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 24<br />
NARRATOR: Between 2000 and 2003, the number of mortgage loans made each year<br />
nearly quadrupled.<br />
NOURIEL ROUBINI: Everybody in this, uh, securitization food chain, from the very<br />
beginning until the end; they didn't care about the quality of the mortgage; they were<br />
caring about maximizing their volume, and getting a fee out of it.<br />
01:29:46.05<br />
NARRATOR: In the early 2000s, there was a huge increase in the riskiest loans, called<br />
subprime. But when thousands of subprime loans were combined to create CDOs,<br />
many of them still received AAA ratings.<br />
01:30:03.06<br />
CHARLES FERGUSON: Now it would have been possible to create derivative products<br />
that don't have these risks –<br />
GILLIAN TETT: Um-hm.<br />
CHARLES FERGUSON: – that carry the equivalent of deductibles, where there are<br />
limits on the risks that can be taken on, and so forth. They didn't do that, did they?<br />
01:30:19.08<br />
GILLIAN TETT: They didn't do that; and in retrospect, they should have done.<br />
CHARLES FERGUSON: So did these guys know that they were doing something<br />
dangerous?<br />
SAM HAYES: I think they did.<br />
01:30:44.12<br />
{THE INVESTMENT BANKS ACTUALLY PREFERRED SUBPRIME<br />
LOANS, BECAUSE THEY CARRIED HIGHER INTEREST RATES.<br />
THIS LED TO A MASSIVE INCREASE IN PREDATORY LENDING.}<br />
{BORROWERS WERE NEEDLESSLY PLACED IN EXPENSIVE<br />
SUBPRIME LOANS, AND MANY LOANS WERE GIVEN<br />
TO PEOPLE WHO COULD NOT REPAY THEM.}<br />
ROBERT GNAIZDA: All the incentives that the financial institutions offered to their<br />
mortgage brokers were based on selling the most profitable products, which were<br />
predatory loans.