we were served by the crew. from the animal's life here in the deep permafrost. and to those who deal with the. real story times are still not over. but i'm scared of any remorse for what i'll take for my pretty you our top stories libya's transitional national council is given a seat at the un after the security council adopts a new resolution the jewels of easy sanctions imposed from bridgette to libya's new authorities to still fighting for control of substances including kidnapping from ten percent. meanwhile there's another attempt to win u.n. recognition this time for the palestinian president vowing to launch a bid to statehood despite the u.s. promise to veto it that says some israeli west bank settlers say they're ready to

leave the area but that their government won't let them. and growing tension and serbia's border with breakaway kosovo where the standoff at the speed of checkpoints following this siege of by kosovo police helped by nato to you forces local service have blocked the roads leading to crossing to protest against what they're calling the unilateral action across a bozo being. ten thirty one time now is a great city for visitors but it's far from cheap can argue with that but this week's moscow out there looks at how to see the sights on a shoestring budget here in the russian capital. that. was. a rout is how. we let it go in. there is a relative. to

the first month. or. so fred. was. like.

we say we live in the camp the list big society. has been me. capitalism is our way of life the market system its highest expression of our media hypes it in quasi religious terms even if its impact is sometimes quite negative and even debated in classrooms can't we agree that capitalism is an economic system a system of production and distribution of things we need one i want to think that when you think i'm about to share how to be a makeup thanks for going on 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 to not just by greed but calculated scams and schemes that's not of the intent of the laws enrich a few and devastated the economy leading to a massive loss of jobs homes and personal wealth. leads us and two thousand and six my film that we trust to warn of a calming economic collapse. the stock pick the next great economic crisis to stage the reports out by the debt it will create an economic crisis so deep that the threat says i was called a junior in the memory of an alarmist television. in the sixty's just written 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. and only prinz was a managing for. bear stearns and goldman sachs this is the most expensive take out the biggest crime in the world that's what we're talking about a crime we can't even quantify we're talking about it it trillions of dollars into this film we'll explore the scale of monies missing written off lost and ripped off and he's very a 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 they will turn out to be the greatest nonviolent crime

against humanity in history they brought the world's economy to its knees and lost tens of millions of people their jobs and homes and trashed the retirement plans of the generation and they could drive an estimated two hundred million people worldwide into dire poverty in other words never before have so few done so much to so many in one experts estimate the total money last may reach a hundred ninety six point seven trillion dollars and that the below like millions of americans i've 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 a direct. to help with our investigation we spoke with convicted white collar criminal san anton the right color criminal hostile because for us to

subpoena documents we destroy documents you subpoena witnesses we walk so you are at a disadvantage because the right colors are in effect we are economic predators. to an investigative reporter on the business beat wall street steals star newer than the mafia says gary weiss on wall street. takes a lot much larger something money going broke the mafia scales the regulatory system is such that they can get away with it the lack of media scrutiny the absence of regulation on widespread illusion that markets and real estate can only go up created a casino 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 kanzi scheme i knew what i was doing was wrong and the criminal.

white collar crime on wall street has been underreported except for a very few high profile cases as one hundreds of reporters staked out a new york courthouse to report ernie made all sydney ssion of guilt in his ponzi scheme millions and millions of dollars there is all the of a sort of day for many of them right to believe angry an ira worth one point three million and my other money it's was about one point eight million people and it's gone on that how do you think he got away with this for so long was now person to run a stamp for so many years without that effect that was one of the things i thought of hippies again nobody could successfully run a scam for that long meat off was not alone the regulators are now investigating scores of similar crimes they say there is a ponzi ammonium under way there's four levels and every white collar crime is the guy that gives the orders the people the 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 participate so 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 the burning weight of cases they got at the top 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 extracting tend to be the ones setting up the legal framework and route economics is what limited not only calls it in our new book with the reason why the line between what is clear and what is darkness disappear it's because of the. well when you remove that all that is fiction when you remove all the controls then of course what is legal and want this illegal so you're creating

a crime scene and you're creating the crime. and you're. affectively by the police officers all at the same time only in the form of a regulatory body or. for the laws it worked 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 corporate fraud cases and most of these cases got little attention but the media loves arch criminals like financier bernard madoff he's a complicated white collar crimes of which the government does not have the resources to throw really 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 that wants to put together makes it a crime to do that you have to go beyond the prosecution of one wrongdoer and look

at the way wall street itself became a ponzi scheme you have to examine a pattern a system of criminality which brought the investment and real estate worlds together in a multi-trillion dollar scamp. to simplify lou we're three interconnected rings in this circus involving 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 involves 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 without full disclosure of their lack of underlying assets so the risks the banks that bought is derivative products failed to do due 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 decentralized criminal enterprise 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 a i g. but 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 subprime mortgage loan this is a good thing it good streets all of this robot is out in full pulls all of that you just said it was under strict nobody moves it nobody wants the rancid the housing crisis hit america like a tsunami destroying neighborhoods and costing millions of families their homes just a. sucker for. good clothes. for 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 the one called an injun no income no jobs no assets apparently no problem the reason higher fees up front

and billions more when mortgages were 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. and many old into believing they could afford houses with no money down loading for the create interest rates watch the cost of the just little rate mortgages were runs shoot up when i first got it i got a one percent introduction loan and my mortgage came 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 ballets a month for my home i don't want to miss. that's to j.

lo and marc anthony. now where i say. 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 in the news media homeowners to most of the blame it was said they had exercised a failure of personal responsibility the responsible borrowing was stigmatised irresponsible lending was not. into the fifty first occasion the f.b.i.

describes its responsibility for investigating financial fraud on its website is called mortgage fraud and epidemic they're calling it operation malicious mortgage the f b i l the result of a three and a half month probe it's a 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 this fraud epidemic and two thousand and four were putting also though that their corporate crime units had been downsized to join the fight against terrorism some criminal cases are reported in the press but not all are prosecuted with companies often paid fines rather than facing a judge or a jury goldman sachs paid sixty million dollars to settle

a so wrong complain the massachusetts authorities said they had designed mortgages to fail and they paid sixty million dollars that they did not meet any that standard standard when wall street firms. what are in effect plea 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 subprime mortgages that's the two thousand and five and two thousand and seven almost three quarters of the total. where they did in the mortgage industry or first of all that got lately maybe i was a loan originator. and during that time what i had seen was nothing short of

amazing in terms of it was very predatory the techniques that were being used the salesmanship that was getting used to give mix on the loans and how it was structured and 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 or a broker or a lending institution or three different all three have 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. my name is mold but i wouldn't say basically what we do business sometimes 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 they have my lesions on. this is the

signature on her. basically which is right here and then have this signature here which is her actual signature which shows a completely different signature it doesn't take to me an expert to figure out that there is something terribly wrong someone has to set aside a loan docs and they're usually probably two to three inches thick and there might be fifteen or twenty really pertinent disclosures that force you to worry about ok and they're very good in 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 a 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 at wideout and then we have a consultant. we see a consultant fee on the mortgage that should set off red flags that there's not really any consultants on a mortgage or a sale that 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 on a small these people basically project we took this woman's home and she's been living in for over fifteen years and thinking that it's hers where it was actually never was her since one thousand nine hundred three the fraud and deception that was built into these transactions was a necessary part of the transaction in order to get away 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. will come to wall street today a communist max will full works in the financial industry is our tour guide we'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 breeder there's another leg down atmospheres on trading floors and in a lot of these firms are funerary friends are gone bonuses are gone futures are on shore. it's been very difficult to. treat people who want to get into a conversation i mean the regular times i want to avoid some of the ten year ok and i'm going to get the regulars are the city going to get offices of course good when you're around you know there's yes you see where all the guys are supposed to be watching you know what's going to. be when i was about seven years ago you know we had surprises in the way through that was you know what we were going to homes around nobody got her arms around this i just wonder if you think the average person in america really grasp that and see the process that we're i hope they do and i think it's an excellent bustard 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 lucky escape a version is trade deals all the money has been made at this point all the take out happened a couple years ago now you 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 instruction 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 just by anyone in washington d.c. pretty tiny lowest layer of the crisis that started with some crime defaulting at the homeowner borrower level the money wasn't made there the money was made because some of whom layers of the pyramid wall street investment firms and commercial banks investment groups decided to repackage those mortgages create

layers of them and they then the result to investors here's what happens there are three defaults on mortgages. the bank 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 of makes a second package and sells to a third bank the third bank sells six of these things for ages and bundles them and sells them to some investor quest no idea what he has. they borrowed against those layers which is the real crime they would take a little piece of a layer of the security underneath which somewhere there was a card for 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 was really took the subprime 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 and other words wall street investment houses as they began to make billions on these securitized loans and see deo's and derivatives were pressuring the mortgage people at the local level give us more give us more people say well the reason why wall street was putting the pressure of the sucking sound that you referred to earlier on the originators is because the profits have been regenerated when this whole concept first opened up and people realize the money that was to be paid on the back and treating the paper they were essentially creating liquid cash from nothing but something tells us this fourteen trillion dollars worth of aspects with subprime 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 can only thirteen times on certain security more than a value of the whole country the whole gross domestic product if you want our kids in this. a very conservative estimate assume that the average leverage for the fourteen trillion dollars worth of studios was ten times what still is a conservative estimate that's one hundred forty trillion dollars worth nothing. if you lose the fortune trillion the other hundred forty minus the fourteen trillion doesn't exist you have nothing you have no collateral left to pay to the people you borrowed money from it all falls down the practice to sell mortgages to people. elite can't afford to target these people in order to give them mortgages and then they use the smart of you to sell it to the. order to create mortgage backed

security equipment that's for sure and i think the banks because they're. really in some cases criminal but that's life build your rises when they sell their portfolio to investors who believe they are going to save your mortgages and you are very injured victims of that chain and that end of the distribution chain because i can direct you from school boards around the country that have lost almost all your funds and lost their pension funds. right. now i have helped. make sure. you know why i guess you can't be ok. and i would even say that this is rocket seating because he took place between

a group real estate agency and banks out to get a lot of a lot of money but when these homeowners. record numbers. in fact.

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