:39But if there's no law,
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined213
undefined:undefined
undefined:undefinedI kept having
15:01these sort of troubling moments of,
15:03"Wait a second.
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined218
undefined:undefined219
undefined:undefined220
undefined:undefined
undefined:undefined
undefined:undefinedthe world
15:19"or they want to treat
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined226
undefined:undefined227
undefined:undefined
undefined:undefinedeach month
15:51and the goal would go up.
15:53So let's start, like, two billion
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined233
undefined:undefined
undefined:undefinedloan files on her desk.
16:15Files she was working on
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined237
undefined:undefined
undefined:undefined
undefined:undefinedorder for them to meet their quotas,
16:38they just started bringing in junk.
16:50I always consider myself
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined245
undefined:undefined246
undefined:undefined247
undefined:undefined
undefined:undefinedtest for the underwriter.
17:18And, unfortunately, a lot of the BNC
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined252
undefined:undefined253
undefined:undefined254
undefined:undefined
undefined:undefinedwhat they want me to know,
17:48but they don't realise
17:49that the average balance does not
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined259
undefined:undefined260
undefined:undefined
undefined:undefinedI went into my office.
18:15When I got through the first one,
18:18I'm calculating, I'm retaining
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined265
undefined:undefined
undefined:undefined
undefined:undefined
undefined:undefined
undefined:undefinedthe social
18:47and the party's name who it was to.
18:52So then I said, "Hmm, it looked
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined273
undefined:undefined
undefined:undefinednumber,
19:08so it was a different company
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined277
undefined:undefined
undefined:undefined
undefined:undefinedone?"
19:26Picked up the fourth file,
19:27picked up the fifth file,
19:29all from the same lender.
19:30Oh, my goodness.
19:32All fraud.
19:34It's disgusting.
19:38And I got a phone call from Linda
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined288
undefined:undefined
undefined:undefinedfrom my clients, and she says,
19:50"I want you to look through these
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined292
undefined:undefined
undefined:undefinednumbers are the same,
20:05but the companies are different.
20:07My goodness.
20:09And so I said, "OK, that mortgage
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined298
undefined:undefined299
undefined:undefined300
undefined:undefined
undefined:undefinedwhich he did,
20:31but that he was earning $7,000.
20:38And so I got in my car
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined307
undefined:undefined
undefined:undefineda month from this business."
20:58It doesn't happen.
21:01What I did not know is that someone
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined312
undefined:undefined313
undefined:undefined314
undefined:undefined
undefined:undefinedof them committing fraud.
21:34I realised that the entire
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined318
undefined:undefined319
undefined:undefined320
undefined:undefined
undefined:undefined
undefined:undefined
undefined:undefined
undefined:undefinedcos that's just not who I am.
22:14LAUGHTER
22:17Very few people ever saw
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined329
undefined:undefined
undefined:undefined
undefined:undefinedbut it's not good enough.
22:33"Next quarter, we want more."
22:36I am soft, I'm lovable.
22:39But what I really want to do is,
22:41I want to reach in, rip out their
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined338
undefined:undefined
undefined:undefined
undefined:undefinedon Wall Street.
23:10In that year, he was named
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined344
undefined:undefined
undefined:undefined
undefined:undefinedPaulson as the eternal optimist.
23:28He said, "If Dick Fuld was
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined349
undefined:undefined350
undefined:undefined
undefined:undefined
undefined:undefinedthe law wherever he would? Maybe.
23:45In my view, apparently.
23:47That's
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined356
undefined:undefined
undefined:undefinedHe was known as The Gorilla
23:57and this ripping of the heart out
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined360
undefined:undefined
undefined:undefined
undefined:undefinedFuld giving this speech
24:10about how if anybody gets
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined365
undefined:undefined
undefined:undefinedup on the 31st floor, in the end.
24:33He had his own elevator.
24:39And he'd walk in and he'd stand
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined372
undefined:undefined
undefined:undefined
undefined:undefined
undefined:undefinedthat they are paid
25:07and you have to disclose
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined378
undefined:undefined
undefined:undefinedcovers us.
25:33So let's say for the CEO, Dick Fuld,
25:35we would disclose, a year later,
25:3730 million, and he really got
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined384
undefined:undefined
undefined:undefinedbigger and bigger.
25:48It was a source of constant bother
25:50and finally, in 2006, I said,
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined390
undefined:undefined
undefined:undefinedparticular accounts away from me
26:14and passing them
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined394
undefined:undefined395
undefined:undefined
undefined:undefined
undefined:undefined
undefined:undefined
undefined:undefinedvice president
26:41and it went from bad
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined402
undefined:undefined
undefined:undefinedDon't know anything about them."
27:00Went to the next person -
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined406
undefined:undefined407
undefined:undefined
undefined:undefined
undefined:undefined
undefined:undefinedup to me and he said,
27:24"Well, they're not here
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined413
undefined:undefined
undefined:undefinedno basis
27:38because my credibility is tarnished,
27:41because I lost files,
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined418
undefined:undefined419
undefined:undefined
undefined:undefinedthings start changing.
28:28They walked in our office
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined423
undefined:undefined424
undefined:undefined
undefined:undefined
undefined:undefinedprofessionally dressed,
28:50hair messed up, not groomed.
28:55And he would just walk around
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined431
undefined:undefined
undefined:undefinedclose to mine.
29:10And then that's when he's kind
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined437
undefined:undefined
undefined:undefinedsexual,
29:28which was just totally out of place.
29:31And it's like, "Urgh!"
29:34You know?
29:44On the particular day
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined444
undefined:undefined
undefined:undefined
undefined:undefinedand whispered in my ear,
29:58he said, "I know everything
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined449
undefined:undefined450
undefined:undefined451
undefined:undefined
undefined:undefinedyou down.
30:49They're not going to shoot me.
30:51They're not going to run me off
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined457
undefined:undefined458
undefined:undefined459
undefined:undefined
undefined:undefined
undefined:undefined
undefined:undefinedWe just want our mum back."
31:30My attorney, my trainer, all told
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined468
undefined:undefined469
undefined:undefined
undefined:undefinednever seen anything like that.
32:19What's interesting, these women
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined474
undefined:undefined
undefined:undefined
undefined:undefinedthe mortgages were happening,
32:37they came together and said,
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined480
undefined:undefined481
undefined:undefined
undefined:undefinedthat
33:00because these women's lives
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined485
undefined:undefined
undefined:undefinedon my radar
33:33was when I read the papers
33:35about the alleged mortgage fraud
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined491
undefined:undefined
undefined:undefinedwere right,
33:48and don't ask questions.
33:52The total assets of Lehman Brothers
33:54were about $1.5 trillion.
33:59But then they had derivatives,
34:01which work in what's called notional
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined500
undefined:undefined501
undefined:undefined502
undefined:undefined503
undefined:undefined
undefined:undefinedtrue.
34:40But a lot of homeowners
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined507
undefined:undefined
undefined:undefined
undefined:undefinedare like an infection
34:56now spreading
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined513
undefined:undefined
undefined:undefinedwhich is right here.
35:26OK.
35:34Do you run into a lot of traffic
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined519
undefined:undefined
undefined:undefinedmy blood pressure
35:50was up a little bit and stuff like
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined523
undefined:undefined
undefined:undefinedhaving an interview
36:00while I was out on break,
36:02which was a good thing,
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined528
undefined:undefined
undefined:undefined
undefined:undefinedtold not to give you any loans."
36:27It's about 11 o'clock.
36:28I report to work at 8:30.
36:30No work. I'm just sitting there.
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined535
undefined:undefined536
undefined:undefined537
undefined:undefined538
undefined:undefined
undefined:undefinedlooked at it, she's like,
36:51"You quit?"
36:53"Yes, I quit."
36:54And she said, for some reason,
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined544
undefined:undefined545
undefined:undefined
undefined:undefined
undefined:undefinedone day sitting on my couch,
37:54calling the new supervisor
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined550
undefined:undefined
undefined:undefined
undefined:undefined
undefined:undefinedlike, oh, my gosh.
38:15The bottom fell out.
38:1814.8 million American adults
38:22suffer with depressions.
38:26Right. Amen.
38:27And then I eventually lost
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined560
undefined:undefined561
undefined:undefined
undefined:undefinedthat I bought by myself.
38:47The car that repossessed.
38:54And I couldn't send Sean
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined566
undefined:undefined
undefined:undefinedhis career.
39:11Amen. Amen.
39:18And by 2007, you knew
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined571
undefined:undefined
undefined:undefined
undefined:undefined
undefined:undefined
undefined:undefinedissued its very first losses
40:03that they'd ever incurred
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined578
undefined:undefined
undefined:undefinedthey had no-one wanted to buy.
40:19So, what they did was
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined583
undefined:undefined
undefined:undefinedand rating agencies,
40:42for purpose of determining how
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined587
undefined:undefined
undefined:undefined
undefined:undefined"We've reduced our balance sheet
40:59"because we sold
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined594
undefined:undefined
undefined:undefinedwould be made public,
41:16and, by doing so,
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined599
undefined:undefined
undefined:undefinedbe considered as sales
41:34rather than simply loans,
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined603
undefined:undefined
undefined:undefinedcommentators, TV personalities
41:55would say, "Well,
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined607
undefined:undefined608
undefined:undefined
undefined:undefinedit was red, with bells ringing.
42:15Lehman were hiding all kinds
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined612
undefined:undefined
undefined:undefinedthis loophole then.
42:26But then the rules changed.
42:27At the end of 2006,
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined617
undefined:undefined618
undefined:undefined
undefined:undefinedinformation, came out in March 2008,
42:45so I had already been away
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined623
undefined:undefined624
undefined:undefined
undefined:undefinedand they disclosed 146 million.
43:04They hid $260 million worth
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined629
undefined:undefined
undefined:undefined
undefined:undefinedthat said, "Hey,
43:30"the Lehman executives have been
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined634
undefined:undefined
undefined:undefined
undefined:undefined
undefined:undefined
undefined:undefinedWhat can I do?"
44:01I didn't really have much faith
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined641
undefined:undefined
undefined:undefinedand it is your duty.
44:15So, I sat down on Sunday afternoon
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined646
undefined:undefined
undefined:undefinedconduct and practises, however,
44:38"that I feel compelled
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined650
undefined:undefined
undefined:undefined
undefined:undefined
undefined:undefineda letter complaining that, in fact,
45:05Lehman Brothers was making
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined657
undefined:undefined
undefined:undefined"We think he's telling the truth."
45:19And I said, "I just don't... I can't
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined662
undefined:undefined
undefined:undefineda drug we are on.
45:35You know, all those sort of things.
45:37And I realised that, in fact,
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined667
undefined:undefined
undefined:undefinedand I saw it was my boss.
46:05So, I swivel my chair
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined671
undefined:undefined672
undefined:undefined673
undefined:undefined
undefined:undefined
undefined:undefinedin decades today sent
46:27political and economic shock waves
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined678
undefined:undefined
undefined:undefinedcalled the Masters of the Universe,
46:41were sent packing, humiliated.
46:46I never for a minute thought
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined683
undefined:undefined
undefined:undefinedof Lehman,
46:59but, because of their actions,
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined687
undefined:undefined
undefined:undefined
undefined:undefinedaround the world, dramatically.
47:20Take a look at this.
47:21Nothing like this
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined693
undefined:undefined
undefined:undefinedthat they're just running.
47:31They're just... They've taken
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined697
undefined:undefined
undefined:undefinedto figure out
47:43what they were going to do
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined701
undefined:undefined
undefined:undefinedon Park Avenue.
47:55Another lavish estate
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined706
undefined:undefined
undefined:undefined
undefined:undefinedfor you - is this fair?
48:19Did you mislead your investors?
48:21And I remind you,
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined712
undefined:undefined
undefined:undefinedwas everyone wanted to talk.
48:39And you know
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined717
undefined:undefined
undefined:undefined
undefined:undefinedthe position of everybody else
49:00that we interviewed - it wasn't him.
49:02He did not cause the disaster.
49:08I asked him whether or not
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined724
undefined:undefined725
undefined:undefined
undefined:undefined
undefined:undefinedon that in making his judgment
49:26and he said,
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined730
undefined:undefined731
undefined:undefined
undefined:undefinedbillions trading stocks, bonds
49:42and other securities.
49:44None of them had headed major
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined737
undefined:undefined738
undefined:undefined
undefined:undefinedthrough these quickly.
50:07It's not just one single thing.
50:10It's all these things
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined745
undefined:undefined
undefined:undefinedthe American dream.
50:31The actual documents we reviewed
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined749
undefined:undefined
undefined:undefinedhad put personnel on premises
50:46with Lehman Brothers.
50:53Lehman Brothers provided
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined755
undefined:undefined
undefined:undefined
undefined:undefinedthe materials, which reflected that,
51:14and yet nothing was done.
51:16Why?
51:19The Securities and Exchange
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined763
undefined:undefined764
undefined:undefined
undefined:undefinedan e-mail, which was spectacular,
51:37because what it says is, in essence,
51:39"Oh, my God, look at this.
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined770
undefined:undefined
undefined:undefinedthe top people are brought in
51:53with every new president.
51:54They are not people who have worked
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined776
undefined:undefined
undefined:undefined
undefined:undefinedinto the Department of Justice,
52:14and these become our top cops,
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined781
undefined:undefined
undefined:undefinedthe largest firms on Wall Street.
52:31This country cannot afford
52:33four more years of
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined786
undefined:undefined
undefined:undefinedthe top boss,
52:48the CEO of the SEC, if you will.
52:50And then there is something called
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined791
undefined:undefined
undefined:undefinedone of the biggest banks
53:04involved in the crisis, OK?
53:06And, furthermore, Deutsche Bank
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined796
undefined:undefined
undefined:undefined
undefined:undefinednever going to happen.
53:20And close the book.
53:22No charges on Repo 105
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined802
undefined:undefined
undefined:undefinedmoney, and so we were contacted
53:39by the lawyers for Lehman Brothers
53:41and they said they wanted
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined807
undefined:undefined
undefined:undefined
undefined:undefinedin bankruptcy
53:59for all these years since 2008
54:02and Lehman keeps saying, "Well,
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined813
undefined:undefined
undefined:undefinedwhich, of course, there was,
54:15and that they're talking
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined817
undefined:undefined818
undefined:undefined
undefined:undefinedto bale out the banks
54:31and protect all of the crooks
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined823
undefined:undefined
undefined:undefined
undefined:undefinedor in shelters
54:50while the biggies get their money,
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined829
undefined:undefined
undefined:undefinedhave we regulated them
55:09so that they're, you know,
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined834
undefined:undefined
undefined:undefinedthey changed who I was.
55:33They didn't get my soul,
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined838
undefined:undefined
undefined:undefinedwere punished...
55:47..and that's never going to happen.
56:08I have no regrets
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined846
undefined:undefined847
undefined:undefined848
undefined:undefined849
undefined:undefined
undefined:undefined
undefined:undefined
undefined:undefinedat the time,
58:14given the information that I had,
58:18we made disclosures that
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined856
undefined:undefined
undefined:undefinedand small businesses
58:58all throughout the nation.
59:01The legislation I'm signing today
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined861
undefined:undefined862
undefined:undefined863
undefined:undefined
undefined:undefined
undefined:undefinedwhen they were vibrant and strong.
59:21By liberating small banks
undefined:undefined00:00:32,840 --> 00:00:35,920
undefined:undefined

Recommended