Inside Job The film is about the corruption in the U S America was regulated from 1940 s to 1980 s By the end of 1980 s there was a savings and loan crisis Late 1990 s creations of giant firms 2000 internet stock crisis because of the investment in internet companies failure Derivatives became popular leading to instability Commodity Futures Modernization Act of 2000 tried to regulate derivatives but couldn t the industry was dominated by five investment banks Goldman Sachs Morgan Stanley Lehman Brothers Merrill Lynch and Bear Stearns two financial conglomerates Citigroup JPMorgan Chase three securitized insurance companies AIG MBIA AMBAC and the three rating agencies Moody s Standard Poors Fitch collateralized debt obligations CDOs were formed bundle of mortgages with loans and debts by the investment banks they sold these to investors 2001 2007 the housing boom home owners were given loans they could not repay so they amount of money loaned compared to the banks assets was way higher Goldman Sachs sold more than 3 billion worth of CDOs in the first half of 2006 Goldman also bet against the low value CDOs telling investors they were high quality The CDO market collapsed so investment banks were left with billions of dollars in loans but CDOs and real state couldn t remove Lehman Brothers collapsed leading to the collapse of the commercial paper market Merrill Lynch went to Bank of America AIG was taken by the government Unemployment rose to 10 in USA and Europe October 3 2008 President Bush signed the Troubled Asset Relief Program purchase assets and equity from financial institutions to strengthen its financial sector but global stock markets continued to fall Foreclosures reached unbelievable high levels Consequences executives were not incriminated major banks got more powerful and continue with the anti reform efforts
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