Ep 11. Money, Power and Wall Street: Part One

Money, Power and Wall Street: Part One is the eleventh episode of the thirtieth season of Frontline. This two-part documentary examines the 2008 financial crisis and its aftermath, exploring how the actions of Wall Street and the political forces that drove these actions destabilized the global economy. Through interviews with prominent figures in finance, government, and academia, the episode provides a comprehensive look at the events leading up to the crisis, the decisions made in response to it, and the lasting effects of these decisions.

The episode begins by detailing the rise of the subprime lending industry, in which mortgage lenders offered loans to borrowers with poor credit histories. These loans were then packaged together and sold as complex financial instruments known as collateralized debt obligations (CDOs), which were rated by credit agencies and sold to investors around the world. The episode explores how this system of lending and investment created a housing bubble that eventually burst, leading to a cascade of defaults and foreclosures that threatened the stability of the financial system.

As the crisis unfolded, the episode shifts its focus to the actions of Wall Street firms such as Lehman Brothers, Bear Stearns, and Merrill Lynch. Through interviews with insiders and journalists who covered the crisis, the episode provides a behind-the-scenes look at the decisions made by these firms in the weeks and months leading up to their collapse. At the same time, the episode examines the role of regulators and government officials, highlighting the tensions between those who sought to intervene in the crisis and those who believed in laissez-faire economics and the ability of the market to self-correct.

One of the key themes of the episode is the extensive political power wielded by Wall Street and the financial industry. Through examples such as the repeal of the Glass-Steagall Act and the influence of money in the political system, the episode argues that the financial industry was able to shape the rules of the game in its favor, even as it put the broader economy at risk. At the same time, the episode explores the ways in which the crisis exposed the deep inequalities in American society and the continued concentration of wealth among the elite.

Ultimately, Money, Power and Wall Street: Part One offers a sobering look at the events leading up to the financial crisis and the ways in which they continue to shape the world today. Through its documentary style, the episode presents a range of viewpoints and insights into the crisis, providing a nuanced and rigorous exploration of this complex topic. While its focus on the individuals and institutions responsible for the crisis may be sobering, the episode also offers hope that greater transparency, accountability, and regulation can help prevent similar crises in the future.