Inside Job Transcript - Final Version - 9.30.10 - Sony Pictures Classics
Inside Job Transcript - Final Version - 9.30.10 - Sony Pictures Classics
Inside Job Transcript - Final Version - 9.30.10 - Sony Pictures Classics
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<strong>Inside</strong> <strong>Job</strong> transcript – <strong>Sony</strong> <strong>Pictures</strong> – September 2010 20<br />
01:23:36.23<br />
NARRATOR: Using derivatives, bankers could gamble on virtually anything. They could<br />
bet on the rise or fall of oil prices, the bankruptcy of a company; even the weather. By<br />
the late 1990s, derivatives were a 50-trillion-dollar unregulated market.<br />
01:23:54.20 In 1998, someone tried to regulate them.<br />
Brooksley Born graduated first in her class at Stanford Law School, and was the first<br />
woman to edit a major law review. After running the derivatives practice at Arnold &<br />
Porter, Born was appointed by President Clinton to chair the Commodity Futures Trading<br />
Commission, which oversaw the derivatives market.<br />
01:24:17.24<br />
MICHAEL GREENBERGER: Brooksley Born asked me if I would come work with her.<br />
Uh, we decided that this was a serious, potentially destabilizing market.<br />
{MICHAEL GREENBERGER<br />
FORMER DEPUTY DIRECTOR (1997-2000)<br />
COMMODITY FUTURES TRADING COMMISSION}<br />
NARRATOR: In May of 1998, the CFTC issued a proposal to regulate derivatives.<br />
Clinton's Treasury Department had an immediate response.<br />
01:24:38.08<br />
MICHAEL GREENBERGER: I happened to go into Brooksley's office. And she was just<br />
putting down the receiver on her telephone. And the blood had drained from her face.<br />
And she looked at me, and said: That was Larry Summers. He had 13 bankers in his<br />
office. He conveyed it in a very bullying fashion – sort of directing her to stop.<br />
01:25:06.03<br />
{SATYAJIT DAS<br />
DERIVATIVES CONSULTANT<br />
AUTHOR, TRADERS, GUNS & MONEY}<br />
SATYAJIT DAS: The banks were now heavily reliant for earnings on these types of<br />
activities. And that led to a titanic battle to prevent this set of instruments from being<br />
regulated.<br />
NARRATOR: Shortly after the phone call from Summers, Greenspan, Rubin, and SEC<br />
Chairman Arthur Levitt issued a joint statement condemning Born, and recommending<br />
legislation to keep derivatives unregulated.