it's all fluff now here mostly this is all it's only the un's most powerful body as the stalemate over tensions at costco and so is northern border crossings the breakaway region it seems the scene set on seizing the checkpoints even using biden this. leg of the christian french think is head over the mormon sea they brought to libya u.k. tanks and weapons continued to strengthen all the arabs against. the russian spacecraft touches down bringing strains national space station crew members proud

to up to one of the tensest missions in its history. next to the first special report of the white collar criminals who push the walls to economic turmoil. are you going to leave the hardware. around his house ok. we're going to let it go in. there is a relative i want to. i want to talk to. you were there. but they're preparing.

for many. acts. like. we say we live in the capitalist society forces been me. capitalism is our way of life the market system its highest expression our media

hypes it in quasi religious terms even if its impact is sometimes quite negative and even debated in classrooms we have great capitalism as an economic system a system of production and distribution of things going need one i don't want to think that now that you think i'm about to fire up the b. of michael thanks for the nominee that's going to operate. most of us recognize we live in an inherently volatile system problem free but so the conventional wisdom goes better than any alternative many still believe the free market is our salvation even as our economy has crashed brought down and not just by greed but calculated scams and schemes that's not of the intent of the laws in ridged a few and devastated the economy leading to a massive loss of jobs homes and personal wealth.

leads us and some things and six and i film in debt we trust warned of a coming economic collapse. the stock that the next great economic crisis especially brought about by the depth of it will create an economic crisis so deep little threats. i was called a dinner and damon and a long list elevation. of the sick you just read a book called. i followed up with a book that came out before lehman brothers went bankrupt speaking on wall street i called for a jail out not a bailout i used to think of wall street as a financial center i now think of it as a crime scene. nomi prins was a managing. bear stearns and goldman sachs this is the most expensive take

out the biggest crime in world history we're talking about a crime we can't even quantify we're talking double digit trillions of dollars and a lot of this film will explore the scale of money's missing written off lost and ripped off in these various scams and in the case of the bailout funds unaccounted for. graydon carter editor of vanity fair we have summed it up best when he wrote it can fairly be said that the chain of catastrophic bets made over the past decade by a few hundred bankers we will turn out to be the greatest and nonviolent crime against humanity in history they brought the world's economy to its knees last tens of millions of people their jobs and homes and trashed the retirement plans of a generation and they could drive an estimated two hundred million people worldwide if the dire poverty in other words never before have so few done so much to

so many and when experts estimate the total money last may reach a hundred ninety six point seven trillion dollars and that could be low like millions of americans have lost thousands of dollars in retirement funds and i haven't had as bad as many it's not just about them it's about me too i have a stake in it and like millions of angry about the way our economy with the records . to help with our investigation we spoke with convicted white collar criminal san antonio the white collar criminal has that with his phrase you subpoena documents we destroy documents you subpoena witnesses we walk so you are at a disadvantage because the white collar are in effect we are economic predators. to an investigative reporter on the business speak wall street skills are newer than

the mafia says gary weiss a wall street. takes a lot of much larger sums of money going brought the mafia scalars the regulatory system is such that they can get away with the lack of media scrutiny the absence of regulation who might spring illusion that markets and real estate could only go up created this seed of a mentality and environment for successful fraudsters and white collar criminals in your honor for many years up until my arrest on december eleven two thousand and eight i operated a ponzi scheme i knew what i was doing was wrong and the criminal. white collar crime on wall street has been under-reported except for a very few high profile cases as when hundreds of reporters staked out a new york courthouse to report ernie made all submission of guilt in his ponzi scheme and there are millions and millions of dollars they owe it all the o.j.

sort of day and for many of them the right to believe angry i had an ira worth one point three million and my other money it's was about one point eight million and it's gone fine how do you think he got away with this the saw was how a person has run a stand for so many years without that effect that was one of the things i thought of hippies gamble they can successfully run a scam for that long and need off was not alone the regulators are now investigating scores of similar crimes they say there is a ponzi ammonium under way has four levels of every right collar crime as they got it gives the orders the people in what is the people that know what was going on but didn't participate and the people that should have known what was going on like boards of directors or what it is but that caught this update to what they try to do is they try to. get to the culpability of the guy at the top by working from the bottom the problem that you have in the gritty made of cases they got there first

and he's protecting the other three layers underneath that wall street a lot of the extraction turns to be very borderline illegal because the people extract things tend to be the ones setting up the legal framework and route economics is what limited not only only calls it in our new book with the reason why the line between what is clear and what is now criminals disappear it's because a did it will exist but when you remove all that is fiction when you remove all the controls then of course what is legal i want this illegal so you're creating a crime scene and you're creating the crime. you're. affectively by the police officers all at the same time only in the form of a regulatory body or excessive for the laws that work for wall street in june two thousand and nine the f.b.i. said it was investigating thirteen hundred securities fraud cases including many

ponzi schemes as well as more than five hundred eighty coupe ripped through hard cases most of these cases got little attention but the media loves arch criminals like financier bernard madoff these are complicated white collar crimes of which the government does not have the resources to thoroughly prosecute and the white collar criminals know it so they set it up not as a single transaction that's a crime but a series of transaction. what's that all put the get it makes it a crime but to do that you have to go beyond the prosecution of one wrongdoer and look at the way wrong street itself became a ponzi scheme you have to examine a pattern of a system of criminality which brought the investment and real estate worlds together you know multi trillion dollars. scam. to simplify there were three interconnected rings in this circus and valving the biggest firms in the industry

it started in the real estate business where our desire for homes the in hurrican dream was turned into a scheme first predatory subprime lending over the years got people into mortgages they couldn't afford and that the lenders knew they couldn't sustain it was enabled by artificially low interest rates with financing provided by twenty five of the top banks in the country the second component of the crime and volatile what happened next when the biggest banks and investment houses on wall street bought and then securitize loans as structured financial products these mortgage bundles would be sold worldwide with and full disclosure of their lack of underlying assets or the risks the banks that bought these derivative products failed to do and diligence relying on rating agencies that overvalued their worth and accounting firms that did not do their job the whole process was corrupt to the core.

finally the third level of this interconnected but the centralized criminal enterprise and involves insuring these often fraudulent practices in some cases betting against them by the very people who sold them to guarantee that they would be protected when borrowers who couldn't afford the loans to faulted they used insurance companies like ai g. . put these three criminal components together and a pattern emerges a pattern of financial crime. the financial crisis started because people could no longer afford to make payments on their sub prime mortgage loan business it was. a good streets of this robot is up info close all of it you just said it was under strict nobody reads it

nobody wants to rancid the housing crisis hit america like a tsunami destroying neighborhoods and costing millions of families their homes that's. one thing. but close better than us. how did it happen why did so many top banks lend to some of the poorest members of society in a practice known as sub prime lending featuring loans like a one called i mean john no income no jobs no assets apparently no problem the reason higher fees up front and billions more when mortgages which turned into securities resold by wall street. sixty percent of the subprime borrowers could have qualified for less costly prime rates but most were told their homes would go up in value many excepted interest

terms to give their families a piece of the american dream. many to load into believing they could afford houses with no money down and low introductory interest rates watch the cost of adjustable rate mortgages or the arms should go up when i first got it i got a one percent painter and actually loan. my mortgage paid down the second month and went up to seven point nine zero and now it's up to nine point nine and it just keeps on going up if i'm paid forty eight hundred dollars a month for my home and one of them. that's to j. lo and marc anthony. now where i was. we should not have to leave our homes our dream i mean even our shelters because you know the rates are going up so high and we don't even understand why it's going to it's going in somebody's pocket but not out of it should have been no surprise

to anyone fraudulent lending practices resulted in a steep rise in foreclosures beginning in late two thousand and six some of the biggest subprime lenders themselves later declared bankruptcy and the news media homeowners took most of the blame it was said they had exercised a failure of personal responsibility irresponsible borrowing was stigmatised irresponsible lending was not. into the fifth best occasion the f.b.i. describes its responsibility for investigating financial fraud on its website it is called mortgage fraud and epidemic they're calling it operation alicia mortgage the f.b.i. they'll the result of a three and a half month probe it's in mortgage related fraud f.b.i. director robert muller for this operation more than four hundred defendants have

been charged and we have paid one hundred seventy three convictions in crimes that accounted for more than one billion dollars and estimated losses the f.b.i. first warned of his fraud epidemic and two thousand and four reporting also though that their corporate crime units had been downsized to join the fight against terrorism some criminal cases are reported in the press what not all are prosecuted with companies often pain finds rather than facing a judge or a jury goldman sachs paid sixty million dollars to settle a so brian complain the massachusetts authorities said they had this zine mortgages to fail and they paid sixty million dollars but they did not need any that standard standard when wall street firms to go. what are typically bargains with regulators for them not. according to an investigation by the center for

public integrity twenty five of the sleaziest subprime lenders were backed by the biggest banks in the united states citi group wells fargo j.p. morgan chase and bank of america together the financial times reported they originated one hundred billion dollars in sub prime mortgages that's two thousand and five and two thousand and seven almost three quarters of the total. where they did in the mortgage industry i first got involved about making the i was a little originator. and during that time what i had seen was nothing short of amazing in terms it was very predatory it's a nice that were being used the salesmanship it was getting used to give me external norms and how it was structured it really disturbed me catchall to this and how they can get away with that is people here full disclosure depending on the

lending institution you went to in other words a bank broker or when the institution or three different or all three had different sets of regulations that govern them and so full disclosure it wasn't necessarily important to the loan itself just get them to sign on the dotted line if they were happy with the numbers you have a little. and my name is moby dark and with nancy basically what we do is in some ways have more issues and several other issues but what i want to do is show the signature of it and. what we're finding out is eighty percent of the people don't even know that of violations of. this is the signature on her head. basically which is right here. and then have this signature here which is their actual signature which shows a completely different signature it doesn't take to me an expert to figure out that there's something terribly wrong someone gets a set a set alone docs and they're usually probably two to three inches thick and there

might be fifteen or twenty really pertinent disclosures that are afraid to worry about ok and they're very good there and i don't know what they're signing usually they'll send out a notary to sign the loan with them and once i'm in the notary usually has no clue of what is in that loan and it's all part of the scheme we like to call it and then we go here we start looking it's white out and then we have a consultant. we see a consultant fee on a mortgage that should set off red flags that there's not really any consultants are on a mortgage or a sale it should have been one fee to rise mortgage this mark murphy is apparently someone we need to investigate and find out exactly who he is and why he got seven hundred dollars a month these people basically project we took this woman's home that she's been living in for over fifteen years and they think that it's hers where it was actually never was hers since ninety nine re the fraud and deception that was built

into these transactions was a necessary part of the transaction in order to generate the profits. wall street doesn't do mortgage lending what wall street did was package sell repackage and resell mortgages making what was a small housing bubble a gigantic housing bubble and making what became an american financial problem very much a global financial problem. we'll come to wall street today a columnist max wolf works in the financial industry he's our tour guide you're looking at people who've gone through ten unthinkable low probability events in a four month period where every time you think you can catch a breather there's another leg down atmospheres on trading floors and in a lot of these firms are funerary old friends are gone bonuses are gone futures are on shore. it's been very difficult. street people want to get you to a conversation i mean i'm sure whoever comes out of the bank examiner to you ok and

i'm going to go to regulators or to the city go by the i got offices of course go to get around you know there was yes you see where all the guys i was mostly watching you know what's going on here and i was about it's never been years ago you know we have suppression of the way through that is you know what we we got to homes around nobody got her arms around this i just wonder if you think the average person in america really grasp that to see the prices that we're i hope they do and i think it's an excellent question my personal guess is no my personal guess is they'd be much more angry and much more interested if they understood how much is on a plate here. and the destruction there's a relative lack of shred pay versions trade deals all the money's been made at this point all the take out happened a couple years ago now you're just sort of looking at. a very profitable time which

will be followed by another very profitable time because the same people will still be involved in such in the same types of things just biggest crime in all of this is the thing that's the least able to be understood and examined by the f.b.i. by the department justice by anyone in washington the booklet the tiny lowest layer of the crisis that started with subprime defaulting at the homeowner borrower love all that money wasn't me where the money was made because several layers of the pyramid wall street investment firms and commercial banks investment groups decided to repackage those mortgages and create layers of them that they then result to investors here's what happens there are three defaults on mortgages. the bank that holds. sells those at ten cents on the dollar to a second bank that bank puts those together with three other defaults and three

other defaults makes a second package and sells to a third bag the third bag sells six of these things for ages and bundles them and sells them to some investor with no idea what he has. they are really against those layers which is the real crime they would take a little piece of a layer of a security i don't need the way if somewhere there was a bunch of home buyers and they would take it and they would borrow thirty times the amount of money that it represented five big investment banks dominated wall street it is they who took the subprime loans purchased from banks and package them as bungled investments to be sold worldwide there were reports that it was what was called sanction from wall street other words wall street investment houses as they began to make billions on these securitized of dollars and c.e.o.'s and the rivet is pressuring the mortgage people at the local level give us more give us more give us well they're the reason why wall street was putting the pressure of the sucking

sound that you referred to earlier on the lower the originators because the profits that they were generated with this whole concept first opened up and people realize the money that was to be paid on the back end treating the paper they were essentially creating liquid cash from nothing but sometimes does a fourteen trillion dollars worth of aspects with sub prime and other types of mortgages and c.e.o.'s created between two thousand and three and two thousand and seven fourteen trillion were created on that. investment houses hedge funds and private equity funds could leverage thirty forty times banks could leverage fifteen to twenty times on average they could only leverage thirteen times on certain security more than the value of the whole country the whole gross domestic product if you want to read said this. a very conservative estimate assume . for the fourteen trillion dollars worth of c.d.'s was ten times what so is

a conservative estimate that's one hundred forty trillion dollars worth nothing. if you lose the fourteen trillion the other hundred forty one of us a fourteen trillion doesn't exist you have nothing you have no collateral left to pay to the people you borrowed money from. their practice to sell mortgages so. clearly can't afford the time to get people in order to give them mortgages and then to take. it over to create mortgage backed security is it criminal this is for sure and i think the bank because there . are some cases criminal but that's why build your rises when they sell their portfolio of mortgages to investors. who are mortgages and there were very injured in that chain. distribution chain because i can correct boards

around the country that have no. funds and lost their pension funds. right. now i have helped. you know what gets me. and i would even say that this is racketeering because it took place. real estate agencies and banks to get a lot of people a lot of money but when these homeowners. record numbers. the whole system became infected.

decades back and shot in one thousand miles from the north pole. bianchi keep mistaking on a trip to spitzbergen on to tell ago. where twenty years after the us was ours collapsed the soviet way of life is still going strong. for the world's anonymous statue of lenin presides over a ghost town near the summit heritage has become a tourist site for those overcome by the cold war an astounding. if the close up special edition on our t.v. .

if. would be soon which bryson moon about someone from funniest impressionists. who for instance on t.v. don't come. from. them.

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