1. Bear Stearns, the fifth largest investment bank, was acquired by JP Morgan (JPMorgan Chase), and the government provided guarantees for Nelson’s 30 billion toxic assets
2. The fourth largest investment bank, Lehman Brothers, is on the verge of bankruptcy
3. Hank Paulson, Treasury Secretary and former Goldman Sachs CEO
4. Lehman CEO, "Lehman Brothers is not Bear Stearns, we do well".
5. Fannie Mae and Freddie Mac, deeply in debt, were on the verge of bankruptcy, and the government rescued them.
6. Paulson called several investment bank CEOs to talk about Lehman Brothers.
7. Paulson "Let me be clear, We will remember anyone who is unhelpful."
8. Bank of America bought Merrill and the government wanted Barclays (UK) to buy Lehman. Barclays refused after negotiation, "We don't want to import your cancer."
9. Paulson asked the SEC chairman to ask Lehman to file for bankruptcy.
10. Lehman Brothers board vote. The board members all agreed.
11. Lehman, the fourth largest investment bank in the United States, went bankrupt.
12. Paulson plans to take over 80% of AIG's equity. The chairman of the Securities Regulatory Commission disagrees, thinking that there is no emergency legislation to allow the government to do so, and just made Lehman Brothers bankrupt this morning. How can you take over AIG at night? AIG is not even a banking institution. (it's an insurance company)
13. Paulson, "81 million life insurance policies, $1.9 trillion face value, billions in teacher pensions everywhere, too big to fall, here is!"
14. The Fed lent $85 billion to AIG.
15. The market remains sluggish, and several major investment banks are crumbling.
16. The government wants to merge investment banks and commercial banks, so that their CEOs can be connected. The CEO doesn't want to. (Note: Investment banks and commercial banks are privately owned, and state-owned banks only have the Federal Reserve)
17. Someone proposed that the government inject capital into investment banks and give them money to lend.
18. Taboo topics cannot turn the government into a shareholder. Nor is it a Republican style (advocating a big market and a small government, contrary to the Democratic Party)
19. The Treasury Department submits a bill to Congress (composed of the Senate and House of Representatives) to apply for financial assistance to investment banks.
20. During the congressional discussion, Paulson asked his subordinates if there are other plans? Subordinates answered CIC.
21. Morgan Stanley and Mitsubishi reached an investment agreement.
22. Goldman Sachs and Buffett reach a deal.
23. Congress rejects the $700 billion aid proposal.
24. The Ministry of Finance discussed, Dan once again proposed the injection of national capital.
25. Congress passes amendments to aid proposals.
26. Paulson summoned the CEOs of major investment banks and commercial banks to announce the purchase of their preferred shares. (equivalent to the central bank holding shares of investment banks)
27. Some CEOs asked why not to buy toxic assets? Paulson: Too slow. Before it's done, you're all done.
28. Nine major banks announced their acceptance of the aid package.
29. The original intention of the Ministry of Finance was to lend money to the nine major banks, and then the nine major banks would lend out. However,
Summarize:
Compared with the reason and process of the 2008 financial crisis that "a big short" tells, this film tells about the results after the outbreak of the financial crisis and the whole process of the US government's attempt to rescue the market.
Significant differences between Chinese and American financial institutions can be seen. Taking banks as an example, the United States has commercial banks, central banks and investment banks, and China has commercial banks, central banks and securities companies (equivalent to investment banks, such as China Investment Corporation and CICC). Among all the banks in the United States, only one bank is state-owned, the central bank of the United States (ie the Federal Reserve), and other American banks such as Bank of America, Merrill Lynch, Citibank, Goldman Sachs, JPMorgan Chase, and Morgan Stanley are all privately owned banks, representing the interests of shareholders.
In China, almost all large financial institutions, such as the four major banks, policy banks, large securities companies, and city banks, are state-owned holdings, and some are even nationally owned, representing the interests of the people.
It is because the banks are not state-owned, so the CEOs of these banks do not cooperate with the government very much, and the last 125 billion capital injection did not make a splash.
This is really an excellent film. From the beginning to the end, I didn't understand some parts. I went back and watched it again and again. It was fascinating and hearty.
ps. The role of Paulson is really good. Besides, why does he look like Bai Yansong?
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