All language subtitles for The.Last.Days.Of.Lehman.Brothers.720p.HDTV.x264-BiA-eng
Afrikaans
Albanian
Amharic
Arabic
Armenian
Azerbaijani
Basque
Belarusian
Bengali
Bosnian
Bulgarian
Catalan
Cebuano
Chichewa
Chinese (Simplified)
Chinese (Traditional)
Corsican
Croatian
Czech
Danish
Dutch
English
Esperanto
Estonian
Filipino
Finnish
French
Frisian
Galician
Georgian
German
Greek
Gujarati
Haitian Creole
Hausa
Hawaiian
Hebrew
Hindi
Hmong
Hungarian
Icelandic
Igbo
Indonesian
Irish
Italian
Japanese
Javanese
Kannada
Kazakh
Khmer
Korean
Kurdish (Kurmanji)
Kyrgyz
Lao
Latin
Latvian
Lithuanian
Luxembourgish
Macedonian
Malagasy
Malay
Malayalam
Maltese
Maori
Marathi
Mongolian
Myanmar (Burmese)
Nepali
Norwegian
Pashto
Persian
Polish
Portuguese
Punjabi
Romanian
Russian
Samoan
Scots Gaelic
Serbian
Sesotho
Shona
Sindhi
Sinhala
Slovak
Slovenian
Somali
Spanish
Sundanese
Swahili
Swedish
Tajik
Tamil
Telugu
Thai
Turkish
Ukrainian
Urdu
Uzbek
Vietnamese
Welsh
Xhosa
Yiddish
Yoruba
Zulu
Odia (Oriya)
Kinyarwanda
Turkmen
Tatar
Uyghur
Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated:
1
00:00:09,080 --> 00:00:18,480
This programme contains strong language.
2
00:00:18,480 --> 00:00:23,160
'If you talk to 100 people, 102 are going
to tell you they hate bankers,
3
00:00:23,160 --> 00:00:25,800
'but most people won't be able
to tell you why.
4
00:00:27,320 --> 00:00:29,280
'Is it because we're privileged?
5
00:00:29,280 --> 00:00:31,360
'It can't be.
6
00:00:31,360 --> 00:00:34,080
'Some of us did dirty jobs
to get through college.
7
00:00:34,080 --> 00:00:36,800
'I know one woman who paid her way
through Princeton
8
00:00:36,800 --> 00:00:39,600
'working as a call girl for the Mafia.
9
00:00:39,600 --> 00:00:42,120
'Is it because we make a lot of money?
10
00:00:42,120 --> 00:00:45,000
- 'Well, some of us do...'
- CASH REGISTER RINGS
11
00:00:45,000 --> 00:00:47,080
'..and some of us don't.
12
00:00:47,080 --> 00:00:51,320
'In general, people resent those
they perceive to be on top.
13
00:00:51,320 --> 00:00:53,840
'That's how the French Revolution happened.
14
00:00:55,520 --> 00:00:59,800
'And in the end, perception can matter
more than the truth.
15
00:00:59,800 --> 00:01:01,200
'You could have been born,
16
00:01:01,200 --> 00:01:04,240
'like I was, on the wrong side
of the tracks in Tennessee.'
17
00:01:04,240 --> 00:01:08,440
Actually, when you're from Tennessee,
it's all the wrong side of the tracks.
18
00:01:08,440 --> 00:01:11,840
'But once you get to Wall Street,
no matter how you got here,
19
00:01:11,840 --> 00:01:15,040
'you give up your right to say
you're a man of the people.
20
00:01:15,040 --> 00:01:17,240
'Here, we're all the same.
21
00:01:17,240 --> 00:01:20,200
'And we all went down together.'
22
00:01:24,840 --> 00:01:27,400
'Dick Fuld had given his life
to Lehman Brothers
23
00:01:27,400 --> 00:01:30,920
'and was well known on Wall Street
for his unique personal style.'
24
00:01:30,920 --> 00:01:32,640
His nickname is "The Gorilla".
25
00:01:32,640 --> 00:01:35,240
I can't give you more collateral!
26
00:01:35,240 --> 00:01:38,440
Not until we've had a chance
to raise a bit more cap...
27
00:01:38,440 --> 00:01:41,720
We're under-capitalised, yes,
like everybody and their...
28
00:01:41,720 --> 00:01:43,320
Jamie... Jamie.
29
00:01:43,320 --> 00:01:44,960
Jamie! I need you up here today.
30
00:01:44,960 --> 00:01:47,400
Jamie... What do you want me to do?
31
00:01:47,400 --> 00:01:51,680
You want me to wire you, now, five bil...
No, you're unreasonable! PHONE RINGS
32
00:01:51,680 --> 00:01:56,040
I've had Paulson up my ass all week,
our stock's dropped 75% since Monday.
33
00:01:56,040 --> 00:01:58,720
We're in freefall! Everyone's dumping our stock!
34
00:01:58,720 --> 00:02:01,760
And you ask me for more... Wait.
Why is this phone ringing?
35
00:02:01,760 --> 00:02:04,720
- You want me to...
- Hello? Hi. ..No. Get on the desk.
36
00:02:04,720 --> 00:02:06,840
Hold on. Jamie, I'll call you back.
37
00:02:06,840 --> 00:02:09,720
Yes, I know, I know, I know...
38
00:02:09,720 --> 00:02:12,480
Christ. You have no idea what...
39
00:02:12,480 --> 00:02:15,000
Yeah, I... These ribs are cold.
40
00:02:15,000 --> 00:02:17,320
Go ahead.
41
00:02:17,320 --> 00:02:20,400
Yeah, give me the list. OK, yeah.
42
00:02:20,400 --> 00:02:23,920
- These ribs are cold.
- Some week.
43
00:02:23,920 --> 00:02:25,600
Three times the usual ribs.
44
00:02:25,600 --> 00:02:28,880
'It's true, Lehman had been
to dark places before,
45
00:02:28,880 --> 00:02:31,800
'and Dick Fuld had always pulled us
back from the brink.
46
00:02:31,800 --> 00:02:36,160
'When he broke the disastrous news
to shareholders over a speakerphone,
47
00:02:36,160 --> 00:02:39,720
'he hoped the world would believe
this was another one of those times.'
48
00:02:39,720 --> 00:02:44,960
We have regretfully had to write down
our commercial real estate assets
49
00:02:44,960 --> 00:02:49,040
from 40 billion to a market value
of 33 billion.
50
00:02:51,120 --> 00:02:52,240
The good news is,
51
00:02:52,240 --> 00:02:56,480
we have a strategy in place
which we feel will appease the markets.
52
00:02:56,480 --> 00:02:58,880
We're currently fine-tuning a plan
53
00:02:58,880 --> 00:03:02,160
to spin off our commercial real estate portfolio
54
00:03:02,160 --> 00:03:05,840
into another company which,
appropriately, will be called SpinCo.
55
00:03:06,800 --> 00:03:10,000
There, it won't be a drag on the balance sheet.
56
00:03:10,000 --> 00:03:12,000
'The market wasn't appeased.'
57
00:03:16,440 --> 00:03:19,640
'There was a run on the bank.
Everyone was dumping shares.
58
00:03:19,640 --> 00:03:22,640
'Our rating was even downgraded.
59
00:03:22,640 --> 00:03:25,680
'By Friday afternoon we were gasping for breath.'
60
00:03:36,120 --> 00:03:39,720
I want everyone on message about this.
61
00:03:42,160 --> 00:03:44,920
Our situation is serious,
62
00:03:44,920 --> 00:03:50,640
but it's not critical.
I repeat, the situation is not critical.
63
00:03:50,640 --> 00:03:52,760
Bank of America wants us.
64
00:03:52,760 --> 00:03:56,040
Barclays wants us. We can choose.
65
00:03:56,040 --> 00:04:00,320
And whichever we choose will fill us with new air!
66
00:04:00,320 --> 00:04:04,560
I need everyone to believe!
67
00:04:04,560 --> 00:04:08,240
You're on the 31st floor, goddammit!
68
00:04:08,240 --> 00:04:10,680
And I want this message to trickle downwards.
69
00:04:12,200 --> 00:04:13,920
Can Mr McDade have a minute?
70
00:04:22,800 --> 00:04:24,880
This better be good news, Bart.
71
00:04:26,760 --> 00:04:29,360
Hank Paulson's flying up here.
72
00:04:29,360 --> 00:04:31,280
Here?!
73
00:04:31,280 --> 00:04:34,440
Federal Reserve. He's calling
a meeting with the banking chiefs.
74
00:04:34,440 --> 00:04:36,080
What for?
75
00:04:36,080 --> 00:04:37,920
He wants them to bail us out.
76
00:04:37,920 --> 00:04:42,080
- He wants our competitors to bail us out?
- He wants us to go to the Fed.
77
00:04:42,080 --> 00:04:45,400
He doesn't want us in the meeting,
he just wants us to be there.
78
00:04:45,400 --> 00:04:48,880
Waiting. Somewhere. I don't know.
79
00:04:48,880 --> 00:04:51,680
Is he kidding? I'm not going
to the Fed to sit outside
80
00:04:51,680 --> 00:04:55,240
some goddamn boardroom while Paulson
and my enemies decide my fate!
81
00:04:55,240 --> 00:04:57,320
Look, Dick,
82
00:04:57,320 --> 00:04:59,200
he doesn't want you there.
83
00:05:01,600 --> 00:05:03,360
He just wants us.
84
00:05:06,800 --> 00:05:09,560
HUSHED CONVERSATION
85
00:05:16,000 --> 00:05:18,080
Thank you all for coming.
86
00:05:18,080 --> 00:05:22,960
I know it must seem a rather cruel joke
for you to get a call at five o'clock on a Friday
87
00:05:22,960 --> 00:05:24,960
asking you to come down to the Fed,
88
00:05:24,960 --> 00:05:28,000
and I have no doubt you were
all eager to start your weekends.
89
00:05:28,000 --> 00:05:29,560
I'm sorry if you had plans.
90
00:05:30,960 --> 00:05:33,800
I hope the presence of
Treasury Secretary Paulson...
91
00:05:33,800 --> 00:05:35,360
Oh, Jesus, Tim.
92
00:05:35,360 --> 00:05:36,960
We all know each other here.
93
00:05:36,960 --> 00:05:39,920
..will impress upon you
the gravity of the situation.
94
00:05:42,040 --> 00:05:44,760
You've all watched Lehman take a nosedive.
95
00:05:44,760 --> 00:05:48,080
They're not going to survive trading on Monday
96
00:05:48,080 --> 00:05:49,720
and we wanted to ask for your...
97
00:05:49,720 --> 00:05:50,800
Inspiration.
98
00:05:52,080 --> 00:05:55,040
You're the best minds on Wall Street...
99
00:05:55,040 --> 00:05:58,360
Tim, I think you can cut the crap about now.
100
00:06:01,000 --> 00:06:04,600
There's no public money for
a bail out of Lehman Brothers.
101
00:06:06,440 --> 00:06:09,640
If we can't figure out a way
to keep them standing,
102
00:06:09,640 --> 00:06:13,480
they're going to be bankrupt
when trading opens in Japan on Monday.
103
00:06:13,480 --> 00:06:16,320
What game are you playing?
104
00:06:16,320 --> 00:06:18,640
There's no taxpayer money for this.
105
00:06:18,640 --> 00:06:20,200
- Bullshit.
- Not a penny.
106
00:06:20,200 --> 00:06:21,920
It's not bullshit.
107
00:06:21,920 --> 00:06:25,080
If it's not bullshit,
what the hell are we all doing here?
108
00:06:25,080 --> 00:06:27,560
We'll arbitrate. We'll facilitate.
109
00:06:27,560 --> 00:06:29,680
- We'll broker a deal... - We get it.
110
00:06:29,680 --> 00:06:32,000
This is your hardball starting position.
111
00:06:32,000 --> 00:06:33,680
This is not a starting position.
112
00:06:33,680 --> 00:06:35,920
This IS the position.
113
00:06:35,920 --> 00:06:40,000
And even if the money were accessible
there would be no political will...
114
00:06:40,000 --> 00:06:44,520
Political will? Was there political
will to bail out Fannie and Freddie?
115
00:06:44,520 --> 00:06:48,160
- Things were different then.
- That was five days ago!
116
00:06:48,160 --> 00:06:50,040
- CHUCKLING
- So...
117
00:06:50,040 --> 00:06:52,080
what do you mean?
118
00:06:52,080 --> 00:06:56,280
Arbitrate what? Facilitate what?
119
00:06:56,280 --> 00:06:58,400
You brought us here to brainstorm?
120
00:06:58,400 --> 00:07:02,040
Damn it, Jamie, are you the only one here
with no exposure to Lehmans?
121
00:07:02,040 --> 00:07:06,320
Or perhaps you've been too busy
bombarding them with demands for collateral
122
00:07:06,320 --> 00:07:08,520
- to notice they're going belly up!
- I have the right!
123
00:07:08,520 --> 00:07:11,160
- Of course. - I have a fiduciary obligation...
124
00:07:11,160 --> 00:07:13,320
How dare you! How dare you...
125
00:07:13,320 --> 00:07:15,360
Calm down, Jamie, he didn't mean...
126
00:07:15,360 --> 00:07:18,000
He did mean it. One more comment like that...
127
00:07:20,840 --> 00:07:23,920
- And why isn't Fuld here?
- You WANT him here?
128
00:07:23,920 --> 00:07:25,960
There's plenty of blame to go round.
129
00:07:27,160 --> 00:07:28,520
But if they go down,
130
00:07:28,520 --> 00:07:31,200
we're all going to take a hit.
131
00:07:33,200 --> 00:07:35,360
You're hanging Lehman out to dry?
132
00:07:40,400 --> 00:07:42,480
So...do it then.
133
00:07:42,480 --> 00:07:44,760
I got a train to catch.
134
00:07:48,400 --> 00:07:51,200
The West is fucked.
135
00:07:51,200 --> 00:07:53,320
We fucked it up.
136
00:07:53,320 --> 00:07:55,240
Oh, not just you and me...
137
00:07:55,240 --> 00:07:57,840
all of us. The West.
138
00:07:57,840 --> 00:07:59,520
It's done. It's over.
139
00:07:59,520 --> 00:08:01,560
You wanna call it a game?
140
00:08:01,560 --> 00:08:03,800
This is the game.
141
00:08:03,800 --> 00:08:06,760
You want your great-grandchildren speaking Chinese?
142
00:08:06,760 --> 00:08:08,160
The dollar's going to go.
143
00:08:08,160 --> 00:08:11,720
We had Rome, then Europe, then this.
144
00:08:11,720 --> 00:08:17,600
Us, this thing with cars and stereos
and hoola-hoops
145
00:08:17,600 --> 00:08:19,400
and we screwed it all up.
146
00:08:19,400 --> 00:08:23,800
We ran through it all, this stuff,
147
00:08:23,800 --> 00:08:26,880
and we've come out on the other side
where it's...
148
00:08:28,400 --> 00:08:30,320
I don't know,
149
00:08:30,320 --> 00:08:31,600
where is this place?
150
00:08:31,600 --> 00:08:33,760
Oh, yeah...
151
00:08:33,760 --> 00:08:39,000
we have this one weekend where maybe
we can come up with something
152
00:08:39,000 --> 00:08:41,440
to hold it all together
a little while longer.
153
00:09:06,400 --> 00:09:11,360
'It seems that you've got about
85 billion worth of troubled loans
154
00:09:11,360 --> 00:09:15,360
'which puts you at least ten billion underwater.
155
00:09:15,360 --> 00:09:17,920
'Ken, you're Bank of America, you're retail.
156
00:09:17,920 --> 00:09:21,560
- 'Let my people go over the books with you.
- We've been over the books.
157
00:09:21,560 --> 00:09:23,240
'But if we go over them with you...
158
00:09:23,240 --> 00:09:25,440
'So that you can help us read them correctly?'
159
00:09:25,440 --> 00:09:29,360
Dick, we're not confused about your numbers.
160
00:09:29,360 --> 00:09:32,600
- Your good assets aren't enough to...
- Our "good assets"?!
161
00:09:32,600 --> 00:09:36,000
We're fucking Lehman Brothers!
Do you know what this company's worth?
162
00:09:36,000 --> 00:09:39,160
Well yes, Dick, I believe I do.
163
00:09:40,680 --> 00:09:44,280
- Have you been to Paulson?
- We asked him to take 70 billion
164
00:09:44,280 --> 00:09:47,560
- 'of the stink off your books, but...'
- 70 billion?!
165
00:09:47,560 --> 00:09:49,720
It's not my number, Dick. We have a board.
166
00:09:49,720 --> 00:09:51,240
Paulson's offering nothing.
167
00:09:51,240 --> 00:09:56,640
He's trying to facilitate some sort
of private sector solution, but...
168
00:09:56,640 --> 00:09:58,720
'Ken, can you...'
169
00:09:58,720 --> 00:10:01,000
- hold on just one...
- 'Sure.'
170
00:10:04,800 --> 00:10:06,440
TOY SQUEAKS
171
00:10:12,480 --> 00:10:15,680
- I'm here.
- 'I'll call you if anything changes.'
172
00:10:15,680 --> 00:10:19,960
If it's any comfort, Paulson is having
another valuation done tonight.
173
00:10:19,960 --> 00:10:25,120
- Another? Of my...
- By a mixed, disinterested group of...
- Ken, don't decide anything yet.
174
00:10:25,120 --> 00:10:27,720
I can get Paulson to turn around.
I'll call you back.
175
00:10:29,520 --> 00:10:33,040
- Zach!
- I'm here.
- I want you down at the Fed tonight.
176
00:10:33,040 --> 00:10:36,280
- Get in on that valuation. Get Paulson
on the phone! - I'm on it!
177
00:10:36,280 --> 00:10:39,440
Mixed? Disinterested?!
178
00:10:39,440 --> 00:10:43,400
I'll bet he's got a team built
a team from his cronies at Goldman Sachs.
179
00:10:43,400 --> 00:10:46,040
Band of fucking villains!
180
00:10:46,040 --> 00:10:49,760
Conspiring like Roman senators!
Private sector... Move!
181
00:10:52,320 --> 00:10:53,920
Paulson's out of reach.
182
00:10:59,080 --> 00:11:00,480
Right.
183
00:11:13,280 --> 00:11:15,840
Harvey, it's Dick Fuld.
184
00:11:15,840 --> 00:11:18,320
I need you in my office.
185
00:11:18,320 --> 00:11:21,000
No, I'm afraid it can't.
186
00:11:23,880 --> 00:11:26,720
So, there are two banks
courting Lehman right now.
187
00:11:26,720 --> 00:11:29,200
Bank of America, and Barclays in the UK.
188
00:11:29,200 --> 00:11:33,720
Neither of them will touch it
while it's loaded down with toxic assets.
189
00:11:33,720 --> 00:11:36,160
You want us to buy Lehman's toxic assets?
190
00:11:36,160 --> 00:11:38,920
Maybe there's a way you could ringfence them.
Something.
191
00:11:38,920 --> 00:11:44,520
Look, if you're telling us you're not
backstopping anyone any more,
192
00:11:44,520 --> 00:11:46,840
we're going to be fighting for our lives.
193
00:11:46,840 --> 00:11:49,640
But if you did decide to buy them,
194
00:11:49,640 --> 00:11:51,840
- as a consortium...
- That would be...
195
00:11:51,840 --> 00:11:54,200
Is that even legal?
196
00:11:54,960 --> 00:11:57,760
Aren't you asking us to risk our shareholders'...
197
00:11:57,760 --> 00:12:00,600
That's what you do every day,
risk your shareholders' money.
198
00:12:00,600 --> 00:12:04,680
Just running the numbers,
if you took on these assets as a group
199
00:12:04,680 --> 00:12:07,880
you'd take a smaller hit than
you would on a Lehman bankruptcy.
200
00:12:07,880 --> 00:12:10,640
We're not all exposed to Lehman
in the same degree.
201
00:12:10,640 --> 00:12:13,200
Oh, community spirit. That warms my heart.
202
00:12:13,200 --> 00:12:14,560
You're all exposed.
203
00:12:14,560 --> 00:12:18,160
And you're all in line in order of size.
204
00:12:18,160 --> 00:12:22,360
- Merrill is next, then Morgan Stanley.
- We're not next. What are...
- This is bullshit.
205
00:12:22,360 --> 00:12:25,880
- Have you read our statements, Hank?
- Yes, John, I know your figures.
206
00:12:25,880 --> 00:12:28,240
I even know what you spent on breakfast.
207
00:12:28,240 --> 00:12:30,000
You're next in line. Trust me.
208
00:12:31,720 --> 00:12:35,720
OK, so...I want someone to buy our toxic assets.
209
00:12:35,720 --> 00:12:37,560
Huh?
210
00:12:37,560 --> 00:12:39,120
Where does it end?
211
00:12:39,120 --> 00:12:41,640
Where does it stop?
212
00:12:41,640 --> 00:12:43,280
Why them, and not us?
213
00:12:43,280 --> 00:12:46,480
Yeah. Why them?
214
00:12:46,480 --> 00:12:49,000
Maybe we should just let 'em fail.
215
00:12:49,000 --> 00:12:52,120
Maybe that'll be the play
that washes away all our sins.
216
00:12:53,800 --> 00:12:55,960
You decide.
217
00:12:57,960 --> 00:13:02,160
What if we can't agree on a solution?
218
00:13:05,520 --> 00:13:10,520
Then we have to start anticipating what
will happen when Lehman does go bankrupt,
219
00:13:10,520 --> 00:13:14,240
and contemplate how the rest
of the world can contain the damage.
220
00:13:26,760 --> 00:13:29,000
I think Bank of America's free now.
221
00:13:29,000 --> 00:13:32,360
- They're not courting Lehman?
- No. I think that's dead.
222
00:13:32,360 --> 00:13:35,040
They're liquid. They love our shop.
223
00:13:35,040 --> 00:13:37,520
- They love retail.
- It's good to have options.
224
00:13:37,520 --> 00:13:39,920
We should make a move.
You should give Lewis a call.
225
00:13:39,920 --> 00:13:41,760
It's a bad time to look weak.
226
00:13:41,760 --> 00:13:43,400
We'd only be selling a stake.
227
00:13:43,400 --> 00:13:46,120
You know what people will think
if we sell a stake now?
228
00:13:46,120 --> 00:13:48,360
It's a downpayment.
The thin end of the wedge.
229
00:13:48,360 --> 00:13:50,560
Who cares what it looks like?
Nobody's lending.
230
00:13:50,560 --> 00:13:54,720
Lehman's falling apart because
they can't borrow their operating costs.
231
00:13:54,720 --> 00:13:57,080
John, we need a line of credit from Monday,
232
00:13:57,080 --> 00:13:59,280
or I don't think we'll last out the week.
233
00:14:20,120 --> 00:14:23,280
The first thing you need to know
is none of this is happening.
234
00:14:23,280 --> 00:14:26,480
The second thing is you don't discuss
this with anyone.
235
00:14:26,480 --> 00:14:30,680
If anyone saw you come in or sees you go out,
you were here to advise on the sale.
236
00:14:30,680 --> 00:14:31,960
What's not happening?
237
00:14:32,920 --> 00:14:35,160
We're NOT considering bankruptcy.
238
00:14:35,160 --> 00:14:38,600
We do not need to prepare
a Chapter Seven petition.
239
00:14:38,600 --> 00:14:41,880
Barclays wants us, and Bank of America
will come around.
240
00:14:41,880 --> 00:14:43,800
As an exercise, however,
241
00:14:43,800 --> 00:14:46,240
we will put together a bare-bones filing
242
00:14:46,240 --> 00:14:49,960
so that we know every strategic
position has been covered.
243
00:14:49,960 --> 00:14:54,080
- And when do you not want this done by?
- This weekend.
244
00:14:57,920 --> 00:15:00,880
First of all, we don't have a team.
245
00:15:00,880 --> 00:15:03,280
Second, YOU don't have a team.
246
00:15:03,280 --> 00:15:06,880
Everyone's working on due diligence
for the mergers.
247
00:15:06,880 --> 00:15:12,200
Third, nobody can put together
a bankruptcy of this size in two days.
248
00:15:12,200 --> 00:15:15,720
And fourth, the government's not going
to let you go down.
249
00:15:15,720 --> 00:15:19,800
Paulson's opening position is
that we sink or swim.
250
00:15:19,800 --> 00:15:22,280
Are you kidding?
251
00:15:25,480 --> 00:15:30,160
It would be a financial disaster the likes
of which the world has never seen before.
252
00:15:30,160 --> 00:15:33,440
It'd be like the American government
itself going bankrupt.
253
00:15:33,440 --> 00:15:37,400
It would be like the US dollar
being rendered worthless
254
00:15:37,400 --> 00:15:42,080
and everyone being told to start over
with goats and pebbles.
255
00:15:42,080 --> 00:15:46,840
It would be like Rome selling the Vatican
to the Japanese to make it a hotel,
256
00:15:46,840 --> 00:15:50,400
and hiring the Pope as a bellboy.
257
00:15:50,400 --> 00:15:54,560
It's just a fantasy. It's a through
the looking glass world.
258
00:15:55,880 --> 00:15:59,240
It's something from the book of Revelations.
259
00:16:00,760 --> 00:16:03,320
And he cried mightily with a strong voice,
260
00:16:03,360 --> 00:16:07,120
saying, Babylon the great is fallen, is fallen,
261
00:16:07,120 --> 00:16:10,520
and is become the habitation of devils,
262
00:16:10,520 --> 00:16:13,480
and a hold of every foul spirit,
263
00:16:13,480 --> 00:16:17,960
and a cage of every unclean and hateful bird.
264
00:16:17,960 --> 00:16:21,600
For all nations have drunk of the wine
of the wrath of her fornication,
265
00:16:21,600 --> 00:16:25,080
and the kings of the earth
have committed fornication with her,
266
00:16:25,080 --> 00:16:30,400
and the merchants of the earth are waxed rich
through the abundance of her delicacies.
267
00:16:32,480 --> 00:16:34,760
CLOCK TICKS
268
00:16:51,480 --> 00:16:54,520
OK, we've only got a few hours
to value this portfolio...
269
00:16:54,520 --> 00:16:57,520
This is gonna be your best friend.
270
00:16:57,520 --> 00:17:01,840
OK, guys, I know it looks a lot,
but if we put on our best heads...
271
00:17:09,880 --> 00:17:11,600
MUMBLING
272
00:17:33,680 --> 00:17:38,240
A lot of people ask me how the subprime
mortgage crisis brought down Wall Street.
273
00:17:38,240 --> 00:17:42,360
Well, my sister knows.
That's how she got her house.
274
00:17:43,720 --> 00:17:46,200
First we found ourselves a house.
275
00:17:50,320 --> 00:17:52,000
Then we found a mortgage broker.
276
00:17:52,000 --> 00:17:55,880
The waitress at the Cracker Barrel
Restaurant said he could work miracles.
277
00:17:55,880 --> 00:17:58,760
So, we handed him our pay slips
and he made corrections
278
00:17:58,760 --> 00:18:02,880
using a free program you get from
the internet which changes pictures.
279
00:18:05,240 --> 00:18:08,160
A lot of people use it to make
themselves look pretty,
280
00:18:08,160 --> 00:18:10,520
but we just used it to make ourselves
look rich,
281
00:18:10,520 --> 00:18:13,080
which I'm sure the Lord would think
was not as bad
282
00:18:13,080 --> 00:18:15,720
because you're not changing
the looks God gave you,
283
00:18:15,720 --> 00:18:18,880
you're just changing what you earn,
which God allows anyway,
284
00:18:18,880 --> 00:18:22,400
because if he didn't, nobody would
be able to apply for a different job.
285
00:18:22,400 --> 00:18:27,760
Then the Broker phoned somebody called
a Lender and she barely even looked at our paperwork.
286
00:18:27,760 --> 00:18:33,400
She just pushed the 'SEND' button and our forms
were approved and off to New York where people in White Coats
287
00:18:33,400 --> 00:18:37,600
worked throughout the night putting
documents into different kinds of piles.
288
00:18:37,600 --> 00:18:41,400
Then they send these documents on to bankers,
like my brother.
289
00:18:42,440 --> 00:18:44,480
And from now on they're called Securities,
290
00:18:44,480 --> 00:18:46,840
even though nothing else about them has changed
291
00:18:46,840 --> 00:18:49,080
and they used to be called mortgage contracts.
292
00:18:49,080 --> 00:18:53,280
Then once they're called Securities
they're a product that you can sell,
293
00:18:53,280 --> 00:18:56,320
like...like a table, or make-up.
294
00:18:56,320 --> 00:18:59,000
Now, here's the weird thing they do.
295
00:19:00,400 --> 00:19:06,120
The Bankers pay a man to give
the Securities a grade, like in school.
296
00:19:09,360 --> 00:19:12,560
Now they're called CDOs and the bankers,
297
00:19:12,560 --> 00:19:16,040
they buy and sell these back and forth
to each other for some reason.
298
00:19:16,040 --> 00:19:21,160
Then they mix them up some more, staple a few
together, and send them back to the man for a new rating.
299
00:19:24,000 --> 00:19:28,240
And the bankers keep buying and
selling CDOs and chopping them up
300
00:19:28,240 --> 00:19:30,400
and putting them back together differently
301
00:19:30,400 --> 00:19:33,440
and selling them for double or triple
what they paid for them,
302
00:19:33,440 --> 00:19:39,360
and every time they do this the CDO gets thicker
and thicker and that rating gets weirder and weirder.
303
00:19:39,360 --> 00:19:42,520
TELEPHONES RING
304
00:19:42,520 --> 00:19:45,920
The bankers liked CDOs so much
they wanted more and more of them,
305
00:19:45,920 --> 00:19:48,360
and they didn't care if somebody couldn't pay
306
00:19:48,360 --> 00:19:51,480
because they just wanted the loan papers
to call Securities
307
00:19:51,480 --> 00:19:55,040
and then to turn into CDOs to sell them
as fast as they could anyway
308
00:19:55,040 --> 00:19:57,320
and make a huge whopping profit overnight.
309
00:19:57,320 --> 00:19:59,400
So they didn't care what the paper's worth.
310
00:19:59,400 --> 00:20:04,480
I mean, paper ain't worth nothing unless
two crazy people's willing to pay each other for them.
311
00:20:04,480 --> 00:20:09,120
But when a lot of people didn't pay their
mortgages, some people remembered that the houses
312
00:20:09,120 --> 00:20:12,920
and loans were somehow connected
to the CDOs in some funny legal way,
313
00:20:12,920 --> 00:20:17,760
and that this was bad, then nobody wanted
to buy CDOs any more.
314
00:20:17,760 --> 00:20:22,280
So suddenly people owned and couldn't get
rid of a lot of very, very expensive things
315
00:20:22,280 --> 00:20:28,600
that were really only worthless paper that was
somehow connected to things that weren't even there.
316
00:20:49,280 --> 00:20:51,840
- What?
- This.
317
00:20:51,840 --> 00:20:55,080
We have some of that, but we've marked it at 75.
318
00:20:55,080 --> 00:20:58,800
- We marked it at 90.
- And we're really...
319
00:20:58,800 --> 00:21:00,480
- I know.
- Aggressive.
320
00:21:00,480 --> 00:21:06,840
And look at this. We value this at 43.
321
00:21:08,040 --> 00:21:10,720
You remember how you valued it?
322
00:21:10,720 --> 00:21:13,560
- And you've marked it at 60. That's...
- I didn't personally.
323
00:21:13,560 --> 00:21:16,280
Yeah, but you're here.
You're the one who's here.
324
00:21:16,280 --> 00:21:19,240
I'm here, but I'm not.
325
00:21:19,240 --> 00:21:22,560
Look you're... What do you mean,
you're here but you're not?
326
00:21:22,560 --> 00:21:23,920
I mean, officially.
327
00:21:35,480 --> 00:21:39,440
Shit, I just realized something
about Fight Club.
328
00:21:39,440 --> 00:21:43,200
- The movie?
- Yeah, I just had this vision about it.
329
00:21:43,200 --> 00:21:46,840
You know in the beginning when
Ed Norton can't sleep?
330
00:21:46,840 --> 00:21:52,640
- Yeah. - And he says, when you don't sleep for
a long time, everything seems unreal and far away?
331
00:21:52,640 --> 00:21:56,520
Everything becomes a copy of a copy of a copy?
332
00:21:56,520 --> 00:21:58,400
- He says that?
- Yeah.
333
00:22:00,520 --> 00:22:02,400
Well, I just had that insight.
334
00:22:02,400 --> 00:22:04,640
Wow.
335
00:22:04,640 --> 00:22:08,600
And like... you know how Ed Norton
buys all his furniture from Ikea...
336
00:22:08,600 --> 00:22:12,960
which mass produces the same item
again and again and again...
337
00:22:12,960 --> 00:22:18,040
And then all his furniture blows up in one big
explosion and he's left with nothing, he thinks...
338
00:22:18,040 --> 00:22:20,960
but he's left with his body, right?
339
00:22:20,960 --> 00:22:25,240
He's left with his ability to feel pain.
So he fights.
340
00:22:25,240 --> 00:22:27,440
And then he can feel,
341
00:22:27,440 --> 00:22:31,320
and things aren't a copy of a copy
of a copy any more. He can...
342
00:22:31,320 --> 00:22:34,400
He can experience the world,
343
00:22:34,400 --> 00:22:37,080
and the things of the world
344
00:22:37,080 --> 00:22:40,040
become the real things.
345
00:22:40,040 --> 00:22:44,080
I never knew you could be so profound
without chemicals.
346
00:22:44,080 --> 00:22:48,040
Man, I'm made of chemicals. You see?
347
00:22:48,040 --> 00:22:50,520
The 'nothing' is the 'something'!
348
00:23:00,520 --> 00:23:02,280
PHONE BUZZES
349
00:23:10,480 --> 00:23:11,520
Greg.
350
00:23:11,520 --> 00:23:14,440
I wanted your first thought of the day
to be Bank of America.
351
00:23:14,440 --> 00:23:18,200
- 'I wanted the first words you heard to be Call...'
- I'm still in bed.
352
00:23:18,200 --> 00:23:20,080
We need to make our intentions clear.
353
00:23:20,080 --> 00:23:22,560
'unambiguous, using words of one syllable.'
354
00:23:22,560 --> 00:23:26,560
We want to discuss a deal TODAY.
With a line of credit available Monday.
355
00:23:26,560 --> 00:23:28,400
We're so different, you and I.
356
00:23:28,400 --> 00:23:31,160
You know I come from the school of soft-sell.
357
00:23:31,160 --> 00:23:34,080
- We don't have time to soft-sell.
- 'It's not a question of time.'
358
00:23:34,080 --> 00:23:35,680
Soft-sell is an energy.
359
00:23:35,680 --> 00:23:42,640
It can be done quickly. Now I'm going to get up
I'm gonna have a coffee before I have another thought.
360
00:23:42,640 --> 00:23:46,360
When you watch Bart make his pitch today,
just imagine, next week, being in his place.
361
00:23:46,360 --> 00:23:49,320
What if we save Lehman?
Have you thought about that?
362
00:23:49,320 --> 00:23:53,560
'What if we all pool our resources and rescue them?
363
00:23:53,560 --> 00:23:57,240
'What happens to the next company,
the next one up in size?'
364
00:23:58,440 --> 00:24:00,680
It's us, John. You know it's us.
365
00:24:04,880 --> 00:24:09,320
Can you believe there's nowhere
to get ribs at five in the morning?
366
00:24:09,320 --> 00:24:10,440
What's the report?
367
00:24:10,440 --> 00:24:13,720
They've just finished going through the books.
368
00:24:13,720 --> 00:24:14,840
What's the feeling?
369
00:24:14,840 --> 00:24:19,320
Um... Philosophical.
370
00:24:19,320 --> 00:24:21,640
- Is the Barclays team there?
- 'Can't see them.'
371
00:24:21,640 --> 00:24:23,280
You haven't seen Diamond yet?
372
00:24:23,280 --> 00:24:24,800
I know he's in New York.
373
00:24:24,800 --> 00:24:26,640
I know he's in New York! Is he at the Fed?
374
00:24:26,640 --> 00:24:31,960
There's a lot of work to be done before we
have something to show him. He's probably sleeping.
375
00:24:31,960 --> 00:24:35,480
Probably. Thanks. Probably. Probably!
376
00:24:52,960 --> 00:24:55,560
Samantha! I want you to double security.
377
00:24:55,560 --> 00:24:58,720
I want someone at every elevator, on every floor.
378
00:24:58,720 --> 00:25:01,760
- And triple the guard at the front.
- What happened...?
- Now!
379
00:25:03,200 --> 00:25:04,760
Security?
380
00:25:08,520 --> 00:25:12,360
So the idea is that we spin off
another company, a 'bad bank'
381
00:25:12,360 --> 00:25:17,120
where we can place all of our toxic assets.
382
00:25:18,600 --> 00:25:20,760
We're gonna call it SpinCo.
383
00:25:20,760 --> 00:25:25,680
And we just need the shortfall f
unded by outsider investors.
384
00:25:25,680 --> 00:25:31,360
Then we just shift 33 billion dollars
in real estate into a new company, a 'good bank',
385
00:25:31,360 --> 00:25:35,520
which we're gonna call CleanCo.
386
00:25:35,520 --> 00:25:39,600
- And who would control SpinCo?
- We would.
387
00:25:40,960 --> 00:25:42,640
Go on, take it.
388
00:25:42,640 --> 00:25:48,000
Now, Jamie, we need to put our bad debts
aside so we can carry on doing what we do best.
389
00:25:48,000 --> 00:25:52,640
- Which is?
- Jamie Jamie, come on Jamie.
390
00:25:52,640 --> 00:25:55,360
- We're all friends.
- Here's ten bucks for a happy ending.
391
00:25:57,080 --> 00:26:01,800
If these valuations are accurate
there's a 15 billion dollar hole.
392
00:26:01,800 --> 00:26:05,000
Accurate? They were done overnight
with a pot of coffee.
393
00:26:05,000 --> 00:26:07,080
If Paulson had let me put a team...
394
00:26:07,080 --> 00:26:09,320
Right. The blind leading the blind.
395
00:26:09,320 --> 00:26:11,680
Oh, sure, you do everything by the book.
396
00:26:11,680 --> 00:26:15,680
Tell me, Jamie, could you value a CDO?
397
00:26:15,680 --> 00:26:19,160
- No, but I know a man who could.
- No you don't, no.
398
00:26:19,160 --> 00:26:21,800
You know a man who'll stamp triple-A on your ass
399
00:26:21,800 --> 00:26:24,000
if you get him a floor seat at the Lakers game.
400
00:26:24,000 --> 00:26:25,600
You can't value a CDO?
401
00:26:25,600 --> 00:26:27,840
Whoever says he can is full of shit.
402
00:26:27,840 --> 00:26:31,200
We might as well pick a number out of the air.
403
00:26:31,200 --> 00:26:34,280
How much do you need for the bad bank?
404
00:26:34,280 --> 00:26:38,320
- 25 billion.
- What?! Last week it was worth 40 billion,
405
00:26:38,320 --> 00:26:42,000
Wednesday it was 33, and last night
it was valued at 21.
406
00:26:42,000 --> 00:26:45,800
If we hurry and buy it now we should be able
to lose all our money by Friday.
407
00:26:45,800 --> 00:26:51,360
Our portfolio is supported by at least
8 billion in equity, and that's a conservative estimate.
408
00:26:51,360 --> 00:26:55,360
Conservative?! Who taught you how
to be conservative, McDade? Dick Fuld?
409
00:26:59,120 --> 00:27:01,320
Conservative! Where does this end?
410
00:27:03,480 --> 00:27:05,400
What happens when Merrill goes down?
411
00:27:06,840 --> 00:27:08,000
We're not going down.
412
00:27:09,200 --> 00:27:13,040
Thain, if you stepped away from
the Bloomberg cameras long enough
413
00:27:13,040 --> 00:27:16,680
to read your own balance sheet,
you'd see it was as bad as Dick Fuld's.
414
00:27:16,680 --> 00:27:22,080
Today we're here to deal with
Lehman Brothers. Whatever happens next...
415
00:27:22,080 --> 00:27:24,480
maybe Paulson won't be so...
416
00:27:24,480 --> 00:27:27,000
- What?
- Intransigent.
417
00:27:30,120 --> 00:27:32,120
We won't be needing government money.
418
00:27:34,920 --> 00:27:36,800
I'm afraid I have to excuse myself.
419
00:27:45,600 --> 00:27:47,480
And what about you, Mack?
420
00:27:47,480 --> 00:27:49,240
When are you going to hold out your hand?
421
00:27:49,240 --> 00:27:50,960
Ah, fuck you, Diamond.
422
00:27:50,960 --> 00:27:52,520
We're healthy.
423
00:27:52,520 --> 00:27:55,720
- We're looking for opportunities.
- I'll bet you are.
424
00:27:55,720 --> 00:27:58,520
- What's that supposed to mean?
- Just what I said.
425
00:27:58,520 --> 00:28:01,760
He's trying to be mysterious.
There's nothing behind it.
426
00:28:01,760 --> 00:28:03,960
- Is that true?
- Think what you like.
427
00:28:03,960 --> 00:28:06,040
- He did it again!
- Hey. Hey, hey!
428
00:28:06,040 --> 00:28:07,280
What are we doing here?
429
00:28:07,280 --> 00:28:11,040
The point is not which one of us
happens to be weakest, right now.
430
00:28:11,040 --> 00:28:12,920
We're all in each other's pockets.
431
00:28:12,920 --> 00:28:15,320
What happens to one of us,
happens to all of us.
432
00:28:15,320 --> 00:28:19,240
Ah, does it? Ah, Jesus, send me
toward the nearest confessional.
433
00:28:21,000 --> 00:28:25,400
I'm gonna excuse your behaviour
because I think you have a chemical imbalance.
434
00:28:28,760 --> 00:28:30,280
Ken it's John Thain...
435
00:28:30,280 --> 00:28:33,920
Mr Thain. To what do I owe this pleasure?
436
00:28:33,920 --> 00:28:35,240
I'm at the Fed in New York.
437
00:28:35,240 --> 00:28:38,000
'Yes, I heard something was going on down there.'
438
00:28:38,000 --> 00:28:40,280
I heard you've closed the book on Lehman.
439
00:28:40,280 --> 00:28:43,440
My due diligence team is
flying back this afternoon.
440
00:28:43,440 --> 00:28:45,400
Perhaps they should stay.
441
00:28:45,400 --> 00:28:50,880
- Meaning?
- 'Perhaps you'd like to discuss other opportunities.'
442
00:28:50,880 --> 00:28:54,760
This sounds like the sort of chat
we should be having in person.
443
00:28:54,760 --> 00:28:57,440
Yes. I believe it is.
444
00:28:57,440 --> 00:29:00,040
I have Dick Fuld on the other line.
445
00:29:00,040 --> 00:29:02,480
Tell him I've left for New York.
446
00:29:02,480 --> 00:29:05,280
'I believe he's in the air already. Any message?'
447
00:29:05,280 --> 00:29:06,720
No. He's got my numbers.
448
00:29:14,880 --> 00:29:19,360
Look, If we're going to get Barclays we need
to buy it at a premium to the market value.
449
00:29:19,360 --> 00:29:22,480
- I agree.
- I think we should pay the 25.
450
00:29:22,480 --> 00:29:24,000
You're all crazy!
451
00:29:29,920 --> 00:29:33,240
Bart, Ian, could you give us a few?
452
00:29:35,560 --> 00:29:36,880
Yeah, OK.
453
00:29:47,800 --> 00:29:49,760
I think we should backstop Lehman.
454
00:29:49,760 --> 00:29:53,280
So they overvalued their portfolio.
455
00:29:53,280 --> 00:29:57,640
- We all try to maximise our perceived value.
- You wrote the book, Blankfein.
456
00:29:57,640 --> 00:30:00,800
But I think we should structure
the deal in such a way
457
00:30:00,800 --> 00:30:03,040
that the mortgages pay us back over time.
458
00:30:03,040 --> 00:30:07,400
Yes. But also, now we know none of us
is too big to fail.
459
00:30:07,400 --> 00:30:13,080
None of us is too precious that the government
will step in at the last minute and save our asses.
460
00:30:13,080 --> 00:30:14,800
Did he say asses or assets?
461
00:30:14,800 --> 00:30:20,560
I think we might also talk about
structuring a rainy day fund
462
00:30:20,560 --> 00:30:22,760
for those of us who...
463
00:30:22,760 --> 00:30:24,680
Survive?
464
00:30:46,320 --> 00:30:48,560
- Samantha, get...
- Yes?
465
00:30:50,440 --> 00:30:52,240
Don't worry. I'll do it.
466
00:31:16,120 --> 00:31:18,240
MOBILE RINGS
467
00:31:21,120 --> 00:31:22,400
Paulson.
468
00:31:27,040 --> 00:31:28,200
Hank Paulson.
469
00:31:31,160 --> 00:31:32,920
It's Dick.
470
00:31:42,160 --> 00:31:44,520
Yeah, I know, Dick, we helped Bear,
471
00:31:44,520 --> 00:31:47,280
and they're a lot smaller than you are.
472
00:31:47,280 --> 00:31:49,440
Got any new material?
473
00:31:49,440 --> 00:31:52,040
'Have you guys come up with anything?'
474
00:31:52,040 --> 00:31:53,320
Nothing legal.
475
00:31:53,320 --> 00:31:58,360
If you say it would be illegal
to help us because we're under-collateralised...
476
00:31:58,360 --> 00:31:59,960
I'd be off your Christmas list?
477
00:32:01,600 --> 00:32:03,560
I think you do what you do.
478
00:32:05,080 --> 00:32:08,120
I think you get something in your head...
479
00:32:08,120 --> 00:32:10,560
Just like you do.
480
00:32:10,560 --> 00:32:13,640
I think the two of us should learn
to dither a little more.
481
00:32:18,960 --> 00:32:20,920
This is a beautiful old bank.
482
00:32:23,080 --> 00:32:26,160
'25,000 jobs.'
483
00:32:26,160 --> 00:32:29,680
- History.
- Oh, that history.
484
00:32:31,200 --> 00:32:33,920
We're all made of the same stuff.
485
00:32:35,440 --> 00:32:38,880
How can we just be cut apart from the rest?
486
00:32:38,880 --> 00:32:40,520
'It doesn't make sense.'
487
00:32:40,520 --> 00:32:42,680
I don't know if we aren't making sense now
488
00:32:42,680 --> 00:32:44,800
or if we're just starting to make sense.
489
00:32:44,800 --> 00:32:47,680
'You can't say we've run out of money.'
490
00:32:47,680 --> 00:32:51,640
- This isn't the kind of money you can run out of.
- You're right.
491
00:32:51,640 --> 00:32:54,720
There's money out there.
There's money all over the place.
492
00:32:54,720 --> 00:32:57,480
'It's just not so obvious how to get your hands on it.'
493
00:32:57,480 --> 00:32:59,840
- Hank...
- 'Not to say you didn't get close.'
494
00:32:59,840 --> 00:33:03,160
Blackstone, Colony, JE Robert...
495
00:33:03,160 --> 00:33:06,720
- Why jump to sell just after a dip in the share price?
- 'And Korea.'
496
00:33:10,360 --> 00:33:12,760
The money was on the table, Dick.
497
00:33:12,760 --> 00:33:14,760
Only you never thought it was enough.
498
00:33:14,760 --> 00:33:19,320
'You could've solved your liquidity
problem right there, but no,'
499
00:33:19,320 --> 00:33:22,280
you were just sure your luck was going to change.
500
00:33:22,280 --> 00:33:25,120
"If I only hold out one more trading day."
501
00:33:26,880 --> 00:33:30,160
You were holding a pair of eights, Dick,
502
00:33:30,160 --> 00:33:32,240
and you bet the farm on the river card.
503
00:33:33,760 --> 00:33:36,280
If I thought there was a note of superiority...
504
00:33:36,280 --> 00:33:40,120
'The time came when you should have folded,
and you didn't.'
505
00:33:40,120 --> 00:33:42,520
Something in you told you to take the leap.
506
00:33:44,560 --> 00:33:46,840
You were remarkable.
507
00:33:46,840 --> 00:33:50,720
'The blindness was exquisite.'
508
00:33:50,720 --> 00:33:55,200
The problem is we're not dealing
in months any more.
509
00:33:55,200 --> 00:33:59,280
Now it's a matter of hours, minutes.
510
00:34:03,080 --> 00:34:05,040
Can I ask you something?
511
00:34:05,040 --> 00:34:07,760
And will you...you know?
512
00:34:07,760 --> 00:34:09,360
Sure.
513
00:34:10,920 --> 00:34:13,280
Is this...
514
00:34:13,280 --> 00:34:15,440
anything to do with...
515
00:34:15,440 --> 00:34:20,400
you know, you and me, things
that have happened?
516
00:34:22,360 --> 00:34:24,800
I don't remember everything.
517
00:34:27,240 --> 00:34:29,720
I probably don't remember anything.
518
00:34:29,720 --> 00:34:31,640
But I know there's been some...
519
00:34:33,160 --> 00:34:35,040
- ..sour...
- You and me?
520
00:34:35,040 --> 00:34:37,520
LAUGHS
521
00:34:37,520 --> 00:34:41,880
You think I feel any differently
about you than anyone else on the Street?
522
00:34:41,880 --> 00:34:44,560
You think these other guys are my buddies?
523
00:34:44,560 --> 00:34:45,920
No.
524
00:34:47,280 --> 00:34:50,040
No, this goes way beyond personal.
525
00:34:50,040 --> 00:34:54,240
The laws for this weekend haven't
even been written yet.
526
00:34:56,880 --> 00:34:59,000
Nobody knows what to do.
527
00:35:00,560 --> 00:35:02,680
Nobody knows what their job is.
528
00:35:06,080 --> 00:35:07,720
Let me ask you this.
529
00:35:09,720 --> 00:35:12,040
Is what you're doing now,
530
00:35:12,040 --> 00:35:17,200
is this the thing that's most likely,
when you look back in a year, to make you say...
531
00:35:19,480 --> 00:35:24,920
..shit, with what little we knew, we did it,
532
00:35:24,920 --> 00:35:27,360
we put the pieces back together.
533
00:35:29,440 --> 00:35:34,320
I couldn't see the future, but I just...
534
00:35:34,320 --> 00:35:39,080
had that luck and it all fell together just right.
535
00:35:39,080 --> 00:35:41,480
Is that what you're going to say?
536
00:35:43,840 --> 00:35:45,360
No.
537
00:35:47,080 --> 00:35:51,960
No, I don't think anything I do
this weekend is going to make me say that.
538
00:35:58,120 --> 00:36:01,920
What would you do...if you were me?
539
00:36:05,360 --> 00:36:07,360
Don't pick at the boneyard.
540
00:36:08,880 --> 00:36:10,880
Bank of America's dead.
541
00:36:12,400 --> 00:36:14,280
You've got Barclays.
542
00:36:15,800 --> 00:36:17,320
That's what you've got.
543
00:36:18,400 --> 00:36:20,000
Barclays.
544
00:36:20,000 --> 00:36:22,920
PHONE DOWN
545
00:37:21,960 --> 00:37:23,720
They agreed to 25.
546
00:37:26,680 --> 00:37:28,520
And what is Barclays saying?
547
00:37:28,520 --> 00:37:31,560
They're reviewing some of the initial deal points.
548
00:37:31,560 --> 00:37:33,680
But the chiefs agreed to 25!
549
00:37:33,680 --> 00:37:37,760
- Dick, it's a victory for us.
- Fuck the chiefs! How did Barclays react?
550
00:37:38,640 --> 00:37:40,640
We didn't see anybody from Barclays.
551
00:37:41,640 --> 00:37:43,400
Diamond wasn't at the Fed?
552
00:37:43,400 --> 00:37:47,360
- He could have been there.
- You didn't notice if Bob Diamond was at the Fed?
553
00:37:47,360 --> 00:37:50,000
I heard somebody laughing.
It sounded like his laugh.
554
00:37:50,000 --> 00:37:52,560
Where did you hear the laughing?
555
00:37:53,880 --> 00:37:56,360
Well, sort of...all over.
556
00:38:05,000 --> 00:38:07,560
Get back to the Fed. Tell me
when Diamond shows.
557
00:38:23,680 --> 00:38:29,640
I understand you sold more than
30 billion dollars worth of CDOs
558
00:38:29,640 --> 00:38:31,320
at 22 cents on the dollar.
559
00:38:31,320 --> 00:38:34,400
It was a risk-reduction strategy.
560
00:38:34,400 --> 00:38:36,240
But it left us well capitalised.
561
00:38:36,240 --> 00:38:39,440
If you were well capitalised
you wouldn't be here.
562
00:38:39,440 --> 00:38:43,640
What I want to know is, what other time
bombs have you got on the books?
563
00:38:43,640 --> 00:38:46,000
Everyone has risky assets.
564
00:38:46,000 --> 00:38:48,840
But you want me to buy your company as is.
565
00:38:48,840 --> 00:38:52,320
I'm going to need to know where
the dirty laundry is buried.
566
00:38:54,520 --> 00:38:57,320
We don't want to sell Merrill Lynch.
567
00:38:58,920 --> 00:39:02,600
We want to offer you a 10% stake.
568
00:39:02,600 --> 00:39:05,720
But we want to buy it outright.
569
00:39:05,720 --> 00:39:07,600
That's our only position.
570
00:39:10,200 --> 00:39:12,560
I've always loved your shop.
571
00:39:12,560 --> 00:39:15,520
I love how you bring Wall Street
to New Mexico.
572
00:39:15,520 --> 00:39:18,440
We're both retail.
573
00:39:18,440 --> 00:39:22,200
- We're a good fit.
- I only took over Merrill nine months ago.
574
00:39:22,200 --> 00:39:24,320
I didn't take it over to sell it.
575
00:39:27,160 --> 00:39:31,200
You see those pictures?
They're what I call real art.
576
00:39:32,240 --> 00:39:37,680
They would form the kind of exhibitions
Bank of America might once have bankrolled,
577
00:39:37,680 --> 00:39:42,040
but now we find ourselves
funding modern art as well,
578
00:39:42,040 --> 00:39:49,000
art that can insult everything you and I
have worked our whole lives to make sacred.
579
00:39:49,000 --> 00:39:54,640
Some of it to me looks like a road
accident or a human being turned inside out,
580
00:39:54,640 --> 00:39:59,600
but those who matter, culturally
I mean, like to stand back,
581
00:39:59,600 --> 00:40:04,760
arms folded, brows furrowed in just
the right way,
582
00:40:04,760 --> 00:40:08,440
assessing the disturbed minds
of psychopaths
583
00:40:08,440 --> 00:40:12,640
and getting from this a grim kind
of satisfaction
584
00:40:12,640 --> 00:40:17,920
I freely admit remains unavailable
to my own sensibilities.
585
00:40:23,320 --> 00:40:24,920
The Judas Kiss.
586
00:40:26,880 --> 00:40:28,600
Exquisite, isn't it?
587
00:40:30,680 --> 00:40:33,960
But time has moved on, Mr Thain.
588
00:40:33,960 --> 00:40:35,720
The brand has to move on.
589
00:40:35,720 --> 00:40:38,280
The world is different now.
590
00:40:38,280 --> 00:40:42,960
We're currently financing
an exhibition of paintings
591
00:40:42,960 --> 00:40:46,880
by Francis Bacon at the Tate Museum
in London.
592
00:40:46,880 --> 00:40:49,120
Starts today.
593
00:40:49,120 --> 00:40:52,200
Do you know what his paintings look like?
594
00:40:55,480 --> 00:40:57,680
I leave that sort of thing to my wife.
595
00:40:57,680 --> 00:41:02,920
Our name, Bank of America,
is on that exhibition.
596
00:41:06,880 --> 00:41:09,360
History is happening, Mr Thain...
597
00:41:09,360 --> 00:41:12,200
right now, this weekend.
598
00:41:12,200 --> 00:41:15,600
No-one is going to blame you
for keeping up with it.
599
00:41:50,320 --> 00:41:52,160
ELEVATOR PINGS
600
00:42:11,120 --> 00:42:13,400
DOOR OPENS
601
00:42:15,520 --> 00:42:17,560
- Is that Diamond?
- No.
602
00:42:18,720 --> 00:42:21,480
I hope he looks pleased when he reads this.
603
00:42:21,480 --> 00:42:23,920
- I hope he doesn't.
- Why?
604
00:42:23,920 --> 00:42:29,520
Because if he looks pleased, it might mean
he intends to pull Barclays out of the game.
605
00:42:30,760 --> 00:42:32,480
Whereas if he's poker-faced,
606
00:42:32,480 --> 00:42:36,560
it probably means he's come
to play hardball.
607
00:42:36,560 --> 00:42:40,200
Some people look poker-faced even
when they're happy.
608
00:42:40,200 --> 00:42:42,280
Some people distrust ecstasy.
609
00:42:42,280 --> 00:42:48,520
So, if he goes for these deal points, you think
our chances are pretty good then, don't you?
610
00:42:48,520 --> 00:42:53,280
There's a lot of other stuff to get through.
But this term sheet looking the way it does...
611
00:42:53,280 --> 00:42:55,800
that's one gigantic problem off our hands.
612
00:42:55,800 --> 00:42:58,160
I'm glad you think so.
613
00:42:58,160 --> 00:43:01,960
To me, there's either getting rid
of the whole problem
614
00:43:01,960 --> 00:43:04,480
or being stuck with the whole problem.
615
00:43:06,120 --> 00:43:08,600
There's nothing in-between.
616
00:43:08,600 --> 00:43:11,280
DOOR OPENS
617
00:43:11,280 --> 00:43:14,560
It's Diamond. He's coming.
618
00:43:26,920 --> 00:43:29,440
FOOTSTEPS AND VOICES
619
00:43:39,160 --> 00:43:43,040
I think I heard them say "Nebuchadnezzar".
620
00:43:48,320 --> 00:43:50,360
That's got to be a good thing.
621
00:44:17,560 --> 00:44:19,800
I hear you're talking to Ken Lewis.
622
00:44:23,400 --> 00:44:28,000
Um...we've...had an informal, um...
623
00:44:28,840 --> 00:44:30,800
Don't worry about it.
624
00:44:30,800 --> 00:44:35,520
We don't need you to stay if your time
can be better spent elsewhere.
625
00:44:36,600 --> 00:44:41,400
- Thank you. - If you can work out a deal with
him, it's one less thing we have to worry about.
626
00:44:43,120 --> 00:44:47,000
The world is going to hell in a hand basket.
AIG is in the building.
627
00:44:47,000 --> 00:44:49,560
They're haemorrhaging liquidity.
628
00:44:49,560 --> 00:44:53,800
By Wednesday they're going to be worth
minus five billion.
629
00:44:55,680 --> 00:44:59,840
Jesus, these numbers... Twenty years ago
you never heard them.
630
00:45:01,400 --> 00:45:03,920
Are you going to help them?
631
00:45:03,920 --> 00:45:05,560
AIG.
632
00:45:05,560 --> 00:45:07,640
We have to.
633
00:45:07,640 --> 00:45:12,320
Their credit default swaps insure
half the western banking system.
634
00:45:12,320 --> 00:45:16,680
If we didn't bail them out,
all that is solid melts into air.
635
00:45:19,160 --> 00:45:21,680
I'll go and see Lewis.
636
00:45:21,680 --> 00:45:24,040
Hank...
637
00:45:24,040 --> 00:45:25,760
I'm going to push for a good price.
638
00:45:30,240 --> 00:45:32,760
I'd expect nothing less.
639
00:45:35,000 --> 00:45:37,000
Go. Our prayers go with you.
640
00:45:40,240 --> 00:45:43,080
Oh, and John?
641
00:45:43,080 --> 00:45:45,240
Just so we're clear,
642
00:45:45,240 --> 00:45:47,440
I'm not telling you what to do.
643
00:46:04,400 --> 00:46:07,400
- Oh!
- Rise and shine to a brand-new day.
644
00:46:09,480 --> 00:46:12,000
I thought I was dreaming.
645
00:46:13,520 --> 00:46:15,800
- We got it?
- They agreed to the terms.
646
00:46:15,800 --> 00:46:18,600
I heard Bob Diamond even had a little twinkle
in his eye.
647
00:46:18,600 --> 00:46:23,960
- He agreed to the terms? - I heard
he liked the terms, but that's just the
first hurdle, Dick... - We got it.
648
00:46:23,960 --> 00:46:26,640
Of course we fucking got it!
649
00:46:26,640 --> 00:46:30,000
We're the survivors, aren't we?
Who wouldn't want Lehman Brothers!
650
00:46:30,000 --> 00:46:34,520
At this price? For Barclays
it's like Christmas fucking day!
651
00:46:34,520 --> 00:46:37,600
- SAMANTHA!
- I'm here!
- Get me some new clothes. Zach!
652
00:46:37,600 --> 00:46:40,520
- I wouldn't go out. There's press down there.
- Still?
653
00:46:40,520 --> 00:46:42,120
They're propagating.
654
00:46:42,120 --> 00:46:43,640
Zach!
655
00:46:45,480 --> 00:46:48,000
Go and get rid of the press.
656
00:46:48,000 --> 00:46:49,920
Parasites. Tell them nothing!
657
00:46:49,920 --> 00:46:53,920
Give them nothing, watch them make something
out of it. We'll have a laugh about it later. Go!
658
00:46:53,920 --> 00:46:56,480
- Maybe you should turn on the news.
- Why should I watch the news?
659
00:46:56,480 --> 00:46:59,280
We know what's happening.
They don't. Clothes!
660
00:47:03,000 --> 00:47:04,800
HUBBUB
661
00:47:04,800 --> 00:47:07,520
Can you please tell us what's happening?
662
00:47:07,520 --> 00:47:10,120
I can assure you...
I can assure you we have no comment,
663
00:47:10,120 --> 00:47:15,080
not even a comment about a comment,
so if you could please just...
664
00:47:15,080 --> 00:47:18,640
That was support in helping you
to reach the imaginary yellow line
665
00:47:18,640 --> 00:47:22,200
beyond which you could be accused
of trespassing.
666
00:47:22,200 --> 00:47:23,240
HUBBUB
667
00:47:23,240 --> 00:47:27,480
Guys, guys, guys, Nothing's happening up
there. Nothing's happening anywhere.
668
00:47:27,480 --> 00:47:32,480
We thank you for your interest and
if there's anything our press secretary can do to help...
669
00:47:35,520 --> 00:47:40,640
Please! Please, guys,
the yellow line, please!
670
00:47:40,640 --> 00:47:42,920
We could accept 35 dollars.
671
00:47:42,920 --> 00:47:45,320
35 dollars!
672
00:47:45,320 --> 00:47:49,760
I know you've had difficulties,
but I was prepared to pay
673
00:47:49,760 --> 00:47:54,000
at least a few thousand dollars
for a firm like Merrill Lynch.
674
00:47:55,120 --> 00:47:57,600
35 dollars a share.
675
00:47:59,840 --> 00:48:04,320
I suppose I could convince
my board to rise to 25.
676
00:48:04,320 --> 00:48:10,400
I suppose with gargantuan effort
I might convince MY board to drop to 32.
677
00:48:11,920 --> 00:48:16,720
- Why don't we just cut the crap and
state the numbers we'll accept. - 29.
678
00:48:16,720 --> 00:48:19,120
- 27.
- 29.
679
00:48:20,200 --> 00:48:21,720
28.
680
00:48:21,720 --> 00:48:23,840
29.
681
00:48:26,400 --> 00:48:28,400
I stay where I am.
682
00:48:28,400 --> 00:48:30,160
I like where I am.
683
00:48:30,160 --> 00:48:35,040
My title will be President of Global Banking,
Securities and Wealth Management.
684
00:48:35,040 --> 00:48:39,520
I'm sure your title won't be
my board's chief concern.
685
00:48:39,520 --> 00:48:42,280
We'll need an answer by midnight.
686
00:48:43,800 --> 00:48:46,360
You don't have to worry, Mr Thain.
687
00:48:46,360 --> 00:48:51,480
We have no intentions of taking
your stripes away from you.
688
00:48:51,480 --> 00:48:53,920
Your face is part of the package.
689
00:48:57,520 --> 00:48:59,920
Call in the board for twelve noon.
690
00:48:59,920 --> 00:49:01,640
We'll need to ratify Barclays.
691
00:49:01,640 --> 00:49:03,800
And I want food. Catering.
692
00:49:03,800 --> 00:49:05,400
Goodies. Ribs. Meat.
693
00:49:05,400 --> 00:49:08,640
- Champagne. A spread.
- You brought us back from the brink.
694
00:49:08,640 --> 00:49:10,600
This place is my life.
695
00:49:10,600 --> 00:49:14,040
Did you think I was going to let it go down?
696
00:49:14,040 --> 00:49:15,800
Where else would I go?
697
00:49:15,800 --> 00:49:17,920
What else could I do?
698
00:49:20,840 --> 00:49:23,040
It's hard not to agree with you
on that score.
699
00:49:25,880 --> 00:49:29,760
Well, then I think we've covered
just about everything, don't you?
700
00:49:31,280 --> 00:49:33,760
No, don't worry.
701
00:49:33,760 --> 00:49:37,120
I think we both have our hands tied on this one.
702
00:49:37,120 --> 00:49:39,520
LOW CHATTER
703
00:49:42,440 --> 00:49:44,280
DOOR OPENS
704
00:49:51,480 --> 00:49:55,120
Well, gentlemen,
I'm afraid Barclays is dead.
705
00:49:57,360 --> 00:50:02,320
By British law, Barclays can't guarantee
Lehman's obligations without a shareholder vote.
706
00:50:02,320 --> 00:50:06,040
- So why can't they vote?
- They can.
707
00:50:06,040 --> 00:50:07,800
But not until Tuesday.
708
00:50:08,640 --> 00:50:12,560
Can't the British government make
an exception for just a couple of days?
709
00:50:12,560 --> 00:50:15,640
They're under no obligation to do that.
710
00:50:15,640 --> 00:50:18,520
I thought I could get Darling to issue
a waiver, but I couldn't.
711
00:50:19,800 --> 00:50:21,720
But...
712
00:50:21,720 --> 00:50:25,560
why can't the Fed just backstop us
till the vote?
713
00:50:25,560 --> 00:50:27,320
If it's only two days away...
714
00:50:27,320 --> 00:50:31,640
There is no public money for a backstop.
715
00:50:31,640 --> 00:50:34,120
Have I said that before?
716
00:50:34,120 --> 00:50:38,600
We're at the end. The deal is dead.
Now you need to talk to your board.
717
00:51:11,200 --> 00:51:13,680
Harvey, they want you down the Fed.
718
00:51:13,680 --> 00:51:15,720
They want us to file now.
719
00:51:43,480 --> 00:51:48,000
You're asking me to draw up the biggest
bankruptcy in history and you want it done by midnight?
720
00:51:48,000 --> 00:51:51,360
I heard you were good at what you do.
721
00:51:51,360 --> 00:51:54,240
A reckless bankruptcy is going to be Armageddon.
722
00:51:54,240 --> 00:51:59,560
We have a program. We have a series of press releases
which we firmly believe will calm the markets.
723
00:51:59,560 --> 00:52:01,320
Press releases!
724
00:52:03,240 --> 00:52:07,320
Lehman has assets worth 639 billion!
725
00:52:07,320 --> 00:52:11,000
That's higher than the GDP of almost
every country in the world.
726
00:52:11,000 --> 00:52:13,040
I know the arguments against this!
727
00:52:13,040 --> 00:52:17,280
I've been on the phone with Dick
for six months trying to get him to sell.
728
00:52:17,280 --> 00:52:20,040
But the price was never high enough
for him.
729
00:52:20,040 --> 00:52:23,400
He thought he had all the time
in the world. Well, he didn't.
730
00:52:23,400 --> 00:52:28,240
He thought he was playing with
the casino's money. Well, he wasn't.
731
00:52:28,240 --> 00:52:31,040
That's enough now!
We've got to clean up this mess.
732
00:52:33,160 --> 00:52:34,960
Somebody had to fail.
733
00:52:36,480 --> 00:52:39,200
Lehman Brothers has failed.
734
00:52:44,960 --> 00:52:47,440
LAUGHTER
735
00:52:47,440 --> 00:52:49,480
PHONE RINGS
736
00:52:51,160 --> 00:52:52,200
Yeah?
737
00:52:54,280 --> 00:52:56,320
John, it's Dick.
738
00:52:57,840 --> 00:53:00,200
- 'We should talk.'
- About what?
739
00:53:00,200 --> 00:53:04,640
Once upon a time we said we'd have
that chat, you and I.
740
00:53:04,640 --> 00:53:07,480
Dick, you're going to file.
741
00:53:07,480 --> 00:53:09,360
We've done some work in that direction
742
00:53:09,360 --> 00:53:13,200
but even this late in the day,
with an injection of capital...
743
00:53:16,240 --> 00:53:19,040
Dick, it's really, really over.
744
00:53:21,320 --> 00:53:23,560
'Call me soon. We'll play golf.'
745
00:54:02,760 --> 00:54:04,800
PHONE RINGS
746
00:54:07,640 --> 00:54:09,160
Mr Lewis's phone.
747
00:54:09,160 --> 00:54:11,720
Donna, it's Dick Fuld.
748
00:54:15,080 --> 00:54:17,840
Is Ken...by any chance...
749
00:54:17,840 --> 00:54:20,000
No. He isn't.
750
00:54:20,000 --> 00:54:24,360
Look... I don't think there's any point
repeatedly calling the house.
751
00:54:24,360 --> 00:54:26,680
Mr Lewis has your messages.
752
00:54:26,680 --> 00:54:29,760
I'm sure if he wants to call you, he will.
753
00:54:58,600 --> 00:55:00,520
PHONE RINGS
754
00:55:14,680 --> 00:55:17,120
PHONE CONTINUES TO RING
755
00:55:24,760 --> 00:55:29,520
Get up, gentlemen. Take a break,
have a celebratory glass.
756
00:55:32,960 --> 00:55:35,000
I suppose now they can get some sleep.
757
00:55:35,000 --> 00:55:39,800
Don't be silly. Due diligence won't
be finished until we sign on the line.
758
00:55:39,800 --> 00:55:43,560
- You're a wise man, Mr Lewis.
- Not at 29 a share.
759
00:55:43,560 --> 00:55:45,960
My board was quick to point out
760
00:55:45,960 --> 00:55:49,440
that's a 70% premium on your
Friday closing price,
761
00:55:49,440 --> 00:55:53,160
and naturally they thought
I was losing my marbles.
762
00:55:53,160 --> 00:55:57,520
- Maybe hunches like yours are only
for men of genius. - Hmm.
763
00:56:03,960 --> 00:56:11,080
GOSPEL MUSIC: # Take me to the water
764
00:56:11,080 --> 00:56:16,640
# Take me to the water... #
765
00:56:16,640 --> 00:56:19,680
Can you please tell us what's happening?
766
00:56:19,680 --> 00:56:21,960
# Take me to... #
767
00:56:21,960 --> 00:56:26,000
I read somewhere that writing was
originally invented to keep track of debt.
768
00:56:26,000 --> 00:56:28,960
If that's how history began,
then maybe when we wrote off
769
00:56:28,960 --> 00:56:32,360
this giant mountain of debt,
history came to an end.
770
00:56:32,360 --> 00:56:35,560
It was definitely the end
of history for some.
771
00:56:36,560 --> 00:56:39,480
National economies collapsed.
772
00:56:42,040 --> 00:56:45,320
Ireland and Italy nearly went bankrupt.
773
00:56:45,320 --> 00:56:47,520
Iceland did.
774
00:56:47,520 --> 00:56:50,800
It was a good thing George Bush
legalised sleep deprivation,
775
00:56:50,800 --> 00:56:54,640
because our Chief Financial Officer,
who hadn't slept in three days,
776
00:56:54,640 --> 00:56:57,480
had to stay awake to approve
the bankruptcy petition.
777
00:57:01,320 --> 00:57:04,160
And it had to be done before midnight.
778
00:57:07,440 --> 00:57:12,040
Everyone before us
and everyone after got bailed out.
779
00:57:12,040 --> 00:57:15,520
Four days after the Lehman collapse,
Hank Paulson went to Congress
780
00:57:15,520 --> 00:57:19,960
asking for 700 billion in Federal aid.
781
00:57:19,960 --> 00:57:24,320
John Thain and Bank of America
parted company in January 2009,
782
00:57:24,320 --> 00:57:27,680
but not before he'd paid out
three and a half billion dollars
783
00:57:27,680 --> 00:57:30,360
in bonuses to Merrill Lynch staff.
784
00:57:30,360 --> 00:57:35,400
He was already in the news for
spending 1.2 million decorating his office.
785
00:57:35,400 --> 00:57:38,840
He spent over a thousand bucks
on a wastebasket.
786
00:57:41,240 --> 00:57:44,880
Some of us expected big changes, a new age.
787
00:57:44,880 --> 00:57:47,880
Some of us are still waiting.
788
00:57:49,240 --> 00:57:51,760
There was a well-known con artist who said,
789
00:57:51,760 --> 00:57:56,200
"The reason some people can be conned
is because they want something for nothing.
790
00:57:56,200 --> 00:58:00,080
"Well, I give them nothing for something."
791
00:58:07,280 --> 00:58:09,960
There was something else he said.
792
00:58:09,960 --> 00:58:14,920
People are 99% animal, 1% human.
793
00:58:14,920 --> 00:58:19,040
And it's the human part that causes
all the trouble.
794
00:58:21,520 --> 00:58:24,480
Huh, you'd think it would be
the other way around.
795
00:58:29,160 --> 00:58:31,800
GOSPEL MUSIC FINISHES
796
00:58:47,680 --> 00:58:51,200
Subtitles by Red Bee Media Ltd
797
00:58:51,200 --> 00:58:54,720
E-mail subtitling@bbc.co.uk
66372
Can't find what you're looking for?
Get subtitles in any language from opensubtitles.com, and translate them here.