Walk away. Would you say that you are right could a criminal. This. Is very interesting when you see your name. Philip james baker versus the United States of america. Its overwhelming. Then you face the assistant u. S. Attorney as hes looking you in the eye and when you go through that circumstance there are no words that really can describe the depths of the loneliness and feel of the moment. Ultimately. Completed a plea deal with the United States government. I was sentenced to 20 years. For a wire from. Bill because a criminal is he the type of financial mastermind that caused the financial crisis absolutely not this is a guy who is was not very sophisticated about his crime was not very. Malicious about his crime and but he admitted that he committed a crime this is a classic example of where the Justice Department exits shortcut they want to generate publicity for themselves as going after financial drugs and Everyone Wants them to do that. And yet time and time again the people that theyre going after are the little mini. Theyre going after the big fish are not going after the bankers for the most part theyre certainly not going after the Senior Executives at the banks or other big Financial Institutions they were the Decision Makers leading up to the financial crisis. 10 years after the financial crisis except iceland. How many white collar criminals are behind bars. From Credit Suisse is the only bank of wall street to go to jail related to the crisis. The last just a few 1000000 not really big fish not a true. Only one big bank Top Executive name. The number of people convicted of crimes linked to the crisis in the u. S. According to the Financial Times 324 people from main street. Wall street chief executives have been to prison. Even though there is today absolutely no doubt that wall street executives and politicians were complicit in trading the price. This is the story of how massive global banks made billions. By packaging toxic Mortgage Loans and Financial Products and sold them all around the world. The american politicians pulled the trigger. It all started with a political philosophical row grand ambitions of allowing everyone to own a home. Our government is supporting homeownership. Because it is good for america. It is good for families. It is good for our economy. Part of the American Dream that was pushed by you know all sorts of president s clinton bush whatever for years was homeownership. Authorities kept Interest Rates very low in order to make money. There used to bore. Wall street and politicians had agreed to work together. Wall street with the pursuit of profits. The politicians with the pursuit of government interference on economic growth. Which could be turned into election victories for years to come. This was the beginning of the housing bubble. When the bubbles expanding everybody is aware. Everybody is a genius. The lenders bank money the Real Estate DevelopmentCompanies Make money the construction workers make money Everybody Loves a bubble. But this was a devils deal between politicians and wall street. The setting to a perfect storm. Of what happens in a booth is lenders take more and more risk and borrowers take for the race because they both think things are safer than they appear to be and one of the way they persuade themselves. To take more risk is through financial innovations. Wall street created the risky loans called subprime to americans. People afford to pay the bank loans. That they had just applied for. The public were given access to 0 low income and even no job. So if you want of the absolute craziness it would be the ninja loan so ninja stands for no income no job and no assets and. The idea is that you would lend money to people that gave you no information. About whether they had any income with the at any job. At any assets. It will allow you to grow enormously because now you can loan in the us context 2 ands of millions of people at rates or. How many people out there are there who cant. Get alone. Tens of millions of people in the United States tens of millions of people in france and these circumstances. This goes under the general category of predation in the United States the people that were targeted for the worst loans were overwhelmingly a combination for demographic factors blacks latinos the elderly and females that is incredibly and so why almost everywhere in the world these things are crimes. These talks of loans became a gold rush for the whole u. S. Banking and financial industry. All the major actors of wall street want a piece of the song prime part of. Goldman sachs. Lehman brothers Morgan StanleyMerrill Lynch bears stearns j. P. Morgan citigroup and so on. The friends extended itself the loans were sought by the public by falsifying their own financial situation on loan applications. Therefore the public and banks were complicit committing bank fraud. My name is richard on. I was Senior Vice President and business chief underwriters for citigroup. At the time citi group was the largest bank and. It was my responsibility to make sure that the 90000000000. 00 a year that we were purchasing were going to loans that were originally aided by other banks and Mortgage Companies these map our policy standards. In early 2006. I discovered that over 60 percent of these mortgages did not meet our guidelines they were by definition defective when i discovered this in this was june of 2006. Silly me i thought it was my job i started issuing warnings because i was supposed to make sure that these met our policy guidelines. And i sent an email i put it in my weekly report i made Committee Presentations i mean im not a shy guy i cornered people in the hallways at the water fountain and everyone say yeah we we we know we need to fix that but nothing would happen and through 20062007 the volumes kept increasing and the rate of defective mortgages increased from 62. 00 in excess of 80 percent it was 80 percent of these mortgages that we were in terms selling. And giving our representations and warranties that they were they met our policy guidelines did not meet our policy guidelines this is misrepresentation that is true as a matter of fact it was for all. Ive seen plenty of alone documents with my own eyes other were falsified and the borrower still signed them as if they were correct. People who were typically hairdressers gardeners and such reporting incomes of over 100000. 00 a year now their actual incomes would be in the range of about 16000. 00 in those cases their income is inflated by it 6 times. You would have waiters in a restaurant showing that they made 150000. 00 a year i mean that clearly is. It is out of line but nonetheless the loan type permitted them to happen. Richard bowen and his staff very carefully very professionally are documenting. That these loans their reps and warranties are false. But city is overwhelmingly turning around in reselling these loans. Citi group did not want to know because if it looked at these places it couldnt possibly continue. To use them. It was all about generating the revenue. The people who worked on wall street conceived of the idea of securitizing mortgages. Packaging mortgages up into securities they actually arranged to buy the mortgages they would pack of them up into securities they would file documents with the Security Exchange commission that they had to be able to call them securities and then they would sell them to investors all around the world and all along the way they were making money was almost like it was a perfect product that anybody who touched a mortgage i made money off of it. November the 2nd of 2007 sitting at my Kitchen Table i put together an email. And i simply emailed to Robert Reuben who the next day on sunday at the Board Meeting was named chairman of the board. I also sent it to the chief risk officer the chief Financial Officer in the chain of order. I said urgent read a meeting at work Financial Issues i put that in all capital letters. I call for an outside investigation i said come in here from the outside and investigate what is going on here because everybody here already knows and no one contacted. Throughout november throughout the summer there was no contact no one said the word. Will tell you that that particular point in time. Before i would even get in my car. I was doing what they do in the us im just looking underneath my car and good luck. It was a very frightening time. And you worry the 6th i received there was an email that went out with regard to reorganization and in that reorganization i was stripped of all my underwriting responsibilities that next week i was put on in the street he believes and told him not to come back to the. Selfless acts human bravery 10000 precious pieces of literature rescued from being bounced to ashes and a besieged sorry. Its the both men women and men who risked everything to save their its imperative. The love of books on aljazeera. The latest news as it breaks communities may be in disagreement accusing the other for these attacks and the killing with detail coverage thousands of protesters have been streaming away from the go house but the out have gone from around the world that provide what. The brunt of the sacrifice is what this is all about. The pages of this exercise book unspeakable mannerly compiled testimonies of victims of congolese mercenaries as this intimate evidence finds its way to International Courts the Central African republic is plunged into further tumult and intricate tanev of people and a nation crippled by recent history. Africa on part one of a 2 part series on aljazeera. Hello again adrian forget here in doha the top stories on aljazeera the u. S. Secretary of state mike pompei was arrived in saudi arabia to try to deal with the escalating dispute between the u. S. And iran donald trump threatened to impose new sanctions on tehran iran has responded by saying that u. S. Efforts to on the world against it will be useless. Forming a coalition is nothing new weve seen it before they fail iran is a powerful country with 15 neighboring countries and we stand tall in the region so forming a coalition against such a country is not an easy thing to do even if u. S. Officials come to the region every week and have meetings to try and form a coalition its not easy to do it here piers military is still hunting. For the general behind an attempted rebellion in the state of amara also a morrows attorney general has died after being wounded on saturday night when the state governor and an aide was also shot dead. Evacuations are underway for nearly 50000. 00 people in a town in Southern Council after a series of explosions at a munitions depos it happened at a military base in the Southern Province of pakistan. Turkeys Opposition Party has won istanbuls mayoral race its the 1st time in 25 years that president richard typer the once party has lost control of the countrys economic capital. People are gathering across palestinian territories to speak out against washington socalled deal of the century the series of protests in gaza the occupied west bank and side with this weeks summit in bahrain where senior white house adviser jared krishna is expected to reveal details of the economic part of the peace plan israels Prime Minister says that hell give it fair consideration but palestinian leaders a boycotting that meeting 8 children born with 2 ice or faces with a stray and citizenship are being returned home the children were rescued by aid agencies in syria and taken to iraq its a story is 1st organized repatriation of its citizens from the conflict in georgias government is proud to protest its demands for a fair electoral system a key requirement for demonstrators who surrounded parliament for the past 4 days later the Georgian Dream party says the next elections will give parties a share of parliamentary seats based on their share of the votes theres the headlines more news for you here on aljazeera when we finished the man who stole the world. Greed was definitely the driver. As it is almost forgotten until. Citigroup was not the only one. Comparable level of fraudulent Mortgage Loans have been seen in all the big wall street banks. And knowing the risk of bankruptcy. Banks began to pour massive amount of money to buy more and more Mortgage Loans and package them into derivatives. The top honor writer in the peak years of 2005 in 2006 limited drugs. At 106000000000. 00. To name then it was one of the largest makers and sellers of the the absolute most toxic loans in the entire world Lehman Brothers was one of the largest fraud vectors in the history of the world. My name is am time belugas. I go by the name tony. In new year 2009. 3 months after the lehman bankruptcy i was appointed by the federal court in new york to act as an examiner. I was independent of i me of the party in among the responsibilities of the court charged me and my team which was to determine how and why lehman went into bankruptcy. And when youre talking about the lehman bankruptcy you are talking about the largest single bankruptcy in the history of Financial Institutions total amount of the bankruptcy 693000000000. 00. So we told the story of what happened. Lehman brothers with the 4th Largest GlobalInvestment Bank in the world. But by themis c. E. O. Dick fuld. Hi my name is dick fuld the chairman and chief executive officer of Lehman Brothers nows a terrific time to be joining Lehman Brothers ive been here 30 years and i cant think of a better time for you to take part in changes in opportunities that are going on. But they do you get food what would be the 1st thing that crossed your mind. A person who was viewed as a lion on wall street i believe that in the year 2008 the very year the bankruptcy was named by forbes as one of the top 10 executives in the country. They call them the gorilla and i think they call them that for a reason he was brusque borish take no prisoners kind of guy you know run through a wall for Lehman Brothers. Hyper competitive. Hyper narcissistic. Squeeze some of those shorts squeeze him hard. Not that i want to hurt him. Dont get that please because thats just not who i am. Soft im lovable. But what i really want to do is i want to reach in ripped out their heart and eat it before they die the man who lost them and brothers the man who presided over its decline and fall the man who could have done something about it but chose not to the man who refused to see the writing on the wall the man who you know. Kicked off in many ways which became the great recession. My name is all over buddha and i was an inhouse lawyer at Lehman Brothers for years. I discovered many things that were at least unethical. If not illegal. And eventually i decided to quit. I was earning a lot of money. But it was not enough for me to turn a blind eye to all that was happening in. The tone coming from the top tip fuld the guys around him were go for pushing go beyond the limits the key at lehman was to evaluate the risk and the reward and never mind the law that might be in between there if if the reward is high enough and the risk is low enough we will do it and we will sort it out later. This was a culture of risk. And this was all about money. Lehman brothers Risk Analysis Program was considered a model on wall street i mean it was brilliantly conceived. The problem was it was simply ignored you have to understand you talk about to pull folks made his fortune at Lehman Brothers he was a billionaire. So if you say why i think he had it wrong it ask you are you a billionaire if you made a 1000000000. 00 trading i you and he had. 2 in the years leading up to the crisis everything the Financial Health of Lehman Brothers could not have been better at least on paper. They expanded the use of their toxic the rules. And the ratio of lending expanded. In 2008 humans was massively leveraged. Lehman brothers had one of the highest leverage ratios in american Financial Institutions a leverage ratio is a ratio of your debt to your equity another word for equity is capital its ratio depending on the exact time was 30 to 40. 00 to 1. 00 in other words for every dollar of suppose a capital that had it had 30. 00 to 40. 00 in debt. Lehman became the focus of worldwide attention because they were perceived as the next weakest link they were the next domino to fall. So lehman engaged in a scheme. Accounting scheme to make it look better and what they did was involved what was called repo one of. This was something that lehman used every quarter to hide some of the borrowed money. You see lehman would borrow money and they would pledge securities that they had as collateral. At the end it was 50000000000. 00 each quarter they would borrow 50000000000. 00 and they would give 50000000000. 00 in collateral. But they would actually say that this was a sale this was not a pledge for a loan bu