maybe her to marry connection to multiples of the maidens hotels believe her part was a movie don't understand shift it was promised but they for cash permits. this is artsy from moscow our main news story is anti gadhafi forces fight on against the female leaders loyalist saying they're making progress into one of his last strongholds the city of sirte but many in the capital tripoli say they're now living in fear of so-called freedom fighters. at any of the big stories of the week washington launches its missile defense plans in eastern europe would remain a turkey in poland signed up to host the red shield to moscow reiterate security concerns and calls for urgent talks. moscow and london agree differences shouldn't stop them doing business during your first trip by u.k. leader to russia in six years multi-million dollar contracts were sealed during

david cameron's visit. and ethnic tensions between serbia and breakaway cause of overage boiling point is disputed border posts to seize by kosovan forces local serbs set up barricades angry at the deployment of e.u. and possible customs officials on the frontier which was previously under certain control. sort of thirty one am now here in moscow and next our special report about the reasons behind the economic crisis has affected this all but that so few of us really understand. around his house. there is a. lot of talk of.

the first man. to pull their brokerage on what they're preparing. like.

we say we live in the camp of the list big society put the bad mood. 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 agree that capitalism is an economic system a system for the production and distribution of things we need one i want to bring that to you i'm not up to that up to be our make up and part cannot get them 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 and he still believes the free market is our salvation even as our economy has crashed brought down to not just by

greed but calculated scams and schemes out of the intent of our laws enrich the 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 in debt we trust to warn of a calming economic collapse. the struck that the next great economic crisis in a special report up about the debt which it will create an economic crisis so deep little threats as i was called a junior in the murder of an alarmist television. on the stick you just read the book called. i thought up with a book that came out before lehman brothers went bankrupt speaking on wall street i called for a jail out not a bail out 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 about it trillions of dollars little this film will explore the scale of money's missing written off alongst ripped off and 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 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 french the return plans of a generation and they could drive an estimated two hundred million people worldwide into dire poverty in other words will 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 anton the right color criminal husband with the case for us to subpoena documents we destroyed back its use of data witnesses willing wife so you

were at a disadvantage because that white collar or in effect were at that other predators . to an investigative reporter on the business speak wall street steals far more than the mafia says gary weiss a wall street. takes lawers much larger sums of money to involve the mafia scalars the regulatory system is such that they can get away with the lack of media scrutiny the absence of regulation when i'd spring the illusion that markets and real estate could only go up created this seed of mentality and environment for successful fraudsters and white collar criminals and your honor for many years up until my address on december eleventh two thousand and eight hour i raided 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 one hundreds of reporters staked out a new york courthouse to report green made all submission of guilt in his ponzi scheme millions of millions of dollars being the source of many of them the right to believe angry and ira worth one point three million of the money it's was about one point eight million people and it's gone on to get away with this the. now person to run the stand for so many years without that effect that was one of the things i thought of. they could successfully run a scam for that. 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 waters the people that knew what was going on but didn't participate and the people that should have known what was going on

like boards of directors or it is but they 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 in the body weight of cases they got back at the top for us 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 her new book but the reason why the line between what is clear and what criminals disappear is because of the if it were an exaggeration but when you remove all the restrictions when you remove all the controls then of course what this legal i want this is illegal so you're you're creating a crime scene and you're creating the crime. you are. upset that

only by the police officers all at the same time only in the form of the regulatory body or system for the laws that work for the last day 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 has a complicated white collar qualms of what's 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 trail's action that wants that but they get it makes it a crime but again 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 of a system of criminality which brought the investment and real estate worlds together in a multi-trillion dollar scam. to simplify louer 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 pretty tory subprime lending over the years got people into mortgages they couldn't afford and 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. it will be sold worldwide without 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 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 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 subprime mortgage loans this is a good education a good streets all of this well but is being focused all of it didn't see anyone under strict nobody believes it but it was the rancid the housing crisis hit america like a tsunami destroying neighborhoods and costing millions of families their homes that's such a. tough one. but no better 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 the new job 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 onerous terms to give their families a piece of the american dream. so many little old into believing they could afford houses with no money down and loaded for the create interest rates watch the cost of adjustable rate mortgages were all runs shoot up when i first got it i got a one percent interaction in law 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 dollars a month for my home and one of. next to j. lo and marc you're right. now where i say.

we should not have to leave our homes our dream i mean even ourselves 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 fifty first a geisha b i described its responsibility for investigating financial fraud on its

website it is called mortgage fraud and epidemic and they're calling it operation malicious mortgage the f.b.i. they'll never thought of a three and a half month probe except 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 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 paying fines rather than facing a judge or a jury goldman sachs paid sixty million dollars the civil as brian complain the massachusetts authorities said they had this guy mortgages to fail and they

paid sixty million dollars but they did not meet any of that standard standard when wall street firms and. 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 sub prime mortgages two thousand and five and two thousand and seven almost three quarters of the total. were aided in the mortgages for the first. being 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 its techniques that were being used the this salesmanship that was being used gimmicks on the loans and how it was structured it really disturbed me catch hold so this and how they could get away with that is people hear full disclosure depending on the lending institution you went to in other words a bank or a broker or when the institution or three different or all three have different sets of regulations that govern them and so full disclosure was it 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 mocha dark i'm with nancy basically what we do is you sometimes have more issues and several other issues but what i want to do is show the signature of edna. will find out is eighty percent of the people going to know that of violations of. 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's something terribly wrong here someone gets 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 ferried 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 loan signings and 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 at wideout and then we have a consultancy. we see a consultant fee on a 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 seventy eight hundred dollars of this long for these people basically project we took this woman's home that 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 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 jed 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 who come to wall street today how common is snacks wolf who 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 when 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 few marial friends are gone bonuses are gone futures are unsure. it's been very difficult as we speak people want to get you to play conversation i mean the regular comes out of the bank examiner ten years ok and i'm going to bring the regulators are to the city over and over again offices it was going to get around you know there was yes you see where all the guys is mostly watching you know what's going on here and i was about seven years ago you know we had surprises and really not just you know but we we got 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 a tax that busted my personal guess is no my personal guess is they'd be much more angry and much more interested if they understand how much is on at play here.

and the destruction there's a relative lack of shape 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 in such in the same types of things his 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. the pretty tiny lowest layer of the crisis that started with some crime defaulting at the homeowner borrower level that money wasn't made there 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 and they then the resulting investors here's what happens there are

three defaults on mortgages. the bank holds the. sells those at ten cents on the dollar to a second bag that bank puts those together with three other of the faults and three other defaults makes a second package and sells to a third bank the third sells six of these things for pictures and bungles them and sells them to some investor with 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 a security underneath the 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 is really the subprime loans purchased from banks packaged them as bungled investments to be sold worldwide there were reports that there was what was called sanction from wall street other words wall street investment houses as they

began to make billions on these securitized loans and c.e.o.'s and derivatives were pressuring the mortgage people at the local level kidless more give us more people say well the reason why wall street was putting the pressure of the sucking sound that you refer to are on the lot of 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 obviously started 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

could only ever thirteen times the answer is appearing more than a value of the whole country the whole gross domestic product if you want our bridge and this. a very conservative estimate assume that the average leverage for the fourteen trillion dollars worth of c.d.'s was ten times but still is a conservative estimate that's one hundred forty trillion dollars worth nothing. if you lose the fourteen trillion the other hundred forty minus the fourteen trillion doesn't exist you have nothing you have no platter left to pay to the people that you borrow money from it all the practice to sell mortgages to people who clearly can't afford to target the people in order to give them mortgages and then take his mortgage to the not accept it or to create mortgage backed security equipment. for sure and i think the bank does there.

are some cases criminal but build your rises when they sell that portfolio. investors who believe. mortgages and who are very injured victims that change the distribution chain because i can direct boards around the country that have lost. funds and lost their pension funds. right. now i have. taken a. look at it. you know what i guess. and i would even say that this is rocket seeding because he took place between. real estate agencies. to get a lot of people

a lot of money when these homeowners. record numbers. the whole system became infected. washers the so much given a dish musician find the friends in the absence of peace process the palestinians will ask the united nations to upgrade their current observer status so that a full member state. download the official ante up location to i phone the i pod touch from the i choose apps to. life on the go. video on demand parties my blog comes an r.s.s. feeds now in the palm of your. question on the

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