All language subtitles for Titans.The.Rise.of.Wall.Street.S01E05.THE.CRASH.1080p.AMZN.WEB-DL.DDP2.0.H.264-TEPES

- At the
end of World War I,

nothing is the same

on Wall Street.

Jack Morgan has finally stepped
out of his father's shadow,

while Samuel Sachs
has been betrayed.

- I prayed it wouldn't, Henry,

but I always knew
this day would come.

- His
firm torn apart.

And America's victory overseas

has brought the
dawn of a new age.

- Wall Street in the 20s
was an American affair

and it involved a lot more
people than ever before.

- Now, the
world's financial capital,

Wall Street has become the
place where anything goes.

- The Roaring Twenties
were a time period

where the old rules
don't apply anymore.

- The booming
market gives rise

to a new breed of investor.

- Joseph P. Kennedy
here to see Mr. Morgan.

- Joe
Kennedy is willing

to bend the rules
to make his name.

- I'll pull every lever I
can to defend your company,

but it won't be cheap.

- While Charles
Merrill changes the game.

- See, we're a new brokerage,

but we're not a bucket shop.

- By bringing
Wall Street to the masses.

It's a bull market
unlike any seen before,

but where it's leading
is anyone's guess.

- My God.

- Bankrolled
by John Hertz,

Joe Kennedy has saved
Hertz's Yellow Cab Company

by manipulating the stock price

to scare off a hostile attack.

Proving to Kennedy he
has what it takes to move

from outsider to
Wall Street player.

And also showing him just how
vulnerable Hertz's company is.

- Wall Street 268.

It's Kennedy.

- Now, Yellow
Cab is under attack again.

- I don't need any
housekeeping. Thank you.

- And it might
be coming from the inside.

- John, what a surprise.

- How could you do it?

- John, come on.
What's this about?

- I trusted you.

Goddamn it, I paid
you to protect me,

to protect my company.

- And I did.

- And now two weeks
later, you come for me.

Knowing full well that
I can't raise the money

to put a stop to it.

- Let me offer you
some friendly advice,

when you barge into
someone's office

and accuse them of being a liar,

you better have
your facts straight.

A man's reputation is the
most valuable thing he owns.

And I don't know about you,

but I'll do whatever
I can to protect mine.

And if that means-

- Hertz believes
Kennedy has used the knowledge

he gained fighting
off the first attack

to stage a bear
attack of his own.

Though Kennedy admits nothing,

he continues to get richer

and doesn't mind getting
his hands dirty doing it.

- Joe Kennedy was one
of the smartest people

who ever operated
on Wall Street.

You know, his morals
weren't the best, perhaps,

but his brain was.

- But as the
Roaring Twenties pick up steam,

most Americans think that
anyone can make money

in the market.

Though Prohibition is
the law of the land,

the country is in the
midst of a non-stop party.

From the jazz clubs of Harlem

to the penthouses
of Park Avenue,

it's all being paid
for by Wall Street.

New York is seen as the
center of the universe

and people across the country
want in on the action.

With more and more Americans
buying stock than ever before.

- The stock market in the
1920s became a retail market

in a way it had
never been before.

When the people heard
that their neighbor

had doubled his
money in the market.

And then doubled it again,

you started to feel like a fool

if you didn't do it yourself.

- The new
investors flooding the market

have one thing in common.

They think the sky's the limit.

And Joe Kennedy has a plan
to take advantage of it

by manipulating the market

with something
called stock pools.

- So a stock pool is
basically a group of traders

getting together to manipulate
the price of a security.

What you would do is what
was called paint the tape.

- Painting the tape is
making a stock trade better

than it actually would otherwise

to entice other
investors into the game.

- You'd have a group

and you trade the stock
amongst yourselves.

And every time you trade it,

it's at a slightly higher price.

To the outside investor,

it looks like there's a lot of
buying going on in this stock

and the price is rising.

And they're gonna be attracted

and start trying to
buy the securities.

At which point,
you can sell out.

- Kennedy
recruits a group of traders,

coordinating the scheme from
his suite at the Waldorf.

Targeting stocks they can pump
and dump for maximum profit.

In less than a year,

his market manipulations
earn Kennedy a fortune.

Leaving the investors
who followed his lead

holding the bag.

It's morally suspect,
but perfectly legal.

- After Kennedy's
initial success,

he told a friend it's easy
to make money in this market.

Well, you better get in quick

before they pass
a law against it.

- Rejected
by Jack Morgan

and the Wall Street
establishment,

Joe Kennedy has embraced
his outsider status.

- There was a lot of
prejudice against the Irish

in those days.

People like Morgan thought
they should only with gentlemen

and they didn't regard
Kennedy as being one.

- Getting rich
by manipulating the market.

Now he's looking to
use the same playbook

to make millions more in
a rising new industry.

- Wall Street, 268.

- The movies.

He reaches out to Charles
Merrill and Edmund Lynch,

who control the American arm

of the French film
studio, Pathé.

After buying the
struggling studio in 1921,

Merrill and Lynch
have turned it around.

And with Merrill's concerns
that the market has peaked,

they're looking to cash out.

Merrill knows
Kennedy's reputation,

but he's willing to listen

if it gets him the best price.

Kennedy doesn't have
that kind of money,

but he won't let a detail
like that stand in the way

of closing the deal.

- I remember it like
it was yesterday.

It was our first date,

Columbus Theater, Washington
Street in the South End.

There you go.

"David Copperfield."

Eight o'clock show.

Rose loved the book.

- It's a classic.

- So there we are, front
row, first balcony.

I look over at Rose
and she's hypnotized

watching that story unfold
on the silver screen,

larger than life.

That was the day I understood
the power of motion pictures.

I remember thinking,

think of how happy I
could make her feel

if I was making movies.

Thanks to you two,

it looks like I may
finally had my chance.

- Thing is, we
never meant to get

into the movie
business ourselves.

Pathé just sort of fell
into our laps after the war.

It was a mess.

But Ed here transformed himself

into a movie exec overnight
and turned it around.

- He sure as hell
did turn it around.

Quite frankly, I'm wondering

why you're thinking
of walking away.

- Well, for the right price.

- Yes.

- About that.

I assume you were
willing to negotiate.

- Within reason.

- Good.

I was thinking at half
that price, it would be-

- Half?

Well...

- Hold on, listen.

I know you were hoping to
flip this to a major studio

and get a Hollywood price.

I do.

But that's not me

and this isn't California.

Now, I'm willing to offer
slightly higher than that.

And that's it.

- The three men
eventually agree to a deal,

paying Merrill and
Lynch $2.9 million

or almost 50 million today.

For Merrill and Lynch, the
deal is almost pure profit.

Allowing Charles
Merrill the opportunity

to move the firm's capital
into lower-risk investments.

But for Joe Kennedy,

this was the first
step in his master plan

to become a movie mogul.

Soon, he buys another small
New York studio called FBO.

Then snaps up a
chain of theaters,

giving his movies a
guaranteed platform

and priority over
any competition.

It's a revolutionary idea

that will soon become
the industry standard.

Then, Kennedy's
biggest move brings

this one-time outsider into
Wall Street's inner circle.

Partnering with Bobby Lehman,

the new head of Lehman Brothers,

to invest in RCA's
groundbreaking sync
sound technology,

ushering in the
age of the talky.

- Hey!

You old coyote, you.

How long 'til I
meet this Cisco Kid?

- Joe
Kennedy has transformed

how Hollywood does business,

but just as quickly
as he got in,

Kennedy gets out.

Using the same aggressive
pump and dump approach

he operated with on Wall Street.

He sells his entire stake
for 10 times what he paid.

- Kennedy was not a
long-term investor.

He was the classic
either momentum

or the short-term
profiteer kind of investor.

He made his money.

He cashed out and he
put his money elsewhere.

- Now, with
millions more in the bank

and nationwide fame,

Joe Kennedy is looking to
make an even bigger move

back to Wall Street.

While Joe Kennedy
was in Hollywood,

money has continued to
pour into the stock market.

But while most of Wall Street's
banks have been reaping

the rewards, at Goldman
Sachs, they're losing ground.

In the decade since Henry
Goldman was forced to resign,

managing partner Samuel Sachs

has struggled to
duplicate Goldman's vision

and lead the firm
back to prominence.

Now, he is desperate
to turn things around.

- Samuel Sachs had to figure out

how to regain its position in
American financial circles.

Henry Goldman had essentially
deep sixed Goldman Sachs

with his support of Germany.

And without Henry
Goldman being there

to direct its operations,

the company had to
look for a new person

to take his position.

- Sachs is
gambling on a brash newcomer

to turn the tide.

His name is Waddill Catchings.

- Here's a problem.

Too many deep thinking,
hand-wringing economists

with their long-term charts
on controlling our future.

It's like I say in my book.

Oh, have you read
"The Road to Plenty"?

- Arthur gave me
his copy yesterday.

- Oh, good.

As you soon will read then,

I believe if business
is to keep on zooming,

production must be
kept at a high speed.

Whatever the circumstances.

- Well, that's certainly
an optimistic outlook.

- I prefer realistic.

When I run the numbers,
I see a limitless future.

But only if you in the game.

- Years into
the massive bull run,

Catchings believes the
best is yet to come.

The way to bring
Goldman Sachs back is

to go all in on
the stock market.

- Well, you've
intrigued me enough

to want to see exactly where
those numbers can take us.

- Well, that's great.

- For Samuel Sachs,

the move is a daring
break with tradition.

Catchings is the first partner
who is not a family member

and isn't Jewish.

- Waddill Catchings was
a Southern gentlemen.

Suave, sophisticated.

Harvard educated, Harvard
law school educated.

He was sort of a Pied
Piper of capitalism.

- Catchings had been at Harvard
with Samuel Sachs's son,

and he was very well-known.

He wrote several
books on economics

that were very highly regarded.

And Samuel Sachs wanted to
be part of the elite banks.

He felt that Waddill Catchings

could move Goldman Sachs
into the establishment.

- Waddill
Catchings's plan

to bring Goldman Sachs back

is to take an aggressive
investment approach.

- Profits.

That's all investors
want, right?

Well, not just any profits.

Huge profits.

- So what are you proposing?

- Well, an investment trust.

But one

unlike Wall Street
has ever seen, right?

Bigger, more aggressive,
more profitable.

The market appetite is there,

but no other bank has had
the guts to go really big.

- And I'm assuming this big
trust requires a big investment.

- 100 million.

- That is a lot of money.

- It's nothing compared
to how much we'll make.

- Sachs is skeptical,

but he's willing to give
Catchings's plan a chance,

hoping it will bring Goldman
Sachs back to being one

of Wall Street's most
successful investment banks.

- An investment trust is
essentially a precursor

of the mutual fund.

You would buy the stock
of this investment trust,

and then they would take
that money and invest it.

If the investments work out,

the price of the investment
trust stock would go up.

- The fund would
give Catchings a massive pool

of cash to pursue profits

wherever he sees them.

He invests aggressively

in everything from
heavy industry, like
steel and railroads,

to cutting edge technologies,
like telephone, radio,

and the automobile.

With the Federal Reserve
keeping interest rates low,

investors have been pumping

cheap, borrowed
money into stocks.

- In those days you could
buy stock only 10% margin.

In other words,

you could buy $100
stock by putting up $10.

- Once
it hits the market,

Waddill Catchings's
investment trust,

dubbed the Goldman Sachs
Trading Corporation, skyrockets.

- The Goldman Sachs Trading
Corporation sold huge amounts

of its stock, both in the
United States and overseas.

It grew massively.

- With a
sizeable ownership stake

and commissions on every sale,

Waddill Catchings has delivered,

restoring Goldman
Sachs's good name

and earning the bank millions
of dollars in profits.

Now with Goldman Sachs back
among the Wall Street elite,

Catchings is looking to
make an even bigger move.

- And I think Friday would
be a good day for that.

- I think that's good.

- All right.
- Oh, great.

Thank you.

- Oh, wait a moment.

I'll get that.

- No, there's no need to
hold on to silly traditions.

- Oh, well it's not tradition.

It's responsibility.

When the partners go
out, the senior pays.

- Well, I think I've
proven the advantages

of forging a new path.

But as far as the
fund is concerned,

there is something
there to discuss.

- So this is a
business meeting, then?

- No, just two friends talking.

We can be honest with
each other, can't we?

- Yes.

- Honestly, given the
amount of capital I've made

for the firm,

I feel I'm overdue a
increase in shares.

Say 5%?

- I'm sure it's
just a coincidence

that that's the exact
amount you'd need

to gain controlling
interest from me?

- No, no, no.

I'm not trying to be greedy.

I'm not trying to
take your title.

Simply asking for my due.

- Sir.

- Thank you.

My apologies, Samuel.

I gotta take this.

- Okay.

- Waddill Catchings thought
he could do no wrong.

He saw himself as a savior.

As a result, he felt he could
gain control of Goldman Sachs.

- Knowing he can't
afford to lose Catchings,

Sachs agrees to the deal.

With his power consolidated,

Catchings doubles down,

moving half of
the firm's capital

into a stock market
investment trust.

It's a risky move

that could be devastating if
the market turns downward.

But stock prices
continue to soar.

And the profits for Goldman
Sachs keep rolling in.

With the market
reaching new heights,

there appears to
be no end in sight.

With most of the nation
now blindly swept up

in the market frenzy,

one Wall Street banker decides

to take matters
into his own hands.

- William,

I need you to take a letter.

- Charles
Merrill founded his firm

on a commitment to honesty

and feels responsible
to the small investors

who have entrusted
him with their money.

- Dear valued
Merrill Lynch client,

now is the time to
get out of debt.

We advise in no uncertain terms

to take advantage of
the present high prices

and put your financial
house in order.

- Without his partner
Edmund Lynch's knowledge,

Merrill dictates a letter
to the firm's clients

with a clear message.

Get out of the market.

- Charlie Merrill saw
the market going up

and a lotta people buying
on margin, excessive margin,

putting themselves into debt.

So that was a deep
concern of his,

knowing that, if the
market came down,

what effect was that gonna have?

And the cascading
effect of margin calls

that created further
pressure on the market.

- Send that out.

- For years, Merrill
has been raising the alarm

about the stock market's
unsustainable growth.

Frequently clashing with Lynch.

Unlike other successful
Wall Street firms,

Merrill has pushed to invest
in lower-risk businesses,

buying large stakes in chain
stores like Safeway and Kresge,

while working to avoid debt.

But convinced he's
out of options,

Merrill not only sends
the letter to all
the firm's clients.

He also has it published
in "The New York Times."

- Are you insane?

You sent this without
my permission?

to "The New York
Times," no less!

- I'm the only sane
man on Wall Street.

You've seen the numbers.

- What? What numbers?

Safeway's up three.

JCPenney's up 2 1/4.

Kresge's up for.

- You're missing the big picture

just because you
don't want to see it.

The market is unsustainable.

- Enough!

This chicken little nonsense
has to stop, Charles.

You've made your point.

All right? Just accept that
nobody believes it, but you.

- We need to sell what
we have tied up as well.

Now.
- No.

This stops here.

- Despite
the national exposure

in "The New York Times,"

Merrill's advice
is mostly ignored.

By June of 1929, the Dow
Jones Industrial Average

is almost 10 times
as high as it was

at the start of the decade.

- The problem is when you're
caught up in a bubble,

a lotta times you don't
know you're in a bubble.

You know, is this for real?

Is it not for real?

It requires an ability to kind
of step outside the bubble

and look at it with a clarity
that most people don't have.

Charlie Merrill saw
that it was a bubble

because he was selling
stocks to normal people,

to average Americans.

And he realized as it
was rapidly rising,

that they were gonna get hurt

if it dropped.

- William, could you grab
me a cup of coffee, please?

- Believing his
company's future is at stake,

Charles Merrill realizes

the time to act is now.

- Yes. Yorkville 652.

- And sells the
firm's stock market holdings.

- Arthur. Hi, it's Charles.

Yes. I have an issue of a
somewhat pressing nature.

You see, Ed is away
on vacation in France

and there are some
documents we need to sign

that are time sensitive.

I need to invoke the
power of attorney.

Wonderful.

Thank you.

It's Charles Merrill.

- You just do as you
please, don't you?

No matter the consequence.

- So nice to hear
from you, Edmund.

- I wonder if it's because
you're an only child.

- How's St. Tropez?

- It's hard to enjoy it
with your knife in my back.

- My responsibility
is to the solvency

of this firm, not your feelings.

- My feelings?

We're partners, Charles.

- You will thank me.

But if it upset you so much,

perhaps we should talk about
severing the partnership.

- Are you threatening me?

- It's a simple question.

- Please, God.

Nothing is ever simple
with you, Charles.

- Let's sleep on it.

If you need me, you obviously
know where to find me.

At work.

- Charles
Merrill is defiant

and confident he'll
be proven right.

But as the summer of 1929 ends,

the stock market
continues to soar.

On September 3rd, the Dow
Jones Industrial Average

swells to an
all-time high of 371.

Now, people are wondering
not if it will hit 400,

but when.

- There was this feeling,

which are sometimes referred to

as the most dangerous
words in investment,

is this time it's different.

- In the world of Wall Street,

everyone thinks that they have
it right this time around.

This is human psychology.

So it's not that the financial
markets are gonna behave

exactly as they
behaved in the past,

it's that the human
reaction to them

would be the same as
they were in the past.

That's how bubbles form.

And that's exactly
how bubbles pop.

- How's business, Pat?

- Booming as always, sir.

But I don't need to tell you.

- No, sir.

- But if you're
looking for a tip,

what I've been hearing is oil.

- Oil?

- Anything in the
sector is undervalued.

Standard, Gulf, Sinclair.

I mean, take your
pick and get rich.

- Since
returning from Hollywood,

Joe Kennedy has been
back on Wall Street,

getting even richer

by investing the millions
he made in Hollywood.

But something tells him the
party could soon be over.

- Thanks for the tip.

Keep the change.

- Thanks.

- Promise me one thing.

Don't invest it.

Not even in oil.

Save that bill for a rainy day.

- Kennedy went to his
office and said, get me out.

When the shoe shine boys
are giving stock tips,

it's time to get out.

The market is no
longer rational.

- As September
bleeds into October,

the general public
continues to invest

in the market with
borrowed money,

totalling over $200 billion
invested for the year.

But as the Dow Jones
begins a downturn,

signs of stress begin to show.

- Now it's really a
game of musical chairs.

And, at some point,
the music's gonna stop.

But if you've got a
chair, you're fine.

Somebody's gonna lose.

You just hope it's not you.

You just hope, you know,

it doesn't stop while you're
in a position of vulnerability.

- On October 21st,
as the selloff continues,

President Hoover sends a message

to the house of Morgan,
expressing his concern.

But by now, it's too late.

On October 23rd,
Westinghouse drops 35 points.

General Electric, 20.

And RCA falls almost 15%.

Down over 40% from
its 1929 high.

- And from that point on,
the market kept going down.

It was a controlled riot
going on on the floor.

- Some on Wall Street have
prepared for the worst,

protecting themselves
against panic.

While others have left
themselves completely exposed.

On Thursday, October 24th,

only moments after
the opening bell,

it happens.

- The market has lost connection

with the underlying economy.

But Wall Street simply
wasn't noticing that

and they go it was
a classic bubble.

They were only
talking to each other.

And so, like all
bubbles, it popped.

- Within two hours,

almost $10 billion in
market capital disappears

into thin air.

The modern day equivalent
of $152 billion.

- Once the prices start falling,

then people say, oh boy,

I better sell it now

because if I wait two weeks,

it's only gonna be worth
half of what it is today.

And the more people
then who wanna sell,

the more the prices fall.

There's a herd behavior,
a collective behavior,

and people take cues
from other folks.

- Nothing
can stop the momentum.

As cries of bankrupt
traders fill the floor,

complete panic has taken hold.

And Wall Street is desperately
looking for a way out.

Word of crash makes its way

to Jack Morgan's
Scottish estate.

- What is it?

- Now, just
as J.P. Morgan did

over 20 years before,

it's up to Jack and
the house of Morgan

to save the country from
complete financial ruin.

New York Stock Exchange
president Richard Whitney

is called to the Morgan offices

by Jack Morgan's
second in command,

Thomas Lamont.

- Thomas Lamont
was Jack Morgan's

closest business associate,

the person really set
to take over from him.

He's the person people look
to in any time of crisis,

particularly the
October crash of 1929.

- I cabled Mr. Morgan.

He's closely following
the situation.

- Well, I should hope so.

- Gentlemen, please.

- Gentlemen. Welcome.

Please make yourselves
comfortable.

I appreciate you coming
in on such short notice.

- Lamont's
plan is simple.

Just as J.P. Morgan did
to stop the last crash,

he will pump as much money as
he can back into the market.

But first, he has to raise it.

- Given the market's turbulence,

I think we can all agree
that action is required.

With collective action,

we can regain control of
this unfortunate situation.

- When the stock market crashed,

most of the leading figures
in Wall Street thought

this was a replay of what
they had seen before.

A market downturn.

And what did they learn to
do from the Morgan family

in these prior downturns?

They learned to infuse
the market with cash.

So Thomas Lamont was chosen
as a consortium leader

to raise money and try to
prop up the stock market.

- The bankers
Lamont meets with

collectively represent $91
billion in today's money.

And they could be Wall
Street's last and best hope.

Lamont raises the modern
day equivalent of $3 billion

and hands it over
to Richard Whitney

with one instruction.

- Buy!

- Richard Whitney flamboyantly
goes onto the market floor

and puts money above
price, above market price

on U.S. Steel.

- It was supposed to
signal to everyone

that Wall Street's
leaders were not worried.

There was nothing
to be afraid of.

You should stop selling.

- Offering
$205 per share,

Whitney buys 20,000
shares of U.S. Steel.

- And then he went
to other posts

and bought other big
purchases at higher prices.

- His hope is that
by doing that,

he'll create an
inflationary spiral

to counteract the
deflationary black hole

that the market has gone into.

- At
the closing bell,

with other traders
following his lead,

it appears that Whitney's
mission is a success.

- The market steadied

and actually some of the
big stocks actually ended up

up on the day.

- Well, JP Morgan couldn't
have done better himself.

- Richard Whitney, he
was regarded as a hero.

He was the face of Wall Street.

He was the probably the most
famous broker on Wall Street

at that time.

- Richard
Whitney's big play

has managed to stave
off a disaster.

Now, Thomas Lamont has
to hope it was enough.

In the immediate aftermath,

many on Wall Street
believed the massive influx

of capital has worked.

And disaster has been averted.

Richard Whitney and the
bankers are hailed as heroes.

And after the market staggers

through Friday and
Saturday morning trading

without a fresh crisis,

calm descends over Wall Street.

Then, on Monday,

the dam breaks.

With investors across the
country facing margin calls,

a massive selloff begins.

- The challenge
that Lamont faced,

there were so many
non-institutional investors

in the market.

These were ordinary individuals

who didn't follow
the simple mechanisms

that had worked in the
past to restore confidence.

So you had not only
a larger market,

but a more fragmented market.

And when you have a larger,
more fragmented environment,

it's very hard for a few
people to prop it up.

He was preaching to the choir,

but the choir was
not the solution.

- The market closes
down nearly 13%

and many fear it
could keep falling.

- These numbers are
terrifying, Waddill.

- Just a minor adjustment.

That's all.

A little bit of a hiccup.

All right.

- No, no. I need
you to explain this.

American Trust in San Francisco

has stopped paying
out dividends.

The board called.

They're worried others
might follow suit.

And the stock price
on Trading Corp.

You don't need me to tell
you, it is not bouncing back.

- Okay.

We should look into freeing
up some liquidity, right,

to reinvest before the
price jumps back up.

Okay, let's explore a
little more tomorrow.

Tomorrow morning.

Goodnight, Sam.

- With half
the firm's capital tied up

in the investment trust,

Samuel Sachs is
facing the possibility

that the company he's
led for over 20 years

could face complete devastation.

For Waddill Catchings, who
bet everything on the market

continuing to rise,

it now looks like
there's no way out.

- Waddill Catchings
saw no possibility

that the economy would
go in any direction

except straight up.

Goldman Sachs Trading
Corporation was failing.

The price was dropping.

He had no answer for this.

- On
Tuesday, October 28th,

after four days on the brink,

the bottom falls out.

As sell orders pour in,

stock tickers run hours behind,

unable to handle the volume

of a stock market in free fall.

- Tuesday, Black Tuesday,
October 29th, 1929.

There was no stopping it.

Prices just plunged
from the opening.

More and more margin
calls were going out.

By the end of the day, 16
million shares had traded.

And a great many
people had been ruined.

- Convinced
it would never end,

countless people became
rich on Wall Street's

unprecedented 10 year bull run.

But the market bubble
that fueled the frenzy

couldn't protect them

when the world
came crashing down.

- The ordinary investor had
no idea what was coming.

It was just,

the idea is that you put
money in the stock market.

And you know,

you go out and buy baby
some expensive new shoes.

- Though
some claimed the market

would bounce back,

the house of Morgan's attempt
to save it has failed.

Things would only get worse.

- Bankers, lawyers
in New York City

who lived in fancy
Park Avenue apartments

quickly found they had
no source of income

and no way of actually
keeping their families alive.

Quite literally, they
went from office one month

to bread lines the next month.

- As the market
continues to struggle,

Goldman Sachs,

once one of the most
powerful investment banks

on Wall Street, is
hanging by a thread

Shares in the Goldman
Sachs Trading Corporation,

which once cost $326 per share,

fold to just a
dollar and 75 cents.

The fund that helped
restore the bank's good name

would now be forever
associated with its failure.

For Samuel Sachs,

the pain of the financial
loss pales in comparison

to the damage done to
the firm's reputation.

Now, with the bank on
the brink of collapse,

Sachs knows he has
to take action.

- Waddill?

- Samuel!

- The door was open.

- Just a surprise.

- I knocked.

- Well, well-timed.

I was on my way to the
office to see you, actually.

Please come in.

Have a seat.

- I can't stay long.

- Okay.

My trip out West could
not have gone better.

Some truly splendid
opportunities.

Now I know, I know we're in
a bit of a mess right now,

but I thought of everything.

Believe me.

I have no doubt.

See.

Now,

the answer is in
convertible notes.

$50 million, right, in
two-year convertible notes,

just to fund the existing-
- Waddill, stop. Stop.

- Meanwhile-

- We're talking with Floyd
Odlum's Atlas Corporation

about buying Trading
Corp shares outright.

- At a major discount, I assume.

I have this under control.

I have this under control.

Samuel, Samuel.

Trust me-
- It's over, Waddill.

Now we have to protect the firm.

- Sam!

Samuel!

- Samuel Sachs
is forced to liquidate

the shares of the Goldman
Sachs Trading Corporation

to save the firm.

- Waddill Catchings was
not prepared for the crash.

The Goldman Sachs Trading
Corporation was worth close

to $400 million until
1929 took place.

And whatever actions he took
had no impact whatsoever

on the slide of
Goldman Sachs price.

- After the crash,

of the $2.5 billion lost by the
14 leading investment banks,

the Goldman Sachs
Trading Corporation

accounting for over 70%.

- By this point of time,

Samuel Sachs and other members
of the Sachs Goldman family

had lost all confidence in him.

- Rallying the
firm's other partners,

Sachs forces Catchings out,

hoping it's not too late
to start rebuilding.

But in the aftermath
of the crash,

he knows

nothing will ever be the same.

As the nation hits rock bottom,

Wall Street finds itself
in a fight for survival.

- As long as there are sharks
like that out there feeding,

the market isn't going
anywhere but down.

- One where even
the most powerful must answer

to the people.

- Gonna give me one
more chance, Mr. Morgan.

Did you pay income taxes?

- As battle lines
are drawn, some switch sides.

- Anyone who wishes
to challenge that

will feel the full weight

of the United States
government at their doorstep.

- Some fight back.

- And I've misjudged,
Mr. Whitney's character.

- And
others just walk away.

- Charles,
where are you going?

- Goodbye, Edmund.