Ep 2. The Warning

In the second episode of Frontline's 28th season titled "The Warning," viewers delve into one of the biggest financial crises that shook the world in 2008. The episode revolves around two unsung heroines of the time - Brooksley Born, a former Commodity Futures Trading Commission (CFTC) chair, and Sheila Bair, former head of the Federal Deposit Insurance Corporation (FDIC).

Narrated by Academy Award-nominated actor, James Cromwell, the episode takes viewers on a journey through the years leading up to the financial meltdown. It shows how Brooksley Born, in her position as head of the CFTC, tried to warn everyone of the impending crisis. Born was a fierce regulator who believed that regulations were necessary to prevent future financial crises. She tried to warn regulators, government officials, and the public about the dangers of the unregulated over-the-counter (OTC) derivatives market.

However, her warnings went unheeded, as powerful Wall Street figures, politicians, and regulators felt that Born's warnings were an overreaction. Born's voice was drowned out by the chorus of free market advocates who argued that the derivatives market would regulate itself. The episode shows how powerful lobbyists and business interests silenced Born and undermined her efforts to regulate the market.

The episode also showcases Sheila Bair's role in the aftermath of the crisis. Bair, as head of the FDIC, played a crucial role in stabilizing the banking system and preventing a complete financial meltdown. Bair talks about her efforts to take on the big banks and save ordinary Americans from the disastrous consequences of the crisis.

"The Warning" highlights the importance of financial regulation and the dangers of unbridled capitalism. It shows how the financial collapse of 2008 was a result of a systematic failure of regulation and oversight. The episode also highlights the role of whistleblowers and the importance of speaking up against powerful interests when they put the public at risk.

The episode features interviews with Born, Bair, former Treasury Secretary Larry Summers, former financial regulator Arthur Levitt, former SEC Chairman Mary Schapiro, and other key players in the financial crisis. It uses archival footage and news clips, as well as reconstructions of key events to tell the story of the financial meltdown.

"The Warning" is a powerful and thought-provoking episode that explores the causes and consequences of the 2008 financial crisis. It provides insight into the systemic problems that still haunt the financial industry and warns of the risks of ignoring the lessons of the past. Ultimately, it is a call to action for regulators, policymakers, and citizens to ensure that such a crisis never happens again.