1 00:00:02,000 --> 00:00:07,000 Downloaded from YTS.MX 2 00:00:08,000 --> 00:00:13,000 Official YIFY movies site: YTS.MX 3 00:00:24,040 --> 00:00:25,680 ZACH: If you talk to 100 people, 4 00:00:25,800 --> 00:00:28,680 102 are going to tell you they hate bankers, 5 00:00:29,920 --> 00:00:33,040 but most people won't be able to tell you why. 6 00:00:33,160 --> 00:00:35,400 Is it because we're privileged? 7 00:00:35,520 --> 00:00:37,320 It can't be. 8 00:00:37,440 --> 00:00:40,000 Some of us did dirty jobs to get through college. 9 00:00:40,120 --> 00:00:42,160 I know one woman who paid her way through Princeton 10 00:00:42,280 --> 00:00:44,200 working as a call girl for the mafia. 11 00:00:45,880 --> 00:00:48,200 Is it because we make a lot of money? 12 00:00:48,320 --> 00:00:50,800 -Well, some of us do... -[CASH REGISTER DINGS] 13 00:00:50,920 --> 00:00:52,720 ...and some of us don't. 14 00:00:52,840 --> 00:00:57,640 In general, people resent those they perceive to be on top. 15 00:00:57,760 --> 00:00:59,280 That's how the French Revolution happened. 16 00:00:59,400 --> 00:01:01,840 [SCREAMING] 17 00:01:01,960 --> 00:01:06,160 And in the end, perception can matter more than the truth. 18 00:01:06,280 --> 00:01:07,920 You could have been born like I was, 19 00:01:08,040 --> 00:01:10,120 on the wrong side of the tracks in Tennessee. 20 00:01:10,240 --> 00:01:11,560 Actually, when you're from Tennessee, 21 00:01:11,680 --> 00:01:13,440 it's all the wrong side of the tracks. 22 00:01:13,560 --> 00:01:15,280 [MOBILE RINGING] 23 00:01:15,400 --> 00:01:16,640 But once you get to Wall Street, 24 00:01:16,760 --> 00:01:18,480 no matter how you got here, 25 00:01:18,600 --> 00:01:20,880 you give up your right to say you're a man of the people. 26 00:01:21,000 --> 00:01:23,840 Here, we're all the same. 27 00:01:23,960 --> 00:01:25,880 And we all went down together. 28 00:01:26,000 --> 00:01:28,040 [INDISTINCT CONVERSATIONS] 29 00:01:31,360 --> 00:01:33,720 Dick Fuld had given his life to Lehman Brothers 30 00:01:33,840 --> 00:01:35,160 and was well known on Wall Street 31 00:01:35,280 --> 00:01:37,400 for his unique personal style. 32 00:01:37,520 --> 00:01:39,360 His nickname is "The Gorilla". 33 00:01:39,480 --> 00:01:41,280 I can't give you more collateral! 34 00:01:41,400 --> 00:01:44,360 No, not until we've had a chance to raise a bit more cap... 35 00:01:44,480 --> 00:01:47,600 We're under-capitalised, yes, like everyone and their... 36 00:01:47,720 --> 00:01:49,760 Jamie... Jamie. Jamie! 37 00:01:49,880 --> 00:01:50,880 I need you up here today. 38 00:01:51,000 --> 00:01:53,320 Jamie! What do you want me to do? 39 00:01:53,440 --> 00:01:55,720 -You want me to wire you now five bil... -[PHONE RINGING] 40 00:01:55,840 --> 00:01:57,600 No, you're unreasonable! 41 00:01:57,720 --> 00:01:59,640 I've had Paulson up my ass all week, 42 00:01:59,760 --> 00:02:02,320 our stock's dropped 75% since Monday. 43 00:02:02,440 --> 00:02:04,640 We're in freefall! Everyone's dumping our stock! 44 00:02:04,760 --> 00:02:06,000 And you ask me for more... 45 00:02:06,120 --> 00:02:07,640 Wait. Why is this phone ringing? 46 00:02:07,760 --> 00:02:09,600 -You want me to... -Hello? Hi. 47 00:02:09,720 --> 00:02:10,760 No. Get on the desk. 48 00:02:10,880 --> 00:02:12,720 Hold on. Jamie, I'll call you back. 49 00:02:12,840 --> 00:02:15,080 Yes, I know, I know, I know. 50 00:02:16,040 --> 00:02:18,560 Christ, you have no idea what... 51 00:02:18,680 --> 00:02:20,960 Yeah, I... These ribs are cold. 52 00:02:21,920 --> 00:02:23,240 No, go ahead. 53 00:02:23,360 --> 00:02:26,960 Yeah, give me the list. Okay, yeah. 54 00:02:27,080 --> 00:02:29,800 -These ribs are cold. -Some week. 55 00:02:29,920 --> 00:02:31,440 Three times the usual ribs. 56 00:02:31,560 --> 00:02:34,760 ZACH: It's true, Lehman had been to dark places before, 57 00:02:34,880 --> 00:02:38,080 and Dick Fuld had always pulled us back from the brink. 58 00:02:38,200 --> 00:02:39,760 When he broke the disastrous news 59 00:02:39,880 --> 00:02:42,000 to shareholders over a speakerphone, 60 00:02:42,120 --> 00:02:45,720 he hoped the world would believe this was just another one of those times. 61 00:02:45,840 --> 00:02:48,920 We have regretfully had to write down 62 00:02:49,040 --> 00:02:50,840 our commercial real estate assets 63 00:02:50,960 --> 00:02:52,600 from 40 billion 64 00:02:52,720 --> 00:02:54,960 to a market value of 33 billion. 65 00:02:55,080 --> 00:02:56,080 [SIGHS] 66 00:02:57,320 --> 00:02:59,680 The good news is we have a strategy in place 67 00:02:59,800 --> 00:03:02,600 which we feel will appease the markets. 68 00:03:02,720 --> 00:03:04,640 We're currently fine-tuning a plan 69 00:03:04,760 --> 00:03:08,320 to spin off our commercial real estate portfolio 70 00:03:08,440 --> 00:03:11,760 into another company which, appropriately, will be called SpinCo. 71 00:03:13,080 --> 00:03:16,320 There, it won't be a drag on the balance sheet. 72 00:03:16,440 --> 00:03:17,920 ZACH: The market wasn't appeased. 73 00:03:22,360 --> 00:03:24,960 There was a run on the bank. Everyone was dumping shares. 74 00:03:25,080 --> 00:03:28,360 Our rating was even downgraded. 75 00:03:28,480 --> 00:03:31,480 By Friday afternoon, we were gasping for breath. 76 00:03:42,640 --> 00:03:45,120 DICK: I want everyone on message about this. 77 00:03:46,960 --> 00:03:48,360 [INHALES] 78 00:03:48,480 --> 00:03:50,040 Our situation is serious, 79 00:03:51,200 --> 00:03:52,040 but it's not critical. 80 00:03:52,160 --> 00:03:56,600 I repeat, the situation is not critical. 81 00:03:56,720 --> 00:03:58,920 Bank of America wants us. 82 00:03:59,040 --> 00:04:02,280 Barclays wants us. We can choose. 83 00:04:02,400 --> 00:04:06,400 And whichever we choose will fill us with new air! 84 00:04:06,520 --> 00:04:10,920 I need everyone to believe! 85 00:04:11,040 --> 00:04:14,040 You're on the 31st floor, God damn it! 86 00:04:14,160 --> 00:04:16,520 And I want this message to trickle downwards. 87 00:04:18,360 --> 00:04:20,080 Can Mr McDade have a minute? 88 00:04:29,000 --> 00:04:30,800 This better be good news, Bart. 89 00:04:32,840 --> 00:04:35,080 Hank Paulson's flying up here. 90 00:04:36,200 --> 00:04:37,520 Here? 91 00:04:37,640 --> 00:04:40,320 The Federal Reserve. He's calling a meeting with the banking chiefs. 92 00:04:40,440 --> 00:04:42,160 What for? 93 00:04:42,280 --> 00:04:44,280 He wants them to bail us out. 94 00:04:44,400 --> 00:04:46,680 He wants our competitors to bail us out? 95 00:04:46,800 --> 00:04:50,000 He wants us to go to the Fed. He doesn't want us in the meeting. 96 00:04:50,120 --> 00:04:52,920 He just wants us to be there, waiting. 97 00:04:53,040 --> 00:04:55,600 -Somewhere. I don't know. -Is he kidding? 98 00:04:55,720 --> 00:04:57,560 I'm not going to the Fed to sit outside 99 00:04:57,680 --> 00:05:01,360 some goddamn boardroom while Paulson and my enemies decide my fate! 100 00:05:01,480 --> 00:05:05,040 Look, Dick, he doesn't want you there. 101 00:05:07,560 --> 00:05:09,000 He just wants us. 102 00:05:12,800 --> 00:05:14,800 [INDISTINCT CONVERSATIONS] 103 00:05:20,680 --> 00:05:21,920 [INAUDIBLE] 104 00:05:22,880 --> 00:05:25,040 Thank you all for coming. 105 00:05:25,160 --> 00:05:26,840 I know it must seem a rather cruel joke 106 00:05:26,960 --> 00:05:29,240 for you to get a call at 5:00 on a Friday 107 00:05:29,360 --> 00:05:31,080 asking you to come down to the Fed, 108 00:05:31,200 --> 00:05:33,680 and I have no doubt you were all eager to start your weekends. 109 00:05:33,800 --> 00:05:35,520 I'm sorry if you had plans. 110 00:05:37,000 --> 00:05:39,680 I hope the presence of Treasury Secretary Paulson... 111 00:05:39,800 --> 00:05:42,840 Jesus, Tim, we all know each other here. 112 00:05:42,960 --> 00:05:45,760 ...will impress upon you the gravity of the situation. 113 00:05:48,200 --> 00:05:50,760 You've all watched Lehman take a nosedive. 114 00:05:50,880 --> 00:05:53,960 They're not going to survive trading on Monday 115 00:05:54,080 --> 00:05:55,400 and we wanted to ask for your... 116 00:05:55,520 --> 00:05:56,760 Inspiration. 117 00:05:58,920 --> 00:06:00,520 You're the best minds on Wall Street... 118 00:06:00,640 --> 00:06:04,080 Tim, you know, I think you can cut the crap about now, hmm? 119 00:06:07,880 --> 00:06:10,320 There's no public money for a bail out of Lehman Brothers. 120 00:06:10,440 --> 00:06:13,200 [MEN GASP] 121 00:06:13,320 --> 00:06:16,240 If we can't figure out a way to keep them standing, 122 00:06:16,360 --> 00:06:19,480 they're going to be bankrupt when trading opens in Japan on Monday. 123 00:06:20,560 --> 00:06:22,880 Now, what game are you playing? 124 00:06:23,000 --> 00:06:24,520 There's no taxpayer money for this. 125 00:06:24,640 --> 00:06:26,320 -MACK: Bullshit. -Not a penny. 126 00:06:26,440 --> 00:06:27,880 It's not bullshit. 127 00:06:28,000 --> 00:06:29,960 Well, if it's not bullshit, what the hell are we all doing here? 128 00:06:31,160 --> 00:06:33,440 We'll arbitrate, we'll facilitate. 129 00:06:33,560 --> 00:06:35,840 -We'll broker a deal... -We get it. 130 00:06:35,960 --> 00:06:37,880 This is your hardball starting position. 131 00:06:38,000 --> 00:06:39,480 HANK: This is not a starting position. 132 00:06:40,480 --> 00:06:41,840 This is the position. 133 00:06:43,080 --> 00:06:44,360 TIM: And even if the money were accessible, 134 00:06:44,480 --> 00:06:47,360 -there would be no political will... -JAMIE: Political will? 135 00:06:47,480 --> 00:06:51,200 Was there political will to bail out Fannie and Freddie? 136 00:06:51,320 --> 00:06:53,840 -Things were different then. -Five days ago! 137 00:06:53,960 --> 00:06:56,440 -[MEN CHUCKLING] -MACK: So... 138 00:06:56,560 --> 00:06:57,920 What do you mean? 139 00:06:58,040 --> 00:07:02,040 Arbitrate what? Facilitate what? 140 00:07:02,160 --> 00:07:04,080 You brought us here to brainstorm? 141 00:07:04,200 --> 00:07:08,480 Damn it, Jamie, are you the only one at this table with no exposure to Lehmans? 142 00:07:08,600 --> 00:07:12,000 Or perhaps you've been too busy bombarding them with demands for collateral 143 00:07:12,120 --> 00:07:13,720 to notice that they're going belly up! 144 00:07:13,840 --> 00:07:15,360 -I have the right! -Of course. 145 00:07:15,480 --> 00:07:16,840 I have a fiduciary obligation. 146 00:07:16,960 --> 00:07:19,000 How dare you! How dare you... 147 00:07:19,120 --> 00:07:21,240 TIM: Calm down, Jamie, he didn't mean... 148 00:07:21,360 --> 00:07:24,000 He did mean it! One more comment like that... 149 00:07:27,280 --> 00:07:29,800 -And why isn't Fuld here? -You want him here? 150 00:07:29,920 --> 00:07:33,040 HANK: There's plenty of blame to go around. 151 00:07:33,160 --> 00:07:37,160 But if they go down, we're all going to take a hit. [CLEARS THROAT] 152 00:07:39,600 --> 00:07:41,080 You're hanging Lehman out to dry? 153 00:07:46,600 --> 00:07:48,200 So, do it then. 154 00:07:49,200 --> 00:07:51,160 I got a train to catch. 155 00:07:55,520 --> 00:07:59,000 The West is fucked. We fucked it up. 156 00:07:59,120 --> 00:08:02,520 Oh, not just you and me, all of us. 157 00:08:02,640 --> 00:08:06,120 The West, it's done, it's over. 158 00:08:06,240 --> 00:08:07,960 You wanna call it a game? 159 00:08:08,080 --> 00:08:09,560 This is the game. 160 00:08:09,680 --> 00:08:12,640 You want your great-grandchildren speaking Chinese? 161 00:08:12,760 --> 00:08:14,520 The dollar's going to go. 162 00:08:14,640 --> 00:08:18,080 We had Rome, then Europe, then this. 163 00:08:18,200 --> 00:08:23,640 Us, this thing with cars and stereos and hula hoops, 164 00:08:23,760 --> 00:08:25,120 and we screwed it all up. 165 00:08:26,640 --> 00:08:30,680 We ran through it all, this stuff, 166 00:08:30,800 --> 00:08:32,760 and we've come out on the other side where it's... 167 00:08:34,640 --> 00:08:36,320 I don't know. 168 00:08:36,440 --> 00:08:37,520 Where is this place? 169 00:08:38,880 --> 00:08:42,080 Oh, yeah, we have this one weekend 170 00:08:42,200 --> 00:08:44,880 where maybe we can come up with something 171 00:08:45,000 --> 00:08:47,080 to hold it all together a little while longer! 172 00:09:12,840 --> 00:09:17,680 KEN: It seems that you've got about $85 billion worth of troubled loans 173 00:09:17,800 --> 00:09:21,920 which puts you at least 10 billion underwater. 174 00:09:22,040 --> 00:09:25,000 DICK: Ken, you're Bank of America, you're retail. 175 00:09:25,120 --> 00:09:26,440 Let my people go over the books with you. 176 00:09:26,560 --> 00:09:27,720 KEN: We've been over the books. 177 00:09:27,840 --> 00:09:29,280 DICK: Yeah, but if we go over them with you... 178 00:09:29,400 --> 00:09:32,160 KEN: So that you can help us read them correctly? 179 00:09:32,280 --> 00:09:35,240 Dick, we're not confused about your numbers. 180 00:09:35,360 --> 00:09:38,680 -Your good assets aren't enough to... -Our "good assets"? 181 00:09:38,800 --> 00:09:40,040 We're fucking Lehman Brothers! 182 00:09:40,160 --> 00:09:42,280 Do you know how much this company's worth? 183 00:09:42,400 --> 00:09:45,000 Well yes, Dick, I believe I do. 184 00:09:46,640 --> 00:09:47,920 Have you been to Paulson? 185 00:09:48,040 --> 00:09:50,160 We asked him to take $70 billion 186 00:09:50,280 --> 00:09:53,040 -of the stink off your books, but... -70 billion? 187 00:09:53,160 --> 00:09:55,600 Not my number, Dick. We have a board. 188 00:09:55,720 --> 00:09:57,560 But Paulson's offering nothing. 189 00:09:57,680 --> 00:09:59,760 He's trying to facilitate some sort of 190 00:09:59,880 --> 00:10:02,000 private sector solution, but... 191 00:10:02,120 --> 00:10:06,000 Ken, can you hold on just one... 192 00:10:06,120 --> 00:10:07,200 Sure. 193 00:10:10,960 --> 00:10:12,200 [TOY SQUEAKS] 194 00:10:13,400 --> 00:10:14,960 [BREATHING HEAVILY] 195 00:10:18,640 --> 00:10:21,560 -I'm here. -I'll call you if anything changes. 196 00:10:21,680 --> 00:10:25,840 If it's any comfort, Paulson is having another valuation done tonight. 197 00:10:25,960 --> 00:10:29,000 -Another? Of my... -By a mixed, disinterested group... 198 00:10:29,120 --> 00:10:30,720 Ken, don't decide anything yet. 199 00:10:30,840 --> 00:10:33,600 I can get Paulson to turn around on this. I'll call you back. 200 00:10:35,760 --> 00:10:37,080 -Zach! -I'm here. 201 00:10:37,200 --> 00:10:38,920 I want you down at the Fed tonight. 202 00:10:39,040 --> 00:10:42,160 Get in on that valuation. Get Paulson on the phone! 203 00:10:42,280 --> 00:10:45,320 -SAMANTHA: I'm on it! -Mixed? Disinterested? 204 00:10:45,440 --> 00:10:49,280 I bet he's got a team built from his cronies at Goldman Sachs. 205 00:10:49,400 --> 00:10:51,920 Band of fucking villains! 206 00:10:52,040 --> 00:10:55,680 Conspiring like Roman senators! Private sector... Move! 207 00:10:58,720 --> 00:10:59,760 Paulson's out of reach. 208 00:11:01,400 --> 00:11:02,120 [INHALES DEEPLY] 209 00:11:04,520 --> 00:11:06,160 [EXHALES] Right. 210 00:11:12,520 --> 00:11:13,720 [DIALLING] 211 00:11:16,560 --> 00:11:17,760 [INHALES] 212 00:11:19,640 --> 00:11:21,960 Harvey, it's Dick Fuld. 213 00:11:22,080 --> 00:11:24,480 I need you in my office. 214 00:11:24,600 --> 00:11:26,800 No, I'm afraid it can't. 215 00:11:29,160 --> 00:11:30,320 [SIGHS] 216 00:11:30,440 --> 00:11:32,600 So, there are two banks courting Lehman right now, 217 00:11:32,720 --> 00:11:35,240 Bank of America, and Barclays in the UK. 218 00:11:35,360 --> 00:11:37,560 But neither Ken Lewis nor Bob Diamond will touch it 219 00:11:37,680 --> 00:11:39,600 while it's loaded down with toxic assets. 220 00:11:39,720 --> 00:11:41,960 You want us to buy Lehman's toxic assets? 221 00:11:42,080 --> 00:11:45,000 Well, maybe there's a way you could ring-fence them. Something. 222 00:11:45,120 --> 00:11:50,400 Look, if you're telling us that you're not backstopping anyone any more, 223 00:11:50,520 --> 00:11:52,680 we're going to be fighting for our lives. 224 00:11:52,800 --> 00:11:56,640 But if you did decide to buy them, as a consortium... 225 00:11:56,760 --> 00:12:01,040 That would be... Is that even legal? [SCOFFS] 226 00:12:01,160 --> 00:12:03,480 Aren't you asking us to risk our shareholders'... 227 00:12:03,600 --> 00:12:05,240 TIM: That's what you do every day of your lives, don't you? 228 00:12:05,360 --> 00:12:07,200 Risk your shareholders' money. 229 00:12:07,320 --> 00:12:10,560 Just running the numbers, if you took on these assets as a group, 230 00:12:10,680 --> 00:12:13,760 you'd probably each take a smaller hit than you would on a Lehman bankruptcy. 231 00:12:13,880 --> 00:12:16,520 We're not all exposed to Lehman in the same degree. 232 00:12:16,640 --> 00:12:19,080 Oh, community spirit. That warms my heart. 233 00:12:19,200 --> 00:12:20,480 You're all exposed. 234 00:12:21,960 --> 00:12:24,040 And you're all in line in order of size. 235 00:12:24,160 --> 00:12:25,800 Merrill is next, then Morgan Stanley. 236 00:12:25,920 --> 00:12:28,240 -We're not next. What are you talking about? -MACK: That's just bullshit. 237 00:12:28,360 --> 00:12:29,640 Have you read our quarterly statements, Hank? 238 00:12:29,760 --> 00:12:32,000 Yes, John, I know your figures. 239 00:12:32,120 --> 00:12:34,120 I even know what you spent on breakfast. 240 00:12:34,240 --> 00:12:35,960 You're next in line, trust me. 241 00:12:38,960 --> 00:12:43,440 Okay, so I want someone to buy our toxic assets. Huh? 242 00:12:43,560 --> 00:12:45,400 Where does it end? 243 00:12:45,520 --> 00:12:46,720 Where does it stop? 244 00:12:47,800 --> 00:12:49,160 I mean, why them, and not us? 245 00:12:49,280 --> 00:12:51,560 HANK: Yeah, why them? 246 00:12:52,720 --> 00:12:55,200 Maybe we should just let them fail. 247 00:12:55,320 --> 00:12:58,000 Maybe that'll be the play that washes away all our sins. 248 00:12:59,640 --> 00:13:01,080 You decide. 249 00:13:04,160 --> 00:13:07,240 What if we can't agree on a solution? 250 00:13:11,560 --> 00:13:15,160 Then we have to start anticipating what will happen when Lehman does go bankrupt, 251 00:13:16,680 --> 00:13:18,680 and contemplate how the rest of the world 252 00:13:18,800 --> 00:13:20,120 can contain the damage. 253 00:13:32,760 --> 00:13:34,880 I think Bank of America's free now. 254 00:13:35,000 --> 00:13:38,040 -They're not courting Lehman? -No. I think that's dead. 255 00:13:38,160 --> 00:13:41,200 They're liquid. They love our shop. 256 00:13:41,320 --> 00:13:43,320 -They love retail. -It's good to have options. 257 00:13:43,440 --> 00:13:45,840 I think we should make a move. I think you should give Lewis a call. 258 00:13:45,960 --> 00:13:47,640 It's a bad time to look weak. 259 00:13:47,760 --> 00:13:49,400 We'd only be selling a stake. 260 00:13:49,520 --> 00:13:51,400 You know what people are gonna think if we sell a stake now? 261 00:13:51,520 --> 00:13:54,240 -What? -It's a down payment, the thin end of the wedge. 262 00:13:54,360 --> 00:13:56,800 Who cares what it looks like? Nobody's lending. 263 00:13:56,920 --> 00:14:00,440 Lehman's falling apart because they can't borrow their operating costs. 264 00:14:00,560 --> 00:14:01,720 John, we need a line of credit, 265 00:14:01,840 --> 00:14:03,040 and we need it from Monday, 266 00:14:03,160 --> 00:14:05,120 or I don't think we're gonna last out the week. 267 00:14:19,200 --> 00:14:20,640 [FOOTSTEPS APPROACHING] 268 00:14:26,920 --> 00:14:29,640 The first thing you need to know is none of this is happening. 269 00:14:29,760 --> 00:14:30,800 The second thing you need to know is 270 00:14:30,920 --> 00:14:32,160 you don't discuss this with anyone. 271 00:14:32,280 --> 00:14:34,520 If anyone saw you come in or sees you go out, 272 00:14:34,640 --> 00:14:36,560 you were here to advise on the sale. 273 00:14:36,680 --> 00:14:37,920 What's not happening? 274 00:14:39,000 --> 00:14:41,240 We're not considering bankruptcy. 275 00:14:41,360 --> 00:14:44,480 We do not need to prepare a Chapter 7 petition. 276 00:14:44,600 --> 00:14:47,640 Barclays wants us, and Bank of America will come around. 277 00:14:47,760 --> 00:14:52,400 As an exercise, however, we will put together a bare-bones filing 278 00:14:52,520 --> 00:14:56,080 so that we know every strategic position has been covered. 279 00:14:56,200 --> 00:14:58,840 And when do you not want this done by? 280 00:14:58,960 --> 00:14:59,960 This weekend. 281 00:15:00,080 --> 00:15:01,160 [SCOFFS] 282 00:15:01,280 --> 00:15:02,520 [LAUGHS] 283 00:15:04,120 --> 00:15:06,760 First of all, we don't have a team. 284 00:15:06,880 --> 00:15:09,720 Second, you don't have a team. 285 00:15:09,840 --> 00:15:12,760 Everyone's working on due diligence for the mergers. 286 00:15:12,880 --> 00:15:15,160 Third, nobody can put together 287 00:15:15,280 --> 00:15:18,440 a bankruptcy of this size in two days. 288 00:15:18,560 --> 00:15:22,360 And fourth, the government's not going to let you go down. 289 00:15:22,480 --> 00:15:25,360 Paulson's opening position is that we sink or swim. 290 00:15:25,480 --> 00:15:27,480 [SCOFFS] Are you kidding? 291 00:15:29,440 --> 00:15:30,640 [SCOFFS] 292 00:15:31,680 --> 00:15:33,320 It would be a financial disaster 293 00:15:33,440 --> 00:15:36,120 the likes of which the world has never seen before. 294 00:15:36,240 --> 00:15:39,960 It would be like the American government itself going bankrupt. 295 00:15:40,080 --> 00:15:43,280 It would be like the US dollar being rendered worthless 296 00:15:43,400 --> 00:15:45,120 and everyone being told to start over 297 00:15:45,240 --> 00:15:48,000 with goats and pebbles. 298 00:15:48,120 --> 00:15:52,720 It would be like Rome selling the Vatican to the Japanese to make it a hotel, 299 00:15:52,840 --> 00:15:55,760 and hiring the Pope as a bellboy. 300 00:15:55,880 --> 00:15:58,200 [SCOFFS] It's just a fantasy. 301 00:15:58,320 --> 00:16:00,560 It's a "through the looking glass" world. 302 00:16:02,720 --> 00:16:06,440 It's something from the book of Revelations. 303 00:16:06,560 --> 00:16:09,240 DICK: "And he cried mightily with a strong voice, 304 00:16:09,360 --> 00:16:13,680 "saying, 'Babylon the great is fallen, is fallen, 305 00:16:13,800 --> 00:16:16,560 "'and is become the habitation of devils, 306 00:16:16,680 --> 00:16:19,960 "'and a hold of every foul spirit, 307 00:16:20,080 --> 00:16:23,840 "'and a cage of every unclean and hateful bird...'" 308 00:16:23,960 --> 00:16:27,480 "For all nations have drunk of the wine of the wrath of her fornication, 309 00:16:27,600 --> 00:16:30,960 "and the kings of the earth have committed fornication with her 310 00:16:31,080 --> 00:16:33,080 "and the merchants of the earth are waxed rich 311 00:16:33,200 --> 00:16:36,000 "through the abundance of her delicacies." 312 00:16:38,680 --> 00:16:40,600 [CLOCK TICKING] 313 00:16:51,920 --> 00:16:53,160 Okay. 314 00:16:53,280 --> 00:16:55,800 We've only got a few hours to value this portfolio. 315 00:16:55,920 --> 00:16:58,560 This is gonna be your best friend. 316 00:16:58,680 --> 00:17:00,440 All right, guys, I know it looks like a lot, 317 00:17:00,560 --> 00:17:02,800 but if we put on our best heads, we'll... 318 00:17:08,080 --> 00:17:10,080 [ALL MURMURING] 319 00:17:35,200 --> 00:17:39,760 A lot of people ask me how the subprime mortgage crisis brought down Wall Street. 320 00:17:39,880 --> 00:17:42,600 Well, my sister knows. That's how she got her house. 321 00:17:44,160 --> 00:17:46,600 First, we found ourselves a house. 322 00:17:50,720 --> 00:17:52,800 Then we found a mortgage broker. 323 00:17:52,920 --> 00:17:55,880 The waitress down there at the Cracker Barrel Restaurant said he could work miracles. 324 00:17:56,000 --> 00:17:59,760 So, we handed him our pay slips and he made corrections 325 00:17:59,880 --> 00:18:05,600 using a free programme you get from the Internet which changes pictures. 326 00:18:05,720 --> 00:18:08,320 A lot of people use it to make themselves look skinnier or prettier, 327 00:18:08,440 --> 00:18:10,880 but we just used it to make ourselves look rich, 328 00:18:11,000 --> 00:18:13,240 which I'm sure the Lord would think was not as bad 329 00:18:13,360 --> 00:18:16,080 because you're not changing the looks God gave you. 330 00:18:16,200 --> 00:18:18,920 You're just changing what you earn, which God allows anyway, 331 00:18:19,040 --> 00:18:23,400 because if he didn't, then nobody would be able to apply for a different job. 332 00:18:23,520 --> 00:18:27,080 Then, the broker phoned somebody called "a lender". 333 00:18:27,200 --> 00:18:29,400 Now, she barely even looked at our paperwork. 334 00:18:29,520 --> 00:18:31,720 She just pushed "send" button and our forms were approved 335 00:18:31,840 --> 00:18:33,800 and off to New York where people in white coats 336 00:18:33,920 --> 00:18:37,760 worked throughout the night, putting all the documents into different kinds of piles. 337 00:18:37,880 --> 00:18:39,760 Then they send these documents 338 00:18:39,880 --> 00:18:42,800 on to the bankers, like my brother. 339 00:18:42,920 --> 00:18:44,840 And from now on, they're called "securities," 340 00:18:44,960 --> 00:18:47,200 even though nothing about them has really changed 341 00:18:47,320 --> 00:18:49,440 and they used to just be called "mortgage contracts". 342 00:18:49,560 --> 00:18:52,080 Then, once they're called "securities," 343 00:18:52,200 --> 00:18:53,800 they're a product that you can sell, 344 00:18:53,920 --> 00:18:56,800 like...like a table, or makeup. 345 00:18:56,920 --> 00:18:59,000 Now, here's the weird thing they do. 346 00:19:02,000 --> 00:19:06,200 The bankers pay a man to give the securities a grade, like in school. 347 00:19:10,680 --> 00:19:12,080 Now they're called CDOs. 348 00:19:12,200 --> 00:19:14,240 And the bankers, they buy and sell these 349 00:19:14,360 --> 00:19:16,640 back and forth to each other for some reason. 350 00:19:16,760 --> 00:19:18,120 Then they mix them up some more, 351 00:19:18,240 --> 00:19:19,320 staple a few together, 352 00:19:19,440 --> 00:19:21,560 and send them back to the man for a new rating. 353 00:19:24,480 --> 00:19:27,440 And all the bankers, they keep buying and they keep selling the CDOs, 354 00:19:27,560 --> 00:19:30,760 and they keep chopping them up and putting them back together in different ways, 355 00:19:30,880 --> 00:19:33,600 and selling them for double or triple what they paid for them, 356 00:19:33,720 --> 00:19:37,200 and every time they do this, the CDO gets thicker and thicker 357 00:19:37,320 --> 00:19:39,520 and that rating gets weirder and weirder. 358 00:19:39,640 --> 00:19:42,880 [TELEPHONES RINGING] 359 00:19:43,000 --> 00:19:44,720 Now, the bankers liked the CDOs so much, 360 00:19:44,840 --> 00:19:46,440 they wanted more and more of them, 361 00:19:46,560 --> 00:19:48,720 and they didn't care if somebody wasn't able to pay their mortgages 362 00:19:48,840 --> 00:19:51,640 because they just wanted the loan papers to call securities 363 00:19:51,760 --> 00:19:53,480 and then to turn into CDOs 364 00:19:53,600 --> 00:19:55,600 'cause they're gonna sell them just as fast as they could anyway 365 00:19:55,720 --> 00:19:57,680 and make a huge whopping profit overnight. 366 00:19:57,800 --> 00:19:59,760 So, they didn't care what the paper's worth. 367 00:19:59,880 --> 00:20:01,640 I mean, paper really ain't worth nothing 368 00:20:01,760 --> 00:20:05,240 unless two crazy people's willing to pay each other for them. 369 00:20:05,360 --> 00:20:07,840 But when a lot of people didn't pay their mortgages, 370 00:20:07,960 --> 00:20:10,800 some people remembered that the houses and loans 371 00:20:10,920 --> 00:20:13,960 were somehow connected to the CDOs in some funny legal way, 372 00:20:14,080 --> 00:20:15,720 and that this was bad, 373 00:20:15,840 --> 00:20:18,120 then nobody wanted to buy the CDOs any more. 374 00:20:18,240 --> 00:20:23,440 So, suddenly people owned and couldn't get rid of a lot of very, very expensive things 375 00:20:23,560 --> 00:20:25,480 that were really only worthless paper 376 00:20:25,600 --> 00:20:28,880 that was somehow connected to things that weren't even there. 377 00:20:29,920 --> 00:20:31,160 [DOG BARKING] 378 00:20:31,280 --> 00:20:32,600 [WIND WHISTLING] 379 00:20:43,120 --> 00:20:44,120 [SIGHS] 380 00:20:47,440 --> 00:20:48,240 [SCOFFS] 381 00:20:49,400 --> 00:20:52,240 -What? -This. 382 00:20:52,360 --> 00:20:55,680 We have some of that, but we've marked it at 75. 383 00:20:56,920 --> 00:20:58,800 -We marked it at 90. -And we're really... 384 00:20:58,920 --> 00:21:01,080 -I know. -Yeah, aggressive. 385 00:21:01,200 --> 00:21:06,560 And look at this. We value this at 43. 386 00:21:09,160 --> 00:21:10,760 You remember how you valued it? 387 00:21:10,880 --> 00:21:13,080 -[CHUCKLES] You've marked it at 60. That's... -I didn't personally. 388 00:21:13,200 --> 00:21:16,040 Yeah, but you're here. You're the one who's here. 389 00:21:17,400 --> 00:21:19,200 I'm here, but I'm not. 390 00:21:19,320 --> 00:21:22,520 Look, you're... What do you mean, you're here but you're not? 391 00:21:22,640 --> 00:21:24,600 I mean, you know, officially. 392 00:21:27,240 --> 00:21:28,040 [SIGHS] 393 00:21:34,560 --> 00:21:35,960 [MOBILE VIBRATING] 394 00:21:44,520 --> 00:21:46,240 Greg. 395 00:21:46,360 --> 00:21:49,440 I wanted your first thought of the day to be Bank of America. 396 00:21:49,560 --> 00:21:52,160 -I wanted the first words you heard to be "call"... -I'm still in bed. 397 00:21:52,280 --> 00:21:54,040 Now, we need to make our intentions clear. 398 00:21:54,160 --> 00:21:56,880 Unambiguous, using words of one syllable. 399 00:21:57,000 --> 00:21:58,720 We want to discuss a deal today. 400 00:21:58,840 --> 00:22:00,520 With a line of credit available Monday. 401 00:22:00,640 --> 00:22:03,040 We're so different, you and I. 402 00:22:03,160 --> 00:22:05,120 You know I come from the school of soft-sell. 403 00:22:05,240 --> 00:22:08,040 -We don't have time to soft-sell. -It's not a question of time. 404 00:22:08,160 --> 00:22:09,640 Soft-sell is an energy. 405 00:22:09,760 --> 00:22:10,840 It can be done quickly. 406 00:22:10,960 --> 00:22:13,240 [SIGHS] Now, I'm going to get up, 407 00:22:13,360 --> 00:22:16,200 I'm gonna have a coffee before I have another thought. 408 00:22:16,320 --> 00:22:20,320 When you're watching Bart make his pitch today, just imagine, next week, being in his place. 409 00:22:20,440 --> 00:22:23,120 What if we save Lehman? Have you thought about that? 410 00:22:25,320 --> 00:22:28,000 What if we all pool our resources and rescue them? 411 00:22:28,120 --> 00:22:31,000 What happens to the next company, the next one up in size? 412 00:22:32,520 --> 00:22:34,640 It's us, John. You know it's us. 413 00:22:40,480 --> 00:22:42,160 Can you believe there's nowhere to get ribs in the city 414 00:22:42,280 --> 00:22:44,960 this time of the morning? What's the report? 415 00:22:45,080 --> 00:22:47,640 Uh, they've just finished going through the books. 416 00:22:47,760 --> 00:22:48,840 What's the overall feeling? 417 00:22:49,680 --> 00:22:53,280 Um... Philosophical. 418 00:22:53,400 --> 00:22:55,600 -Is the Barclays team there? -Nowhere we can see them. 419 00:22:55,720 --> 00:22:57,240 You mean, you haven't even seen Diamond yet? 420 00:22:57,360 --> 00:22:58,760 I know he's in New York. 421 00:22:58,880 --> 00:23:01,760 I know he's in New York! Is he at the Fed? 422 00:23:01,880 --> 00:23:04,560 There's a lot of work to be done before we have something to show him. 423 00:23:04,680 --> 00:23:05,920 He's probably sleeping. 424 00:23:06,040 --> 00:23:09,480 Probably? Thanks. Probably. Probably! 425 00:23:11,080 --> 00:23:12,080 Hey! Hey! 426 00:23:27,040 --> 00:23:29,520 Samantha! I want you to double security. 427 00:23:29,640 --> 00:23:32,680 I want someone at every elevator, on every floor. 428 00:23:32,800 --> 00:23:33,720 And triple the guard at the front! 429 00:23:33,840 --> 00:23:35,640 -What happened? -Now! 430 00:23:37,280 --> 00:23:38,520 Security? 431 00:23:42,520 --> 00:23:44,000 BART: So the idea is that 432 00:23:44,120 --> 00:23:46,160 we spin off another company, a "bad bank," 433 00:23:47,800 --> 00:23:51,160 where we can place all of our toxic assets. 434 00:23:52,680 --> 00:23:56,080 We're gonna call it SpinCo. 435 00:23:56,200 --> 00:24:00,720 And we just need the shortfall funded by outside investors. 436 00:24:00,840 --> 00:24:03,040 We just shift $33 billion of real estate 437 00:24:03,160 --> 00:24:05,200 into the new company, a "good bank," 438 00:24:06,880 --> 00:24:09,480 which we are gonna call CleanCo. 439 00:24:09,600 --> 00:24:10,960 [ALL SCOFFING] 440 00:24:11,080 --> 00:24:13,600 -JAMIE: And who would control SpinCo? -We would. 441 00:24:13,720 --> 00:24:16,400 [LAUGHS] Go on, take it. 442 00:24:16,520 --> 00:24:18,960 Now, Jamie, we need to set aside our bad debts 443 00:24:19,080 --> 00:24:21,960 so that we can carry on doing what we do best. 444 00:24:22,080 --> 00:24:25,560 -Which is? -[CHUCKLES] Jamie. Jamie. 445 00:24:25,680 --> 00:24:27,800 Come on, Jamie. We're all friends, huh? 446 00:24:27,920 --> 00:24:29,200 Here's 10 bucks for a happy ending. 447 00:24:31,040 --> 00:24:33,360 MACK: If these valuations are accurate, 448 00:24:33,480 --> 00:24:35,560 there's a $15 billion hole. 449 00:24:35,680 --> 00:24:38,960 Accurate? They were done overnight with a pot of coffee. 450 00:24:39,080 --> 00:24:41,000 If Paulson had let me put together a team... 451 00:24:41,120 --> 00:24:43,120 Right, yeah. The blind leading the blind. 452 00:24:43,240 --> 00:24:45,640 Oh, sure, you do everything by the book, don't you, Blankfein? 453 00:24:45,760 --> 00:24:49,640 [CHUCKLES] Tell me, Jamie, could you value a CDO? 454 00:24:49,760 --> 00:24:51,040 No. 455 00:24:51,160 --> 00:24:53,120 -But I know a man who could. -No you don't, no. 456 00:24:53,240 --> 00:24:55,760 You know a man who'll stamp triple-A on your ass 457 00:24:55,880 --> 00:24:57,960 if you get him a floor seat at the Lakers game. 458 00:24:58,080 --> 00:24:59,720 You can't value a CDO? 459 00:24:59,840 --> 00:25:01,880 LLOYD: Whoever says he can is full of shit. 460 00:25:02,000 --> 00:25:03,160 We might as well pick a number out of the air. 461 00:25:05,760 --> 00:25:08,600 How much do you need for the bad bank? 462 00:25:08,720 --> 00:25:10,680 -25 billion. -What? 463 00:25:10,800 --> 00:25:12,600 Last week, it was worth 40 billion, 464 00:25:12,720 --> 00:25:13,920 Wednesday, it was 33, 465 00:25:14,040 --> 00:25:15,960 and last night, it was valued at 21. 466 00:25:16,080 --> 00:25:19,760 If we hurry and buy it now, we should be able to lose all our money by Friday. 467 00:25:19,880 --> 00:25:23,280 Our portfolio is supported by eight billion in equity, 468 00:25:23,400 --> 00:25:25,320 and that is a conservative estimate. 469 00:25:25,440 --> 00:25:29,200 Conservative? Who taught you to be conservative, McDade? Dick Fuld? 470 00:25:33,200 --> 00:25:35,080 Conservative... Where does this end? 471 00:25:37,480 --> 00:25:39,160 What happens when Merrill goes down? 472 00:25:40,720 --> 00:25:42,040 We're not going down. 473 00:25:44,080 --> 00:25:47,000 Thain, if you stepped away from the Bloomberg cameras 474 00:25:47,120 --> 00:25:48,920 long enough to read your own balance sheet, 475 00:25:49,040 --> 00:25:50,640 you'd see it was as bad as Dick Fuld's. 476 00:25:50,760 --> 00:25:51,920 LLOYD: No, no, no, no. 477 00:25:52,040 --> 00:25:54,720 Today, we're here to deal with Lehman Brothers. 478 00:25:54,840 --> 00:25:58,560 Whatever happens next, maybe Paulson won't be so... 479 00:25:58,680 --> 00:26:00,800 -What? -Intransigent. 480 00:26:04,760 --> 00:26:06,000 We won't be needing government money. 481 00:26:09,000 --> 00:26:10,840 I'm afraid I have to excuse myself. 482 00:26:16,200 --> 00:26:17,200 [DOOR OPENS] 483 00:26:18,920 --> 00:26:19,720 [DOOR CLOSES] 484 00:26:19,840 --> 00:26:21,440 Ken, it's John Thain. 485 00:26:21,560 --> 00:26:25,040 Mr Thain, to what do I owe this pleasure? 486 00:26:25,160 --> 00:26:29,120 -I'm at the Fed in New York. -Yes, I heard something was going on down there. 487 00:26:29,240 --> 00:26:31,400 I heard you've closed the book on Lehman. 488 00:26:31,520 --> 00:26:35,160 My due diligence team is flying back this afternoon. 489 00:26:35,280 --> 00:26:36,560 Perhaps, they should stay. 490 00:26:37,400 --> 00:26:38,760 Meaning? 491 00:26:38,880 --> 00:26:42,560 Perhaps, you'd like to discuss other opportunities. 492 00:26:42,680 --> 00:26:45,680 This sounds like the sort of chat we should be having in person. 493 00:26:45,800 --> 00:26:48,560 Yes. I believe it is. 494 00:26:48,680 --> 00:26:50,840 I have Dick Fuld on the other line. 495 00:26:50,960 --> 00:26:53,400 Tell him I've left for New York. 496 00:26:53,520 --> 00:26:56,400 I believe he's in the air already. Any message? 497 00:26:56,520 --> 00:26:57,920 No, he's got my numbers. 498 00:27:05,200 --> 00:27:07,360 Look, if we're going to get Barclays, 499 00:27:07,480 --> 00:27:10,440 we need to buy it at a premium to the market value. 500 00:27:10,560 --> 00:27:13,560 -I agree. -I think we should pay the 25. 501 00:27:13,680 --> 00:27:15,600 You're all crazy! 502 00:27:20,920 --> 00:27:24,120 Bart, Ian, could you give us a few? 503 00:27:26,920 --> 00:27:27,960 Yeah, okay. 504 00:27:34,680 --> 00:27:35,880 [DOOR OPENS] 505 00:27:37,680 --> 00:27:38,880 [DOOR CLOSES] 506 00:27:39,000 --> 00:27:40,880 I think we should backstop Lehman. 507 00:27:42,040 --> 00:27:44,160 So, they overvalued their portfolio. 508 00:27:44,280 --> 00:27:47,280 We all try to maximise our perceived value. 509 00:27:47,400 --> 00:27:49,160 You wrote the book, Blankfein. 510 00:27:49,280 --> 00:27:51,880 JAMIE: But I think we should structure the deal in such a way 511 00:27:52,000 --> 00:27:54,080 that the mortgages pay us back over time. 512 00:27:54,200 --> 00:27:56,280 Yes. But also, 513 00:27:56,400 --> 00:27:58,520 now we know that none of us is too big to fail. 514 00:27:59,560 --> 00:28:01,560 None of us is too precious 515 00:28:01,680 --> 00:28:04,160 that the government is gonna step in at the last minute and save our asses. 516 00:28:04,280 --> 00:28:06,280 Did he say asses or assets? 517 00:28:06,400 --> 00:28:09,600 I think we might also talk about structuring 518 00:28:09,720 --> 00:28:13,040 a rainy day fund for those of us who... 519 00:28:13,960 --> 00:28:15,160 Survive. 520 00:28:37,800 --> 00:28:39,720 -Samantha, get... -Yes? 521 00:28:42,280 --> 00:28:43,160 Don't worry. I'll do it. 522 00:28:59,480 --> 00:29:01,720 [DIALLING] 523 00:29:07,480 --> 00:29:09,480 [MOBILE RINGING] 524 00:29:12,360 --> 00:29:13,520 Paulson. 525 00:29:13,640 --> 00:29:14,640 [INHALES DEEPLY] 526 00:29:18,280 --> 00:29:19,200 Hank Paulson. 527 00:29:22,480 --> 00:29:23,800 It's Dick. 528 00:29:30,360 --> 00:29:31,560 [SIGHS] 529 00:29:33,640 --> 00:29:35,600 Yeah, I know, Dick, we helped Bear, 530 00:29:35,720 --> 00:29:37,720 and they're a lot smaller than you are. 531 00:29:38,720 --> 00:29:40,520 Got any new material? 532 00:29:40,640 --> 00:29:42,120 Have you guys come up with anything? 533 00:29:43,480 --> 00:29:44,960 Nothing legal. 534 00:29:45,080 --> 00:29:47,400 If you say it would be illegal to help us 535 00:29:47,520 --> 00:29:49,480 because we're under-collateralised... 536 00:29:49,600 --> 00:29:51,160 I'd be off your Christmas list? 537 00:29:52,880 --> 00:29:54,800 I think you do what you do. 538 00:29:56,280 --> 00:29:59,160 I think you get something in your head... 539 00:29:59,280 --> 00:30:01,680 Just like you do. 540 00:30:01,800 --> 00:30:04,800 I think, maybe the two of us should learn to dither a little more. 541 00:30:10,560 --> 00:30:12,080 This is a beautiful old bank. 542 00:30:14,640 --> 00:30:16,120 25,000 jobs. 543 00:30:17,800 --> 00:30:20,040 -History. -Oh, that history. 544 00:30:22,640 --> 00:30:26,000 We're all made of the same stuff. 545 00:30:26,120 --> 00:30:30,000 How... How can we just be cut apart from the rest? 546 00:30:30,120 --> 00:30:31,840 It doesn't make sense. 547 00:30:31,960 --> 00:30:33,800 I don't know if we aren't making sense now 548 00:30:33,920 --> 00:30:35,920 or if we're just starting to make sense. 549 00:30:36,040 --> 00:30:39,240 You can't say we've run out of money. 550 00:30:39,360 --> 00:30:41,920 This isn't the kind of money you can run out of. 551 00:30:42,040 --> 00:30:43,920 Oh, you're right. There's money out there. 552 00:30:44,040 --> 00:30:45,840 There's money all over the place. 553 00:30:45,960 --> 00:30:48,440 It's just not so obvious how to get your hands on it. That's all. 554 00:30:48,560 --> 00:30:50,960 -Hank... -Not to say, you didn't get close though. 555 00:30:51,080 --> 00:30:54,280 Blackstone, Colony, JE Robert. 556 00:30:54,400 --> 00:30:56,440 Why jump to sell just after a dip in the share price? 557 00:30:56,560 --> 00:30:57,920 And Korea. 558 00:31:01,680 --> 00:31:04,080 The money was on the table, Dick. 559 00:31:04,200 --> 00:31:06,760 Only you never thought it was enough. 560 00:31:06,880 --> 00:31:08,480 You could've solved your liquidity problem 561 00:31:08,600 --> 00:31:10,440 right there, but no, 562 00:31:10,560 --> 00:31:13,600 you were just sure that your luck was going to change. 563 00:31:13,720 --> 00:31:16,040 "If I only hold out one more trading day." 564 00:31:18,480 --> 00:31:21,280 You were holding a pair of eights, Dick, 565 00:31:21,400 --> 00:31:23,120 and you bet the farm on the river card. 566 00:31:25,160 --> 00:31:27,840 If I thought there was a note of superiority in your... 567 00:31:27,960 --> 00:31:31,240 Time came when you should have folded, and you didn't. 568 00:31:31,360 --> 00:31:34,240 Something in you told you to take the leap. 569 00:31:34,360 --> 00:31:36,000 [SCOFFS] 570 00:31:36,120 --> 00:31:38,280 You were remarkable. 571 00:31:38,400 --> 00:31:41,160 The blindness was exquisite. 572 00:31:42,240 --> 00:31:43,720 The problem is 573 00:31:43,840 --> 00:31:46,520 we're not dealing in months any more. 574 00:31:46,640 --> 00:31:50,160 Now, it's a matter of hours, minutes. 575 00:31:54,240 --> 00:31:55,840 Let me ask you this. 576 00:31:57,880 --> 00:31:59,960 Is what you're doing now, 577 00:32:00,080 --> 00:32:01,920 is this the thing that's most likely, 578 00:32:02,040 --> 00:32:04,920 when you look back in a year, to make you say... 579 00:32:07,440 --> 00:32:08,720 "Shit. 580 00:32:11,120 --> 00:32:13,000 "With what little we knew, we did it, 581 00:32:13,120 --> 00:32:15,080 "we put the pieces back together. 582 00:32:17,600 --> 00:32:22,200 "I couldn't see the future, but I just 583 00:32:22,320 --> 00:32:26,680 "had that luck and it all fell together just right." 584 00:32:26,800 --> 00:32:28,920 Is that what you're gonna say? 585 00:32:32,000 --> 00:32:33,000 No. 586 00:32:35,320 --> 00:32:37,360 No, I don't think anything I do this weekend 587 00:32:37,480 --> 00:32:39,080 is going to make me say that. 588 00:32:46,280 --> 00:32:48,080 What would you do, 589 00:32:48,200 --> 00:32:49,880 if you were me? 590 00:32:53,520 --> 00:32:55,640 Don't pick at the bone yard. 591 00:32:56,800 --> 00:32:58,960 Bank of America's dead. 592 00:33:00,560 --> 00:33:02,120 You've got Barclays. 593 00:33:03,800 --> 00:33:05,000 That's what you've got. 594 00:33:06,600 --> 00:33:08,320 Barclays. 595 00:33:08,440 --> 00:33:09,720 [CALL DISCONNECTS] 596 00:33:13,440 --> 00:33:14,240 [EXHALES] 597 00:33:30,320 --> 00:33:32,160 [WATER RUNNING] 598 00:33:47,880 --> 00:33:48,880 [SCOFFS] 599 00:33:58,120 --> 00:33:59,120 [EXHALES] 600 00:34:10,120 --> 00:34:11,480 They agreed to 25. 601 00:34:14,560 --> 00:34:17,160 [SIGHS] And what is Barclays saying? 602 00:34:17,280 --> 00:34:19,280 They're reviewing some of the initial deal points, 603 00:34:19,400 --> 00:34:21,200 but their chiefs agreed to 25! 604 00:34:21,320 --> 00:34:24,080 -Dick, it's a victory for us. -Fuck the chiefs! 605 00:34:24,200 --> 00:34:25,560 How did Barclays react? 606 00:34:26,680 --> 00:34:29,400 We didn't see anybody from Barclays. 607 00:34:29,520 --> 00:34:32,160 -Diamond wasn't at the Fed? -Yeah, he could've been there. 608 00:34:32,280 --> 00:34:35,080 You didn't notice if Bob Diamond was at the Fed? 609 00:34:35,200 --> 00:34:38,320 I heard somebody laughing. It sounded like his laugh. 610 00:34:38,440 --> 00:34:40,080 Where did you hear the laughing? 611 00:34:41,000 --> 00:34:44,040 [SIGHS] Well, sort of all over. 612 00:34:48,480 --> 00:34:49,480 [SIGHS] 613 00:34:52,840 --> 00:34:55,160 Get back to the Fed. Tell me when Diamond shows. 614 00:35:03,680 --> 00:35:04,680 [DOOR CLOSES] 615 00:35:12,040 --> 00:35:17,320 I understand you sold more than $30 billion worth of CDOs 616 00:35:17,440 --> 00:35:19,640 at 22 cents on the dollar. 617 00:35:19,760 --> 00:35:22,120 It was a risk-reduction strategy, 618 00:35:22,240 --> 00:35:23,920 but it left us well capitalised. 619 00:35:24,040 --> 00:35:26,840 If you were well capitalised, you wouldn't be here. 620 00:35:26,960 --> 00:35:31,760 But what I want to know is, what other time bombs have you got on the books? 621 00:35:31,880 --> 00:35:33,680 Everyone has risky assets. 622 00:35:33,800 --> 00:35:36,520 But you want me to buy your company as is. 623 00:35:36,640 --> 00:35:40,000 I'm going to need to know where the dirty laundry is buried. 624 00:35:41,000 --> 00:35:42,120 [CHUCKLES] 625 00:35:42,240 --> 00:35:45,080 Uh, we don't want to sell Merrill Lynch. 626 00:35:47,480 --> 00:35:50,080 We want to offer you a 10% stake. 627 00:35:50,200 --> 00:35:52,680 But we want to buy it outright. 628 00:35:53,720 --> 00:35:55,160 That's our only position. 629 00:35:58,280 --> 00:36:00,240 I've always loved your shop. 630 00:36:00,360 --> 00:36:03,080 I love how you bring Wall Street to New Mexico. 631 00:36:04,400 --> 00:36:06,160 We're both retail. 632 00:36:06,280 --> 00:36:09,920 -We're a good fit. -I only took over Merrill nine months ago. 633 00:36:10,040 --> 00:36:12,000 I didn't take it over to sell it. 634 00:36:14,720 --> 00:36:16,840 You see those pictures? 635 00:36:16,960 --> 00:36:19,960 They're what I call "real art". 636 00:36:20,080 --> 00:36:24,960 They would form the kind of exhibitions Bank of America might once have bankrolled, 637 00:36:25,080 --> 00:36:29,760 but now we find ourselves funding modern art as well, 638 00:36:29,880 --> 00:36:32,120 art that can insult everything 639 00:36:32,240 --> 00:36:34,440 you and I have worked our whole lives 640 00:36:34,560 --> 00:36:36,720 to make sacred. 641 00:36:36,840 --> 00:36:39,600 Some of it to me looks like a road accident 642 00:36:39,720 --> 00:36:42,160 or a human being turned inside out. 643 00:36:42,280 --> 00:36:46,000 But those that matter, culturally, I mean, 644 00:36:46,120 --> 00:36:49,760 like to stand back, arms folded, 645 00:36:49,880 --> 00:36:52,280 brows furrowed in just the right way, 646 00:36:52,400 --> 00:36:55,880 assessing the disturbed minds of psychopaths 647 00:36:56,000 --> 00:37:00,320 and getting from this a grim kind of satisfaction, 648 00:37:00,440 --> 00:37:02,040 I freely admit, 649 00:37:02,160 --> 00:37:05,680 remains unavailable to my own sensibilities. 650 00:37:11,160 --> 00:37:12,720 The Judas Kiss. 651 00:37:14,720 --> 00:37:16,160 Exquisite, isn't it? 652 00:37:18,880 --> 00:37:21,680 But time has moved on, Mr Thain. 653 00:37:21,800 --> 00:37:23,760 The brand has to move on. 654 00:37:23,880 --> 00:37:26,000 The world is different now. 655 00:37:26,120 --> 00:37:30,280 We are currently financing an exhibition of paintings 656 00:37:30,400 --> 00:37:34,480 by Francis Bacon at the Tate Museum in London. 657 00:37:34,600 --> 00:37:37,040 Starts today. 658 00:37:37,160 --> 00:37:39,840 Do you know what his paintings look like? 659 00:37:41,240 --> 00:37:42,040 [SCOFFS] 660 00:37:43,600 --> 00:37:46,320 I leave that sort of thing to my wife. 661 00:37:46,440 --> 00:37:50,080 Our name, Bank of America, is on that exhibition. 662 00:37:54,720 --> 00:37:56,880 History is happening, Mr Thain, 663 00:37:57,000 --> 00:37:59,920 right here, this weekend. 664 00:38:00,040 --> 00:38:03,160 No one is going to blame you for keeping up with it. 665 00:38:18,080 --> 00:38:19,120 [SIGHS] 666 00:38:27,440 --> 00:38:29,480 [EXHALES] 667 00:38:37,600 --> 00:38:38,720 [ELEVATOR PINGS] 668 00:38:38,840 --> 00:38:41,040 [ELEVATOR DOOR OPENS] 669 00:38:52,560 --> 00:38:53,560 [DOOR OPENS] 670 00:38:56,440 --> 00:38:59,360 HANK: Is that Diamond? TIM: No. 671 00:38:59,480 --> 00:39:02,480 Well, I hope he looks pleased when he reads this. 672 00:39:02,600 --> 00:39:04,760 -I hope he doesn't. -Why? 673 00:39:05,720 --> 00:39:07,400 Because if he looks pleased, 674 00:39:07,520 --> 00:39:10,200 it might mean he intends to pull Barclays out of the game. 675 00:39:11,920 --> 00:39:13,120 Whereas if he's poker-faced, 676 00:39:14,840 --> 00:39:17,360 it probably means he's come to play hardball. 677 00:39:17,480 --> 00:39:19,400 Some people look poker-faced even when they're happy. 678 00:39:19,520 --> 00:39:22,600 Some people distrust ecstasy. 679 00:39:24,640 --> 00:39:27,120 So, if he goes for these deal points, 680 00:39:27,240 --> 00:39:29,120 you think our chances are pretty good then, don't you? 681 00:39:29,240 --> 00:39:31,680 There's a lot of other stuff to get through, 682 00:39:31,800 --> 00:39:33,360 but this term sheet looking the way it does, 683 00:39:33,480 --> 00:39:36,040 that's one gigantic problem off our hands. 684 00:39:36,840 --> 00:39:39,160 I'm glad you think so. 685 00:39:39,280 --> 00:39:42,920 To me, there's either getting rid of the whole problem 686 00:39:43,040 --> 00:39:45,640 or being stuck with the whole problem. 687 00:39:47,360 --> 00:39:49,240 There's nothing in between. 688 00:39:50,360 --> 00:39:51,160 [DOOR OPENS] 689 00:39:53,480 --> 00:39:55,520 It's Diamond. He's coming. 690 00:40:22,760 --> 00:40:24,240 I hear you're talking to Ken Lewis. 691 00:40:27,080 --> 00:40:28,080 [SCOFFS] 692 00:40:28,200 --> 00:40:32,200 Um, we've had an informal, um... 693 00:40:34,080 --> 00:40:36,240 Don't worry about it. 694 00:40:36,360 --> 00:40:40,040 We don't need you to stay if your time can be better spent elsewhere. 695 00:40:41,560 --> 00:40:42,520 Thank you. 696 00:40:42,640 --> 00:40:43,920 If you can work out a deal with him, 697 00:40:44,040 --> 00:40:46,120 it's one less thing we have to worry about. 698 00:40:47,880 --> 00:40:50,280 The world is going to hell in a hand basket. 699 00:40:50,400 --> 00:40:52,400 AIG is in the building. 700 00:40:52,520 --> 00:40:55,000 They're haemorrhaging liquidity. 701 00:40:55,120 --> 00:40:58,280 By Wednesday, they're gonna be worth minus five billion. 702 00:40:58,400 --> 00:41:00,320 [SCOFFS] 703 00:41:00,440 --> 00:41:02,720 Jesus, these numbers. 704 00:41:02,840 --> 00:41:04,200 Twenty years ago, you never heard them. 705 00:41:05,920 --> 00:41:08,000 Are you going to help them? 706 00:41:08,480 --> 00:41:10,320 AIG. 707 00:41:10,440 --> 00:41:12,280 We have to. 708 00:41:12,400 --> 00:41:13,560 Their credit default swaps 709 00:41:13,680 --> 00:41:15,920 insure half the western banking system. 710 00:41:16,880 --> 00:41:18,880 If we didn't bail them out, 711 00:41:19,000 --> 00:41:21,080 all that is solid melts into air. 712 00:41:24,120 --> 00:41:26,240 I'll go and see Lewis. 713 00:41:26,360 --> 00:41:27,680 Hank, 714 00:41:29,000 --> 00:41:30,160 I'm going to push for a good price. 715 00:41:33,360 --> 00:41:34,680 [CHUCKLES] 716 00:41:34,800 --> 00:41:36,240 I'd expect nothing less. 717 00:41:39,960 --> 00:41:41,160 Oh, and, John. 718 00:41:42,800 --> 00:41:44,760 Just so we're clear, 719 00:41:44,880 --> 00:41:46,920 I'm not telling you what to do. 720 00:42:03,840 --> 00:42:06,160 -Oh! -Rise and shine to a brand-new day. 721 00:42:07,360 --> 00:42:09,160 [GASPS] 722 00:42:09,280 --> 00:42:10,600 I thought I was dreaming. 723 00:42:13,240 --> 00:42:15,440 -We got it? -They agreed to the terms. 724 00:42:15,560 --> 00:42:17,960 I heard Bob Diamond even had a little twinkle in his eye. 725 00:42:18,080 --> 00:42:20,440 -He agreed to the terms? -I heard he liked the terms, 726 00:42:20,560 --> 00:42:23,120 -but that's just the first hurdle, Dick. -We got it. 727 00:42:23,240 --> 00:42:25,800 -[CHUCKLES] -Of course, we fucking got it! 728 00:42:25,920 --> 00:42:27,640 We're the survivors, aren't we? 729 00:42:27,760 --> 00:42:29,440 Who wouldn't want Lehman Brothers! 730 00:42:29,560 --> 00:42:31,040 At this price, for Barclays, 731 00:42:31,160 --> 00:42:33,680 it's like Christmas fucking day! 732 00:42:33,800 --> 00:42:35,760 -Samantha! -I'm here. 733 00:42:35,880 --> 00:42:37,280 Get me some new clothes. Zach! 734 00:42:37,400 --> 00:42:38,360 I wouldn't go out. 735 00:42:38,480 --> 00:42:40,320 -There's press down there. -Still? 736 00:42:40,440 --> 00:42:41,280 They're propagating. 737 00:42:41,400 --> 00:42:42,680 Zach! 738 00:42:44,960 --> 00:42:47,240 Go and get rid of the press. 739 00:42:47,360 --> 00:42:49,160 Parasites. Tell them nothing! 740 00:42:49,280 --> 00:42:51,120 Give them nothing, watch them make something out of it. 741 00:42:51,240 --> 00:42:52,840 We'll have a laugh about it later. Go! 742 00:42:52,960 --> 00:42:54,120 Maybe you should turn on the news. 743 00:42:54,240 --> 00:42:56,200 -Just for... -Why should I watch the news? 744 00:42:56,320 --> 00:42:58,720 We know what's happening. They don't know what's happening. Clothes! 745 00:43:02,520 --> 00:43:07,080 -We could accept $35. -$35? 746 00:43:07,200 --> 00:43:09,400 I know you've had difficulties, but... 747 00:43:09,520 --> 00:43:12,480 I was prepared to pay at least a few thousand dollars 748 00:43:12,600 --> 00:43:15,080 for a firm like Merrill Lynch. 749 00:43:17,240 --> 00:43:19,160 $35 a share. 750 00:43:21,560 --> 00:43:26,720 Well, I suppose I could convince my board to rise to 25. 751 00:43:26,840 --> 00:43:29,120 I suppose, with gargantuan effort, 752 00:43:29,240 --> 00:43:33,600 I might convince my board to drop to 32. 753 00:43:33,720 --> 00:43:37,360 Why don't we just cut the crap and state the numbers we'll accept? 754 00:43:37,480 --> 00:43:38,520 29. 755 00:43:39,440 --> 00:43:40,880 -27. -29. 756 00:43:42,320 --> 00:43:43,520 28. 757 00:43:44,400 --> 00:43:45,520 29. 758 00:43:48,280 --> 00:43:52,160 I stay where I am. I like where I am. 759 00:43:52,280 --> 00:43:54,840 My title will be President of Global Banking, 760 00:43:54,960 --> 00:43:56,480 Securities and Wealth Management. 761 00:43:56,600 --> 00:44:00,120 I'm sure your title won't be my board's chief concern. 762 00:44:01,280 --> 00:44:03,000 We'll need an answer by midnight. 763 00:44:05,800 --> 00:44:08,280 You don't have to worry, Mr Thain. 764 00:44:08,400 --> 00:44:12,160 We have no intentions of taking your stripes away from you. 765 00:44:13,440 --> 00:44:15,640 Your face is part of the package. 766 00:44:19,400 --> 00:44:21,360 Call in the board for 12:00 noon. 767 00:44:21,480 --> 00:44:24,640 We'll need to ratify Barclays and I want food. 768 00:44:24,760 --> 00:44:27,040 Catering, goodies, ribs, meat, 769 00:44:27,160 --> 00:44:28,600 champagne, a spread. 770 00:44:28,720 --> 00:44:30,400 You brought us back from the brink. 771 00:44:30,520 --> 00:44:32,160 This place is my life. 772 00:44:32,280 --> 00:44:34,720 Did you think I was going to let it go down? 773 00:44:35,800 --> 00:44:37,560 Where else would I go? 774 00:44:37,680 --> 00:44:39,600 What else could I do? 775 00:44:40,760 --> 00:44:42,600 Mmm-hmm. Mmm-hmm. 776 00:44:42,720 --> 00:44:44,800 It's hard not to agree with you on that score. 777 00:44:47,800 --> 00:44:51,000 Well, then I think we've covered just about everything, don't you? 778 00:44:52,640 --> 00:44:55,640 Oh. Don't worry. 779 00:44:55,760 --> 00:44:58,680 I think we both have our hands tied on this one. 780 00:44:58,800 --> 00:45:01,200 [INDISTINCT CONVERSATIONS] 781 00:45:03,960 --> 00:45:05,200 [DOOR OPENS] 782 00:45:12,240 --> 00:45:13,720 [SIGHS] 783 00:45:13,840 --> 00:45:16,920 Well, gentlemen, I'm afraid Barclays is dead. 784 00:45:17,040 --> 00:45:19,200 [ALL MURMURING] 785 00:45:19,320 --> 00:45:24,600 By British law, Barclays can't guarantee Lehman's obligations without a shareholder vote. 786 00:45:24,720 --> 00:45:26,920 -So why can't they vote? -HANK: They can. 787 00:45:27,720 --> 00:45:30,960 But not until Tuesday. 788 00:45:31,080 --> 00:45:34,080 Can't the British government make an exception for just a couple of days? 789 00:45:34,200 --> 00:45:37,480 They're under no obligation to do that. 790 00:45:37,600 --> 00:45:40,000 I thought I could get Darling to issue a waiver, but I couldn't. 791 00:45:41,920 --> 00:45:43,960 But... 792 00:45:44,080 --> 00:45:47,120 Why can't the Fed just backstop us till the vote, 793 00:45:47,240 --> 00:45:49,080 I mean, if it's only two days away? 794 00:45:49,200 --> 00:45:52,680 There is no public money for a backstop. 795 00:45:53,520 --> 00:45:54,880 Have I said that before? 796 00:45:56,080 --> 00:45:57,480 We're at the end. 797 00:45:57,600 --> 00:46:00,240 The deal is dead. Now, you need to talk to your board. 798 00:46:02,080 --> 00:46:03,160 [SIGHS] 799 00:46:05,960 --> 00:46:08,240 [INAUDIBLE] 800 00:46:32,640 --> 00:46:35,400 Harvey, they want you down the Fed. 801 00:46:35,520 --> 00:46:37,520 They want us to file now. 802 00:46:44,560 --> 00:46:47,400 You're asking me to draw up the biggest bankruptcy in history 803 00:46:47,520 --> 00:46:49,680 and you want it done by midnight? 804 00:46:49,800 --> 00:46:51,320 I heard you were good at what you do. 805 00:46:51,440 --> 00:46:55,160 [SCOFFS] A reckless bankruptcy is going to be Armageddon. 806 00:46:55,280 --> 00:46:56,120 We have a programme. 807 00:46:56,240 --> 00:46:58,040 We have a series of press releases 808 00:46:58,160 --> 00:47:00,520 which we firmly believe will calm the markets. 809 00:47:00,640 --> 00:47:02,160 Press releases? 810 00:47:03,960 --> 00:47:08,280 Lehman has assets worth $639 billion. 811 00:47:08,400 --> 00:47:10,000 That's higher than the GDP 812 00:47:10,120 --> 00:47:11,960 of almost every country in the world! 813 00:47:12,080 --> 00:47:14,040 I know all the arguments against this! 814 00:47:15,280 --> 00:47:16,840 I've been on the phone with Dick for six months 815 00:47:16,960 --> 00:47:18,120 trying to get him to sell, 816 00:47:18,240 --> 00:47:21,160 but the price was never high enough for him! 817 00:47:21,280 --> 00:47:25,040 He thought he had all the time in the world. Well, he didn't. 818 00:47:25,160 --> 00:47:27,000 He thought he was playing with the casino's money. 819 00:47:27,120 --> 00:47:29,280 Well, he wasn't. 820 00:47:29,400 --> 00:47:32,080 That's enough now! We've got to clean up this mess. 821 00:47:34,480 --> 00:47:36,120 Somebody had to fail. 822 00:47:37,560 --> 00:47:39,840 Lehman Brothers has failed. 823 00:48:00,400 --> 00:48:01,280 [SIGHS] 824 00:48:04,600 --> 00:48:06,000 [EXHALES] 825 00:48:20,560 --> 00:48:22,200 [PHONE RINGING] 826 00:48:25,680 --> 00:48:26,920 Mr Lewis's phone. 827 00:48:28,080 --> 00:48:29,160 Donna, it's Dick Fuld. 828 00:48:32,880 --> 00:48:35,560 Is, um, Ken by any chance... 829 00:48:35,680 --> 00:48:37,760 No, he isn't. 830 00:48:37,880 --> 00:48:42,360 Look, I don't think there's any point repeatedly calling the house. 831 00:48:42,480 --> 00:48:44,680 Mr Lewis has your messages. 832 00:48:44,800 --> 00:48:47,600 I'm sure if he wants to call you, he will. 833 00:49:16,440 --> 00:49:18,040 [PHONE RINGING] 834 00:49:21,360 --> 00:49:22,840 [SIGHS] 835 00:49:32,520 --> 00:49:34,520 [RINGING CONTINUES] 836 00:49:41,360 --> 00:49:43,240 [CAMERAS CLICKING] 837 00:49:43,360 --> 00:49:46,120 REPORTER: Can you please tell us what's happening? 838 00:49:48,600 --> 00:49:50,000 ZACH: I read somewhere that writing 839 00:49:50,120 --> 00:49:52,520 was originally invented to keep track of debt. 840 00:49:52,640 --> 00:49:55,200 If that's how history began, then maybe when we wrote off 841 00:49:55,320 --> 00:49:59,200 this giant mountain of debt, history came to an end. 842 00:49:59,320 --> 00:50:02,120 It was definitely the end of history for some. 843 00:50:03,040 --> 00:50:05,520 National economies collapsed. 844 00:50:08,280 --> 00:50:11,560 Ireland and Italy nearly went bankrupt. 845 00:50:11,680 --> 00:50:13,800 Iceland did. 846 00:50:13,920 --> 00:50:16,600 It was a good thing George Bush legalised sleep deprivation 847 00:50:16,720 --> 00:50:18,640 because our Chief Financial Officer, 848 00:50:18,760 --> 00:50:20,560 who hadn't slept in three days, 849 00:50:20,680 --> 00:50:23,680 had to stay awake to approve the bankruptcy petition. 850 00:50:27,680 --> 00:50:30,080 And it had to be done before midnight. 851 00:50:33,200 --> 00:50:36,000 Some of us expected big changes, a new age. 852 00:50:37,520 --> 00:50:39,760 Some of us are still waiting. 853 00:50:41,200 --> 00:50:43,080 There was a well-known con artist who said, 854 00:50:43,200 --> 00:50:45,000 "The reason some people can be conned 855 00:50:45,120 --> 00:50:48,160 "is because they want something for nothing. 856 00:50:48,280 --> 00:50:51,240 "Well, I give them nothing for something." 857 00:50:59,520 --> 00:51:02,880 There was something else he said. 858 00:51:03,000 --> 00:51:07,280 "People are 99% animal, 1% human. 859 00:51:07,400 --> 00:51:10,800 "And it's the human part that causes all the trouble." 860 00:51:13,400 --> 00:51:16,120 [SCOFFS] You'd think it would be the other way around. 861 00:51:18,400 --> 00:51:19,760 [SIGHS]