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 30<br />
bonuses as soon as contracts were signed. But if the CDOs later went bad, AIG would<br />
be on the hook.<br />
NOURIEL ROUBINI: People were essentially being rewarded for taking massive risks.<br />
Uh, in good times, they generate short-term revenues and profits, and therefore<br />
bonuses. But that's gonna lead to the firm to be bankrupt over time. That's a totally<br />
distorted system of compensation.<br />
01:39:07.13<br />
NARRATOR: AIG's Financial Products Division in London issued 500 billion dollars<br />
worth of credit default swaps during the bubble, many of them for CDOs backed by<br />
subprime mortgages.<br />
The 400 employees at AIGFP made 3.5 billion dollars between 2000 and 2007. Joseph<br />
Cassano, the head of AIGFP, personally made 315 million dollars.<br />
01:39:34.00<br />
{JOSEPH CASSANO ON AN AIG CONFERENCE CALL<br />
WITH INVESTORS, AUGUST 2007.}<br />
JOSEPH CASSANO: It's hard for us, with, and with, without being flippant, to even see<br />
a scenario, within any kind of realm of reason, that would see us losing one dollar in any<br />
of those transactions.<br />
01:39:48.05<br />
NARRATOR: In 2007, AIG's auditors raised warnings. One of them, Joseph St. Denis,<br />
resigned in protest after Cassano repeatedly blocked him from investigating AIGFP's<br />
accounting.<br />
REP. HENRY WAXMAN: Let me tell you one person that didn't get a bonus while<br />
everybody else was getting bonuses:<br />
{HENRY WAXMAN<br />
CHAIRMAN, HOUSE OVERSIGHT COMMITTEE}<br />
– that was St. Denis, Mr. St. Denis, who tried to alert the two of you to the fact that you<br />
were running into big problems. He quit in frustration, and he didn't get a bonus.<br />
01:40:16.29