Frontline On Financial Fraud Part 2

Tyler Durden's picture

Concluding last night's post on the PBS Frontline "Money, Power, & Wall Street" mini-series, the remaining two episodes below take us from the market lows to the current euphoric highs. From Obama's decision for more of the same on his economic team to the Stress Tests, from Larry Summers cavorting arrogance to the Public's rising anger, these two 'post-crisis' episodes seem to have less revisionism than the first two and proceed beyond the US to Europe's 'hiding of the truth' and whether the system can ever be truly reformed - not a pretty picture (especially with the mutually assured destruction argument already being played by the banks in their discussions with the Fed on Dodd-Frank today). No Blythe Masters' pool-side this time but Larry Summers is always happy to please.


Episode 3

Chapter 1 - Obama Inherits A Crisis

The president-elect faces a key decision: Who would serve on his economics team?


Chapter 2 - A Financial Stability Plan

Geithner's team decides on stress tests, but his speech announcing the plan is a disaster


Chapter 3 - A Showdown At The White House

Economic adviser Larry Summers suggests it's time to break up a 'too big to fail' bank


Chapter 4 - The Stress Tests Revealed

The results are positive - with no mention of billions of Fed loans propping up the banks.


Chapter 5 - Summer '09 - Anger Boils Over

Obama revives a campaign to reform Wall Street but utlimately leaves the details to Congress



Episode 4

Chapter 1 - Everybody Was Making Money

Despite the crisis, nothing seems to have really changed the culture of Wall Street.


Chapter 2 - When Derivatives Deals Go Wrong

Banks promoted swaps to help cities lower debt payments. But then the markets crashed.


Chapter 3 - Europe Was "Cooking Their Books"

In the 1990s bankers offered derivatives to countries bidding to join the EU.


Chapter 4 - Can The System Be Reformed?

While Occupy Wall Street takes to the streets, another battle is being fought in D.C.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Muppet Pimp's picture

Second Session was far better than the first IMO. 

Cheyenne's picture

Part One was an obscene blowjob of JP Morgan: poor Blanche Masters, no one but bronzed young geniuses JPM understood how CDO's worked, causing the whole wide world to lose its ass; then Goldman came along and used Blanche's precious invention for evil by injecting its own clients with toxic debts--while smart, innocent Blanche looked on in horror.

Part Two was another hackneyed version of NPR and Krugman's favorite parlor game, "Don't Use That F Word!" Sure, you can talk about the ream job in Jefferson County, AL, or firms selling products while concealing their massive side bets against those very same products, or even about entire nations getting fleeced in sleazy swaps deals, but GODDAMNIT YOU'D BETTER NOT CALL ANY OF THIS FUCKING SHIT "F-R-A-U-D."

Tough choice, but I guess I'd take the shit sandwich over that first thing too.

Winston Smith 2009's picture

William K. Black not interviewed even once during the entire four hours.

End result - the usual PR spin on the cause of this crisis.

Bay of Pigs's picture

Nobody said much about the $7.7T that went out the back door of the FED in 2008/9 either.

Vendetta's picture

details, details .... /sarc off

John_Coltrane's picture

Yet that Keynesian clown Krugman was on several segments gushing with praise for little Timmy and Big Ben. 

runlevel's picture

I got 20 mins into part 3 and couldnt take the utter bullshit lies and spin anymore.

Vendetta's picture

thx for the warning, I'll skip it.

Urban Roman's picture

 William K. Black not interviewed even once during the entire four hours.

You know, it's kind of like those clever victorian writers who compose an entire novel without using the letter 'R'.

Plus, if they interviewed William K Black or Chris Hedges or Matt Taibbi, one of those guys might actually connect some real crimes with one of the big names PBS is trying to canonize here.

junkyardjack's picture

Yawn, no mention of Bush inheriting Clinton's mess.  System was broken before Bush got into office.

Tsunami Wave's picture

There was though an extended explaination of how Obama "inherited" Bush's mess, and how the senator **did not know** what was happening or coming his way.  Frontline explained also that the Bush administration was very passive about the oncoming problems coming in 2008, and that it is all his fault just like everything else in the rest of the universe.

lizzy36's picture

The Bush administration was VERY VERY passive about the oncoming crisis. That is not in question. 

Neither is the fact that the era of deregulation started under Reagan and continued without missing a beat under Clinton. Same actors, Greenspan, Rubin, Summers, Geithner, Bernanke.The fact is the crisis came to a head under Bush 43. . 

BTW, the administration included Bernanke as Chairman and Geither as head of the FRBNY. They were 50 steps behind the whole way through. The fact that TARP was necessary (although that is questionable but assume for purposes of argument it was)can only be seen as a massive failure on the part of Paulson, BERNANKE AND GEITHNER.

I saw PBS portraying the "senator" as choosing the same basic team that had been in power for years. The same team that had their fingerprints all over the crisis. I also saw his team marginalizing the one sane voice in the whole group:paul volcker.

Perhaps when one watches with an open mind, instead of merely looking for how PBS portrayed Bush one might have got more out of the program.

Sandmann's picture

without missing a beat under Clinton.


Clinton Grants China MFN, Reversing Campaign Pledge

Sen. Sam Nunn, D-Ga., said that the decision reflected a key role China can play in geopolitics, specifically "maintaining stability on the Korean peninsula and preventing the proliferation of nuclear weapons."

Clinton had been the subject of heavy lobbying by American business interests and his economic advisers to continue China's trade privileges. With China now the world's fastest growing economy, the United States exports $8 billion a year there, which sustains up to 150,000 American jobs. Many major American businesses see even greater potential in Chinese markets, expecting China to become a massive purchaser over the next decade of the phones, electronic gadgets and thousands of other products made in America.


Agricultural interests generally opposed attempts to block MFN /NTR renewal for China, contending that several billion dollars annually in current and future U.S. agricultural exports could be jeopardized if that country retaliated. In China’s case, Congress agreed to permanent normal trade relations (PNTR) status in P.L. 106-286, President Clinton signed into law on October 10, 2000.[5] PNTR paved the way for China’s accession to the WTO in December 2000; it provides U.S. exporters of agricultural products the opportunity to benefit from China’s WTO agreements to reduce trade barriers and open its agricultural markets.


That is the BIG difference...ever since George H. W. Bush, former US Envoy to China started lobbying for China to have access to US Markets  it became imperative for the USA to run a Trade Deficit with China to permit them to buy Agricultural Exports from the USA. So Manufacturing Workers were sacrificed to an Agricultural and Banking Lobby.....and China was made into the US supplier of Capital for Wall Street to replace Japan because the Elites wanted to "de-materialise" the economy away from goods towards services. It is significant that GE shed its Consumer divisions to take out RCA and shed its Consumer divisions for Defence business. The Us economy was re-structured yowards a War Economy and a Banking Sector with Protected Agriculture

meimei's picture

Thanks for sharing this information. I really like your way of expressing the opinions and sharing the information. It is good to move as chance bring new things in life, paves the way for advancement,642-427//640-721//642-647//646-205//642-457//ISC2//9l0-008//HP0-Y12//646-206//HP2-Z21//CISSP//642-661

fonestar's picture

system was broken before Roosevelt got into office.

sof_hannibal's picture

1913 = Fed reserve established...

1933 = gold standard kaput

1971 = Nixon Shock

...pick your posiosn...

2012 = Emperor Obama 102 perecent debt/ US GDP

sof_hannibal's picture

No mention of Clinton selling out; but no mention of Clinton inheriting the Bush 1 mess or Regan's voodoo economics...

Winston Smith 2009's picture

Both major parties did absolutely nothing to curb the excesses and criminal behavior that led to this mess.  Their financial sector owners were making too much money and the general public was too happy basking in the false wealth of their bubble home values, HELOC "wealth" and house flipping.

This isn't a partisan issue.  The pols from both parties were and are bought and paid for puppet clowns.

Tsunami Wave's picture

Paul Krugman is such an idiot in the series.

knukles's picture






steelhead23's picture

Have you noticed that they are setting Geithner up for the blame for round 2 of the recession?  Do not get me wrong here, I think there is plenty of blame to dump on Geithner, but they are playing him as Mr. Do Nothing except pacify the investing public - fiddling while Rome burns.  I don't buy it and I think it was shallow reporting.  Why did Obama chose to engage in an enormous battle over health care instead of reforming Wall Street?  I think it was the money, dudes, and Frontline is pussyfooting around Obama's corruption - which might I say, is obvious.  I believe the facts could be managed to demonstrate that while the health care fight cost Obama a pile of political capital, cozying up to Wall Street ensured a flow of real capital into his re-election bid.  Some wags have asked how Obama is going to tap the energy - and votes - of the 99.  They totally miss what's right in front of their faces, Obama may blow kisses to the 99, but he's owned by the 1%.  Reform will NOT take place while he is in office.

Winston Churchill's picture

I just fon't think he's that bright.

Mediocre student,Law counselor NOT professor.

Cannot speak un prompted.

The worst example of afirmative action gone wrong.

Mental midget basically.

Clint Liquor's picture

They totally miss what's right in front of their faces, Obama may blow kisses to the 99, but he's owned by the 1%.

Agreed, You must have a Forrest Gump IQ not to to see it.

 I knew we were fucked when he appointed Summers. Hope and change, my ass.

Winston Smith 2009's picture

And they never pointed out that Wall Street and the TBTF banks all HQ in the Federal Reserve District where Geithner was in charge during the run-up to this crisis!  The perfect person to put in charge of fixing it, the guy who did absolutely nothing to warn of it or stop it.

Like William Black says, they put the perps in charge of the investigations and clean-up (aka papering over with trillions of taxpayer dollars to no lasting effect) so the reasons behind, the individuals involved, and the true depth of the crisis wouldn't be publicly exposed.

Hannibal's picture

"Reform will NOT take place while he is in office."

Nothing will change unless the banksta frauds are exposed, prosecuted and jailed.

Vendetta's picture

2 weeks of special forces under directive to clean up wall street would have done financial reform and they would have been home for dinner and reform actually completed  ... but no... hand the criminal parasite class trillions of borrowed money.

Yen Cross's picture

 Missed all the " excerpts" Tyler! Look forward to watching them. Thank you for taking the time to post.

virgilcaine's picture

The tentacles are so large it's choking off every other segment of the US Economy.  Whatever was left of it.

MBOB's picture

PBS used to stand for the Petroleum Broadcasting Service. Follow the money.  Corporate donors and their foundations now effectively manipulate the national offerings. Bland pablum or glowing predictions of a techno future where we all will eat pills for dinner and fly to work. 

Keith Piccirillo's picture

Good series, caught it last night. I liked the faceoff between Summers and Geithner, and how Romer had an advocate with Summers but Prez and Geither had much in common and he won out. He started out talking tough to bankers but capitulated almost in mid stream, guess he knew who would butter his bread. If a 2nd term happens, I venture he would regulate more, whereas if Romney wins Wall Street can turbocharge itself again.

Bay of Pigs's picture

That part was absolutely ridiculous and totally absurd. Geithner worked under Rubin and Summers at the UST. Those are his mentors. They are all on the same page.

Pitiful reporting of the facts.

earleflorida's picture

'frontline' ---  compromised journalism as yellow as the  midday sun, period! written by hacks and heuristic buffoons lacking the dynamic fiscal anthology flow of structured sequence that simply s[t]ync's under one's cerebrum. absolutely terrible!   

Gringo Viejo's picture

Regardless, PBS is an extention of the government-media complex and while less sugar coated than others in the MSM, don't look for the real meat & potatos here.

Clint Liquor's picture

PBS stands for Paid By Suckers. And that would be you, the American Taxpayer.

dwdollar's picture

PBS is the snobby dipshit of television.

I'd rather watch CCTV praise the virtues of the Communist Party than listen to this sad joke of "investigative" journalism.

Unprepared's picture

10 min into the first video, I could not continue watching with all the BS and propaganda... Too bad, truth be buried one more time.

gwar5's picture

I was a little shocked (shocked!) when the MIT and Ivy league grads admitted they didn't know how the financial system works outside their cubicles. Then I realized that people like Krugman and Bernanke (face palm) were their professors. I'm sure many are now regulars at ZH, filling in the blanks.  


Summers role was a revisionist surprise, calling for breakup of the big banks? Really? I don't believe it. Perhaps only as a paper foil to Geithner, for Frontline only, to make up some pretend drama. Summers was Quantumly Entangled with the Giethner\Rubin cabal that got rid of Glass-Steagall.  If he's such a genius how come he didn't see LCTM and 2008 coming?  He didn't want to... Summers was the hammer that helped run Brooksley Borne out of the CFTC because she was warning about derivatives fraud. LTCM imploded one month after she was booted. 


Obama's experts, all gone, all wrong. Except Geithner, which is why Beijing still laughs in our general direction. Geithner is going to be the perfect fall guy, taking the heat away from the FED who should be getting a spotlight in this. 


Ranger4564's picture

The people you mention are not stupid, they were not wrong, they are evil and their plans are fucking brilliant. I can prove conspiracy exists... Brooksly Born and Sheila Bair were correct, warned the authorities, were fired, collapse occurred as predicted, no apologies, no dismissals, no reorganization, no punishment. The fact that the bankers who were warned by BB / SB, and frankly others, have not been replaced at the least for sheer incompetence, and that BB / SB are still outcasts, proves there is a plot.  I can understand the bankers not offering to resign, but for someone not to ask or force them to step down shows complicity. This is so in your face a gaping wound, it's astounding how people refuse to see it.

And i know why the refusal... because this episode fundamentally challenges the merits of capitalism, be it conspiracy or ignorance.  Why hasn't the market self corrected if it's such a dynamic and robust system?  Why? Because any system built primarily on greed will always fail as people ultimately choose not to risk anything (short sighted self preservation), even to help rectify a situation (long term self preservation).  It's not by accident most people are sitting at home waiting for someone to fix the problem.  Who is the fucking sheep now? Inherent in giving anyone that kind of charge / task / role / responsibility is despotism.  Rulership arises precisely out of this unwillingness to take responsibility for yourself by doing something proactive with others... to prevent anyone else from becoming a leader. This is what you must do if you have the intellect and courage.  Otherwise, don't complain about the lousy government... you will not see another opportunity for change as you see now.

LouisDega's picture

Speaking of PBS , Is Monty Pythons flying circus on tonight?

10044's picture

not a single word on "why these loans/mortgages were issued in the first place?" : because of low interest rates (that would be FED), also these so called mortgages are ALL "Fannie/Freddie/Ginnie" i.e. Gov sponsored i.e. Obama ( and Bush and all of them)... no you would not want that would you, in an election year???

that's why this program is so biased and doesn't tell the whole truth (except Terri Duhon is HOT!)

on a different note; where is everybody? has the whole world stopped? is everyone on vacation? WTF??




Rock Island's picture

This series is a campaign piece for Obama and a good argument for gold. 

q99x2's picture

Get the handcuffs. Time for a roundup.

They should creative commons license these videos. Then we'd get to the truth.

One thing for certain Bush still takes the cake and brings out the laughs.

Unbelievable - he was a president of what country?

Hannibal's picture

Just reinstate the Glass-Steagal Act. Prop trade/gamble with your own money only.

Fucking morons!

Arnold Ziffel's picture

(Reuters) - As chairman and CEO of Chesapeake Energy Corp, Aubrey McClendon has been a powerhouse in the vast U.S. natural gas market, directing the company's multibillion dollar energy-trading operation and setting output targets for America's second-largest producer.

What a pig he is!


Jim B's picture

PBS = State Media = Propaganda = watching hockey instead!


but I will watch the Hugh Hendry Video!

brown_hornet's picture

Do you think anyone from OWS has read this thread?

Demogorgon's picture

I lasted about 15 minutes before I shut it down. Turbo Tax Timmy being portrayed as a knight in shining armour coming to our rescue? Fuck that shit.

Jeffrey Lebowski's picture

Out of a mobid curiosity I watched 10 minutes of it..... turned it off....more MSM drivel, where they were patting each other on the back while they stood aside and let it fall, just as they all intended it to do.... That one clown looking lawyer with the close cropped beard and the round faggot glasses was named "Sachs"... you dont think?!?!?!................Nawwww...?

G-R-U-N-T's picture

Episode 2 was clearly a propaganda campaign pitch for our current "idiot in chief"!