17 terms

Inside Job Players & Vocabulary

A few of the people and some of the jargon that is helpful to understanding the documentary.
STUDY
PLAY
Brooksley Born
In charge of CFTC (Commodity Futures Trading Commission) under Clinton. Pressure from banks and investment houses prevented her from regulating derivative products in the late 1990s.
SEC (Securities and Exchange Commissions)
Federal agency formed during the Great Depression designed to regulate financial markets
Gramm-Leach-Bliley Act 1999
Repealed Glass-Steagle Act which prevented investment banks from merging with savings banks in order to reduce risk in financial market
Eliot Spitzer
Former attorney general of NY who prosecuted multiple co. for corruption and fraud 1999-2006
leverage
The use of credit by companies to increase their assets used for operations or speculation
Credit Default Swaps
Private contracts used as insurance or bets against other financial products. Not regulated cause they're private
AIG (American International Group)
Went bankrupt due to dependence on credit default swaps
securitization food chain
Increasing complexity and sales of financial products which led to the housing bubble and the crash of 2008
Alan Greenspan
Economist who served as head of Federal Reserve. Deeply opposed regulation 1987- 2006
Commodity Futures Modernization Act 2000
Banned the regulation of derivatives which led to a multi trillion growth in the market trading these financing products
Henry Paulson
Former CEO of Goldman Sachs and Treasury Secretary of US during collapse 2008
Goldman Sachs
Global investment and banking firm which has been criticized for its handling of cash bonuses after collapse and the profit it made frm credit default swaps (paid for w taxpayer money)
Countrywide Financial
Large mortgage co. Which made 96 billion in subprime loans avoided bankruptcy when it was bought by BoA Jan 2008
MBS mortgage backed securities
Large pools of mortgages repackaged to be sold as a new financial product rated AAA even when including subprime mortgages
CDO collateralized debt obligations
Investment-grade security backed by a pool of bonds, loans and other assets.
Adam Smith
Scottish economist who advocated private enterprise and free trade (1723-1790)
invisible hand
Term coined by Adam Smith to describe the self-regulating nature of the marketplace