Movie Inside Job
Inside Job: Documentary Analysis
Submitted to: Prof.Pramod Paliwal
Submitted by: Meghavi Patel (20111030)
The documentary is divide into five Parts, this write up describe my overall understanding of the documentary.
In 5 year period of time 3 banks borrowed 120 million dollar which is ten times the size of the Iceland economy. Till the year 2006 anyone and everyone could get loans easily even if their document were not up to the mark, lenders did not care if the borrowers were unable to repay loans. Then also the credit rating agencies gave AAA rating to bank, they had no liability if their rating proven to be wrong. At the end of the decade hundred of savings was fail, which ultimately cost to people & their savings. During 2007 CDO sold by executive by telling investor that they were high quality , which created problem when market for CDOs collapsed and investment banks were left with hundred of billion of dollar in loan. In 2008 Iceland bank collapsed and unemployment rate triple in six month lots of people lost their savings but govt. Regulator who had to protect the citizen of Iceland they did nothing for them. When there were crashes the security and exchange commission agencies had been created to regulate the investment bank but they had done nothing. Whatever the bank and other agencies said publically was quite different than the reality. Accountability tries to indicate how no one is ready to take blame as vice chairman declined to be interviewed.
Senior executive were given handsome bonus for short term profits so they had nothing to lose if there is something wrong happen. Warning from reputed sources regarding crisis were all yet ignored. The crisis shows that despite of numerous warning, the government official did not take any action. When fraud people caught they refuse to co operate with government. The false replied given by the credit agencies when they were asked to answer about their rating and current crisis. The men and
Submitted to: Prof.Pramod Paliwal
Submitted by: Meghavi Patel (20111030)
The documentary is divide into five Parts, this write up describe my overall understanding of the documentary.
In 5 year period of time 3 banks borrowed 120 million dollar which is ten times the size of the Iceland economy. Till the year 2006 anyone and everyone could get loans easily even if their document were not up to the mark, lenders did not care if the borrowers were unable to repay loans. Then also the credit rating agencies gave AAA rating to bank, they had no liability if their rating proven to be wrong. At the end of the decade hundred of savings was fail, which ultimately cost to people & their savings. During 2007 CDO sold by executive by telling investor that they were high quality , which created problem when market for CDOs collapsed and investment banks were left with hundred of billion of dollar in loan. In 2008 Iceland bank collapsed and unemployment rate triple in six month lots of people lost their savings but govt. Regulator who had to protect the citizen of Iceland they did nothing for them. When there were crashes the security and exchange commission agencies had been created to regulate the investment bank but they had done nothing. Whatever the bank and other agencies said publically was quite different than the reality. Accountability tries to indicate how no one is ready to take blame as vice chairman declined to be interviewed.
Senior executive were given handsome bonus for short term profits so they had nothing to lose if there is something wrong happen. Warning from reputed sources regarding crisis were all yet ignored. The crisis shows that despite of numerous warning, the government official did not take any action. When fraud people caught they refuse to co operate with government. The false replied given by the credit agencies when they were asked to answer about their rating and current crisis. The men and