Inside Job Page #4

01:
12:33.00

{SAMUEL HAYES

Inside Job transcript – Sony Pictures – September 2010

PROFESSOR EMERITUS OF INVESTMENT BANKING

Inside Job transcript – Sony Pictures – September 2010

11

HARVARD BUSINESS SCHOOL}

SAMUEL HAYES:
In the traditional, uh, investment-banking-partnership model, the

partners put the money up. And obviously, the partners watched that money very

carefully. They wanted to live well, but they didn't want to bet the ranch on anything.

01:
12:48.02

NARRATOR:
Paul Volcker served in the Treasury Department, and was chairman of the

Federal Reserve from 1979 to 1987. Before going into government, he was a financial

economist at Chase Manhattan Bank.

{PAUL VOLCKER

Inside Job transcript – Sony Pictures – September 2010

CHAIRMAN:

Inside Job transcript – Sony Pictures – September 2010

13

FEDERAL RESERVE BOARD (1979-1987)}

PAUL VOLCKER:
When I left Chase to go in the Treasury, in 1969, I think my income

was in the neighborhood of 45,000 dollars a year.

CHARLES FERGUSON: Forty-five thousand dollars a year.

01:
13:11.00

SAMUEL HAYES:
Morgan Stanley, in 1972, had approximately 110 total personnel; one

office; and capital of 12 million dollars.

Now, Morgan Stanley has 50,000 workers, and has capital of several billion; and has

offices all over the world.

01:
13:36.14

NARRATOR:
In the 1980s, the financial industry exploded. The investment banks went

public, giving them huge amounts of stockholder money. People on Wall Street started

getting rich.

01:
13:49.00

{CHARLES MORRIS

AUTHOR:

THE TWO TRILLION DOLLAR MELTDOWN}

CHARLES MORRIS:
I had a friend who was a bond trader at Merrill Lynch in the 1970s.

He had a job as a train conductor at night, 'cause he had three kids and couldn't support

them on what a bond trader made. By, heh, 1986, he was making millions of dollars,

and thought it was because he was smart.

01:
14:13.14

RONALD REAGAN:
The highest order of business before the nation is to restore our

economic prosperity.

NARRATOR:
In 1981, President Ronald Reagan chose as Treasury secretary the CEO

of the investment bank Merrill Lynch, Donald Regan.

01:
14:27.00

{DONALD REGAN

TREASURY SECRETARY (1981-1985)}

DONALD REGAN:
Wall Street and the president do see eye to eye.

Inside Job transcript – Sony Pictures – September 2010

14

I've talked to many leaders of Wall Street. They all say, we're behind the president one

hundred percent.

NARRATOR:
The Reagan administration, supported by economists and financial

lobbyists, started a 30-year period of financial deregulation.

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