Inside Job (film)
Encyclopedia
Inside Job is a 2010 documentary film
Documentary film
Documentary films constitute a broad category of nonfictional motion pictures intended to document some aspect of reality, primarily for the purposes of instruction or maintaining a historical record...

 about the late-2000s financial crisis
Late-2000s financial crisis
The late-2000s financial crisis is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s...

 directed by Charles H. Ferguson
Charles H. Ferguson
Charles Henry Ferguson is the founder and president of Representational Pictures, Inc., director and producer of No End In Sight: The American Occupation of Iraq and Inside Job , which won the Academy Award for Best Documentary...

. The film is described by Ferguson as being about "the systemic corruption of the United States by the financial services
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...

 industry and the consequences of that systemic corruption." In five parts, the film explores how changes in the policy environment and banking practices helped create the financial crisis. Inside Job was well received by film critics who praised its pacing, research, and exposition of complex material.

The film was screened at the 2010 Cannes Film Festival
2010 Cannes Film Festival
The 63rd annual Cannes Film Festival was held from May 12 to May 23, 2010, in Cannes, France. The Cannes Film Festival, hailed as being one of the most recognized and prestigious film festivals worldwide, was founded in 1946. It consists of having films screened in and out of competition during the...

 in May and won the 2010 Academy Award for Best Documentary Feature.

Synopsis

The documentary is in five parts. It begins with a look at how Iceland was highly deregulated in 2000 and its banks were privatized
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...

. When Lehman Brothers
Lehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...

 went bankrupt and AIG
AIG
AIG is American International Group, a major American insurance corporation.AIG may also refer to:* And-inverter graph, a concept in computer theory* Answers in Genesis, a creationist organization in the U.S.* Arta Industrial Group in Iran...

 collapsed on September 15, 2008, Iceland and the rest of the world went into a global recession.

Part I: How We Got Here

The American financial industry was regulated from 1940 to 1980, followed by a long period of deregulation. At the end of the 1980s, a savings and loan crisis
Savings and Loan crisis
The savings and loan crisis of the 1980s and 1990s was the failure of about 747 out of the 3,234 savings and loan associations in the United States...

 cost taxpayers about $124 billion. In the late 1990s, the financial sector had consolidated into a few giant firms. In 2001, the Internet Stock Bubble
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...

 burst because investment banks promoted Internet companies that they knew would fail, resulting in $5 trillion in investor losses. In the 1990s, derivative
Derivative (finance)
A derivative instrument is a contract between two parties that specifies conditions—in particular, dates and the resulting values of the underlying variables—under which payments, or payoffs, are to be made between the parties.Under U.S...

s became popular in the industry and added instability. Efforts to regulate derivatives were thwarted by the Commodity Futures Modernization Act of 2000
Commodity Futures Modernization Act of 2000
The Commodity Futures Modernization Act of 2000 is United States federal legislation that officially ensured the deregulation of financial products known as over-the-counter derivatives. It was signed into law on December 21, 2000 by President Bill Clinton...

, backed by several key officials. In the 2000s, the industry was dominated by five investment banks (Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...

, Morgan Stanley
Morgan Stanley
Morgan Stanley is a global financial services firm headquartered in New York City serving a diversified group of corporations, governments, financial institutions, and individuals. Morgan Stanley also operates in 36 countries around the world, with over 600 offices and a workforce of over 60,000....

, Lehman Brothers, Merrill Lynch
Merrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...

, and Bear Stearns
Bear Stearns
The Bear Stearns Companies, Inc. based in New York City, was a global investment bank and securities trading and brokerage, until its sale to JPMorgan Chase in 2008 during the global financial crisis and recession...

), two financial conglomerates (Citigroup
Citigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...

, JPMorgan Chase), three securitized insurance companies (AIG, MBIA, AMBAC
Ambac Financial Group
The Ambac Financial Group, Inc., generally known as Ambac , is an American holding company whose subsidiaries provide financial guarantee products, such as bond insurance and other financial services to clients in both the public and private sectors around the world...

) and three rating agencies (Moody’s, Standard & Poors, Fitch). Investment banks bundled mortgages with other loans and debts into collateralized debt obligations (CDOs), which they sold to investors. Rating agencies gave many CDOs AAA ratings. Subprime loans led to predatory lending. Many home owners were given loans they could never repay.

Part II: The Bubble (2001-2007)

During the housing boom, the ratio of money borrowed by an investment bank versus the bank's own assets reached unprecedented levels. The credit default swap
Credit default swap
A credit default swap is similar to a traditional insurance policy, in as much as it obliges the seller of the CDS to compensate the buyer in the event of loan default...

 (CDS), was akin to an insurance policy. Speculators could buy CDSs to bet against CDOs they did not own. Numerous CDOs were backed by subprime mortgages. Goldman-Sachs sold more than $3 billion worth of CDOs in the first half of 2006. Goldman also bet against the low-value CDOs, telling investors they were high-quality. The three biggest ratings agencies contributed to the problem. AAA-rated instruments rocketed from a mere handful in 2000 to over 4,000 in 2006.

Part III: The Crisis

The market for CDOs collapsed and investment banks were left with hundreds of billions of dollars in loans, CDOs and real estate they could not unload. The Great Recession began in November 2007, and in March 2008, Bear Stearns ran out of cash. In September, the federal government took over Fannie Mae and Freddie Mac, which had been on the brink of collapse. Two days later, Lehman Brothers collapsed. These entities all had AA or AAA ratings within days of being bailed out. Merrill Lynch, on the edge of collapse, was acquired by Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...

. Henry Paulson
Henry Paulson
Henry Merritt "Hank" Paulson, Jr. is an American banker who served as the 74th United States Secretary of the Treasury. He previously served as the Chairman and Chief Executive Officer of Goldman Sachs.-Early life and family:...

 and Timothy Geithner decided that Lehman must go into bankruptcy, which resulted in a collapse of the commercial paper
Commercial paper
In the global money market, commercial paper is an unsecured promissory note with a fixed maturity of 1 to 270 days. Commercial Paper is a money-market security issued by large banks and corporations to get money to meet short term debt obligations , and is only backed by an issuing bank or...

 market. On September 17, the insolvent AIG was taken over by the government. The next day, Paulson and Fed chairman Ben Bernanke
Ben Bernanke
Ben Shalom Bernanke is an American economist, and the current Chairman of the Federal Reserve, the central bank of the United States. During his tenure as Chairman, Bernanke has overseen the response of the Federal Reserve to late-2000s financial crisis....

 asked Congress for $700 billion to bail out the banks. The global financial system became paralyzed. On October 3, 2008, President Bush
George W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....

 signed the Troubled Asset Relief Program, but global stock markets continued to fall. Layoffs and foreclosures continued with unemployment rising to 10% in the U.S. and the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

. By December 2008, GM
GM
- Business and industry :* General manager* General merchandise* General Mills* General Motors, an automobile manufacturing company* Gold Master, an original recording from which copies may be made* Gross margin, profit as a percentage of sales price...

 and Chrysler
Chrysler
Chrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....

 also faced bankruptcy. Foreclosures in the U.S. reached unprecedented levels.

Part IV: Accountability

Top executives of the insolvent companies walked away with their personal fortunes intact. The executives had hand-picked their boards of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...

, which handed out billions in bonuses after the government bailout. The major banks grew in power and doubled anti-reform efforts. Academic economists had for decades advocated for deregulation and helped shape U.S. policy. They still opposed reform after the 2008 crisis. Some of the consulting firms involved were the Analysis Group
Analysis Group
Analysis Group, Inc. founded in 1981, is the largest privately held economic consulting firm in the United States. The firm provides economic, financial and strategic analysis and expert testimony to law firms, corporations, and government agencies....

, Charles River Associates, Compass Lexecon
Jonathan Orszag
Jonathan Orszag is a Senior Managing Director at Compass Lexecon, LLC, an economic consulting firm. He previously served as an Economic Policy Advisor on President Bill Clinton's National Economic Council. He is a Fellow at the University of Southern California's Center for Communication Law &...

, and the Law and Economics Consulting Group (LECG
LECG
LECG Corporation was a global expert services and consulting firm with more than 700 employees in 11 countries. It provided independent expert testimony on behalf of corporations, produced authoritative studies for industry, and conducted economic and financial analyses on disputes and issues,...

).

Part V: Where We Are Now

Tens of thousands of U.S. factory workers were laid off. The new Obama administration’s financial reforms have been weak, and there was no significant proposed regulation of the practices of ratings agencies, lobbyists, and executive compensation. Geithner became Treasury Secretary. Feldstein, Tyson and Summers were all top economic advisors to Obama. Bernanke was reappointed Fed Chair. European nations have imposed strict regulations on bank compensation, but the U.S. has resisted them.

Production

Inside Job was produced by Audrey Marrs
Audrey Marrs
Audrey Marie Marrs is a film producer and the Chief Operating Officer of Representational Pictures, Inc., and producer of No End in Sight, which is her first film. It won a Special Jury Prize for documentaries at the 2007 Sundance Film Festival. She and Charles H...

 with Jeffrey Lurie
Jeffrey Lurie
Jeffrey Lurie is a former Hollywood producer-turned National Football League team owner. Lurie bought the Philadelphia Eagles on May 6, 1994 from then-owner Norman Braman for $195 million...

 and Christina Weiss Lurie as executive producers. The directors of photography were Svetlana Cvetko and Kalyanee Mam.

Ferguson, who is personal friends with economist Nouriel Roubini
Nouriel Roubini
Nouriel Roubini is an American economist. He claims to have predicted both the collapse of the United States housing market and the worldwide recession which started in 2008. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics, an economic...

 and financial writer Charles R. Morris (both of whom warned about impending economic disturbances), was concerned about instability in the financial sector since well before the crash in autumn 2008. Shortly after Lehman Brothers
Lehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...

 collapsed in September 2008, Ferguson decided to focus on this crisis in his next documentary. After a few weeks of deliberation, he approached Sony Pictures Classics
Sony Pictures Classics
Sony Pictures Classics is an art-house film division of Sony Pictures Entertainment founded in December 1991 that distributes, produces and acquires specialty films from the United States and around the world. Its co-presidents are Michael Barker and Tom Bernard...

 who agreed to provide about half of the $2 million production budget. After the project was approved, about six months of exhaustive research began. Filming and interviewing started in spring of 2009.

The film starts in Iceland
Iceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...

, where a similar process of financial deregulation with a subsequent asset bubble was followed by a banking collapse. The aerial footage of landscapes were not shot by Ferguson but licensed from the Icelandic documentary Draumalandið
Dreamland (2009 film)
Dreamland is a 2009 Icelandic documentary film about politics, environmental preservation and damming, focusing on The Kárahnjúkar Hydropower Project and its environmental impact. The movie is based on the book Dreamland: A Self-Help Manual for a Frightened Nation by Andri Snær Magnason...

, whose co-director Andri Magnason
Andri Snær Magnason
Andri Snær Magnason is an Icelandic writer. He has written novels, poetry, plays, short stories, essays and CD's. His work has been published or performed in more than 16 countries...

 was also interviewed.

The main narrative then moves to the United States, where introductory montage shows the credits, some of the interviewees and aerial pictures of New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...

. This segment, half-seriously described by Ferguson as a rock video, features Peter Gabriel
Peter Gabriel
Peter Brian Gabriel is an English singer, musician, and songwriter who rose to fame as the lead vocalist and flautist of the progressive rock group Genesis. After leaving Genesis, Gabriel went on to a successful solo career...

's hit song "Big Time" prominently. Ferguson described the licensing process for the title in the director's commentary as an "agonizing experience" and estimated that the licensing fee amounted to five percent of the total budget (about $100,000).

Alex Heffes
Alex Heffes
Alex Heffes is a British film composer . His film scores include the BAFTA-winning Touching the Void, and Oscar-winning movies One Day in September and The Last King of Scotland....

 composed the music and Matt Damon
Matt Damon
Matthew Paige "Matt" Damon is an American actor, screenwriter, and philanthropist whose career was launched following the success of the film Good Will Hunting , from a screenplay he co-wrote with friend Ben Affleck...

 narrated the film. The song "Congratulations
Congratulations (MGMT song)
"Congratulations" is the fourth single released from the album Congratulations by MGMT, released as a music video on August 25, 2010.Sonic Boom commentary of the track, before the Congratulations sessions at the Blanker Unsinn Studio on 2010: "The Half-arsed Hugs of routine celebrations....

" by MGMT
MGMT
MGMT is an American alternative rock band founded by Benjamin Goldwasser and Andrew VanWyngarden. After the release of their first album, the members of their live band, Matthew Asti, James Richardson and Will Berman, joined the core band in the studio...

 is featured during the ending credits.

Reception

The film received positive reviews, earning a 97% rating on the Rotten Tomatoes
Rotten Tomatoes
Rotten Tomatoes is a website devoted to reviews, information, and news of films—widely known as a film review aggregator. Its name derives from the cliché of audiences throwing tomatoes and other vegetables at a poor stage performance...

 website. Roger Ebert
Roger Ebert
Roger Joseph Ebert is an American film critic and screenwriter. He is the first film critic to win a Pulitzer Prize for Criticism.Ebert is known for his film review column and for the television programs Sneak Previews, At the Movies with Gene Siskel and Roger Ebert, and Siskel and Ebert and The...

 described the film as "an angry, well-argued documentary about how the American financial industry set out deliberately to defraud the ordinary American investor." A.O. Scott of the New York Times wrote that "Mr. Ferguson has summoned the scourging moral force of a pulpit-shaking sermon. That he delivers it with rigor, restraint and good humor makes his case all the more devastating." Logan Hill of New York
New York (magazine)
New York is a weekly magazine principally concerned with the life, culture, politics, and style of New York City. Founded by Milton Glaser and Clay Felker in 1968 as a competitor to The New Yorker, it was brasher and less polite than that magazine, and established itself as a cradle of New...

magazine's Vulture, characterized the film as a "rip-snorting, indignant documentary," noting the "effective presence" of narrator Matt Damon
Matt Damon
Matthew Paige "Matt" Damon is an American actor, screenwriter, and philanthropist whose career was launched following the success of the film Good Will Hunting , from a screenplay he co-wrote with friend Ben Affleck...

.

The film was selected for a special screening at the 2010 Cannes Film Festival
2010 Cannes Film Festival
The 63rd annual Cannes Film Festival was held from May 12 to May 23, 2010, in Cannes, France. The Cannes Film Festival, hailed as being one of the most recognized and prestigious film festivals worldwide, was founded in 1946. It consists of having films screened in and out of competition during the...

. A reviewer writing from Cannes characterized the film as "a complex story told exceedingly well and with a great deal of unalloyed anger."

The American Spectator
The American Spectator
The American Spectator is a conservative U.S. monthly magazine covering news and politics, edited by R. Emmett Tyrrell Jr. and published by the non-profit American Spectator Foundation. From its founding in 1967 until the late 1980s, the small-circulation magazine featured the writings of authors...

criticized the film as intellectually incoherent and inaccurate, accusing Ferguson of blaming "a lot of bad people [with] economic and political views to the right of [his]."

Accolades

Award Date of ceremony Category Recipient(s) Result
Academy Awards
83rd Academy Awards
The 83rd Academy Awards ceremony, presented by the Academy of Motion Picture Arts and Sciences , honored the best films of 2010 and took place February 27, 2011, at the Kodak Theatre in Hollywood, Los Angeles beginning at 5:30 p.m. PST / 8:30 p.m. EST. During the ceremony, Academy Awards ...

February 27, 2011 Best Documentary Feature Charles H. Ferguson
Charles H. Ferguson
Charles Henry Ferguson is the founder and president of Representational Pictures, Inc., director and producer of No End In Sight: The American Occupation of Iraq and Inside Job , which won the Academy Award for Best Documentary...

 and Audrey Marrs
Audrey Marrs
Audrey Marie Marrs is a film producer and the Chief Operating Officer of Representational Pictures, Inc., and producer of No End in Sight, which is her first film. It won a Special Jury Prize for documentaries at the 2007 Sundance Film Festival. She and Charles H...

Chicago Film Critics Association Awards
Chicago Film Critics Association Awards 2010
The 22nd Chicago Film Critics Association Awards, honoring the best in film for 2010, were announced on December 20, 2010.-Best Actor:Colin Firth – The King's Speech*Jeff Bridges – True Grit*Jesse Eisenberg – The Social Network...

December 20, 2010 Best Documentary Feature
Directors Guild of America Awards
Directors Guild of America Awards
The Directors Guild of America Awards are issued annually by the Directors Guild of America. The first DGA Award was an "Honorary Life Member" award issued in 1938 to D.W. Griffith....

December 29, 2010 Best Documentary
Gotham Independent Film Awards
Gotham Independent Film Awards 2010
The 20th Annual Gotham Independent Film Awards were presented on November 29, 2010.-Best Feature:Winter's Bone*Black Swan*Blue Valentine*The Kids Are All Right*Let Me In-Best Ensemble Performance:Winter's Bone...

November 29, 2010 Best Documentary
Las Vegas Film Critics Society Awards
Las Vegas Film Critics Society Awards 2010
The 14th Las Vegas Film Critics Society Awards, honouring the best in film for 2010, were given by the Las Vegas Film Critics Society on 16 December 2010.-Top 10 Films:# The Social Network# Inception# Black Swan# 127 Hours...

December 16, 2010 Best Documentary Film
Online Film Critics Society Awards
Online Film Critics Society Awards 2010
The 14th Online Film Critics Society Awards, honoring the best in film for 2010, were announced on 3 January 2011. -Best Picture:The Social Network*Black Swan*Inception*Toy Story 3*True Grit*Winter's Bone-Best Director:...

January 3, 2011 Best Documentary
Phoenix Film Critics Society Awards
Phoenix Film Critics Society Awards 2010
The 11th Phoenix Film Critics Society Awards honoring the best filmmaking of 2010, were announced on December 28, 2010.-Best Actor:Colin Firth - The King's Speech*Jeff Bridges - True Grit*Robert Duvall - Get Low...

December 28, 2010 Best Documentary Feature
Writers Guild of America Awards
Writers Guild of America Awards 2010
The 63rd Writers Guild of America Awards honored the best film, television, and videogame writers of 2010. Winners were announced on February 5, 2011.-Best original screenplay:Inception — written by Christopher Nolan; Warner Bros....

February 5, 2011 Best Documentary Screenplay

See also

  • Late-2000s financial crisis
    Late-2000s financial crisis
    The late-2000s financial crisis is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s...

  • Bailout of the U.S. financial system
  • Bailout of Wall Street
  • DISCLOSE Act
    DISCLOSE Act
    The Democracy Is Strengthened by Casting Light On Spending in Elections Act, commonly known as the DISCLOSE Act and also known as H.R. 5175 , was a bill introduced in the U.S. House of Representatives by Chris Van Hollen on April 29, 2010 and in the U.S...

  • Wall Street reform
    Wall Street reform
    Wall Street Reform or Financial Reform was signed by President of the United States Barack Obama on July 22, 2010. Since the economic crisis of 2007-09 , there was an ongoing debate taking place regarding the insufficient oversight and regulation of the US financial system, non-regulated...

  • Let's Make Money
    Let's Make Money
    Let’s Make Money is an Austrian documentary by Erwin Wagenhofer released in 2008. It is about aspects of the development of the world wide financial system, focussing on how elitists economically exploit the rest of society, especially in the developing world, but also in western nations.-...

  • Capitalism: A Love Story
    Capitalism: A Love Story
    Capitalism: A Love Story is a 2009 American documentary film directed, written by and starring Michael Moore. The film centers on the late-2000s financial crisis and the recovery stimulus, while putting forward an indictment of the current economic order in the United States and capitalism in general...

  • Debtocracy
    Debtocracy
    Debtocracy is a 2011 documentary film by Katerina Kitidi and Aris Hatzistefanou. The documentary mainly focuses on two points: the causes of the Greek debt crisis in 2010 and possible future solutions that could be given to the problem that are not currently being considered by the government of...


External links

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