BUS 401.

3 Movie Assignment on: Inside Job

Prepared By: Mustakimul Huq Nabil ID # 083324030

Inside Job' provides a comprehensive analysis of the global financial crisis of 2008, which at a cost over $20 trillion, caused millions of people to lose their jobs and homes in the worst recession since the Great Depression, and nearly resulted in a global financial collapse. Through exhaustive research and extensive interviews with key financial insiders, politicians, journalists, and academics, the film traces the rise of a rogue industry which has corrupted politics, regulation, and academia. It was made on location in the United States, Iceland, England, France, Singapore, and China. The most concerning unethical practices that I was able to figure out are listed below; Iceland government allowed MNCs to come and disrupt their wonderful nature and destroy it with pollution. For the great recession, millions of people lost their savings, jobs, and houses and became unemployed and clueless and were not even looked after. Three of Icelands government owned banks was deregulated for higher profit. Money was borrowed in amounts which were 10 times the size of Icelands economy. Money was showered on themselves, friends and likewise and it was used to buy luxury things and were never meant to be paid back. As banks collapsed the unemployment tripled which just made normal customers lose their life worth savings on gambles the top managements played. No investigation as done and no action were taken. As stated by one: the top executives had a lot of cocaine in their system. Stated by the Andrew Sheng, Chief advisor china banking regulatory commission; they were having massive private gains at public loss. Riskier investment meant more money and it was done by the depositor cash and the companies eventually failed in their project losing a lot of money, making tax payers pay a hundred and twenty four (124) billion dollars. Merger Citigroup violated an act which was made during the great depression and to top it all another act over-writing the act was formed paving the way for others and making the market more unstable. Investment companies promoted internet companies who would fail just to bet against and make more money.

Since deregulation, the worlds biggest firms have been caught laundering money, defrauding customers and cooking their books. Government officials were bribed. UBS helped wealthy US citizen to avoid taxes. Threats were given when correct steps were being initiated. Derivatives made financial market unstable so it needed to be regulated but later an act was given which banned regulating derivatives which might have made the market more unstable.

Normal loans were made complex with the involvement of investment banks and investors and insurance companies, making loans bigger riskier and more unstable. The riskier loans were still being rated safe and were given AAA. Prostitutes were paid to entertain traders. When the finance bubble occurred the top management became rich with the money of the public and making the normal public yearning and crying for their part. Leverage ratios were increasing at an alarming rate and no actions were being taken. All the loans and CDO created huge problems as the money was ripped off from the unemployed and the retired and their fund and as such. Goldman Sachs motive was the more money the customers lost the more they made. They bet against their own stocks sold to the customers recently, which would fall without giving that knowledge to their customers. People were betting against AAA assets and making huge amounts as they were supposed to be secured. The tops were safeguarded, and this made tax payers pay over 160 billion dollars. Force AIG to surrender its right to sue Goldman and the other big shots as AIG was failing and going bankrupt so helping them would cost them their right. Avoided disaster but the men who caused it are still in power and not being captured.

The key actors responsible for this financial meltdown were:

Glenn Hubbard, George Bush's chief economic adviser and dean of Columbia Business School. Sir Andrew Likierman, London Business School dean. Howard Davies, Director of London School of Economics. Sir Fred Goodwin, the former boss of Royal Bank of Scotland, once the fifth-largest bank in the world. Larry Summers, friend of former president Bill Clinton and also close to Barrack Obama. Dominique Strauss-Kahn, Managing Director of IMF. Eliot Spitzer, Governor of New York.