All language subtitles for too.big.to.fail.2011.1080p.bluray.x264-geckos

♪ Too Big to Fail ♪
Original Air Date on May 23, 2011
== sync, corrected by elderman ==

We have no intention of dismantling
the regulatory agencies.

However, we must
come to grips

with inefficient
and burdensome regulations.

We will eliminate those

that are unproductive
and unnecessary.

Tearing down
these antiquated walls

and granting banks
significant new authority.

In a victory for
the banking industry,

Congress has approved
legislation which will allow

commercial and
investment banks to merge

and form institutions

of unprecedented size
and global reach.

I think it's very important

for us not to introduce

regulation
for regulation's sake.

I do believe
in the American dream.

Owning a home
is a part of that dream.

We are taking action

to bring many thousands
of Americans

closer to owning
a home.

This project
not only is good

for the soul
of the country.

It's good for the pocketbook
of the country as well.

The housing market has reached
frantic proportions.

It seems that everybody is
building, buying or selling.

The Dow and the S&P
both breaking records,

profits soared 93%
at Goldman Sachs this year.

Hotshot traders and bankers
can expect to take home

$10, $25, and in some cases
$50 million.

Things that are too good
to be true, are.

- When you see something coming--
- The real estate bubble.

- Housing bubble--
- Bubble.

--Don't put it off.
take action immediately.

Will there be a soft landing
or will the bubble burst?

The new story--
the mortgage meltdown.

This morning in the mortgage
meltdown, new numbers showing

that a record number of Americans
are losing their homes.

More than 70 mortgage companies
have failed

in the last few months
in America.

and now the biggest of the big companies--
the Bear Stearns--

the big banks are caught
holding the bag.

The fifth largest
investment bank in the country,

Bear Stearns,
is being sold

for just $2 a share
to J.P. Morgan.

It's being assisted
by the government

which is stepping in
to guarantee some $30 billion

in Bear's toxic
real estate assets.

You've got to imagine
that Hank Paulson

didn't think
he signed up for this

when President Bush
picked him

to become
Treasury Secretary.

Hank Paulson
may now have to undo

some of the deregulation
measures

that he and his peers
on Wall Street pushed through

when he ran Goldman.

Treasury Secretary
Hank Paulson

telling Matt Lauer
this morning

"We're all over it. I've got
great confidence in our markets.

They're resilient.
They're flexible."

Ali, the truth is
that Bear Stearns is

only a very small fraction
of this story.

our economy
could face

far worse
than a recession.

In the wake of
Bear's collapse,

Lehman Brothers is scrambling
to reassure investors

about the impact
of the mortgage crisis

on its own assets,
shares of the firm

under a great deal
of pressure this morning.

Dick Fuld, a 39-year
veteran of Lehman

and the longest-running CEO of a
major investment bank on Wall Street,

has pulled the firm back from
the brink during other crises.

But today, for the first time
that I'm hearing it,

investors are questioning
his leadership.

- Motherfucker.
- One key question investors
have for Lehman Brothers:

What's the true earnings power
of this investment bank's business?

Hey.

Get up here.
We gotta start stacking sandbags.

What are you
talking about?

We're down 21%.
On paper,

I just lost $90 million
personally.

With investors pummeling
Lehman shares,

the big question
this morning is--

what options
does Fuld have?

So far he has failed
to raise new capital

while virtually all of his
rivals have already done so.

And now hedge fund manager
David Einhorn

is publicly questioning the accuracy
of the firm's numbers.

Anything good?

It's a red-tailed hawk,
the first one this year.

Dick Fuld's on one.

They haven't been able
to provide credible answers.

So let's go through
a couple of those

what you call
discrepancies, because--

Tough morning?

We show top-quality earnings.
We beat every prediction.

- Yeah.
- It's the damn short-sellers.

You know the game--
short and distort.

They're rumormongers.
And they're making a killing.

What are your plans
for a capital raise?

We're way ahead of you.
Now let me be clear:

we don't need the cash.

You know,
it's about perception.

Buffett, Buffett.

We're thinking of reaching out
to Warren Buffett.

Great.

You and Buffett
go back, right?

Do me a favor
and call him.

Tell him
Lehman is rock solid.

As Treasury Secretary, I can't
advocate for a specific investment.

Hank, you want me
to raise capital or not?

Lehman Brothers is a hell of
a lot bigger than Bear Stearns.

The market
is terrified.

When I was running Goldman,
I never even conceived

of asking the Treasury Secretary
to cut a deal for me.

Yeah, but the Bear
bailout created--

Please don't call it
a bailout.

Okay, the very large Bear Stearns
purchase assistance package

created an expectation.

Fuld's counting on direct
intervention from you.

Uh, Buffett's
a simple solution.

I think
you make the call.

As what?
Warren's friend?

His former banker?
The ?

No.
Fuld's calling him.

Hopefully he'll jump in
and we can all relax.

Relax? We just buried
one investment bank;

We got another one
that's barely breathing.

This is a confidence game.
People lose faith in Lehman--

these banks are gonna
drop like dominos

and I don't have the authority
to do a thing about it.

We're late.

We've been late
on everything.

Neel's team is working on some
kind of a disaster scenario.

We're calling it
the break-the-glass plan--

what to ask Congress for
if your back's against the wall.

Money...

Is what you
ask them for.

The problem is,
Congress won't move

until we've already
hit the iceberg,

and at that point
it may be too late.

So you're saying,
with the full weight

of the United States Treasury
behind me,

all I can do is
call Warren Buffett?

Hi, Warren.
It's Hank.

I understand you've been
talking to Dick Fuld.

You know my
misgivings, Hank,

about investment banks.

As soon as they started
trading for themselves,

the risk managers
lost control.

I had a very unpleasant time
with Solomon Brothers.

That's fair enough.

But we both know

that investment banking
is a profitable business.

I figure it made you
a billionaire somewhat.

I gotta believe that
if the price was right,

you wouldn't
just walk away.

You know a good deal
when you see one.

What say you?

I gotta leave that
to your judgment.

People act like
we're crack dealers.

Nobody put a gun
to anybody's head and said,

"hey, Nimrod, buy a house
you can't afford.

And you know what?
While you're at it,

put a line of credit on that baby
and buy yourself a boat."

You heard anything
from Buffett?

He's asking for
preferred shares at 40

with a dividend
of 9%.

We were just at 66.
What the fuck?

Maybe it's just
an opening gambit, Dick.

Sounds more like
a goddamn insult.

- Let me get that, Dick.
- Thank you.

We're at 36 right now.

We haven't been anywhere
near 66 in months.

The markets
like Buffett.

His name will push
the price up overnight.

You know, I don't care
who he is,

I am not spending
$360 million a year

for the pleasure of doing
business with him.

Real estate
will come back.

The Koreans have been
sniffing around.

There you go.
And they won't steal us blind.

I've seen this before--
C.E.O.s panic and they sell out cheap.

Right now the street's running
around with its hair on fire,

but the storm
always passes.

We stand strong,
and on the other side

we'll eat
Goldman's lunch.

So what do we do
about Buffett?

Screw Warren Buffett.

He passed?

Lehman dropped to 28 1/2
this morning.

What in the world
is he thinking?

He's not thinking.
He's delusional.

He thought the ask
was too high.

He's got to raise cash.

I told him that.

I spoke to Greenspan.

Really?

He says there's too much
housing supply.

That's the problem.

So we should buy up
all the vacant houses

and burn them.

Dick needs a buyer--
someone with a grip on reality.

Barclays expressed some interest
a couple of months ago,

But I don't think
the price is low enough for them.

Bank of America?

Possible. Dick's put out
feelers there before.

We have to keep it
quiet though.

If anyone hears that
they're trying to sell...

Lehman will be dead
within the hour.

The real estate investments
are killing the firm.

We have to admit publically
we've made some mistakes.

We need to make
a senior management change,

Signal to the market
that we get it.

Meaning what?

Meaning Joe Gregory.

Get the fuck
out of here.

You are not gonna tell me
how to run my company.

Joe hasn't had your back on risk,
and everyone knows it.

Erin Callan's
gotta go too.

As far as the street's
concerned, she's a joke.

Joe Gregory has been
with me

for 30 years.

And you want me
to kick him to the curb

because we have
a bad quarter?

It's not just
a bad quarter.

The stock hit 23.

23. Most of our guys are
paid in stock they can't sell for years.

They've lost most of their net worth
over the last six months.

You don't stabilize
the price,

Your traders
are gonna jump ship.

Selfish fucks.

It's not just bankers
and traders, Dick.

Clients are pulling
their money.

There's gonna be a run
on this bank.

Sources tell CNBC
that both

Erin Callan and Joseph Gregory
are out at Lehman Brothers.

In a statement, the company's
chairman Dick Fuld said

Replacing Gregory with
48-year-old Bart McDade

has been one of the most
difficult decisions he's had to make.

Dick, the Koreans just
arrived at Sullivan.

Let's make this happen.

My take is you'd be better off
staying here for now.

We need you to be
our missing man.

We'll go in and push
the deal as far as we can,

And then we'll bring you in
at the end to top it off.

All right, fine.

Okay.

We are committed
to our presence in New York.

But we need to know that the
underlying numbers make sense.

We realize
how things look.

But our stock is getting
hammered by the shorts.

The value
is still there.

We just started.
Min is excited,

but we haven't heard
the terms.

Where are you?

I just stepped out
to take the call.

Get back in there.
Don't be rude.

Okay.

We simply take the assets
you don't find appealing,

spin them off
into a separate company.

- You don't buy that bank.
- I'm very sorry.

You buy the good bank.

They don't like
the real estate.

What do you mean,
they don't like it?

Dick, we're making
real progress here, okay?

Let me stay on it
for now.

Min, how are you?

Great to see you.

I don't want
to interrupt.

Dick, great timing.

We seem to be in sync on the
broad strokes of the deal.

Shall we get back
to the letter of intent?

Min, I have to
tell you,

I think you're making
a big mistake here.

There's great value
in the real estate assets.

How about we walk
through the portfolio

and I'll show you?

We have looked at them.

Well, then you--

you must have looked at them
in the wrong way.

I just don't want to see you
leave money on the table.

Perhaps we should
take a break.

Min, I'm so sorry.

We have negotiated
in good faith.

Now all of a sudden
we are going backward?

We can work with you
on the price.

It is not about
the price.

It is about the way
you have conducted this.

I'd like to thank you,
all of you,

but I don't think we have
a structure that works.

What, that's it?

You're just gonna pack up
and go back to Korea?

- Hello.
- Neel, it's Dick Fuld.

Listen, you know,

if Hank wants me
to find a buyer,

you guys need
to step up and help.

The Koreans just
walked out, okay?

Look, I'm just speaking
for myself here,

but I think you need to do
what's right for the firm.

Do what's right?

What is that supposed
to mean?

If your stock price
keeps sliding,

you may get an offer at a price
that doesn't look all that compelling,

but you may have to take it just
to keep the company intact.

What kind of price
are you talking about?

Could be--

I mean, it might be
low single digits.

Last February

we were
at 66 a share.

Lehman Brothers is not
bear stearns.

We've got
a great business.

Real estate's gonna
come back.

I am not fucking
giving this company away!

While the real estate market

has put Lehman Brothers shares
under pressure,

mortgage giants Fannie Mae
and Freddie Mac stocks

are suddenly plummeting
this morning after reports

the companies may need
to raise $75 billion

just to remain solvent.
Because they guarantee

such an enormous percentage
of the nation's mortgages,

there is renewed speculation
that the government

may have to step in
and take them over--

a possibility Barack Obama has
now raised on the campaign trail.

If Fannie Mae and
Freddie Mac collapsed,

then probably
the financial system

would receive
such a body blow

that it could be
disastrous.

Freddie just
dropped another 8%.

Fannie's down 5%.

There's-- there's no
bottom here.

We need to do
something now.

We're working on
a proposal for Congress,

see if we can get the authority
to put some money in.

I'd rather not go
that way,

but if we get there...

Uh, I think--
I think we're already there.

How much are you
gonna ask for?

A blank check.

It has to be enough of a statement
to reassure the market.

They need to think I've got
a bazooka in my pocket.

I'm not saying
that we use it,

but if we have
the authority,

everyone who's dumping
their shares

will calm down,
back off.

Okay, well, if you're
going to Congress,

why don't we give
to the banks too?

'Cause Lehman is looking like shit
and Merrill's not far behind.

We'll be lucky to get them to move
on Fannie and Freddie.

We do what we can do.

Secretary, Mrs. Paulson,
over here.

Over here, please.

Mr. and Mrs. Paulson.

- Secretary Paulson.
- Mrs. Paulson. Thank you.

Mrs. Paulson.

Mr. Paulson.

Mr. and Mrs. Paulson,
this way, please.

Mr. Secretary, please.

I got her.

Right over here,
Secretary Paulson, please.

Big smile.
Thank you.

That's just what I need--
press photos

of the Treasury Secretary
waving the Chinese flag.

Paulson the Communist.

The look on your face
was priceless.

Hank, I must ask you
about Fannie and Freddie.

We have hundreds
of billions invested.

You've assured us
the investment is safe.

And it is,
absolutely.

We're watching a great deal
of our money disappear.

Share prices
have dropped 60%

in the last
two months.

Carrying your bazooka around
has not helped matters.

Congress gave you
the power.

Perhaps it is time
to use it.

The market
will stabilize.

We just have
to give it some time.

There was an approach
last month from Russia.

They have
considerable holdings

in Fannie and Freddie
as well.

They suggested
we coordinate

and without warning dump
hundreds of billions

of Fannie and Freddie's bonds
onto the market.

That would be...

Yes.

The amount of debt
your country carries

is a terrible
vulnerability.

But you--

we declined
respectfully.

Even in the U.S.
it seems

the relationship between the
government and private industry

isn't so simple.

Was it a threat?

No no, it was
a friendly reminder

that with a single
phone call to Moscow

they can take down
the entire U.S. economy.

Well, the book says

Fannie and Freddie
are a nightmare.

They are in the hole easily
tens of billions of dollars.

In another few weeks they're
gonna start defaulting on their debts.

We're gonna have to
step in.

I don't see
how we can avoid it.

Turns out a bazooka's
not that useful

unless you fire it.

Lehman's down
another 10%.

You are not gonna let me
get down a single bite, are you?

That's why
I have oatmeal.

Dick is trotting around the world
with his head in his hands

and no one will
give him any money.

Korea walked out on him.
Mexico told him to shove it.

No one's interested.
All the dumb money's already in.

What about B of A?
Are they still in the mix?

And Barclays is
sniffing around again,

now that they think
it's a fire sale.

That's promising.

I don't know.
The British--

they do a lot of talking.
They never close.

B of A is still
our best bet.

This can't be
another Bear.

Absolutely not.

They want Lehman--
they buy it outright.

But they may need
a little hand-holding.

They just bought Countrywide.
They're spread a little thin.

You may have to
give them a break

with the capital
requirements.

You want me to allow them
to raise their leverage

so they can buy a bank
that's about to fail

because it was
overleveraged?

You got a better idea?

Breaking news just coming in:
Sources telling CNBC

that the government
has just taken control

of Fannie Mae
and Freddie Mac.

Back in July, you remember,
Hank Paulson said

that he wanted
the power to step in,

but he probably
wouldn't use it.

It certainly sounds
like Paulson

just pulled the trigger
on that bazooka.

Despite the move nationalize
Fannie and Freddie,

the market is still in negative
territory across the board.

Investors now focusing their attention
on Lehman Brothers

amid fresh reports that the nation's
fourth largest investment bank

may be on the brink
of bankruptcy.

- Rodge.
- Chris.

Bring your money
today, huh?

Make sure Fuld's not keeping
any bad news out of the mix.

It's open kimono,
to quote Dick.

There's a revolting image.

Did you get a look
at the numbers?

The real estate's
the issue.

They got it marked
at $30 billion.

It's worth maybe
half of that.

Don't look so nervous.

You're about to get a Wall Street
bank for the price of a hot dog.

I know that Paulson told Ken Lewis
that he's not gonna pay for this.

And I don't see
how we can do it

unless the government takes
some of the downside.

Paulson is posturing.

He'll write a check
just like he did

for Jamie Dimon
on the Bear deal.

He has to.
He can't lose

another major bank
in an election year.

Besides,
the guy made, like,

a half a billion bucks
at Goldman Sachs.

He lets Lehman die--
Goldman's biggest competitor--

makes him look like he's
still working for Goldman;

he's just doing it
out of the desk at Treasury.

Where are the donuts?

Exactly. If you're the CEO
of one of these financial firms,

you've already seen what the
government was willing to do.

Why wouldn't you play
chicken with them and say,

"Sure I'll help you out.
But you gotta throw in a sweetener,

just like you did
for those guys"?

They just assume
I'm gonna bail out Dick Fuld

like I'm the guy behind the
elephant with the shovel.

They're all drawing
a line from Bear

and Fannie and Freddie
right to Lehman.

There's no way the taxpayers
are gonna go for another bailout--

A very large
purchase assistance package.

We need to come up with
a private-sector solution,

get the investment banks
to bridge the gap.

Okay, but that's
never gonna work,

unless they believe
that you've drawn a line.

I know you don't like leaking,
but let us reach out to the press.

Okay.

Mr. Flowers,

there's a call for you--
Bob Willumstad from A.I.G.

He's very insistent.

Mr. Flowers.

My people tell me
you're the man to talk to.

We've got a real
problem here.

Yeah? What kind
of problem?

It looks very much like we are
about to run out of cash.

A.I.G.?

We've sent over a document.
It's a spreadsheet.

It's confidential, of course,
but it might give you some insight.

I'm in the middle of Lehman.
I'm working with B of A.

Is there any way
you could come over tomorrow?

I'll take a look
at the numbers

and we'll talk.

Mr. Flowers.

Somebody put
the TV on.

CNBC's talking
about Lehman.

...Person familiar
with Paulson's--

Treasury Secretary
Hank Paulson's thinking,

and he is saying there will
be no government money

in the resolution
of this situation.

They're saying two things
make the Lehman deal different:

The market's been aware
and had time to prepare

for over six months;
And the second is...

Is that just
TV bullshit,

or is that Paulson
sending us a message?

Chris?

Yeah? Sorry.

What exactly does

"a person familiar with
the Treasury Secretary" mean?

That could mean
a lot of things.

Did one of your
staffers do this?

Please tell me someone got fired
10 minutes ago.

The leak came from me.

Hank, a public statement
like that

can have a lot of
unintended consequences.

We had to send a message
to the other banks.

They need to step up.

I don't have another rabbit
I can pull out of my hat.

Rodgin Cohen
just called me.

The B of A team is sitting there
playing brick breaker on their phones.

They don't want this deal.

The deal is hanging
by a thread

because the closer
they get to Lehman

the more it looks
like a toxic waste dump.

Which is why at the end of the day
we may have to help them,

which would be a lot easier
if we didn't publicly state that--

We can't, Tim.
Legally we can't.

Legally we haven't
figured out

how yet.

I am concerned

we are limiting
our options

at a time when we have
very few,

if any, available.

I want all the C.E.O.s
in a room.

We've got the weekend.

We lock them in a room
at the Fed

and we don't let them out until
they have a solution on Lehman.

Your oatmeal's
getting cold.

They'll figure it out.
They'll all throw in some money.

Well, Tim is
advocating strongly

that we reconsider
some kind of Fed support.

Tim wants us to pick up
the tab on everyone.

I can't be
Mr. bailout.

The Lehman hole is
twice what Bear's was.

Investors are pulling
their accounts.

You want to lend
into a run?

What about Barclays?
Are they still interested?

They can't afford the risk
any more than B of A can.

I don't doubt your ability to talk
anybody into submission,

but it is still
a long shot.

And there's a very real possibility
that Lehman goes under.

There's a deal
to be made here.

I'm gonna make the deal.

With just a little more
than an hour

left until
the market closes,

shares of Lehman Brothers
have taken another tumble.

The stock is now
trading at a new low--

under $4 a share.

And judging from
the selling,

there doesn't appear to be
a bottom in sight.

So Blankfein
has a speech

he's trying to get out of,
but the rest have confirmed.

- Tell him it's not optional.
- Yeah.

Good afternoon, Chairman.
Thank you so much for joining us.

Whose plane is this?

Uh, that's a rental.

Hank put it
on his card.

Sir, you know Neel and
Michele Davis, public affairs.

Hi. Pleasure.

This is Dan Jester--
our new numbers guy.

Hi.

I've talked him into
coming out of retirement.

- Excuse me? Retirement?
- He was with us at Goldman.

Got anybody at Treasury
who wasn't at Goldman?

Chairman,
just to be clear,

there's no question of
conflict of interest.

Hank sold all of his Goldman stock
before he took office.

I wasn't implying
anything.

Sorry.
We're a little touchy

about the whole
government-Sachs thing.

Shall we?

B of A keeps finding
more toxic assets.

They want you
to reconsider a Jamie deal.

They'll split the first
billion in losses,

but they want you on the hook
for the next 40.

You did it for Bear.

Greg, let me
get back to you.

What do I have to--
tattoo it on my forehead?

We are not
bailing out Lehman.

Wall Street has
a gambling problem.

If government keeps
covering their losses,

they never learn
anything.

What?

I didn't know if you wanted
to keep lecturing me on moral hazard

or if I should just
call B of A back.

We need to keep them at the table

until they come up with
a private-sector solution.

Tell them
to stay with us.

- Alistair, hello.
- Hello, Henry.

Hold on one second.

Chancellor of
the Exchequer.

I understand Barclays is one of
your potential buyers for Lehman.

My banks are already under
a great deal of stress.

They don't want
to become overextended.

Lehman is problematic,
but there's value there.

We will find a way
to make it attractive.

Just stay with us.

Talk soon.

Bye.

We'll keep Barclays
in the mix,

but B of A is still
our best bet.

We've got the C.E.O.s of every
major bank coming here tonight.

We have to make it clear
that this their problem,

that we are their advisors
and their allies,

but we are not
their safety net.

What should we expect
from these guys?

Jamie is smart.

He doesn't have as much
cash to work with

since he bought Bear.

Lloyd's a superstar.

Goldman's the smartest
shop on the block.

And just because
I used to be his boss,

it doesn't mean
he's gonna listen to me.

John Mack used to run
around the floor screaming,

"there's blood in the water!
Let's go kill someone!"

He's a fighter.

Thain was my number two
at Goldman.

He's selfish.
He's a pragmatist.

He knows-- if Lehman goes,
Merrill's next.

Vikram Pandit is the new guy
at Citigroup.

No one knows
if he's running Citi

or if Citi's
running him.

Thanks for coming down here
on such short notice.

Monday morning Lehman
will no longer be able

to honor
its obligations.

We have two potential buyers--
B of A and Barclays.

Neither will take the company
unless someone else

finances part of the deal.

The government is not
in a position to step in.

I did the last one.
You're gonna do this one.

Where is Dick Fuld?

Dick's in no condition
to make any decisions.

We're breaking you
into three groups.

The first one
will try to value

Lehman's toxic assets.

The second one will work
on some sort of structure

for you all to invest
in Lehman.

And the third one works
on the lights-out plan.

If Lehman files for bankruptcy,
we need to figure out

how to contain the damage
to the rest of you.

Christ.

We've all seen
this coming for miles.

I don't think the Lehman bankruptcy
takes down our firms.

What, are we
crossing our fingers?

You're asking us
to save a competitor.

Let's not act like you're
doing us a favor.

Gentlemen, gentlemen,
you are great Americans

undertaking
a patriotic duty.

Your travail
will earn you

the love and gratitude
of your country.

I think it was Thomas Paine
who said that these are--

Lehman is a trading partner
for every bank in this room.

And their failure will be a
massive blow to all of you.

This is
your problem.

We can all argue about
how we got here--

deregulation,
derivatives,

Dick Fuld made
bad decisions.

We're all responsible.
It's a catastrophic mess.

The government's done
whatever it can do.

It's on you now.

You need to fix it
and you need to pay for it.

Let me be clear:

We will remember

anyone who's not helpful.

Do you notice a little
pattern here?

We don't deal with things until there's
some kind of emergency on the table.

Yeah, we don't deal
with things until Friday--

Some kind of a weekend thing.
When are we gonna figure out

exactly how to handle the failure
of an investment bank?

Well, let's do it
over a weekend.

Just I talked to a person
who is monitoring

The situation out there,
and the person said

they all want the same deal
Jamie Dimon got,

and they're not
going to get it.

Just a heads up--
Chris Flowers is in the lobby.

He's consulting
for B of A on Lehman.

Hank pushed Flowers
out of Goldman.

Yesterday we thought
Lehman was holding

$30 billion in crap.
Today it's $70--

$70 billion in assets that
we're valuing with a dartboard.

No, we're gonna
work this out.

Unless you step in,
we're ending this.

Don't forget
about Dick.

Yeah, Dick Fuld
keeps calling,

hammering us
to raise the price.

Excuse me.

$70 fucking billion

and no collateral?

If Lehman Brothers fails
this weekend,

there's little doubt
amongst the people I speak to

that Merrill Lynch
will be next.

Confidence is a very
fragile thing.

And in our financial markets
it is eroding very quickly.

Lehman's not gonna
make it.

We're next.
We need to do something right now.

B of A's the only one
out there.

I can put in a call.
It screws Lehman, but--

Lehman screwed themselves.
Paulson has drawn a line in the sand.

Lehman is dead.

Make the call.

We'd like you guys
to look at taking a stake in Merrill,

something in
the neighborhood of 10%.

Well, I don't know
if I can generate any interest in 10%,

but if the whole
company's in play,

I bet that's something
that we'd consider.

Us and Lehman?

Deal of this size--
there's only room for one.

It is a lot of risk,
no question,

but if you stay
in the game,

we all will find
a private solution.

Absolutely.

Don't get scared
by the numbers.

We'll figure it out.
Lehman is worth owning.

Guys, you got a second?

I was at A.I.G.
yesterday.

Next Wednesday
they got

a $5 billion hole,
minimum.

I called
Warren Buffett.

He wouldn't touch it
with a stick.

We're looking
into it.

It's a very big company.

Thanks, Chris.

I appreciate
all your help.

They're not
on top of it.

Look at this.

Is this even possible?

A.I.G.?

Holy shit.

Get into this.

John.

Do you see
what's happening here?

Are you watching out
for yourself?

I'm not thick.

I'm working
on something.

You're talking
to B of A.

I'm sorry.

I know it's not good
for Lehman,

but I have to take care
of Merrill.

Let me worry
about Lehman.

Barclays is still
in the game.

Just get it done.

B of A is gonna
buy Merrill.

We need to make
Barclays work.

I thought you said
the British never close.

They're here.

They seem to really
want it.

If we hold their hands,
they'll close.

Rodgin,
what the fuck?

I can't get Geithner.
I can't get Paulson.

I can't even get my own goddamn
employees to pick up the phone.

There's a lot happening
down here, Dick.

Oh fuck.

You know what?
You tell Geithner,

he doesn't pull my ass out of the fire--
Merrill's gonna be next.

He knows that.
Dick, he just told me

they're working
on a solution for Merrill.

Those cocksuckers are
gonna bail out Merrill?

No no, not the Fed.

Well, there's no
private buyers.

There's just B of A
and--

they're gonna put B of A
together with Merrill?

We still have Barclays.
Hank feels that--

the federal government
is snaking my deal?

I cannot fucking
believe this shit!

B of A made a deal
with Merrill?

Yeah, Lehman's still
our problem.

I don't think I can take
another day of this.

You're getting out
of a Mercedes

to go to the New York
Federal Reserve.

It's not a Higgins boat
on Omaha Beach.

Okay okay,

we've been here
a long time.

Let's stop
fucking around.

Main Street wants
Wall Street to pay.

They think we're
overpaid assholes.

There's no politician
who's gonna sign off on a bailout.

Why would you
bail out people

whose sole job
is to make money?

So let's make this
real simple.

Hank thinks
he can sell

the good parts of Lehman
to Barclays,

but someone has to take
the real estate crap

that's weighing down
the company.

Nobody knows how much
this shit is worth,

but we know somebody has to
buy it to make a deal.

I don't like it.

Nobody likes it.

Let's just suck it up
and do it.

How many of you can
kick in a billion dollars

to stop Lehman
from going down?

I'm in.

One billion.

Okay.

Goldman's
in for a billion.

John?

Yeah.

Yes.

Yeah.

Yes.

We did it.
Barclays came through.

Too goddamn right!

Barclays won't touch
the real estate assets,

but the other banks
agreed to cover those.

Call the board.
Get everybody here.

We got a deal to make.

Okay.

Did you get him?

Geithner doesn't
return my calls.

We can't get hold of
any of those people.

At the end of the day they can't
sign the deal without our say-so.

Yes, but do they
know that?

Yes.

Yes, by all means,

now that he deigns to call,
put him through.

Sir Callum, sorry I haven't
gotten back to you.

We're just
sorting through

this Barclays deal
for Lehman.

As Barclays' regulator,

we have serious concerns
about this proposed arrangement.

What-- are--
are you saying

you won't approve
the deal?

Even if we were
comfortable with the agreement,

which we are not,

Barclays would need
at least 30 days

for shareholder
approval.

No no no no no no.

He can't.
He can't do this.

- Can they stop the deal?
- Of course they can stop the deal.

But even if they don't stop it,
the delay will kill it.

Let's call the Chancellor
of the Exchequer right now.

None of those
assets

would be part
of Barclays.

Yes, but if the F.S.A.
were to--

of c--
of course.

Yeah.

I wish you good night.

Good night to you too.

"We don't want to import
your cancer."

Those of you

who didn't want to assist
the Barclays deal,

you can breathe
a sigh of relief.

The deal's not
gonna happen.

- Hank, we have the money.
- The deal's dead.

The British regulator
won't sign off.

There must be some
pressure you can exert.

Trust me, I've done
everything I can.

The British--

they grin-fucked us.

Pason's got
100,000 employees.

Geithner has
200 lawyers.

Freaking Chris Cox
has 3000 people.

Not a single one of those assholes
could pick up a phone,

call the British, find out if
they're was a deal to be made

before they spend the weekend was
sweating us for cash?

Somebody dropped
the ball.

They didn't
drop the ball.

They dropped the ball,
kicked the coach in the nuts

and took a crap in
the quarterback's mouth.

Of course.

The Fed will do
something.

They have to.

We've got to announce
the Lehman bankruptcy now.

If Asia opens and
this isn't locked down,

everyone's gonna
assume the worst.

The selloff will kill
the Merrill-B of A deal.

- Who's gonna make the announcement?
- I think it's gotta be S.E.C.

Yeah.

Okay.

Let's do it here.
How soon can we set that up?

Right away.

We could use the main floor,
the entrance hall.

With the statue behind me?
Excellent.

Did Lehman actually
agree to file?

Chris, call Lehman.

Make sure they file
right now.

Absolutely.

A.I.G.'s a huge problem.

The books are a mess.
But from what I can tell,

half the banks in the world
are in bed with these guys.

Everyone who had a
piece-of-crap mortgage security

bought insurance
on their risk from A.I.G.,

and I mean everyone.

How could they
let this happen?

They must have figured
real estate would never go down, ever.

Hank, Lehman still
hasn't filed.

Cox has to make his announcement.
Asia's opening.

Has he talked to them?

He hasn't even
called yet.

We told Fuld about Barclays.
We said Cox was gonna call.

He's got his entire board
sitting there--

no call.

Cox is like a deer
in the headlights.

Son of a bitch!

You are their regulator.
Call the Lehman board now.

Hank, this is a complicated
situation where--

Asia's opening.

They don't announce--
market goes in the toilet.

We have to consider the
appropriate role of government here.

Can I as chairman of S.E.C.
move forward and--?

You guys are like the gang
that can't shoot straight.

This is your job.

Make the damn
phone call.

Chris, this is
Dick Fuld.

The board is in session.
Everyone is here--

all the directors
and the firm's counsel.

We understand

the Barclays deal
has imploded.

We were hoping you might
have some option

that we haven't
thought of yet.

Uh, the markets are
in turmoil, as you know.

A Lehman bankruptcy
will help

settle that uncertainty
and, we believe, calm the market.

Both the Fed and SEC
are in agreement about this.

Well, let me under--

I'm sorry, let me see
if I understand this.

Are-- are you
directing us

to put Lehman
into bankruptcy?

Give us a moment.

- He's muted.
- What the hell was that?

Tell them to file.

Everything said in that meeting
is or will be public record.

I can't tell a private company
to file for bankruptcy.

I don't have
that power.

Do I?

Do it.

The decision to file
for bankruptcy protection

is one the board
needs to make.

It is not the government's
decision.

But we do believe...

That the situation
should be resolved.

So you're not
directing us to file?

I'm not saying anything more
than I've just said.

Thank you.

Take the vote.

- Mr. Akers.
- Yes.

Sir Christopher.

Yes.

Admiral Evans.

I'm sorry, but yes.

Chairman Fuld.

Dick?

Yes.

Mr. Hernandez.

Yes.

Mr. Ainslie.

Yes.

- Mr. Berlind.
- Yes.

- Mr. Cruikshank.
- Yes.

- Dr. Kaufman.
- Yes.

Mr. Macomber.

P?

- Lehman's gone.
- Oh honey.

I should have know the British
were gonna be a problem.

I spoke to them two days ago.
I should have read between the lines.

You can't
take all this on.

There's a lot of
other people involved.

It's on me.
I'm Treasury Secretary

and the fourth largest
investment bank in the country

failed on my watch.

I mean, I-- I--

I don't know
what's gonna happen.

Miss you too.

Taxi.

Jim, I'm at Midtown.

The ticker is--

what the hell
am I looking at?

Hank, it's good.

"It is oddly reassuring

that the Treasury Department
and the Federal Reserve

let Lehman Brothers fail."

Oh, okay, here it is.
Here it is.

Government intervention
would have been seen

a sign of extreme peril

in the global
financial system

or extreme weakness
on the part of federal regulators."

"The New York"
fucking "Times."

Yeah, and it's not just them.
It's everybody.

Thank you, Senator.
I appreciate it.

Congress is liking it.

I'm not sure they should be
so happy about this,

but they like
that we let Lehman go.

You stood strong.
You've got brass balls.

It's what people need
at a time like this.

What is
the market doing?

Uh, Europe's only down
a little.

Dow Jones futures
only off 3%.

So you need to build on this
at the press conference.

The story is we did everything
we could for Lehman.

- We did.
- And the takeaway is...

No more bailouts.

Mr. Secretary.

How should we read
what happened with Lehman?

Read it as
I think it's important

to maintain
the stability

and orderliness
of our financial system;

and, um, the...

Moral hazard is something
I don't take lightly.

Mr. Paulson.
Mr. Secretary, sir.

How do you see the health
of the banking system today?

The way the markets
are performing today--

it's a testament to how the
financial industry has come together

in an extraordinary set
of circumstances.

The American people
can remain confident

in the soundness
and the resilience

of the financial
system.

Thank you all.

Mr. Secretary.
Mr. Paulson.

What?

Dow's falling off a cliff--
400 points already.

And the credit markets
are frozen.

Goldman and Morgan Stanley
are getting slammed by withdrawals.

The Lehman thing's
killing them.

I should talk
to the President

about how we'll contain
the damage.

Before you speak
to the President,

we've had
another problem.

A.I.G.

Mr. Geithner is
working with A.I.G.

on a private-sector
solution

and the Secretary
is monitoring

their progress
very carefully.

He's in close contact with the
Congressional leadership, most--

the White House wants
a briefing on A.I.G.

They're more informed
about that than we are.

We've got the same
information they do.

No, we don't believe
that Lehman's bankruptcy

is taking down
all of Wall Street.

Okay, so how do you explain--?

The A.I.G. situation
may have been,

you know,
exacerbated by the--

and Barney Frank's
office.

Yeah.

A surprise?
No, A.I.G. has been struggling--

Well, why didn't you guys head
off this situation six months ago?

Because the requisite
magic wand wasn't available, Doug.

But if we do find one,

you will be among
the very first to know.

Blankfein on four,
urgent.

I have to go.

Hey Lloyd.

The goddamn British
bankruptcy administrator

froze all of Lehman's
customer accounts.

You didn't square this with
the British before you did it?

Geithner on five.

People are freaking out.

They can't get
their money.

Not investors--
clients.

If customers think their money
wasn't safe with Lehman,

they're not gonna
trust us either.

No one will do
business with us.

You're gonna have
to hang on.

Tim.

Dan spoke to Moody's.
They're downgrading A.I.G. tonight.

Would have happened anyway, but Lehman
put the whole thing into hyperdrive.

How far down
are they?

French finance minster
on six.

They don't know.

We're working on that.

Christine.

How could you let this
happen with Lehman?

What on earth
were you thinking?

We did everything
we could, Christine.

You allowed it
to fail, Hank.

It was a horrifying
mistake.

It is having catastrophic
consequences all over Europe.

And A.I.G. would be
even worse.

The European banks have
tremendous exposure to A.I.G.

We need assurance you will not
fail to act as you did with Lehman.

It is not just
an American problem.

Thank you so much for...

John Mack.

Hey-- uh...

- John.
- Secretary: John-- one.

The fallout from Lehman
is killing us.

The short-sellers
are all over us.

We're down
10% already.

You guys have no idea
what's going on out here.

How are your earnings?

Strong. We're gonna
announce Friday.

Announce now.

Okay, Lloyd, sorry.

Hank, if depositors see they can't
get their assets out of Lehman,

the next step is gonna be
a massive pullout

from all the investment banks.

Jeff Immelt from G.E.

Jesus, what's Immelt
calling you for?

I have to go.

Jeff.

You gotta know
what's going on out here.

We're having trouble funding
our day-to-day operations.

Our finance division is infecting
the rest of our business.

General Electric?

This thing is spreading
way past Wall Street.

I get that nobody wants
to touch mortgages,

but we're making planes
and engines, and light bulbs.

We're a healthy company.

If we can't finance
our day-to-day operations,

every business in America's
gonna be shutting down.

Where's A.I.G.?

It closed at $2.

Tim thinks we need
to do something big.

Ben agrees,
and so do I.

What can we do?
A.I.G.'s not even a bank.

The Fed can lend
to nonbanks

under unusual and
exigent circumstances.

We're thinking of taking over
80% of the company.

Hank, we can't.

This morning we were lecturing
the entire country on moral hazard.

A.I.G. has collateral.
They have assets.

Lehman didn't.
We couldn't lend into a hole.

It's not
the same story.

Nobody's gonna care.

It's another bailout
with no legislation.

The Hill's gonna go crazy.
The country's gonna go crazy.

The plane that we
flew in on this morning--

leased from A.I.G.

Construction downtown--
A.I.G.

Life insurance--
81 million policies

with a face value
of $1.9 trillion,

billions of dollars in teachers' pensions--
it's everywhere.

You want too big to fail?
Here it is.

You got a better idea?

The suggestion box
is wide open.

I hate to do this
right now,

but I'm gonna have to have
a press call first thing,

and I really don't know
what I'm gonna tell them.

Tell them Lehman
exacerbated A.I.G.,

the simultaneous
payouts of C.D.O.s

and credit default swaps
put catastrophic pressure on--

Go back further.

The global pool
of investment capital--

she has to do this
in English.

Start with
the homeowners.

Okay okay, here's how
you explain it.

Wall Street
started bundling

home loans together--
mortgage-backed securities--

and selling slices
of those bundles to investors.

And they were making
big money,

so they started pushing
the lenders, saying,

"come on,
we need more loans.

The lenders had
already given loans

to borrowers
with good credit,

so they go bottom-feeding.
They lower their criteria.

Before, you needed
a credit score of 620

and a downpayment
of 20%.

Now they'll settle for 500,
no money down.

And the buyer--
the regular guy on the street--

assumes that the experts
know what they're doing.

He's saying to himself,
"if the bank's willing to loan me money,

I must be able
to afford it."

So he reaches for
the American dream.

He buys that house.

The banks knew securities based on
shitbag mortgages were risky.

You'll work on "shitbag."

So to control
their downside,

the banks started buying
a kind of insurance.

If mortgages default,
insurance company pays--

default swap.

The banks insure
their potential losses

to move the risk
off their books

so they can invest more,
make more money.

And when a lot of companies
insured this stuff,

one was dumb enough to take on
an almost unbelievable amount of risk.

- A.I.G.
- And you'll work on "dumb."

And when they ask me
why they did that?

- Fees.
- Hundreds of millions in fees.

A.I.G. figured the housing market
would just keep going up,

but then
the unexpected happens.

Housing prices
go down.

The poor bastard who
bought his dream house--

the teaser rate on his
mortgage runs out.

His payments go up.
He defaults.

Mortgage-backed
securities tank.

A.I.G. has to pay off
the swaps--

all of them
all over the world

at the same time.

A.I.G. can't pay.
A.I.G. goes under.

Every bank
they insure

books massive losses
on the same day.

And then they all
go under.

It all comes down.

The whole financial system?

And what do I say

when they ask me
why it wasn't regulated?

No one wanted to.

We were making
too much money.

You'll work on

"we were making
too much money."

Hey, Hank,

um...

These are
really mild,

but they work.

I know the whole
Christian Scientist thing--

that you don't
take medicine.

But you need
to sleep.

Jim--

Hank, not just
for your own sake.

Okay?

You don't look
so good.

Just minutes ago
CNN has confirmed

that the Federal Reserve
is negotiating

to rescue
insurance giant AIG

The negotiations
could include

an $85 billion
temporary loan

to stave off
AIG's imminent collapse.

This is a blockbuster,
folks.

About this time last night,
many on Wall Street

were fearing
total disaster today.

So another
federal bailout

of another
Wall Street giant--

again, as we mentioned,
big big financial news.

And this affects almost everyone
out there who has a 401k.

The news comes
about 3 1/2 hours

after the stock exchange
closed on...

Motherfucker.

We want to go straight
right now to Ali Velshi

to kind of give us
a bottom line on this, Ali.

And then we're gonna get
a lot more in depth...

AIG securing an 85...

The credit markets
are still frozen solid.

We keep dumping money
into these companies

so the markets
will stabilize,

and nothing helps.

We can't keep
doing this.

We rescued Bear
with no legislation,

A.I.G. with no legislation.

People think Fannie and Freddie
was a bait-and-switch.

I don't like it
any more than you do,

but they were
exceptional situations.

This situation
demands an endgame

that does not rely on
unilateral action from the Fed.

This is a democracy.

We cannot be men behind the
curtain pulling the strings.

We need some kind of
an overall solution

that heals
the entire system.

And it has to be
legitimate.

We've been putting off
going to Congress.

It's two months
before an election.

They can't vote yes
to a massive bailout

of the entire
banking system.

They'd never get
reelected.

- Hank--
- We go to Congress,

publically state
we don't have the firepower

to control this
anymore,

and then they say no--

that is really
the nightmare scenario.

The nightmare scenario's
already here, my friend.

We're in it.

P.

You can't put this all
on your own shoulders.

We're running out
of options.

Then you just
keep trying.

That's what you do.

Eventually
something's gonna work.

I'm not sure that
that is true anymore.

There's not a bank
in the world

that has enough money
in its vault

to pay
its depositors.

It's all built
on trust.

And--
and, Wendy, we--

we are
so very close.

Morgan Stanley, Goldman
are an inch away.

If the other banks
stop trusting them,

if they pull back
on interbank lending,

it's over
in a matter of hours.

And from there
it goes

too fast to stop--
a run--

and not just
on that one bank.

I mean,
on the whole system.

And average people
wondering,

"is my money safe?"

They start pulling
their cash.

And after that--

lines outside the banks,
smashed A.T.M.s.

A couple of weeks--

there's no milk
in the store.

For the second time
this week

there was a massive selloff
on Wall Street,

the Dow Jones Industrials
freefalling some 450 points

on news of
a taxpayer-funded bailout

of the A.I.G.
Insurance company.

Three of the five
investment banks are gone.

The country's biggest
mortgage lender is gone.

Fannie Mae and Freddie Mac
brought under government control.

The financial system
is holding right now,

but for how long?

All the King's horses
and all the King's men

are being brought to bear
to keep this thing together.

Hi Tim.

I'm on the street, Hank,

and people are just
going about their business.

They have no idea the whole
thing is about to fall down.

We're gonna have to
go to Congress.

We don't have
a choice anymore.

Okay.

How fast do you think
you can get them to move?

It's gonna be at least
a couple days.

Goldman and Morgan Stanley
are going down now.

We gotta do
something today.

Like what?

The market doesn't like
investment banks, right?

The money's saying fuck you
to the whole business model.

Yeah.

Yeah, so merge them
with commercial banks,

turn them into regular banks
regulated by the Fed.

They can use
depositors' cash.

It will give them access
to the discount window.

It's cheap government cash.

- You want to make them bigger?
- It's a trade-off, Hank.

The upside is
it'll stabilize them.

The downside is,

yeah, they'll be
really fucking big.

Do it, Tim.

Godspeed.

Get me Blankfein.

Lloyd, call Vikram Pandit,
talk to him about a merger.

Tim, we're looking
at all our options.

You don't have
options, Lloyd.

There's a run
on your bank.

You need money--
Citi has deposits.

Citi is a mess--
you're organized. Call Pandit.

Yeah.

I want you to look at merging
with Morgan Stanley.

What, are you kidding me?
I just bought Bear.

We're still trying
to make that work.

You didn't buy Bear.
You got Bear as a Christmas present.

The market's a fucking
disaster, Jamie.

Talk to John Mack.

Hey, Geithner says
we should talk about a merger.

- You want to do a deal?
- No.

Then why the fuck did he
tell me to call you?

I'm under orders
to try and help you.

You're a prince, Jamie--
a real prince.

Apparently some people
seem to think

combining our firms
would be a good idea.

Well, I want you to know
I'm flattered by this call.

Vikram,
I'm not trying

to flatter you,
believe me.

Geithner's calling.

Oh, here comes
goddamn eharmony.

Hey, guess what.
Jaime's not interested.

Do Wachovia.

They were writing mortgages
with their eyes closed.

Tim, it's a shit sandwich.
Forget it.

Well, I haven't been
able to reach you for four hours.

That is-- that is totally fucking
unacceptable on a day like today.

I had to run my team
through the Goldman proposal.

It's not gonna work.

You passed on Goldman
without even talking to me?

I don't need another trillion
dollars on my balance sheet.

Next time I call,
pick up.

Fucker.

The problem is the toxic assets.
Let's just buy them.

Ooh, call it
cash-for-trash.

When the market stabilizes,
we'll unload them.

Hopefully Treasury will
get its money back.

- Is that in the break-the-glass plan?
- Basically.

My copy's missing some pages.

Could someone else show me
the rest of--

It's succinct.

We've got one shot
with Congress.

You want them to write a piece
of legislation based on three pages?

Look, guys,

buying toxic assets
is gonna be a nightmare.

Nobody knows what
the stuff's worth.

It'll take forever to untangle.
These banks are going down now.

So what do we do?

You want to unfreeze
credit, right?

You want the banks
to lend people money?

- That's the goal.
- So give them money to lend.

Capital injections?

Dan, come on.

I can't believe you're
pulling out the "n" word.

I'm not saying
nationalize the banks.

I'm saying isolate the ones

that are really in trouble
and make an investment.

It's unamerican.

It's-- it's sure
unrepublican.

You make the government
a stockholder--

what, do we tell them

how to manage themselves,
what to buy and sell?

Run them like the post Office?

'Cause that works
like a dream.

We make it
temporary.

We make ourselves
nonvoting stockholders.

You can't just hand the banks
massive piles of cash.

Nobody's gonna
go for it.

To the Republican's
it's nationalization.

To the Democrats
it's a bailout.

And the banks are
gonna go ballistic.

Sorry, Dan,
not gonna happen.

Kudos for
out-of-the-box thinking.

Neel, if we go with your
plan to buy the assets,

how much is it
gonna cost?

It won't work.

Look, the plan is
three pages long, totally vague.

If buying the assets
doesn't work,

we'll nationalize
the banks for you, okay?

How much?

To be safe,
maybe a trillion.

The Congress will never do
a trillion-- never.

Well, there's $11 trillion
in residential mortgages.

There's $3 trillion
in commercial mortgages.

That's $14 trillion,
right?

You gotta figure
about 5% default rate.

5% of $14 trillion

is $700 billion.

It's better
than a trillion.

The only way
to get this done

is to just
scare them shitless.

That should be easy.
I'm scared shitless myself.

Troubled Asset
Relief Program?

T.A.R.P.
We're calling it.

This is your draft
of the bill?

Subject to revision
certainly.

Well, I've only got
three pages here.

Am I missing something?

No.

You're just looking for a
big blank check in a hurry.

It's all for the banks.
You don't want a penny

for the average Joe
that's about to lose his house?

There's not a scrap of oversight
built into this--

not for the banks
or for you for that matter.

You want us
to simply hand over

$700 billion
and trust you?

How is it possible
you didn't see this coming?

If you want to rewind the tape,
we can do that.

But right now the one thing
we don't have is time.

We need an announcement tonight
to calm the market.

We need legislation
next week.

I spent my entire
academic career

studying
the Great Depression.

The Depression
may have started

because of
a stock market crash,

but what hit
the general economy

was a disruption
of credit--

average citizens
unable to borrow money

to do anything--
to buy a home,

start a business,
stock their shelves.

Credit has the ability
to build a modern economy,

but lack of credit
has the power to destroy it,

swiftly and absolutely.

If we do not act
boldly and immediately,

we will replay
the Depression of the 1930s,

only this time
it will be

far far worse.

We don't
do this now--

we won't have
an economy on Monday.

Geithner.

We took the proposal
down to Congress.

Are they gonna
go for it?

They didn't like the fact
that it was short.

I thought concise was a plus.
They thought it was flimsy

or arrogant
or something.

I don't know what they think.
They couldn't get past it.

The market's in a death spiral.
They're gonna sink the bill

because the proposal
is too fucking short?

They're working on it.
They're gonna make it longer,

among other things.

Look,

just tell me
you got something.

No.
No, we're nowhere.

Who's left
for Morgan Stanley?

China Investment
Corporation.

Mae Mitsubishi.

No, the Japanese will
never do this deal.

How about Goldman?

Goldman's looking at Wachovia,
but they're so fucked,

even John Mack
turned up his nose.

You gotta get
that bill passed.

I'm pushing.

Well, push harder,

please.

This isn't working, Hank.

Hank?

Could you excuse me
a moment?

Oh my God.

GAO, GAO,

I am so sorry about this.
There's nothing we can do.

It's New York, you know.
We're lucky

we can still buy a beer
at Yankee Stadium.

Don't worry about it.
I should quit anyway.

When you're ready,
we'll be inside.

Is there any
movement there?

They made an extremely
low opening offer.

I pretended
I didn't hear it.

The markets
can't open Monday

without a resolution
on Morgan Stanley.

We really need you
to do a deal.

- You need to call Jamie.
- I called Jamie.

He doesn't want us.
There's too much overlap.

We've spoken to him.
He'll do it.

For what, a dollar?
Why would I do that?

I got
China Investment

and Mitsubishi
kicking my tires.

I know those guys. They're not
gonna close a deal in time.

We want you
to call Jamie.

Let me ask you
a question.

35,000 jobs just
disappeared in this city

between A.I.G.,
Lehman and Bear.

We make a deal
with Jamie--

he'll fire 20,000
Morgan Stanley employees.

You think that's good
public policy?

John, we are looking
at the whole system here.

The Chinese are leaving.

GAO found out we're also
talking to Mitsubishi.

I gotta go.

All right, get me Kuroyanagi
and a Japanese translator.

We're closing with
Mitsubishi tonight.

Tim Geithner's
calling again.

Cover your ears.

You tell Tim Geithner
to fucking blow me.

I'm trying to save
my company.

Put him on the schedule,
but make sure it's after lunch,

because that way I can
fit Maddle in beforehand.

Morgan just made a deal
with Mitsubishi.

So we're
the only bank

with our dick
still in the wind.

I'm calling
Buffett again.

Grandpa, they keep calling.
What if it's important?

They always think
it's important.

All right,
I'll make it fast.

Warren, thanks for calling back.
How are you?

Just fine, Lloyd.

What can I do
for you today?

I'd like to talk to you about
taking a stake in Goldman Sachs.

What do you have in mind?
Sounds expensive.

Maybe not.

You'd better have
good news,

because I might be dead
before we finish

haggling over TARP.

Buffett's throwing
$5 billion into Goldman.

We're off the ledge.

For a moment.

The October surprise
arrived a little early

with a game-changing jolt
to the White House race.

Call it a master stroke

or a desperate
Hail-Mary pass--

McCain announced he would
suspend his campaign

and asked for this Friday's
debate to be postponed

So he can return to Washington
to focus on the economic crisis.

Now is our chance
to come together,

to prove that Washington
is once again

capable of leading
this country.

Thank God he came back.

Like Daniel Day Lewis
in "Last of the Mohicans,"

he will find us!

- They're blowing it up.
- What happened?

McCain wanted to swoop in
and save the day,

but doesn't have any idea
how to do it.

It's 100-page
piece of legislation

we've been carefully
negotiating for days.

What, did he think they were
gonna sit around and spitball?

Yeah, when McCain
got here

and found out that the deal
was basically done, he went apeshit.

The Republicans fell in
behind their guy.

They want to start
all over again.

Democrats flipped out.
Republicans dug in.

Clusterfuck.

- Where's Hank?
- Still talking to McCain.

If you or anyone else
does anything

that causes a depression,
it is not gonna be on me.

I have a big mouth, Senator--

- a very big mouth.
- Hold on...

He's not threatening

the Republican
Presidential Nominee, is he?

- Something's got to be done.
- No no. Excuse me, please.

Where are the Democrats?

They're right down
this way.

- Is Nancy there?
- Yes. Yes, she is.

Thank you.

Nancy...

Gee, Hank.

I didn't know
you were Catholic.

I beg of you, don't blow this up.
It was a bad meeting,

but we need to get
together on this.

We're not the ones
trying to blow it up.

I just ask you
to stay with us.

Please.

The House began debating
the rescue bill

at 9:27 this morning.

At about 1:28 pm
Congress did finally act.

- This is a squeaker of a vote.
- We are down to it right now.

It looks like the Democrats
delivered their caucus

and the Republicans
so far have not.

What do you think they could do
to change the bill

to get a few Republican votes
over to the other side?

If they hang
Wall Street CEOs,

I think that would get
a few more votes.

You know, I'm not--
I'm not sure

what they could do
exactly.

It is possible that the leadership
of the Congress would conclude

that there's nothing that can
get a majority of support

and see what Hank Paulson can do
and the administration can do--

Leaders are negotiating
right now

who'll risk their seats.
And that's what I'm hearing.

Pelosi wouldn't have brought
the bill to the floor if she

didn't think it would pass.

I don't know the answer
to that, Charlie. I can't answer.

I'm just reading an email
that's coming to me.

I think the bottom line

is they gotta go back
to the drawing board.

Do they have the time
though to do that?

Look at the Dow Jones
Industrial Average.

Well, you know,
you're gonna get a--

At this point we just

gotta hold on to the sides
of the kayak

and ride through this
because--

They didn't pass it.

- They did not pass it.
- It just wasn't enough.

They're gonna end up being
nine votes short, Bill.

Say that again, Steve.

I think they're gonna end up
being nine votes--

if they get all six--
five of the remaining votes,

they'll be 10 votes short now--
if they get all five remaining.

The writing is
on the wall there.

And we're here
down on the floor.

Traders have been standing around.
We're all here in knots.

The networks are waiting for you
in the press room.

I can't even--

We have to
go back again.

They don't get
to say no on this.

Okay.

The White House
wants a meeting.

Good. We'll come up
with a new strategy.

The White House has to
push harder on the Hill.

Meanwhile we need to keep working
on what we do with the money.

Let's act like
this is gonna work.

In that case, let's talk
about cash injections.

Here we go again.

We can't nationalize
the banks.

It's not nationali--

That's how Japan got itself
a decade-long recession.

Is that where
we want to go?

What else do we have?

Cash-for-trash.

Buying toxic assets
is still our go-to move.

All right.
Find a way to simplify it.

Dan, work something up.

For discussion purposes,
let's see what it would look like.

For those who supported the
$700 billion Wall Street bailout,

it was a surprising
and stunning failure

when the House of Representatives
voted to reject it.

It's a stinging defeat
for President Bush

delivered at the hands
of his fellow Republicans.

We put forth a plan
that was big

because we've got
a big problem.

The reality is that we're
in an urgent situation.

and the consequences
will grow worse each day

if we do not act.

I know.
I keep telling--

draft of
the new bill.

Are they having
any luck with it?

The White House thinks they
got a better shot of pushing it

through the Senate side first.
Hopefully they're right.

They asked us to back off
and let them handle it.

So I'm-- I'm--
I'm trying to back off.

Buying toxic assets
isn't gonna work.

Why not?

It's too slow.

I think I've been
saying that.

Well, we knew it was complicated,
but how slow--?

Two months,
maybe more.

Oh.

How is it possible
we didn't know how--?

I didn't ask how long
it would take, okay?

Can we move on?

So maybe we can talk about
capital injections.

Dan, we really can't.

I think
we're gonna have to.

Even if neel could
expedite the process,

which seems unlikely,

the system
is crumbling.

The banks need
money now.

If cash injections are the most
efficient way to stabilize them,

then we can't back off

because we're uncomfortable
being the men

who nationalized
a few American banks.

It's faster,
that's for sure.

It will push us back
off the precipice, yes,

unfreeze the system.

We give them some money

and they lend it out.

The motion is adopted.

After rejecting the Bush
Administration's T.A.R.P. Plan

only four days ago,
the House passed it today.

The big question now--

whether investors will take
comfort in the news.

Current indicators show
the stock market

is continuing
its freefall.

Hello.

Warren, it's Hank.

I-- I-- I'm sorry.
It's late.

Am I waking you?

No, not at all.

Can I pick your brain
for a minute?

Sure.
What's the problem?

How do you get
a healthy bank

to accept
a capital injection?

I had to drag my ass all the
way here from California.

They wouldn't even
tell my why.

Nobody knows
what this is about?

Nope.

Talk to Jamie?

Yep. He'll be fine.

Did you tell him
what was coming?

Uh, did I tell him we're about
to make him swallow

a capital injection
he doesn't need? No.

I-- I told him
we need his help

and I asked him very politely
not to fuck with us today.

He got it.

She's here.

Gentlemen.

We think this is
gonna work?

Oh yeah.
They're gonna love it.

We are of the view

that the United States
needs

to take strong,
decisive action

to arrest the stress

in our financial system.

Through our new
T.A.R.P. Authority,

Treasury will purchase

preferred stock

in each of the banks
represented in this room.

That stock will yield 5%
the first five years,

9% after that.

We give you money;
You lend it out.

It will unfreeze credit,
stabilize the banks,

restore confidence.

Everyone will be
better off

with more capital
in the system.

And that is why

all nine of you

will participate
in the program.

Some of us don't need
any capital.

You all need capital.

You have no idea what the
market's gonna look like in a year.

Neither do you.

I'm not one of you
New York guys

with your
fancy products.

Well, why am I in this room
talking about bailing you out?

The stronger banks will serve
as cover for the weaker banks.

If just some of you take it,
the money is a signal

that a bank is too weak to survive.
The market will devour it.

How much are we
talking about?

$125 billion.

Bank of America--
$15 billion.

Bank of New York Mellon--
$3 billion.

Citigroup--
$25 billion.

Goldman Sachs--
$10 billion.

J.P. Morgan--
$25 billion.

Merrill Lynch--
$10 billion.

Morgan Stanley--
$10 billion.

State Street--
$2 billion.

Wells Fargo--
$25 billion.

What happened
to buying toxic assets?

Wasn't that the idea?

It's too slow.

You'll be dead
before we sort it out.

So we're just handing
the reins over to you?

The deal's actually
pretty good.

You turn your nose up at this now,
and we have to rescue you later--

the terms won't be
nearly as attractive.

It's cheap capital.
It's not the worst idea in the world.

Well, it is for those of us
who already have capital.

We will be nonvoting
shareholders.

This will be
a temporary measure.

What if we decline
to be involved?

The Chairman of the FDIC
is sitting right there.

Tomorrow you'll
find out

that you're not as well-capitalized
as you think you are.

What kind of protections
can you offer on changes

for compensation policy?

I mean, if the government
is going to become a part-owner,

does that mean
that the government

is going to dictate
compensation?

Are you asking me about your
bonus right now, John?

I'm running
a company.

If the Fed tells me
I can't offer

competitive pay
for talent,

you're gonna launch the biggest brain
drain this country's ever seen.

Is that the way you want
to run the banks?

Until the money is repaid
to the Treasury,

there will be some limitations on tax
deductions and golden parachutes.

- Well, there you go.
- I don't really understand

why there needs to be
so much tension about this.

The country is facing

the worst economy
since the Great Depression.

If the financial system
collapses,

it will take
every one of you down.

Give me the papers.

- You can't just sign it.
- Oh no?

- Not without your board.
- My board's on 24-hour notice.

I think they'll
go along with it.

And if they don't,
they'll fire me.

Anyone else?

Are they gonna do it?

They're calling
their boards.

- That's a good sign.
- If they do go along with this,

we should announce
something alongside the injections--

maybe a program
to buy up mortgages.

I'm not rushing out
some half-assed plan

just to make it look like
we're doing something.

Maybe we just beef up
the restrictions

on how they
spend the money--

something to take
the stink off.

Put more restrictions on it--
they won't take it.

One thing too many
for today.

They almost bring down

the U.S. economy
as we know it,

but we can't put restrictions
on how they spend

the $125 billion
we're giving them,

because they might not
take it.

What's this?

That is, um...

A poison dart frog.

Wendy took it
in Guyana.

Is this yours?

Al Capone's.

Eight out of the nine
are in.

B of A is still waiting
on its board, but--

it's gonna go through.

I'll call the Speaker's
office.

And we're gonna get you
on the phone with the President.

Okay.

Dow is up 900 points

just because
we were meeting.

Well, that's good.

That's good.

It was the right thing.

Absolutely.

I was prepared
for more blowback.

They didn't have
a choice.

They knew that.

Well, I certainly hope
that they--

What?

I hope they use the money
the way we're asking them to.

They will lend it out,
won't they?

Of course they will.

Of course they will.

== sync, corrected by elderman ==