Alan Greenspan is an American economist who had served as the Chairman of the Federal Reserve of the United States. He had served for nearly 20 years and is also considered as one of the great economists of his times. In the testimony before the investigating commission, Alan Greenspan is noted to have said that “in my experience in my business I was right 70 percent and there are 30 percent of times when there are mistakes”. He does admit to risk taking behaviour when he could be wrong 30 percent of times and this 30 percent of times when financial institutions take risk on is what leads to issue. In fact, the person leading the investigation cites, even if they are correct 99 percent of the time, the 1 percent of time that financial institutions are wrong could have dire consequences.
The movie goes on to present how pumped up mortgage businesses loans, teaser rates and more led to the exacerbation of the issues. Teaser rates meant more people could get a loan however they went up with time. Complex mortgages sold to buyer with no return potential. One of the persons interviewed here is Congresswomen Maxime Walton. Maxime Walton states that mortgages are given to people even when they had no chance of returning it. Similarly, another one of the interviewee who volunteered information and who was also investigated for the issues he caused in financial deregulation was Angilo Mozila. He was one of the lenders who claimed that he wanted everybody to own a home. It could be said that his lending practices were criminal. In a final analysis, it could be said that he put much poor people into foreclosure, they ended up on streets. His company countrywide finances lead to these issues. It was sold to Bank of America and he was bought into SEC investigation. In his own words taken from other evidences, he is said to have reported that “In all my years in the business I have never seen a more toxic product”. This is a reference made to a toxic product that he himself used. Countrywide still made use of the said toxic financial product as a bank tool and as something that was needed for the consumers of the market. Phil Angelides, who is part of the financial crises inquiry commission stated that there were two views of the market that these businesses seem to have a private view and another investigating public market, rating agencies and more.
Even as people were not able to pay their loans and mortgages, it was seen that they were still given out more loans and these loans were important to the mortgage lenders as they could make money in the form of high interest IOUs. This created a moral integrity problem.