Money, Power, and Wall Street

The financial meltdown of 2007-2008 resulted in millions of lost jobs, the decimation of investments, and a spiraling decrease in home values (along with many foreclosures). When Obama took office as President at the beginning of 2009, it was widely assumed that some Wall Street bankers and CEOs would face criminal prosecution for their misdeeds. Four years later, however, no high level officials have been sent to jail. Martin Smith hosts this PBS-aired Frontline documentary that looks at the continuing lack of accountability for blatantly greedy and questionable economic activity on the part of Wall Street that wound up harming countless Americans. Toxic home mortgages lay at the heart of the meltdown, which were the result of Wall Street's continual pressure on banks to loosen standards. "Due diligence" monitors examined documents in a giddy, party-like atmosphere, while the slogan at firms like Countrywide Financial was "a loan for every customer," regardless of the buyer's ability to repay. Highly leveraged banks bundled and peddled these subprime loan packages to unsuspecting investors. Many Justice Department officials here deny backing off prosecutions, but also argue that greed is not criminal, and that intent is difficult to prove. They are reluctant to declare fraud, but the perception persists that officials cared more about maintaining the health of the banks than the nest eggs of average Americans. Regulators interviewed here note that the financial system needs to be free of deception (or conflict of interest) and must work for everyone, not just a few, but the film displays a frustrating reluctance or inability to spell out the political realities of why this happened and what needs to be done to stop it from happening again. Eclipsed by ongoing events and less insightful than similarly-themed documentaries such as the Oscar-winning Inside Job (VL-3/11), this is an optional purchase. Aud: C, P. (S. Rees)