xEQDyJjV

11
200:00:08,926 --> 00:00:12,471
3{\an8}<i>Today the United States Senate Committee
4on Government Operations</i>
5
62
700:00:12,554 --> 00:00:15,098
8{\an8}<i>begins hearings
9on federally insured banks.</i>
10
113
1200:00:16,308 --> 00:00:20,020
13<i>We are concerned whether existing laws
14are adequate to guarantee</i>
15
164
1700:00:20,103 --> 00:00:24,566
18<i>the character, experience, and integrity
19of people who acquire such banks,</i>
20
215
2200:00:25,692 --> 00:00:28,529
23<i>which are the cornerstones
24of American capitalism</i>
25
266
2700:00:29,321 --> 00:00:31,323
28<i>and the foundation of the American dream.</i>
29
307
3100:00:57,808 --> 00:01:01,812
32<i>Be careful in there, Bernard.
33They want to make an example out of you.</i>
34
358
3600:01:16,702 --> 00:01:19,371
37Committee calls Bernard S. Garrett
38to testify.
39
409
4100:01:21,915 --> 00:01:24,668
42Mr. Garrett,
43I think you understand the stakes.
44
4510
4600:01:33,552 --> 00:01:34,845
47{\an8}Carlyle and Spring?
48
4911
5000:01:34,928 --> 00:01:38,223
51{\an8}Right. Annual rental income 80,000,
52which is strong,
53
5412
5500:01:38,307 --> 00:01:40,976
56but Mr. Miller wants us
57to use a six multiplier to value it.
58
5913
6000:01:41,059 --> 00:01:42,436
61That's too high.
62
6314
6400:01:42,519 --> 00:01:45,731
65He's coming in an hour to negotiate on it.
66Maybe you can step in.
67
6815
6900:01:45,814 --> 00:01:46,815
70All right.
71
7216
7300:01:50,694 --> 00:01:52,321
74Boy does a pretty good shine.
75
7617
7700:01:52,905 --> 00:01:54,281
78Harder worker than most of 'em.
79
8018
8100:02:07,753 --> 00:02:09,073
82There may not be comps in Willis,
83
8419
8500:02:09,128 --> 00:02:11,715
86but take a look at
87the other properties I own in the county.
88
8920
9000:02:11,798 --> 00:02:13,300
91A six multiple is reasonable.
92
9321
9400:02:14,218 --> 00:02:17,930
95Your other buildings are in Conroe,
96which is booming with the oil find.
97
9822
9900:02:18,013 --> 00:02:20,599
100So, I'm not sure this is a good comp.
101
10223
10300:02:21,266 --> 00:02:22,267
104Willis is booming too.
105
10624
10700:02:22,351 --> 00:02:24,186
108Hey! What are you doing up there, boy?
109
11025
11100:02:24,269 --> 00:02:26,396
112You spying on these
113white people's business?
114
11526
11600:02:33,070 --> 00:02:34,071
117Get back here!
118
11927
12000:02:36,406 --> 00:02:37,908
121Your dad's gonna hear about this!
122
12328
12400:02:37,991 --> 00:02:38,992
125Hey! Watch it, boy!
126
12729
12800:02:59,304 --> 00:03:02,891
129What do you think them white folks would
130do if they knew you were spying on them?
131
13230
13300:03:04,768 --> 00:03:07,062
134When I was growing up
135I've seen boys killed for less.
136
13731
13800:03:09,857 --> 00:03:12,860
139You know what it's like to see a young boy
140hanging dead from a tree?
141
14232
14300:03:14,236 --> 00:03:17,614
144And don't think because it hasn't happened
145recently, it couldn't happen again.
146
14733
14800:03:17,698 --> 00:03:19,741
149I was just trying to learn
150how they make money.
151
15234
15300:03:24,621 --> 00:03:26,915
154You are so talented.
155
15635
15700:03:27,833 --> 00:03:29,418
158How did you learn all this?
159
16036
16100:03:34,006 --> 00:03:35,757
162You was born the wrong color, son.
163
16437
16500:03:35,841 --> 00:03:37,676
166Negro man can't earn money with this.
167
16838
16900:03:37,759 --> 00:03:40,262
170White man won't let him,
171no matter how good at it you are.
172
17339
17400:03:42,181 --> 00:03:43,557
175Maybe not in Texas.
176
17740
17800:03:46,143 --> 00:03:49,354
179You really think it's gonna be different
180for you, you go somewhere else?
181
18241
18300:04:30,103 --> 00:04:32,022
184We're in California.
185
18642
18700:04:34,900 --> 00:04:35,901
188What's wrong?
189
19043
19100:04:37,402 --> 00:04:40,155
192Just looking forward
193to having dinner with your uncle.
194
19544
19600:04:43,784 --> 00:04:46,745
197Well, the aircraft companies are booming.
198
19945
20000:04:47,287 --> 00:04:51,166
201Northrop is looking to hire 5,000
202new workers for their assembly line
203
20446
20500:04:51,250 --> 00:04:53,001
206and they hire our kind.
207
20847
20900:04:53,085 --> 00:04:55,254
210And I can get you
211an interview there tomorrow.
212
21348
21400:04:55,337 --> 00:04:58,465
215Well, thank you, sir. But I came here
216to try my hand at real estate.
217
21849
21900:04:59,007 --> 00:05:01,468
220There's not a lot
221of colored real estate agents.
222
22350
22400:05:01,552 --> 00:05:03,095
225Owning property and renting it out.
226
22751
22800:05:05,430 --> 00:05:06,932
229You married a millionaire, Eunice?
230
23152
23200:05:08,183 --> 00:05:09,183
233Deacon.
234
23553
23600:05:11,770 --> 00:05:13,480
237Well, I sure hope you're close, son.
238
23954
24000:05:13,939 --> 00:05:15,858
241This isn't some one-horse town in Texas.
242
24355
24400:05:15,941 --> 00:05:17,568
245Real estate is expensive here.
246
24756
24800:05:18,277 --> 00:05:21,572
249Bernard saved up money
250from a company we started in Houston.
251
25257
25300:05:22,865 --> 00:05:26,326
254So, what do you plan to do
255until you find something you can afford?
256
25758
25800:05:26,410 --> 00:05:27,494
259Keep looking.
260
26159
26200:05:27,578 --> 00:05:29,705
263And spend down your savings
264till they're gone?
265
26660
26700:05:30,289 --> 00:05:31,623
268And then can't pay your rent?
269
27061
27100:05:31,707 --> 00:05:33,083
272Deacon, stop.
273
27462
27500:05:34,334 --> 00:05:36,420
276You'll get your rent
277the first of every month,
278
27963
28000:05:36,503 --> 00:05:37,963
281one month in advance.
282
28364
28400:05:38,589 --> 00:05:40,382
285I should go get Bernard Jr. in bed.
286
28765
28800:05:41,341 --> 00:05:42,342
289Excuse me.
290
29166
29200:05:55,314 --> 00:05:57,608
293<i>Eunice, what does your husband have
294against working?</i>
295
29667
29700:05:58,066 --> 00:06:01,612
298If we need to supplement our income
299until he finds the right property,
300
30168
30200:06:01,695 --> 00:06:03,322
303I'll work at the Plantation Club.
304
30569
30600:06:03,405 --> 00:06:05,657
307That ain't no place
308for a married woman to work.
309
31070
31100:06:05,741 --> 00:06:07,260
312Bernard okay with you going back there?
313
31471
31500:06:07,284 --> 00:06:09,161
316Well, we haven't had a chance
317to discuss it.
318
31972
32000:06:10,037 --> 00:06:11,705
321If he's a real man, he won't let you.
322
32373
32400:06:11,788 --> 00:06:13,582
325That won't be for him to decide.
326
32774
32800:06:14,249 --> 00:06:15,375
329What does that mean?
330
33175
33200:06:16,793 --> 00:06:18,837
333My husband is a genius.
334
33576
33600:06:18,921 --> 00:06:19,921
337You'll see.
338
33977
34000:06:30,807 --> 00:06:32,392
341I know this isn't much.
342
34378
34400:06:32,476 --> 00:06:34,311
345Yeah, I don't plan on us being here long.
346
34779
34800:06:35,312 --> 00:06:36,855
349Why are you so hard on yourself?
350
35180
35200:06:36,939 --> 00:06:39,441
353I don't want Bernard Jr.
354Growing up in a shed.
355
35681
35700:06:40,859 --> 00:06:43,403
358Well, I grew up in a shed.
359
36082
36100:06:44,238 --> 00:06:46,448
362Abraham Lincoln grew up in a shed.
363
36483
36500:06:46,532 --> 00:06:48,575
366Abraham Lincoln grew up in a log cabin.
367
36884
36900:06:48,659 --> 00:06:51,954
370Well, that's what they call a shed
371when it's in the woods.
372
37385
37400:06:52,037 --> 00:06:53,664
375There's no difference.
376
37786
37800:06:53,747 --> 00:06:56,333
379Well, I'm gonna get you and him
380out of this shed.
381
38287
38300:06:58,126 --> 00:06:59,294
384As soon as possible.
385
38688
38700:07:05,384 --> 00:07:06,385
388Thanks for the lift.
389
39089
39100:07:06,468 --> 00:07:07,719
392No problem.
393
39490
39500:07:07,803 --> 00:07:09,680
396I'm sorry my dad was such a jerk
397last night.
398
39991
40000:07:10,097 --> 00:07:12,266
401Was he? I didn't notice.
402
40392
40400:07:14,393 --> 00:07:15,769
405Hey, nice car.
406
40793
40800:07:15,853 --> 00:07:16,687
409Thanks.
410
41194
41200:07:16,770 --> 00:07:18,313
413Bernard, this is my friend Matt.
414
41595
41600:07:18,397 --> 00:07:20,678
417You didn't tell me you had a rich uncle.
418Nice to meet you.
419
42096
42100:07:20,732 --> 00:07:22,150
422Hardly rich. And I'm his cousin.
423
42497
42500:07:22,776 --> 00:07:24,403
426You got a car, you're rich to me.
427
42898
42900:07:25,696 --> 00:07:27,489
430Hey, good luck finding the right place.
431
43299
43300:07:31,285 --> 00:07:32,369
434Hey.
435
436100
43700:07:34,913 --> 00:07:36,665
438Hey, what's your cousin do for a living?
439
440101
44100:07:37,291 --> 00:07:38,375
442He owns buildings.
443
444102
44500:07:39,126 --> 00:07:40,169
446Really?
447
448103
44900:07:40,544 --> 00:07:41,545
450Damn.
451
452104
45300:07:50,304 --> 00:07:51,847
454<i>Hello, my name is Bernard Garrett.</i>
455
456105
45700:07:51,930 --> 00:07:55,392
458<i>I saw your property on Victoria Road.
459I was wondering what the asking price...</i>
460
461106
46200:07:55,475 --> 00:07:58,103
463<i>Hello, my name is Bernard Garrett.
464Are you the owner of 12...</i>
465
466107
46700:07:58,187 --> 00:08:00,772
468<i>Hi, my name is Bernard Garrett.
469I'm a real estate investor.</i>
470
471108
47200:08:00,856 --> 00:08:01,940
473<i>What's the asking price?</i>
474
475109
47600:08:02,024 --> 00:08:03,024
477<i>That high?</i>
478
479110
48000:08:03,066 --> 00:08:05,986
481<i>How can a price that high be sustainable,
482given the current rents...</i>
483
484111
48500:08:06,069 --> 00:08:08,256
486<i>How many units are in the building
487and what are they really...</i>
488
489112
49000:08:08,280 --> 00:08:09,924
491{\an8}<i>Looks to me
492the building needs a little work.</i>
493
494113
49500:08:09,948 --> 00:08:11,116
496{\an8}<i>Maybe we can negotiate...</i>
497
498114
49900:08:11,200 --> 00:08:13,619
500{\an8}<i>Right. I understand.
501Thank you for your time.</i>
502
503115
50400:08:16,955 --> 00:08:18,874
505This is a white neighborhood, Bernard.
506
507116
50800:08:18,957 --> 00:08:20,584
509Well, it won't be white for long.
510
511117
51200:08:20,667 --> 00:08:24,087
513Not with the black neighborhood
514two blocks away bursting at the seams.
515
516118
51700:08:25,506 --> 00:08:27,758
518Well, how much
519does Barker & Associates want for it?
520
521119
52200:08:28,759 --> 00:08:30,344
523We have enough to buy it.
524
525120
52600:08:30,427 --> 00:08:32,721
527Just won't have anything left over
528to fix it up with.
529
530121
53100:08:34,014 --> 00:08:35,933
532What if I got us a co-investor?
533
534122
53500:08:59,706 --> 00:09:02,376
536All right, fellows. That was smokin'.
537
538123
53900:09:02,459 --> 00:09:03,585
540Joe!
541
542124
54300:09:04,837 --> 00:09:06,296
544Eunice!
545
546125
54700:09:06,380 --> 00:09:08,799
548You came back to me.
549
550126
55100:09:10,592 --> 00:09:12,261
552Girl, look at you.
553
554127
55500:09:12,344 --> 00:09:14,137
556Stop it. Behave now.
557
558128
55900:09:14,221 --> 00:09:15,264
560Honey.
561
562129
56300:09:17,015 --> 00:09:18,141
564Who's this?
565
566130
56700:09:18,225 --> 00:09:20,644
568That uncle
569you was always talking to me about?
570
571131
57200:09:21,311 --> 00:09:22,311
573Husband.
574
575132
57600:09:22,521 --> 00:09:23,689
577Your hus... What?
578
579133
58000:09:23,772 --> 00:09:24,857
581Wait.
582
583134
58400:09:24,940 --> 00:09:26,316
585Three years.
586
587135
58800:09:27,401 --> 00:09:28,777
589Congratulations, man.
590
591136
59200:09:28,861 --> 00:09:29,987
593You hit the jackpot.
594
595137
59600:09:30,070 --> 00:09:31,572
597If you're the marrying type.
598
599138
60000:09:31,655 --> 00:09:36,535
601I'm not, but if I were,
602can't do no better than Eunice Perkins.
603
604139
60500:09:36,618 --> 00:09:37,661
606Garrett.
607
608140
60900:09:37,744 --> 00:09:39,246
610Pleased to meet you, Garrett.
611
612141
61300:09:39,329 --> 00:09:40,455
614No, I'm Bernard.
615
616142
61700:09:40,914 --> 00:09:42,934
618I heard him say "Garrett."
619Didn't you hear him say "Garrett"?
620
621143
62200:09:42,958 --> 00:09:43,959
623That's what I heard.
624
625144
62600:09:45,919 --> 00:09:47,588
627I'm just messing with you, man.
628
629145
63000:09:47,671 --> 00:09:48,672
631You want a drink?
632
633146
63400:09:48,755 --> 00:09:49,756
635It's 4:00 p.m.
636
637147
63800:09:49,840 --> 00:09:51,466
639I know. You're starting late.
640
641148
64200:09:51,550 --> 00:09:53,010
643I'll have 'em make it strong.
644
645149
64600:09:53,093 --> 00:09:55,762
647Jackie, make my man here something strong.
648
649150
65000:09:55,846 --> 00:09:56,847
651A triple.
652
653151
65400:09:56,930 --> 00:09:59,183
655You know, see if we can blow
656the stick out of his ass.
657
658152
65900:10:00,350 --> 00:10:03,103
660You did not even talk to him
661about your idea.
662
663153
66400:10:03,187 --> 00:10:05,105
665No way am I doing business with that man.
666
667154
66800:10:05,189 --> 00:10:07,649
669Not for a loan.
670Especially not as a business partner.
671
672155
67300:10:07,733 --> 00:10:08,734
674He's a damn degenerate.
675
676156
67700:10:08,817 --> 00:10:10,652
678Bernard, please!
679
680157
68100:10:12,404 --> 00:10:13,780
682I don't need his help.
683
684158
68500:10:16,200 --> 00:10:19,203
686You have got the wrong idea about him.
687
688159
68900:10:19,286 --> 00:10:21,121
690Really? You think so?
691
692160
69300:10:21,955 --> 00:10:24,082
694'Cause the vice squad
695seems to disagree with you.
696
697161
69800:10:25,125 --> 00:10:26,919
699Well, that's the mayor, silly.
700
701162
70200:10:27,002 --> 00:10:29,338
703Do you wanna meet him?
704Because he's friends with Joe.
705
706163
70700:10:31,173 --> 00:10:32,257
708No.
709
710164
71100:10:33,467 --> 00:10:35,135
712If you won't let Joe invest,
713
714165
71500:10:35,219 --> 00:10:37,888
716then you are gonna have to
717make Barker come down on his price.
718
719166
72000:10:45,312 --> 00:10:47,189
721Asking price is 40,000.
722
723167
72400:10:47,606 --> 00:10:49,233
725You won't get a penny over 35.
726
727168
72800:10:49,316 --> 00:10:50,609
729You offering 35?
730
731169
73200:10:50,692 --> 00:10:52,069
733I can give you 30.
734
735170
73600:10:52,569 --> 00:10:55,072
737Why would I take 30 if I can get 35?
738
739171
74000:10:55,155 --> 00:10:57,950
741Well, the building needs renovations
742to unlock its value.
743
744172
74500:10:58,033 --> 00:10:59,409
746It's been fine for my tenants.
747
748173
74900:10:59,493 --> 00:11:01,453
750Your tenants only occupy
751half the building.
752
753174
75400:11:01,828 --> 00:11:04,289
755But with new kitchens
756and refinished floors...
757
758175
75900:11:04,373 --> 00:11:08,168
760My tenants won't pay more even if they
761can see the reflections in those floors.
762
763176
76400:11:08,252 --> 00:11:09,670
765But another market will.
766
767177
76800:11:10,629 --> 00:11:13,340
769Black doctors, lawyers, teachers
770
771178
77200:11:13,423 --> 00:11:16,802
773looking for a place to move outside
774the ghettos that they've been forced into.
775
776179
77700:11:17,302 --> 00:11:19,096
778No one is going after that market.
779
780180
78100:11:19,179 --> 00:11:20,180
782But I can.
783
784181
78500:11:22,599 --> 00:11:24,434
786Your confidence is impressive.
787
788182
78900:11:24,518 --> 00:11:28,230
790But 10,000 less than asking is not enough.
791
792183
79300:11:28,313 --> 00:11:31,191
794Once I lease the units,
795I can give you your full asking price.
796
797184
79800:11:31,275 --> 00:11:32,275
799Let's say by...
800
801185
80200:11:33,485 --> 00:11:34,695
803June.
804
805186
80600:11:34,778 --> 00:11:39,199
807You want me to loan you $10,000
808so you can buy my building?
809
810187
81100:11:39,283 --> 00:11:40,868
812It's not a loan. It's an investment.
813
814188
81500:11:40,951 --> 00:11:42,077
816It's a loan.
817
818189
81900:11:42,661 --> 00:11:46,206
820For more than three times what the average
821American family make in a year.
822
823190
82400:11:46,290 --> 00:11:48,500
825- Two point four times.
826- What?
827
828191
82900:11:48,584 --> 00:11:53,172
830The average American income in 1953
831was $4,233.
832
833192
83400:11:53,255 --> 00:11:56,508
835Ten thousand is 2.4 times
836the average income.
837
838193
83900:11:58,468 --> 00:12:02,514
840Well, I admire your entrepreneurial gusto,
841
842194
84300:12:02,598 --> 00:12:05,517
844but it's not the way I do business.
845
846195
84700:12:06,935 --> 00:12:07,936
848I'm sorry.
849
850196
85100:12:15,986 --> 00:12:17,654
852Thank you for your time, Mr. Barker.
853
854197
85500:12:35,714 --> 00:12:37,508
856Look what just walked in.
857
858198
85900:12:37,591 --> 00:12:39,009
860Mighty fancy for a colored fella.
861
862199
86300:12:39,927 --> 00:12:40,927
864We'll see.
865
866200
86700:12:41,595 --> 00:12:44,556
868Hi. I'm Bernard Garrett.
869I'd like to speak with Mr. Reed, please.
870
871201
87200:12:44,640 --> 00:12:47,309
873I'm sorry, Mr. Reed is out.
874May I take a message?
875
876202
87700:12:49,019 --> 00:12:52,940
878I have pretty good eyesight and I can
879clearly read the nameplate on his desk.
880
881203
88200:12:54,399 --> 00:12:56,151
883I'm sorry. I misspoke.
884
885204
88600:12:57,194 --> 00:12:58,946
887Mr. Reed can't meet with you right now.
888
889205
89000:12:59,029 --> 00:13:00,280
891But I could take a message.
892
893206
89400:13:02,157 --> 00:13:04,535
895No. There's no message.
896
897207
89800:13:05,410 --> 00:13:06,411
899Thank you.
900
901208
90200:13:15,587 --> 00:13:16,880
903Mr. Reed.
904
905209
90600:13:16,964 --> 00:13:17,965
907Do I know you?
908
909210
91000:13:18,048 --> 00:13:19,424
911No. But you know Mr. Barker.
912
913211
91400:13:19,508 --> 00:13:21,385
915I'd like a loan
916to buy one of his buildings.
917
918212
91900:13:21,468 --> 00:13:23,637
920Yeah, you can make
921an appointment inside, please.
922
923213
92400:13:23,720 --> 00:13:26,765
925Well, you and I both know
926I'm not getting an appointment inside.
927
928214
92900:13:27,766 --> 00:13:30,602
930Now, this deal will benefit Mr. Barker.
931
932215
93300:13:31,562 --> 00:13:32,563
934You should hear me out.
935
936216
93700:13:35,232 --> 00:13:37,651
938Your uncle gonna get a good laugh
939out of this one.
940
941217
94200:13:40,362 --> 00:13:42,990
943Keep looking. You're gonna find yourself
944another building.
945
946218
94700:13:44,157 --> 00:13:45,158
948Yeah.
949
950219
95100:13:47,828 --> 00:13:49,454
952Come on. Time for bed, little man.
953
954220
95500:13:50,289 --> 00:13:51,123
956Yes?
957
958221
95900:13:51,206 --> 00:13:54,001
960Bernard, there's a phone call for you.
961
962222
96300:13:59,006 --> 00:14:02,176
964- Hello?
965<i>- Mr. Garrett. This is Patrick Barker.</i>
966
967223
96800:14:02,801 --> 00:14:07,723
969Did you use my name to try and get a loan
970from Mr. Reed at Mid City Bank?
971
972224
97300:14:08,307 --> 00:14:09,975
974Well, in a manner of speaking...
975
976225
97700:14:10,809 --> 00:14:11,809
978yes.
979
980226
98100:14:12,519 --> 00:14:15,606
982And do you think that follows
983normal business customs?
984
985227
98600:14:16,940 --> 00:14:18,775
987If I was following
988normal business customs,
989
990228
99100:14:18,859 --> 00:14:20,903
992I'd still be a shoeshine boy
993in Texas, sir.
994
995229
99600:14:20,986 --> 00:14:23,572
997I didn't ask for your biography,
998Mr. Garrett.
999
1000230
100100:14:23,655 --> 00:14:27,284
1002I asked if you thought
1003it followed normal business customs.
1004
1005231
100600:14:29,620 --> 00:14:31,038
1007- No.
1008<i>- Good.</i>
1009
1010232
101100:14:31,121 --> 00:14:32,789
1012Well, at least we can agree on that.
1013
1014233
101500:14:34,833 --> 00:14:38,629
1016Reed wants to see you at the bank
1017in the morning to sign off on that loan.
1018
1019234
102000:14:39,213 --> 00:14:40,255
1021Excuse me?
1022
1023235
102400:14:40,714 --> 00:14:42,841
1025<i>I told him I'd act as guarantor.</i>
1026
1027236
102800:14:45,385 --> 00:14:46,428
1029You still there?
1030
1031237
103200:14:48,680 --> 00:14:50,265
1033Why are you doing this, Mr. Barker?
1034
1035238
103600:14:50,349 --> 00:14:52,100
1037Because normal business customs
1038
1039239
104000:14:52,184 --> 00:14:54,853
1041are in place to screw people like you,
1042Mr. Garrett.
1043
1044240
104500:14:55,312 --> 00:14:58,315
1046<i>You went to see Reed
1047knowing the deck was stacked</i>
1048
1049241
105000:14:58,398 --> 00:15:01,193
1051<i>because you have
1052that much confidence in this deal.</i>
1053
1054242
105500:15:02,194 --> 00:15:04,112
1056That tells me
1057all I need to know about you.
1058
1059243
106000:15:07,324 --> 00:15:08,951
1061Well, do you want this loan or not?
1062
1063244
106400:15:12,037 --> 00:15:13,330
1065Yes.
1066
1067245
106800:15:18,043 --> 00:15:22,673
1069Sometimes you need to take a step back
1070and enjoy what you've accomplished, baby.
1071
1072246
107300:15:55,914 --> 00:15:56,999
1074You like cigars?
1075
1076247
107700:15:58,625 --> 00:15:59,710
1078I don't smoke.
1079
1080248
108100:16:09,178 --> 00:16:11,096
1082I'm not fucking your wife.
1083
1084249
108500:16:12,848 --> 00:16:15,934
1086You go to every table in here
1087to reassure your patrons of that?
1088
1089250
109000:16:16,018 --> 00:16:18,645
1091No. Might have to skip some of them.
1092
1093251
109400:16:21,023 --> 00:16:22,357
1095Come on, man. Lighten up.
1096
1097252
109800:16:22,441 --> 00:16:24,234
1099I'm not the asshole you think I am.
1100
1101253
110200:16:24,318 --> 00:16:26,403
1103You a different kind of asshole, huh?
1104
1105254
110600:16:29,573 --> 00:16:31,158
1107I've been told that, yeah.
1108
1109255
111000:16:31,909 --> 00:16:33,535
1111Come on. Let's go outside and talk.
1112
1113256
111400:16:46,715 --> 00:16:48,133
1115What do you want from me, man?
1116
1117257
111800:16:48,717 --> 00:16:50,636
1119You mean aside from your wife?
1120
1121258
112200:16:53,764 --> 00:16:57,559
1123Look, I like seeing black men succeed.
1124
1125259
112600:16:57,643 --> 00:17:00,646
1127Sometimes I even invest
1128some of my own money to back them.
1129
1130260
113100:17:02,022 --> 00:17:03,357
1132But you don't even know me.
1133
1134261
113500:17:03,440 --> 00:17:05,442
1136I know you're smart and ambitious.
1137
1138262
113900:17:06,818 --> 00:17:08,654
1140You and I both know that's not enough.
1141
1142263
114300:17:08,737 --> 00:17:10,239
1144You're also angry.
1145
1146264
114700:17:11,114 --> 00:17:12,241
1148But you don't show it.
1149
1150265
115100:17:12,824 --> 00:17:14,576
1152That's the best kind of anger.
1153
1154266
115500:17:14,660 --> 00:17:16,744
1156Fuels you without making you a target.
1157
1158267
115900:17:17,913 --> 00:17:18,914
1160I'm not angry.
1161
1162268
116300:17:22,041 --> 00:17:23,085
1164Yeah, all right.
1165
1166269
116700:17:27,923 --> 00:17:28,966
1168Nice glasses.
1169
1170270
117100:17:29,049 --> 00:17:30,467
1172You near-sighted or far-sighted?
1173
1174271
117500:17:31,134 --> 00:17:32,135
1176Does it matter?
1177
1178272
117900:17:33,053 --> 00:17:35,138
1180Just wondering what you'd look like
1181without 'em.
1182
1183273
118400:17:40,853 --> 00:17:42,437
1185So, you trust this Barker?
1186
1187274
118800:17:43,522 --> 00:17:44,773
1189He didn't have to help me.
1190
1191275
119200:17:45,858 --> 00:17:49,236
1193What if you can't finish the work
1194or rent the units fast enough?
1195
1196276
119700:17:50,112 --> 00:17:51,154
1198I'll make the date.
1199
1200277
120100:17:53,156 --> 00:17:55,826
1202See? Anger.
1203
1204278
120500:17:57,536 --> 00:17:58,912
1206I'm gonna get another drink.
1207
1208279
120900:18:03,917 --> 00:18:04,960
1210I'm not angry.
1211
1212280
121300:18:06,253 --> 00:18:07,337
1214Yes, you are.
1215
1216281
121700:18:17,222 --> 00:18:18,765
1218What are you doing here?
1219
1220282
122100:18:19,224 --> 00:18:22,769
1222Ma'am, I'm Bernard Garrett.
1223
1224283
122500:18:22,853 --> 00:18:25,105
1226Just doing some renovations
1227on the empty apartments.
1228
1229284
123000:18:25,522 --> 00:18:27,274
1231What hours do you work?
1232
1233285
123400:18:27,357 --> 00:18:31,278
1235Well, the city say all construction has to
1236be done between 8:00 a.m. and 6:00 p.m.
1237
1238286
123900:18:31,361 --> 00:18:34,698
1240- So, if you need any improvements...
1241- I don't need improvements.
1242
1243287
124400:18:35,115 --> 00:18:37,868
1245And you can tell
1246that mick that owns this place,
1247
1248288
124900:18:37,951 --> 00:18:41,413
1250when he goes jacking the rent,
1251he ain't jacking mine.
1252
1253289
125400:18:41,496 --> 00:18:42,496
1255Yes, ma'am.
1256
1257290
125800:18:42,539 --> 00:18:45,751
1259Mr. Barker was very clear about your lease
1260when he sold me the building.
1261
1262291
126300:18:46,835 --> 00:18:49,004
1264Don't you sass me, boy.
1265
1266292
126700:18:49,379 --> 00:18:50,881
1268This is a white building.
1269
1270293
127100:18:51,715 --> 00:18:53,634
1272You can't own this place.
1273
1274294
127500:19:04,061 --> 00:19:06,813
1276Hey, why don't you grab that scraper
1277and start on the other end?
1278
1279295
128000:19:07,356 --> 00:19:08,398
1281All right.
1282
1283296
128400:19:10,234 --> 00:19:11,276
1285- Hey, man.
1286- Hey.
1287
1288297
128900:19:12,110 --> 00:19:13,195
1290Hey, thanks for coming.
1291
1292298
129300:19:13,278 --> 00:19:14,279
1294Of course.
1295
1296299
129700:19:15,781 --> 00:19:16,865
1298How's it going?
1299
1300300
130100:19:17,491 --> 00:19:19,076
1302I can offer you a buck, 50 an hour.
1303
1304301
130500:19:19,159 --> 00:19:20,410
1306That's great.
1307
1308302
130900:19:20,494 --> 00:19:22,204
1310And you're fine with working for me?
1311
1312303
131300:19:22,287 --> 00:19:24,122
1314I've been working for other men
1315my whole life.
1316
1317304
131800:19:24,206 --> 00:19:26,750
1319Right. But are you okay
1320with working for me?
1321
1322305
132300:19:27,876 --> 00:19:30,838
1324Well, your money is green.
1325That's the only concern about color I got.
1326
1327306
132800:19:31,255 --> 00:19:33,549
1329And I like the idea
1330of watching you build a business.
1331
1332307
133300:19:33,632 --> 00:19:35,759
1334It's something I'd like to do again
1335myself one day.
1336
1337308
133800:19:35,843 --> 00:19:36,885
1339"Again"?
1340
1341309
134200:19:36,969 --> 00:19:38,887
1343Yeah, I tried something a few years back.
1344
1345310
134600:19:38,971 --> 00:19:41,181
1347It was a drive-in ice cream shop.
1348
1349311
135000:19:41,974 --> 00:19:45,352
1351Well, it turns out people don't wanna
1352eat ice cream while driving their cars.
1353
1354312
135500:19:48,480 --> 00:19:50,274
1356- You serious?
1357- Yeah.
1358
1359313
136000:19:54,903 --> 00:19:56,280
1361- Let's get to work.
1362- Yeah.
1363
1364314
136500:19:59,616 --> 00:20:01,660
1366Connect it here. Like this.
1367
1368315
136900:20:04,162 --> 00:20:05,162
1370Should be good.
1371
1372316
137300:20:13,839 --> 00:20:14,840
1374Step back.
1375
1376317
137700:20:19,178 --> 00:20:20,179
1378Right there.
1379
1380318
138100:20:20,846 --> 00:20:22,931
1382We want to scrape these railings
1383up to the front
1384
1385319
138600:20:23,015 --> 00:20:25,601
1387and paint our way back
1388and then go back with the stucco.
1389
1390320
139100:20:25,684 --> 00:20:28,020
1392Go from the top. Let's work our way down.
1393
1394321
139500:20:28,103 --> 00:20:29,521
1396- Bernard Garrett.
1397- Then let's...
1398
1399322
140000:20:31,064 --> 00:20:32,858
1401Yes, Officer. Is there a problem?
1402
1403323
140400:20:32,941 --> 00:20:34,610
1405We received a complaint about you.
1406
1407324
140800:20:35,110 --> 00:20:38,197
1409Ms. Cooper in Apartment 2A
1410does not like you working in the building.
1411
1412325
141300:20:39,489 --> 00:20:40,324
1414Why not?
1415
1416326
141700:20:40,407 --> 00:20:42,260
1418She said you were impersonating
1419the owner of the building.
1420
1421327
142200:20:42,284 --> 00:20:44,912
1423- No, he owns the building.
1424- I'm not talking to you.
1425
1426328
142700:20:47,956 --> 00:20:49,625
1428I do own the building, Officer.
1429
1430329
143100:20:49,708 --> 00:20:52,169
1432All the paperwork is filed downtown.
1433
1434330
143500:20:52,252 --> 00:20:55,214
1436But I keep a copy with me,
1437just to be safe.
1438
1439331
144000:21:01,386 --> 00:21:02,554
1441This actually looks real.
1442
1443332
144400:21:09,478 --> 00:21:10,604
1445Yeah, I guess so.
1446
1447333
144800:21:13,106 --> 00:21:15,025
1449Try to be more respectful to your tenants.
1450
1451334
145200:21:16,485 --> 00:21:17,694
1453Yes, sir, Officer.
1454
1455335
145600:21:18,820 --> 00:21:20,447
1457Sorry for the inconvenience.
1458
1459336
146000:21:30,249 --> 00:21:33,627
1461You can't be here after 6:00 p.m.
1462
1463337
146400:21:33,710 --> 00:21:36,672
1465A contractor can't be here
1466after 6:00 p.m., Ms. Cooper.
1467
1468338
146900:21:37,214 --> 00:21:38,590
1470I'm a resident.
1471
1472339
147300:21:38,674 --> 00:21:39,675
1474I'm moving in.
1475
1476340
147700:21:55,649 --> 00:21:57,693
1478I hope your mother enjoys her new place.
1479
1480341
148100:21:57,776 --> 00:21:59,069
1482I'm sure she will.
1483
1484342
148500:21:59,152 --> 00:22:00,654
1486- Mrs. Garrett?
1487- Yes.
1488
1489343
149000:22:00,737 --> 00:22:03,782
1491Anita Jefferson. We spoke about
1492leasing one of your apartments?
1493
1494344
149500:22:03,866 --> 00:22:05,784
1496Yes, of course. It's nice to meet you.
1497
1498345
149900:22:08,620 --> 00:22:09,830
1500Fully leased.
1501
1502346
150300:22:10,914 --> 00:22:11,957
1504Impressive.
1505
1506347
150700:22:15,544 --> 00:22:18,463
1508I have my eye on a place
1509two blocks east of here.
1510
1511348
151200:22:19,047 --> 00:22:20,132
1513You interested?
1514
1515349
151600:22:20,215 --> 00:22:21,216
1517You mean a partnership?
1518
1519350
152000:22:22,134 --> 00:22:23,260
1521Yeah. 50-50.
1522
1523351
152400:22:24,178 --> 00:22:25,262
1525But on one condition.
1526
1527352
152800:22:27,514 --> 00:22:28,515
1529Bernard...
1530
1531353
153200:22:29,141 --> 00:22:30,392
1533I do business with people
1534
1535354
153600:22:31,059 --> 00:22:33,103
1537who turn away from me
1538after we shake on the deal
1539
1540355
154100:22:33,187 --> 00:22:35,606
1542and wash their hands
1543because I'm a dirty Irishman.
1544
1545356
154600:22:37,191 --> 00:22:39,943
1547But they do business with me
1548because I make them money.
1549
1550357
155100:22:41,278 --> 00:22:44,907
1552Now, you have the knack of knowing
1553the untapped value of a building.
1554
1555358
155600:22:46,617 --> 00:22:48,535
1557You'll work the phones with me.
1558
1559359
156000:22:49,995 --> 00:22:51,079
1561Work the investors.
1562
1563360
156400:22:51,914 --> 00:22:55,751
1565But when we need a face to sign the deal,
1566that'll be me.
1567
1568361
156900:22:57,419 --> 00:22:58,420
1570And we'll make money.
1571
1572362
157300:22:59,505 --> 00:23:00,506
1574A lot of it.
1575
1576363
157700:23:02,966 --> 00:23:03,967
1578Fifty-fifty?
1579
1580364
158100:23:06,678 --> 00:23:07,888
1582Fifty-fifty.
1583
1584365
158500:23:14,937 --> 00:23:15,938
1586This is it. Right here.
1587
1588366
158900:23:16,355 --> 00:23:17,356
1590There you go.
1591
1592367
159300:23:19,691 --> 00:23:20,692
1594Your signature.
1595
1596368
159700:23:30,327 --> 00:23:31,578
1598Hello? Yeah.
1599
1600369
160100:23:32,204 --> 00:23:33,205
1602Right.
1603
1604370
160500:23:35,082 --> 00:23:36,500
1606I was calling about the house...
1607
1608371
160900:24:01,984 --> 00:24:03,360
1610Let's try the sofa over here.
1611
1612372
161300:24:03,944 --> 00:24:06,321
1614Lamp. Right here in the corner.
1615
1616373
161700:24:06,405 --> 00:24:08,490
1618It's perfect. Perfect. Perfect.
1619
1620374
162100:24:08,991 --> 00:24:10,909
1622That looks great.
1623
1624375
162500:24:11,451 --> 00:24:13,370
1626What do you think, baby? It's nice, right?
1627
1628376
162900:24:13,453 --> 00:24:15,956
1630Well. I think there's something going on
1631with the car.
1632
1633377
163400:24:16,039 --> 00:24:17,207
1635You wanna go check on it?
1636
1637378
163800:24:19,001 --> 00:24:20,002
1639Right.
1640
1641379
164200:24:21,753 --> 00:24:24,256
1643Okay, let's move the table there,
1644slide the couch in,
1645
1646380
164700:24:24,339 --> 00:24:25,966
1648and put the lamp on the other side.
1649
1650381
165100:24:26,717 --> 00:24:29,636
1652And don't you dare let him move anything
1653when he gets back. Okay?
1654
1655382
165600:24:29,720 --> 00:24:30,971
1657- Yes, ma'am.
1658- Yes, ma'am.
1659
1660383
166100:24:33,682 --> 00:24:37,269
1662Barker and I have been thinking about
1663diversifying in single family homes.
1664
1665384
166600:24:38,395 --> 00:24:39,396
1667So...
1668
1669385
167000:24:40,314 --> 00:24:44,651
1671want you to go in, tell me
1672what you think this house needs.
1673
1674386
167500:24:52,492 --> 00:24:53,577
1676Bernard.
1677
1678387
167900:24:56,079 --> 00:24:57,706
1680This place is beautiful.
1681
1682388
168300:24:59,458 --> 00:25:00,459
1684You think?
1685
1686389
168700:25:00,959 --> 00:25:02,711
1688- Yes.
1689- Does it need anything?
1690
1691390
169200:25:02,794 --> 00:25:03,962
1693Furniture.
1694
1695391
169600:25:05,130 --> 00:25:06,715
1697So I did a good job?
1698
1699392
170000:25:06,798 --> 00:25:08,634
1701Well, it depends on the price, doesn't it?
1702
1703393
170400:25:10,344 --> 00:25:11,470
1705Not this time, baby.
1706
1707394
170800:25:14,348 --> 00:25:16,099
1709Go on. Take it. I already got a set.
1710
1711395
171200:25:18,227 --> 00:25:20,020
1713Are you serious?
1714
1715396
171600:25:25,359 --> 00:25:27,152
1717You really sleeping in late.
1718
1719397
172000:25:27,736 --> 00:25:29,488
1721Time to get up, dear.
1722
1723398
172400:25:43,836 --> 00:25:45,879
1725<i>Mrs. Barker would like to offer a buyout</i>
1726
1727399
172800:25:45,963 --> 00:25:49,383
1729for your interest
1730in all the Barker/Garrett properties.
1731
1732400
173300:25:49,466 --> 00:25:51,134
1734I have no reason to sell.
1735
1736401
173700:25:51,218 --> 00:25:53,053
1738I'm happy running the buildings on my own.
1739
1740402
174100:25:53,136 --> 00:25:54,513
1742That's unacceptable.
1743
1744403
174500:25:54,596 --> 00:25:56,036
1746I don't wanna be in business with...
1747
1748404
174900:25:57,724 --> 00:26:00,853
1750I prefer not to continue the arrangement.
1751
1752405
175300:26:02,729 --> 00:26:03,981
1754What's the offer?
1755
1756406
175700:26:12,948 --> 00:26:14,533
1758This is outrageous.
1759
1760407
176100:26:14,616 --> 00:26:17,661
1762I own 50% of a dozen properties.
1763
1764408
176500:26:17,744 --> 00:26:20,205
1766You want me to give it up
1767for pennies on the dollar?
1768
1769409
177000:26:20,289 --> 00:26:22,666
1771I don't have to pay you anything.
1772
1773410
177400:26:23,333 --> 00:26:25,294
1775Your name doesn't appear
1776on any of the deeds.
1777
1778411
177900:26:25,377 --> 00:26:26,503
1780Well, it couldn't.
1781
1782412
178300:26:27,004 --> 00:26:28,130
1784We had an agreement.
1785
1786413
178700:26:28,213 --> 00:26:30,841
1788And we all know
1789what your husband's intentions were.
1790
1791414
179200:26:35,220 --> 00:26:38,265
1793I will up my offer
1794to 25 cents on the dollar.
1795
1796415
179700:26:38,348 --> 00:26:40,517
1798And if you see fit
1799to refuse that, Mr. Garrett,
1800
1801416
180200:26:40,601 --> 00:26:42,227
1803you can walk away with nothing
1804
1805417
180600:26:42,769 --> 00:26:44,688
1807unless you wanna face me
1808in a court of law.
1809
1810418
181100:26:45,480 --> 00:26:46,773
1812With a different lawyer.
1813
1814419
181500:26:53,280 --> 00:26:55,657
1816There has to be a way
1817to prove Mr. Barker's intentions.
1818
1819420
182000:26:55,741 --> 00:26:57,868
1821Well, if you could find a witness, yes.
1822
1823421
182400:26:57,951 --> 00:26:58,952
1825But...
1826
1827422
182800:26:59,328 --> 00:27:00,329
1829it can't be me.
1830
1831423
183200:27:00,913 --> 00:27:02,331
1833I could get disbarred for that.
1834
1835424
183600:27:03,207 --> 00:27:05,334
1837Mr. Reed at Mid City...
1838
1839425
184000:27:05,417 --> 00:27:07,544
1841He's her banker now, Bernard.
1842
1843426
184400:27:08,921 --> 00:27:10,589
1845He's not going to intervene for you.
1846
1847427
184800:27:15,427 --> 00:27:16,887
1849I need to see Mr. Reed.
1850
1851428
185200:27:16,970 --> 00:27:18,388
1853I'm sorry, Mr. Garrett.
1854
1855429
185600:27:18,472 --> 00:27:20,849
1857Mr. Reed can't see anybody
1858without an appointment.
1859
1860430
186100:27:20,933 --> 00:27:21,934
1862This is urgent.
1863
1864431
186500:27:24,353 --> 00:27:25,395
1866Hold on a moment.
1867
1868432
186900:28:29,084 --> 00:28:32,296
1870I don't know how familiar you are
1871with the commercial real estate market.
1872
1873433
187400:28:32,379 --> 00:28:35,174
1875Eunice told me you had two or three
1876income-producing buildings?
1877
1878434
187900:28:36,091 --> 00:28:37,301
1880Seventeen.
1881
1882435
188300:28:37,384 --> 00:28:39,636
1884But once you've popped your cherry,
1885
1886436
188700:28:39,720 --> 00:28:42,222
1888I mean, how much more
1889can you learn on each new one?
1890
1891437
189200:28:43,807 --> 00:28:44,850
1893Seventeen?
1894
1895438
189600:28:45,726 --> 00:28:47,144
1897Eighteen, if you count the club.
1898
1899439
190000:28:47,936 --> 00:28:49,605
1901My mother was a real estate agent.
1902
1903440
190400:28:50,898 --> 00:28:51,982
1905You know this building?
1906
1907441
190800:28:54,943 --> 00:28:57,821
1909Sure. Bunch of bankers headquarters
1910in there.
1911
1912442
191300:28:57,905 --> 00:29:00,824
1914Tallest commercial building
1915in downtown Los Angeles.
1916
1917443
191800:29:00,908 --> 00:29:01,950
1919I wanna buy it.
1920
1921444
192200:29:04,119 --> 00:29:05,162
1923I want us to buy it.
1924
1925445
192600:29:08,999 --> 00:29:13,295
1927That's a mighty big building to buy
1928on the most expensive land in the city.
1929
1930446
193100:29:13,378 --> 00:29:14,379
1932I know.
1933
1934447
193500:29:16,215 --> 00:29:18,217
1936We'd need a substantial loan.
1937
1938448
193900:29:18,300 --> 00:29:21,053
1940You don't own all 18 of those properties
1941outright, do you?
1942
1943449
194400:29:23,055 --> 00:29:27,184
1945I got a banker in San Francisco
1946I've done business with for years.
1947
1948450
194900:29:28,894 --> 00:29:29,895
1950Drink?
1951
1952451
195300:29:29,978 --> 00:29:31,313
1954No, thank you. I don't drink.
1955
1956452
195700:29:37,194 --> 00:29:42,741
1958You know there's not a single black-owned
1959building in downtown Los Angeles.
1960
1961453
196200:29:42,824 --> 00:29:44,326
1963There's a reason for that.
1964
1965454
196600:29:44,409 --> 00:29:46,703
1967Yeah. We're probably gonna
1968have to overpay to get it.
1969
1970455
197100:29:48,247 --> 00:29:49,623
1972Tell me something I don't know.
1973
1974456
197500:29:51,166 --> 00:29:52,167
1976Now...
1977
1978457
197900:29:53,669 --> 00:29:54,711
1980convince me.
1981
1982458
198300:29:57,172 --> 00:29:58,173
1984Well...
1985
1986459
198700:30:00,008 --> 00:30:02,928
1988the best place to learn about the present
1989state of the real estate market
1990
1991460
199200:30:03,011 --> 00:30:04,429
1993is inside of a bank.
1994
1995461
199600:30:04,513 --> 00:30:07,224
1997We get that building,
1998we'll be inside 12 of them.
1999
2000462
200100:30:08,100 --> 00:30:11,854
2002And next time they'll think twice about
2003refusing to make loans to us
2004
2005463
200600:30:12,437 --> 00:30:13,856
2007if we're their landlords.
2008
2009464
201000:30:15,983 --> 00:30:18,527
2011That's very audacious, Mr. Garrett.
2012
2013465
201400:30:19,194 --> 00:30:21,154
2015I think of it in purely logical terms.
2016
2017466
201800:30:22,489 --> 00:30:23,490
2019What a shame.
2020
2021467
202200:30:23,907 --> 00:30:24,950
2023Excuse me?
2024
2025468
202600:30:25,033 --> 00:30:28,120
2027What about the thrill
2028of taking it to the man?
2029
2030469
203100:30:28,203 --> 00:30:30,455
2032In his own castle, no less?
2033
2034470
203500:30:31,790 --> 00:30:32,791
2036No?
2037
2038471
203900:30:34,918 --> 00:30:35,919
2040Never mind.
2041
2042472
204300:30:36,962 --> 00:30:41,592
2044But on purely logical terms,
2045I have a concern about your plan.
2046
2047473
204800:30:41,675 --> 00:30:43,010
2049What's that?
2050
2051474
205200:30:43,552 --> 00:30:47,347
2053All this information we'll be getting
2054from hanging around all these bankers
2055
2056475
205700:30:47,431 --> 00:30:51,268
2058is gonna be about
2059property in white neighborhoods.
2060
2061476
206200:30:55,314 --> 00:31:01,195
2063Do you plan on starting to buy real estate
2064in white-only neighborhoods, Mr. Garrett?
2065
2066477
206700:31:01,987 --> 00:31:03,655
2068That's exactly what we're gonna do.
2069
2070478
207100:31:08,827 --> 00:31:12,956
2072And just how in the hell
2073do you plan on pulling that off?
2074
2075479
207600:31:13,790 --> 00:31:15,959
2077The same way we're gonna buy
2078the Bankers Building.
2079
2080480
208100:31:22,382 --> 00:31:23,800
2082You want me to what?
2083
2084481
208500:31:23,884 --> 00:31:26,512
2086Be us to the rest of the world.
2087
2088482
208900:31:27,721 --> 00:31:31,225
2090I don't know anything about banking.
2091I don't know how to buy a bank.
2092
2093483
209400:31:31,308 --> 00:31:33,060
2095We're not actually buying a bank.
2096
2097484
209800:31:33,143 --> 00:31:35,437
2099We're buying a building
2100that the banks are in.
2101
2102485
210300:31:35,938 --> 00:31:37,022
2104The banks are tenants.
2105
2106486
210700:31:38,857 --> 00:31:39,691
2108Right.
2109
2110487
211100:31:39,775 --> 00:31:41,610
2112You'd just be the face of our partnership.
2113
2114488
211500:31:42,736 --> 00:31:45,030
2116You think I'm,
2117you know, qualified for this?
2118
2119489
212000:31:45,113 --> 00:31:46,990
2121We'll teach you everything
2122you need to know.
2123
2124490
212500:31:50,744 --> 00:31:52,955
2126That guy? Seriously?
2127
2128491
212900:31:53,455 --> 00:31:55,082
2130He just has to digest it.
2131
2132492
213300:31:55,165 --> 00:31:56,166
2134So, what?
2135
2136493
213700:31:56,250 --> 00:31:58,627
2138He can freeze up
2139soon as we send him in the room?
2140
2141494
214200:31:58,710 --> 00:31:59,753
2143He won't freeze up.
2144
2145495
214600:31:59,837 --> 00:32:01,505
2147Trust me. He's the right guy.
2148
2149496
215000:32:01,588 --> 00:32:05,884
2151I'll lay you a hundred dollars to your one
2152he can't go the distance.
2153
2154497
215500:32:06,301 --> 00:32:07,928
2156Don't you know any other white people
2157
2158498
215900:32:08,011 --> 00:32:09,930
2160who'd like to get paid
2161to be our front man?
2162
2163499
216400:32:10,013 --> 00:32:11,598
2165Not that I trust. Do you?
2166
2167500
216800:32:11,974 --> 00:32:13,392
2169I don't trust white people.
2170
2171501
217200:32:14,142 --> 00:32:15,853
2173How do you even go through life like that?
2174
2175502
217600:32:15,936 --> 00:32:17,896
2177Truth be told,
2178I don't trust black people either.
2179
2180503
218100:32:19,106 --> 00:32:20,440
2182What are you even saying?
2183
2184504
218500:32:20,524 --> 00:32:23,402
2186Look. I do plenty of business
2187with white folks.
2188
2189505
219000:32:23,485 --> 00:32:24,486
2191I'm friendly with them.
2192
2193506
219400:32:24,570 --> 00:32:26,321
2195Good friends with some.
2196
2197507
219800:32:26,405 --> 00:32:29,241
2199I'm just saying that no matter what,
2200
2201508
220200:32:29,324 --> 00:32:33,287
2203there's always something extra
2204going on in the relationship.
2205
2206509
220700:32:33,370 --> 00:32:34,830
2208It's just the way shit is.
2209
2210510
221100:32:34,913 --> 00:32:36,623
2212When you accept that,
2213
2214511
221500:32:36,707 --> 00:32:40,002
2216you can't get caught off guard
2217when it rears its ugly head.
2218
2219512
222000:32:40,669 --> 00:32:42,296
2221I can't live my life like that.
2222
2223513
222400:32:42,796 --> 00:32:44,339
2225See, that's what I like about you.
2226
2227514
222800:32:45,048 --> 00:32:46,592
2229You are a good person.
2230
2231515
223200:32:46,675 --> 00:32:48,802
2233Ain't been corrupted by the world yet.
2234
2235516
223600:32:48,886 --> 00:32:50,053
2237Like a child.
2238
2239517
224000:32:50,971 --> 00:32:53,724
2241But that's gonna change when you get rich.
2242
2243518
224400:32:54,725 --> 00:32:55,934
2245Yeah, I'll take that risk.
2246
2247519
224800:32:56,643 --> 00:32:58,103
2249You ain't gonna have no choice.
2250
2251520
225200:33:08,238 --> 00:33:09,323
2253Thanks.
2254
2255521
225600:33:20,083 --> 00:33:21,083
2257Hi.
2258
2259522
226000:33:22,544 --> 00:33:23,587
2261Hi.
2262
2263523
226400:33:24,087 --> 00:33:26,256
2265You're Matt Steiner, right?
2266
2267524
226800:33:29,301 --> 00:33:30,385
2269Hollywood High?
2270
2271525
227200:33:30,469 --> 00:33:31,637
2273- Yes.
2274- Right.
2275
2276526
227700:33:31,720 --> 00:33:35,557
2278You were a few years ahead of me,
2279but everybody knew who you were.
2280
2281527
228200:33:39,144 --> 00:33:40,854
2283What are you all sour-faced about?
2284
2285528
228600:33:42,606 --> 00:33:43,607
2287I was just thinking.
2288
2289529
229000:33:44,149 --> 00:33:45,150
2291About?
2292
2293530
229400:33:45,901 --> 00:33:46,901
2295A new job.
2296
2297531
229800:33:47,319 --> 00:33:48,320
2299Doing what?
2300
2301532
230200:33:49,238 --> 00:33:50,322
2303Real estate.
2304
2305533
230600:33:50,697 --> 00:33:52,533
2307Like a broker?
2308
2309534
231000:33:52,991 --> 00:33:55,160
2311You know, more like an investor.
2312
2313535
231400:33:56,036 --> 00:33:57,871
2315Well, I'd be working with the investors.
2316
2317536
231800:33:57,955 --> 00:33:58,789
2319Hand in hand.
2320
2321537
232200:33:58,872 --> 00:34:00,123
2323So, they're hiring you?
2324
2325538
232600:34:01,750 --> 00:34:02,793
2327Kind of a partnership.
2328
2329539
233000:34:03,961 --> 00:34:05,295
2331A partnership.
2332
2333540
233400:34:07,673 --> 00:34:10,300
2335- Susie.
2336- Yeah, yeah.
2337
2338541
233900:34:10,384 --> 00:34:12,010
2340- It's good to see you.
2341- You too.
2342
2343542
234400:34:23,021 --> 00:34:24,022
2345I'm in.
2346
2347543
234800:34:25,065 --> 00:34:26,065
2349You sure?
2350
2351544
235200:34:26,149 --> 00:34:28,569
2353Just teach me what I need to know.
2354I won't let you down.
2355
2356545
235700:34:31,154 --> 00:34:34,116
2358Be at Rancho Park Golf Course
2359tomorrow morning, 6:00 a.m.
2360
2361546
236200:34:34,574 --> 00:34:35,617
2363Don't be late.
2364
2365547
236600:34:35,701 --> 00:34:36,702
2367Thank you.
2368
2369548
237000:34:38,203 --> 00:34:39,246
2371Thanks.
2372
2373549
237400:34:53,969 --> 00:34:55,094
2375What? Is he even coming?
2376
2377550
237800:34:57,264 --> 00:34:58,515
2379Morning, fellows.
2380
2381551
238200:34:58,599 --> 00:34:59,808
2383I thought you said 6:00?
2384
2385552
238600:34:59,892 --> 00:35:02,227
2387- I did. Were you here at 6:00?
2388- Yeah.
2389
2390553
239100:35:02,311 --> 00:35:03,312
2392Good.
2393
2394554
239500:35:03,896 --> 00:35:04,938
2396You ever play golf?
2397
2398555
239900:35:05,397 --> 00:35:06,607
2400No.
2401
2402556
240300:35:06,690 --> 00:35:08,817
2404Well, before you learn
2405how to talk real estate,
2406
2407557
240800:35:08,901 --> 00:35:10,903
2409you gotta learn
2410how to talk to rich white folks
2411
2412558
241300:35:10,986 --> 00:35:12,654
2414so it seems like you one of 'em.
2415
2416559
241700:35:12,738 --> 00:35:16,200
2418And you got one month
2419to learn how to play golf.
2420
2421560
242200:35:16,283 --> 00:35:18,678
2423And I mean learn to play
2424like you've been playing your whole life.
2425
2426561
242700:35:18,702 --> 00:35:19,786
2428Think you can do that?
2429
2430562
243100:35:20,579 --> 00:35:22,706
2432Yeah. I played
2433a lot of sports as a kid. So...
2434
2435563
243600:35:22,789 --> 00:35:24,917
2437So... yes?
2438
2439564
244000:35:25,000 --> 00:35:26,627
2441- Yes.
2442- All right, then.
2443
2444565
244500:35:27,044 --> 00:35:28,754
2446Take him over and get him outfitted.
2447
2448566
244900:35:28,837 --> 00:35:31,006
2450Show him the basics
2451and I'll take over from there.
2452
2453567
245400:35:31,089 --> 00:35:32,090
2455Follow me.
2456
2457568
245800:35:38,138 --> 00:35:39,515
2459So a hundred dollars to my one?
2460
2461569
246200:35:39,598 --> 00:35:43,602
2463You think it's a done deal because,
2464what, I'm such a good golf teacher?
2465
2466570
246700:35:43,685 --> 00:35:45,938
2468You can fake math.
2469You can't fake a golf game.
2470
2471571
247200:35:46,021 --> 00:35:47,272
2473He's right about that, Joe.
2474
2475572
247600:35:48,440 --> 00:35:51,652
2477Bernard, this is Don Silverthorne.
2478My banker.
2479
2480573
248100:35:51,735 --> 00:35:53,570
2482Flew all the way down
2483from San Francisco
2484
2485574
248600:35:53,654 --> 00:35:54,988
2487just to see how crazy we are.
2488
2489575
249000:35:55,072 --> 00:35:56,073
2491Nice to meet you.
2492
2493576
249400:35:59,159 --> 00:36:00,244
2495Shit!
2496
2497577
249800:36:00,327 --> 00:36:02,079
2499Well, it looks like I got my answer.
2500
2501578
250200:36:02,162 --> 00:36:03,956
2503Let's try that again.
2504
2505579
250600:36:04,039 --> 00:36:05,624
2507All right. What do I do differently?
2508
2509580
251000:36:05,707 --> 00:36:06,708
2511Swing lower.
2512
2513581
251400:36:07,292 --> 00:36:09,127
2515- Great, thanks.
2516- Keep your head still.
2517
2518582
251900:36:09,586 --> 00:36:10,879
2520Head still, head still...
2521
2522583
252300:36:14,007 --> 00:36:15,133
2524No, you moved.
2525
2526584
252700:36:15,801 --> 00:36:18,679
2528If this charade's gonna work
2529and you guys want me to finance,
2530
2531585
253200:36:18,762 --> 00:36:21,431
2533I just hope you don't offer
2534over two million for that building.
2535
2536586
253700:36:22,015 --> 00:36:23,559
2538More than that, I don't want the risk.
2539
2540587
254100:36:24,601 --> 00:36:26,770
2542I can get that building
2543for under two million.
2544
2545588
254600:36:26,854 --> 00:36:28,730
2547It's not you I'm worried about,
2548Mr. Garrett.
2549
2550589
255100:36:29,857 --> 00:36:30,858
2552I hit it.
2553
2554590
255500:36:32,442 --> 00:36:33,443
2556It's him.
2557
2558591
255900:36:34,069 --> 00:36:36,196
2560You sure you don't wanna give me
2561that dollar now?
2562
2563592
256400:36:38,657 --> 00:36:40,284
2565The old way of valuing a building
2566
2567593
256800:36:40,367 --> 00:36:43,704
2569is the number of years rent it takes
2570to pay off the price of a building.
2571
2572594
257300:36:44,246 --> 00:36:46,206
2574So, if the building costs $300,000
2575
2576595
257700:36:46,290 --> 00:36:50,169
2578and you're getting $30,000 net income
2579per year, it's a ten multiple.
2580
2581596
258200:36:50,252 --> 00:36:53,839
2583Today most people value buildings
2584using the capitalization rate.
2585
2586597
258700:36:54,256 --> 00:36:55,883
2588But they're mathematically related.
2589
2590598
259100:36:56,717 --> 00:36:59,595
2592So the cap rate
2593is the multiplicative inverse
2594
2595599
259600:36:59,678 --> 00:37:01,847
2597of the ten multiple
2598we were just talking about.
2599
2600600
260100:37:03,015 --> 00:37:06,602
2602300,000 = 30,000 x M.
2603
2604601
260500:37:06,685 --> 00:37:10,939
2606M = ten years.
2607
2608602
260900:37:11,023 --> 00:37:15,194
2610One-tenth x 300,000 = 30,000.
2611
2612603
261300:37:17,237 --> 00:37:20,365
2614One-tenth is 10%.
2615
2616604
261700:37:21,617 --> 00:37:22,618
2618Your cap rate.
2619
2620605
262100:37:26,580 --> 00:37:28,624
2622Maybe we should start with a math review.
2623
2624606
262500:37:29,833 --> 00:37:30,918
2626That'd be great.
2627
2628607
262900:37:41,845 --> 00:37:43,764
2630- Right?
2631- You have to carry the four.
2632
2633608
263400:37:44,723 --> 00:37:45,724
2635Which four?
2636
2637609
263800:37:55,734 --> 00:37:59,404
2639Even on a putt, keep your f-ing head down.
2640
2641610
264200:37:59,488 --> 00:38:00,989
2643Keep my f-ing head down. Keep...
2644
2645611
264600:38:07,287 --> 00:38:10,082
2647There's a subtraction error in there
2648and that last step is wrong.
2649
2650612
265100:38:10,165 --> 00:38:13,418
2652But other than that
2653you're getting the gist of it.
2654
2655613
265600:38:15,879 --> 00:38:16,880
2657Sorry.
2658
2659614
266000:38:16,964 --> 00:38:17,965
2661Sorry.
2662
2663615
266400:38:18,048 --> 00:38:19,049
2665Sorry!
2666
2667616
266800:38:25,764 --> 00:38:26,765
2669Right.
2670
2671617
267200:38:26,849 --> 00:38:29,142
2673Now multiply by 1.25.
2674
2675618
267600:38:29,893 --> 00:38:31,478
26771.25...
2678
2679619
268000:38:32,938 --> 00:38:35,607
2681No. No, no, no. Stop! Stop!
2682
2683620
268400:38:39,820 --> 00:38:41,029
2685No, no, no.
2686
2687621
268800:38:41,655 --> 00:38:42,781
2689Stop laughing.
2690
2691622
269200:38:44,825 --> 00:38:46,285
2693What the hell?
2694
2695623
269600:38:47,911 --> 00:38:49,037
2697Hit it.
2698
2699624
270000:38:49,121 --> 00:38:50,205
2701I am hitting it!
2702
2703625
270400:38:56,170 --> 00:38:57,713
2705Careful now. Don't hurt yourself.
2706
2707626
270800:39:00,007 --> 00:39:01,175
2709Stop. Just stop.
2710
2711627
271200:39:04,011 --> 00:39:07,681
2713We're about 50 yards from the green,
2714so we're gonna use a wedge.
2715
2716628
271700:39:14,396 --> 00:39:17,608
2718And you wanna swing it 'bout this hard.
2719
2720629
272100:39:22,279 --> 00:39:25,115
2722Remember, it's a wedge,
2723so don't be scared to swing it.
2724
2725630
272600:39:25,199 --> 00:39:26,366
2727What else you gonna do?
2728
2729631
273000:39:26,450 --> 00:39:27,910
2731Keep my f-ing head down.
2732
2733632
273400:39:27,993 --> 00:39:29,203
2735Jesus. Come on.
2736
2737633
273800:39:40,797 --> 00:39:41,798
2739It's right...
2740
2741634
274200:39:46,136 --> 00:39:48,555
2743Holy shit. Oh, my...
2744
2745635
274600:39:48,639 --> 00:39:49,640
2747Come on.
2748
2749636
275000:39:50,474 --> 00:39:52,226
2751I just kept my f-ing head down and...
2752
2753637
275400:40:00,484 --> 00:40:03,862
2755It's 432,000.
2756
2757638
275800:40:08,408 --> 00:40:10,118
2759Yeah. Yeah, that's right.
2760
2761639
276200:40:10,202 --> 00:40:11,882
2763You got it right, man.
2764You're getting this.
2765
2766640
276700:41:13,515 --> 00:41:14,766
2768What you want, Bernard?
2769
2770641
277100:41:14,850 --> 00:41:15,976
2772This is my time.
2773
2774642
277500:41:17,394 --> 00:41:18,520
2776I wanna buy a building.
2777
2778643
277900:41:20,397 --> 00:41:24,902
2780It has a $100,000 annual gross income,
27818% vacancy rate,
2782
2783644
278400:41:25,485 --> 00:41:30,490
2785$12,000 annual operating costs
2786and I require a 10% cap rate.
2787
2788645
278900:41:32,576 --> 00:41:34,786
2790What's the maximum purchase amount
2791I can offer?
2792
2793646
279400:41:41,710 --> 00:41:42,753
2795Where'd that go?
2796
2797647
279800:41:44,379 --> 00:41:47,966
2799Straight down the middle, 'bout...
2800
2801648
280200:41:49,218 --> 00:41:52,387
2803Shit, I don't even know.
2804I ain't never hit a ball that far.
2805
2806649
280700:41:52,471 --> 00:41:53,639
2808It's 800,000.
2809
2810650
281100:41:56,725 --> 00:41:58,227
2812- He's right.
2813- You're right.
2814
2815651
281600:41:58,310 --> 00:41:59,561
2817- He's right?
2818- Yeah.
2819
2820652
282100:42:00,771 --> 00:42:02,564
2822We have created a monster.
2823
2824653
282500:42:02,648 --> 00:42:03,815
2826You made the algebra easy.
2827
2828654
282900:42:03,899 --> 00:42:06,151
2830A month ago, you didn't know
2831what algebra was, Matt.
2832
2833655
283400:42:06,235 --> 00:42:07,945
2835- That's true.
2836- You have a knack for it.
2837
2838656
283900:42:12,699 --> 00:42:13,742
2840He's ready.
2841
2842657
284300:42:14,493 --> 00:42:16,620
2844Yep. He's ready.
2845
2846658
284700:42:17,955 --> 00:42:21,250
2848The Bankers Building is owned
2849by Charles Renault.
2850
2851659
285200:42:22,209 --> 00:42:23,919
2853It's 14 stories.
2854
2855660
285600:42:24,002 --> 00:42:27,464
2857119,000 square feet of commercial space.
2858
2859661
286000:42:28,549 --> 00:42:30,342
2861It was built in 1929.
2862
2863662
286400:42:30,425 --> 00:42:33,720
2865And it's still the tallest
2866commercial building downtown
2867
2868663
286900:42:33,804 --> 00:42:37,140
2870<i>and generally considered the crown jewel
2871of downtown architecture.</i>
2872
2873664
287400:42:41,353 --> 00:42:42,729
2875That's his office?
2876
2877665
287800:42:42,813 --> 00:42:44,189
2879That's his office.
2880
2881666
288200:42:44,982 --> 00:42:46,900
2883<i>A converted ballroom.</i>
2884
2885667
288600:42:47,693 --> 00:42:49,945
2887<i>Holy shit. How rich is this guy?</i>
2888
2889668
289000:42:50,028 --> 00:42:51,113
2891<i>Very.</i>
2892
2893669
289400:42:51,613 --> 00:42:54,950
2895<i>Now, he won't take you seriously
2896without a proper introduction.</i>
2897
2898670
289900:42:55,033 --> 00:43:00,455
2900But I have arranged for you to bump
2901into him at the Hancock Park country club.
2902
2903671
290400:43:01,415 --> 00:43:03,750
2905Wait, that's the most exclusive club
2906in the city.
2907
2908672
290900:43:03,834 --> 00:43:05,043
2910I can't just walk in.
2911
2912673
291300:43:05,127 --> 00:43:06,211
2914Don't worry about that.
2915
2916674
291700:43:22,477 --> 00:43:24,271
2918Mr. Steiner, welcome.
2919
2920675
292100:43:24,354 --> 00:43:25,355
2922Thank you.
2923
2924676
292500:43:25,439 --> 00:43:28,317
2926Arrangements have been made
2927for you to use our club as a guest,
2928
2929677
293000:43:28,400 --> 00:43:31,236
2931per our exchange program
2932with your home club in Pennsylvania.
2933
2934678
293500:43:31,862 --> 00:43:34,198
2936Will your chauffeur be
2937waiting on the premises?
2938
2939679
294000:43:36,408 --> 00:43:37,951
2941I'll be just outside the gate.
2942
2943680
294400:43:38,577 --> 00:43:40,537
2945Anything goes south, you come find me.
2946
2947681
294800:43:41,371 --> 00:43:43,040
2949That won't happen, Mr. Morris.
2950
2951682
295200:43:44,791 --> 00:43:45,918
2953I promise.
2954
2955683
295600:43:46,001 --> 00:43:47,002
2957Thank you, Anton.
2958
2959684
296000:43:50,797 --> 00:43:52,716
2961- I'm worried.
2962- About what?
2963
2964685
296500:43:52,799 --> 00:43:54,843
2966I don't always do great under pressure.
2967
2968686
296900:43:55,636 --> 00:43:57,221
2970Come on. You're a natural.
2971
2972687
297300:43:57,304 --> 00:43:59,473
2974- Natural what?
2975- Performer.
2976
2977688
297800:44:00,432 --> 00:44:01,517
2979How do you know that?
2980
2981689
298200:44:01,600 --> 00:44:04,686
2983You think I got where I am in life
2984without being able to spot talent?
2985
2986690
298700:44:07,606 --> 00:44:08,607
2988Go get him.
2989
2990691
299100:44:09,858 --> 00:44:10,901
2992Yes, sir.
2993
2994692
299500:44:20,244 --> 00:44:21,286
2996Mr. Steiner?
2997
2998693
299900:44:21,995 --> 00:44:22,996
3000Yes?
3001
3002694
300300:44:23,080 --> 00:44:25,558
3004Jackie says you're playing as a single,
3005looking to be paired up.
3006
3007695
300800:44:25,582 --> 00:44:27,042
3009Always looking for a good game.
3010
3011696
301200:44:27,793 --> 00:44:29,670
3013If I can find someone to give me one.
3014
3015697
301600:44:29,753 --> 00:44:31,255
3017Charles Renault, good to meet you.
3018
3019698
302000:44:33,215 --> 00:44:34,675
3021Enjoying playing dress-up?
3022
3023699
302400:44:34,758 --> 00:44:36,844
3025You should try it sometime.
3026It's thrilling.
3027
3028700
302900:44:37,511 --> 00:44:38,846
3030No, thanks.
3031
3032701
303300:44:38,929 --> 00:44:42,182
3034So, you're okay with having a white boy
3035do your business for you,
3036
3037702
303800:44:42,266 --> 00:44:43,934
3039but you're not okay putting on a cap
3040
3041703
304200:44:44,017 --> 00:44:46,019
3043so you can keep an eye on him
3044while he does it?
3045
3046704
304700:44:46,562 --> 00:44:49,356
3048It's the only job I've been able to avoid
3049my entire life.
3050
3051705
305200:44:49,898 --> 00:44:51,567
3053I'd like to try and keep it that way.
3054
3055706
305600:45:05,539 --> 00:45:07,416
3057Jimmy, I think we got ourselves a game.
3058
3059707
306000:45:09,168 --> 00:45:10,210
3061Okay.
3062
3063708
306400:45:10,961 --> 00:45:12,504
3065So, we're really gonna do this now?
3066
3067709
306800:45:12,588 --> 00:45:16,133
3069If by "we," you mean "you," yeah.
3070
3071710
307200:45:38,155 --> 00:45:39,198
3073Remember,
3074
3075711
307600:45:40,157 --> 00:45:41,283
3077eyes on the ball.
3078
3079712
308000:45:41,366 --> 00:45:42,618
3081And keep my f-ing head down.
3082
3083713
308400:45:46,914 --> 00:45:48,040
3085Make me proud, son.
3086
3087714
308800:45:57,299 --> 00:46:00,052
3089He's gonna claim he's renting
3090for 20 cents a square foot,
3091
3092715
309300:46:00,135 --> 00:46:01,136
3094but that's poppycock.
3095
3096716
309700:46:01,220 --> 00:46:02,221
3098It's more like 15.
3099
3100717
310100:46:04,598 --> 00:46:08,894
3102<i>See, this whole thing is about getting you
3103to agree to a higher base value.</i>
3104
3105718
310600:46:08,977 --> 00:46:10,521
3107Which I won't do.
3108
3109719
311000:46:10,604 --> 00:46:12,940
3111He's gonna test you. Probe you.
3112
3113720
311400:46:21,573 --> 00:46:25,661
3115You give him the slightest reason
3116to doubt your command of the numbers,
3117
3118721
311900:46:25,744 --> 00:46:27,579
3120he'll see straight through you.
3121
3122722
312300:46:27,663 --> 00:46:28,789
3124So you gotta impress him.
3125
3126723
312700:46:29,831 --> 00:46:31,166
3128<i>Like you did on the first tee.</i>
3129
3130724
313100:46:32,209 --> 00:46:33,210
3132Okay, so what do I do?
3133
3134725
313500:46:33,293 --> 00:46:36,755
3136What's the equivalent
3137of a 300-yard tee shot in negotiation?
3138
3139726
314000:46:39,007 --> 00:46:40,217
3141A four-course lunch.
3142
3143727
314400:46:48,642 --> 00:46:50,394
3145Flown in from France once a week.
3146
3147728
314800:46:51,478 --> 00:46:52,479
3149Enjoy.
3150
3151729
315200:46:58,110 --> 00:47:00,445
3153Okay, we lease at 20 cents a square foot.
3154
3155730
315600:47:00,529 --> 00:47:03,740
3157That's 272,880 gross per year.
3158
3159731
316000:47:03,824 --> 00:47:05,409
3161Eighty thousand expenses.
3162
3163732
316400:47:05,492 --> 00:47:07,369
3165That's 192,880 in profit.
3166
3167733
316800:47:08,036 --> 00:47:12,165
316910% cap rate on that
3170will get us to 1,928,880.
3171
3172734
317300:47:12,666 --> 00:47:17,087
317425% premium on that would be 2,411,100.
3175
3176735
317700:47:18,672 --> 00:47:21,008
3178If that's what you're offering,
3179I'm interested.
3180
3181736
318200:47:24,261 --> 00:47:25,470
3183Here's my problem, Charles.
3184
3185737
318600:47:25,554 --> 00:47:28,098
3187I know you have leases
3188at 15 cents a square foot.
3189
3190738
319100:47:28,182 --> 00:47:29,641
3192You know, big long-term leases.
3193
3194739
319500:47:29,725 --> 00:47:31,661
3196So even if you have
3197a few suckers paying 20 cents...
3198
3199740
320000:47:31,685 --> 00:47:32,769
3201More than a few.
3202
3203741
320400:47:34,062 --> 00:47:35,689
3205Fine, call the average 18 cents,
3206
3207742
320800:47:35,772 --> 00:47:37,524
3209so that would be a net income of...
3210
3211743
321200:47:37,608 --> 00:47:41,153
3213245,592. But that's not important.
3214
3215744
321600:47:41,236 --> 00:47:44,114
3217I mean, if you wanna show me your leases
3218and prove it, okay.
3219
3220745
322100:47:44,198 --> 00:47:46,283
3222Otherwise, I'd call it
322315 cents a square foot.
3224
3225746
322600:47:46,366 --> 00:47:48,160
3227- Fifteen is too low.
3228- Fifteen is generous.
3229
3230747
323100:47:48,243 --> 00:47:51,038
3232Especially when you factor in vacancies,
3233which are at least 9%.
3234
3235748
323600:47:51,121 --> 00:47:52,915
3237- Less than that.
3238- I counted 12.
3239
3240749
324100:47:52,998 --> 00:47:54,708
3242How could you possibly know that?
3243
3244750
324500:47:55,501 --> 00:47:56,793
3246Charles, it's November.
3247
3248751
324900:47:57,669 --> 00:47:59,254
3250<i>It gets dark by 5:00 p.m.</i>
3251
3252752
325300:48:02,049 --> 00:48:04,110
3254<i>If you wanna bullshit someone
3255about your vacancy rate,</i>
3256
3257753
325800:48:04,134 --> 00:48:06,970
3259you need lights shining
3260in all those unleased spaces by 4:30.
3261
3262754
326300:48:07,513 --> 00:48:09,890
3264I don't blame you for not doing it.
3265It's a lot of work.
3266
3267755
326800:48:09,973 --> 00:48:12,368
3269But those vacancies would
3270take you to 13.5 cents a square foot.
3271
3272756
327300:48:12,392 --> 00:48:13,477
3274We'll fill some of those.
3275
3276757
327700:48:13,560 --> 00:48:15,604
3278Let's call it 16 cents. Fair?
3279
3280758
328100:48:16,271 --> 00:48:21,610
3282That's a $1,383,000 valuation
3283at a 10% cap rate.
3284
3285759
328600:48:22,611 --> 00:48:25,364
3287But, of course a 10% cap rate
3288is too low for this market.
3289
3290760
329100:48:25,447 --> 00:48:28,116
3292My partners and I have multiple deals
3293with 12% returns,
3294
3295761
329600:48:28,867 --> 00:48:30,244
3297which would be...
3298
3299762
330000:48:30,327 --> 00:48:36,083
3301$1,152,533 underlying valuation.
3302
3303763
330400:48:37,835 --> 00:48:42,464
33051,152,533.
3306
3307764
330800:48:44,383 --> 00:48:46,009
3309How do you do this in your head?
3310
3311765
331200:48:46,677 --> 00:48:48,762
3313There's no way I can do this math.
3314
3315766
331600:48:49,972 --> 00:48:52,391
3317Well, you know, maybe I could fake it?
3318
3319767
332000:48:53,141 --> 00:48:54,142
3321How?
3322
3323768
332400:48:56,311 --> 00:48:57,646
3325Practice.
3326
3327769
332800:48:57,729 --> 00:48:58,814
3329I'll just memorize it.
3330
3331770
333200:49:00,858 --> 00:49:01,900
3333All of it?
3334
3335771
333600:49:03,068 --> 00:49:04,528
3337Yeah, I got a pretty good memory.
3338
3339772
334000:49:05,487 --> 00:49:06,572
3341That good?
3342
3343773
334400:49:06,655 --> 00:49:08,365
3345Well, I got a week to learn it, right?
3346
3347774
334800:49:09,783 --> 00:49:11,243
3349Hustling a hustler.
3350
3351775
335200:49:11,326 --> 00:49:12,578
3353I love it.
3354
3355776
335600:49:13,787 --> 00:49:15,038
3357But, if this works,
3358
3359777
336000:49:15,706 --> 00:49:17,666
3361Renault's gonna challenge you
3362on the cap rate.
3363
3364778
336500:49:17,749 --> 00:49:19,793
3366So you need to get ready for it.
3367
3368779
336900:49:20,752 --> 00:49:23,046
3370Look, this is downtown.
3371The risk here is very low.
3372
3373780
337400:49:23,672 --> 00:49:25,257
3375It doesn't warrant a 12% return.
3376
3377781
337800:49:25,799 --> 00:49:27,509
3379I'm firm with a 10% cap rate.
3380
3381782
338200:49:28,010 --> 00:49:31,513
3383He's gonna try to hold you
3384to a 10% cap rate on the underlying value,
3385
3386783
338700:49:31,597 --> 00:49:33,098
3388which we're not gonna take.
3389
3390784
339100:49:33,599 --> 00:49:36,018
3392Not with a 25% premium going to him.
3393
3394785
339500:49:36,101 --> 00:49:38,478
3396But you're gonna need
3397somewhere to go in the conversation.
3398
3399786
340000:49:38,562 --> 00:49:42,024
3401So I want you to memorize
3402the 10.5% cap rate scenario as well.
3403
3404787
340500:49:42,107 --> 00:49:48,447
3406But a 25% premium on a 10.5% cap rate
3407is too high, right?
3408
3409788
341000:49:52,201 --> 00:49:57,331
341110.5% cap rate means
3412$1,317,000 underlying.
3413
3414789
341500:49:57,414 --> 00:50:02,669
3416With the 25% premium, that's $1,646,250.
3417
3418790
341900:50:03,462 --> 00:50:04,546
3420Too high.
3421
3422791
342300:50:04,630 --> 00:50:06,715
3424Yeah, that sounds too high.
3425
3426792
342700:50:06,798 --> 00:50:09,593
3428You goddamn right it's too high.
3429
3430793
343100:50:11,887 --> 00:50:13,722
3432So maybe you can sell him a choice.
3433
3434794
343500:50:15,891 --> 00:50:17,267
3436Mr. Renault, I like you.
3437
3438795
343900:50:17,768 --> 00:50:20,521
3440First halfway decent golf game I've had
3441since I've moved here.
3442
3443796
344400:50:20,604 --> 00:50:24,441
3445But if you want us to value this building
3446at a 10% cap rate in a booming market,
3447
3448797
344900:50:24,525 --> 00:50:26,276
3450where we can get 12% elsewhere,
3451
3452798
345300:50:26,818 --> 00:50:29,821
3454we're not gonna give you
3455an instant 25% profit in the markup.
3456
3457799
345800:50:31,073 --> 00:50:32,074
3459Tell you what.
3460
3461800
346200:50:32,950 --> 00:50:34,201
3463I'll give you two options.
3464
3465801
346600:50:35,118 --> 00:50:40,415
3467We get an 11% capital return rate
3468and you get your 25% profit in the markup,
3469
3470802
347100:50:40,499 --> 00:50:46,755
3472or we get a 10.5% cap rate and you take
3473an 18% instead of a 25% markup.
3474
3475803
347600:50:47,214 --> 00:50:49,341
3477You can choose. But...
3478
3479804
348000:50:50,259 --> 00:50:51,552
3481he can't help you.
3482
3483805
348400:50:56,515 --> 00:50:58,475
3485You're not what I expected, Matt Steiner.
3486
3487806
348800:51:01,645 --> 00:51:02,729
3489I'll take the latter.
3490
3491807
349200:51:03,397 --> 00:51:04,398
3493Okay.
3494
3495808
349600:51:05,274 --> 00:51:06,316
3497How'd I do?
3498
3499809
350000:51:07,943 --> 00:51:09,611
3501You left 17,000 on the table.
3502
3503810
350400:51:11,196 --> 00:51:12,447
3505Oh, well.
3506
3507811
350800:51:12,531 --> 00:51:16,493
3509- What's the number?
3510- $1,554,060.
3511
3512812
351300:51:16,577 --> 00:51:21,540
3514But, we can call it an even 1,560,000
3515if you leave me that desk.
3516
3517813
351800:51:26,003 --> 00:51:27,337
3519I can't believe it worked.
3520
3521814
352200:51:28,005 --> 00:51:28,881
3523I can.
3524
3525815
352600:51:28,964 --> 00:51:30,716
3527Tomorrow we meet the tenants,
3528
3529816
353000:51:30,799 --> 00:51:33,719
3531introduce ourselves as Matt's partners,
3532
3533817
353400:51:33,802 --> 00:51:37,055
3535and watch the jaws drop.
3536
3537818
353800:51:41,059 --> 00:51:44,271
3539Maybe I should call a photographer
3540so you capture the moment.
3541
3542819
354300:51:44,354 --> 00:51:45,856
3544- Joe.
3545- What?
3546
3547820
354800:51:46,440 --> 00:51:47,733
3549Too much?
3550
3551821
355200:51:47,816 --> 00:51:49,693
3553Yeah. Cheers.
3554
3555822
355600:52:17,596 --> 00:52:19,056
3557Hello.
3558
3559823
356000:53:18,156 --> 00:53:19,157
3561Smile.
3562
3563824
356400:54:46,203 --> 00:54:47,871
3565Hi, Pop.
3566
3567825
356800:54:47,955 --> 00:54:50,082
3569How you doing?
3570
3571826
357200:54:50,165 --> 00:54:52,292
3573And who's this right here?
3574Who's this right here?
3575
3576827
357700:54:52,376 --> 00:54:53,418
3578Hey, Grandpa.
3579
3580828
358100:54:56,588 --> 00:54:57,589
3582Dad.
3583
3584829
358500:55:04,179 --> 00:55:06,324
3586- Here, get some of these sweet potatoes.
3587- No, thank you.
3588
3589830
359000:55:06,348 --> 00:55:08,684
3591What kind of growing boy
3592don't like sweet potato mash?
3593
3594831
359500:55:08,767 --> 00:55:10,727
3596Sweetie, try 'em. They're delicious.
3597
3598832
359900:55:10,811 --> 00:55:12,187
3600Daddy met the vice president.
3601
3602833
360300:55:12,855 --> 00:55:14,189
3604Really now?
3605
3606834
360700:55:14,273 --> 00:55:16,692
3608Yes, he did. Bernard is being modest.
3609
3610835
361100:55:18,068 --> 00:55:19,194
3612LBJ?
3613
3614836
361500:55:19,611 --> 00:55:22,155
3616Yes, sir. He came by the Bankers Building.
3617
3618837
361900:55:23,365 --> 00:55:24,449
3620Yes, son.
3621
3622838
362300:55:29,997 --> 00:55:31,540
3624Smooth. Very smooth.
3625
3626839
362700:55:32,207 --> 00:55:33,458
3628Thought you didn't smoke.
3629
3630840
363100:55:33,542 --> 00:55:34,543
3632No. I don't.
3633
3634841
363500:55:35,043 --> 00:55:36,545
3636But I know you like 'em, so...
3637
3638842
363900:55:37,045 --> 00:55:38,964
3640These are a lot nicer than what I smoke.
3641
3642843
364300:55:42,176 --> 00:55:44,761
3644You doing so well
3645out there in Los Angeles.
3646
3647844
364800:55:45,762 --> 00:55:46,889
3649Guess you were right.
3650
3651845
365200:55:47,556 --> 00:55:48,557
3653About what?
3654
3655846
365600:55:48,974 --> 00:55:50,934
3657Earning money the way white men do.
3658
3659847
366000:55:51,393 --> 00:55:53,312
3661Found you a place where you could do that.
3662
3663848
366400:55:54,313 --> 00:55:57,316
3665Still... no chance of doing that here.
3666
3667849
366800:55:57,816 --> 00:55:59,193
3669It might even be worse.
3670
3671850
367200:55:59,276 --> 00:56:02,279
3673No, it's not perfect in California, but...
3674
3675851
367600:56:03,572 --> 00:56:04,573
3677it is different.
3678
3679852
368000:56:05,490 --> 00:56:09,286
3681I don't... I don't think it's California.
3682
3683853
368400:56:12,164 --> 00:56:13,415
3685I'm proud of you, son.
3686
3687854
368800:56:28,764 --> 00:56:29,848
3689Where you going?
3690
3691855
369200:56:30,390 --> 00:56:31,683
3693Taking a walk through town.
3694
3695856
369600:56:34,436 --> 00:56:35,521
3697Dressed like that?
3698
3699857
370000:56:36,647 --> 00:56:38,690
3701Going on the other side of the tracks.
3702
3703858
370400:56:40,692 --> 00:56:42,194
3705You make sure you wear your tie.
3706
3707859
370800:56:43,445 --> 00:56:44,446
3709I planned on it.
3710
3711860
371200:56:48,075 --> 00:56:49,243
3713Take Junior with you.
3714
3715861
371600:56:51,578 --> 00:56:53,789
3717He needs to see where he comes from
3718up close.
3719
3720862
372100:57:44,214 --> 00:57:45,841
3722Why the fountains separated, Dad?
3723
3724863
372500:57:49,011 --> 00:57:50,637
3726It's just different down here, son.
3727
3728864
372900:57:51,597 --> 00:57:52,598
3730Yeah.
3731
3732865
373300:57:53,307 --> 00:57:54,683
3734I'm sorry you had to see that.
3735
3736866
373700:57:55,893 --> 00:57:56,894
3738It's okay.
3739
3740867
374100:57:57,811 --> 00:57:59,271
3742Hey, how much for a shine?
3743
3744868
374500:57:59,354 --> 00:58:00,856
3746Only do white folks here, sir.
3747
3748869
374900:58:14,912 --> 00:58:16,330
3750<i>You think this is a mistake?</i>
3751
3752870
375300:58:17,664 --> 00:58:19,374
3754I think the world is changing.
3755
3756871
375700:58:21,251 --> 00:58:23,629
3758But maybe it hasn't changed enough
3759in Texas.
3760
3761872
376200:58:27,174 --> 00:58:28,675
3763I feel like I have to do this.
3764
3765873
376600:58:31,220 --> 00:58:32,346
3767I know.
3768
3769874
377000:58:33,347 --> 00:58:35,098
3771And that is why I support you.
3772
3773875
377400:58:37,851 --> 00:58:39,645
3775What the hell do we know about banking?
3776
3777876
377800:58:40,145 --> 00:58:43,690
3779Banks take deposits and make loans,
3780mostly on property.
3781
3782877
378300:58:44,358 --> 00:58:47,819
3784Owning a bank is like owning the other
3785side of the real estate business.
3786
3787878
378800:58:47,903 --> 00:58:51,114
3789I'm pretty sure there's a few complexities
3790you just left out.
3791
3792879
379300:58:51,740 --> 00:58:56,328
3794Like we black,
3795and this goddamn bank is in Texas.
3796
3797880
379800:58:56,411 --> 00:58:59,289
3799There's no Texas law
3800that says we can't own a bank.
3801
3802881
380300:58:59,373 --> 00:59:02,960
3804I concede, us being black
3805may be an issue, practically speaking.
3806
3807882
380800:59:03,043 --> 00:59:04,837
3809You willing to concede that?
3810
3811883
381200:59:04,920 --> 00:59:06,547
3813Well, we get Matt to front for us.
3814
3815884
381600:59:06,630 --> 00:59:07,714
3817No shit.
3818
3819885
382000:59:07,798 --> 00:59:10,300
3821But here in LA
3822Matt unlocks the doors for us,
3823
3824886
382500:59:10,384 --> 00:59:12,052
3826he don't run the business day-to-day,
3827
3828887
382900:59:12,135 --> 00:59:15,097
3830much less a banking business,
3831which is not simple.
3832
3833888
383400:59:15,180 --> 00:59:16,765
3835We'd have to monitor things closely.
3836
3837889
383800:59:16,849 --> 00:59:18,559
3839And how the hell you plan to do that?
3840
3841890
384200:59:18,642 --> 00:59:21,311
3843We can't set foot in a bank in Texas
3844unless we're the help.
3845
3846891
384700:59:21,770 --> 00:59:23,605
3848I thought that would be
3849your favorite part.
3850
3851892
385200:59:23,689 --> 00:59:24,940
3853I live in LA.
3854
3855893
385600:59:25,023 --> 00:59:27,442
3857I don't plan on moving to Texas. Do you?
3858
3859894
386000:59:27,526 --> 00:59:28,861
3861During the business week.
3862
3863895
386400:59:28,944 --> 00:59:31,822
3865And work as a janitor in a bank you own?
3866
3867896
386800:59:31,905 --> 00:59:32,906
3869Won't have to.
3870
3871897
387200:59:32,990 --> 00:59:35,868
3873Matt comes to me with the bank business
3874at the end of every day.
3875
3876898
387700:59:35,951 --> 00:59:39,037
3878What makes you think he's willing to move
3879to the middle of nowhere?
3880
3881899
388200:59:39,121 --> 00:59:41,915
3883No offense to your cosmopolitan hometown.
3884
3885900
388600:59:42,374 --> 00:59:46,044
3887Plus Matt's got a pretty good gig here.
3888
3889901
389000:59:46,128 --> 00:59:47,671
3891We'd have to make it worth his while.
3892
3893902
389400:59:47,754 --> 00:59:51,592
3895Great, so now we gonna pay him even more
3896money than we pay him to be white.
3897
3898903
389900:59:52,551 --> 00:59:56,138
3900Joe, think about all the good we can do
3901for the Negro community down there.
3902
3903904
390400:59:56,555 --> 00:59:58,390
3905Help 'em buy homes, start businesses.
3906
3907905
390800:59:59,558 --> 01:00:02,853
3909And aside from all that,
3910that bank is undervalued.
3911
3912906
391301:00:04,188 --> 01:00:07,149
3914There's enough capital
3915to double its loan base.
3916
3917907
391801:00:07,608 --> 01:00:08,901
3919We could make a lot of money.
3920
3921908
392201:00:08,984 --> 01:00:10,694
3923We make a lot of money now.
3924
3925909
392601:00:11,445 --> 01:00:13,322
3927You gonna stand there with a straight face
3928
3929910
393001:00:13,405 --> 01:00:16,408
3931and tell me there's a business argument
3932to do this?
3933
3934911
393501:00:16,491 --> 01:00:18,660
3936This is social activism, Bernard.
3937
3938912
393901:00:18,744 --> 01:00:19,745
3940Plain and simple.
3941
3942913
394301:00:20,162 --> 01:00:22,039
3944There's plenty other ways to do that.
3945
3946914
394701:00:22,956 --> 01:00:26,084
3948Or maybe you're feeling guilty about
3949leaving your father behind.
3950
3951915
395201:00:26,168 --> 01:00:27,169
3953Let me tell you this.
3954
3955916
395601:00:27,711 --> 01:00:31,757
3957If one trip home can
3958cripple your rational functions like this,
3959
3960917
396101:00:31,840 --> 01:00:32,841
3962we in trouble.
3963
3964918
396501:00:34,384 --> 01:00:35,636
3966With all due respect, Joe,
3967
3968919
396901:00:35,719 --> 01:00:37,763
3970I think this is something
3971you won't understand.
3972
3973920
397401:00:37,846 --> 01:00:38,847
3975I'm sorry.
3976
3977921
397801:00:38,931 --> 01:00:40,641
3979Did I not wake up black this morning?
3980
3981922
398201:00:40,724 --> 01:00:42,226
3983'Cause I'm pretty sure I did.
3984
3985923
398601:00:42,726 --> 01:00:44,269
3987Yep, still black.
3988
3989924
399001:00:44,353 --> 01:00:48,607
3991Are you telling me because I grew up
3992in California with a little bit of money,
3993
3994925
399501:00:48,690 --> 01:00:50,400
3996I'm not black in your eyes?
3997
3998926
399901:00:50,776 --> 01:00:52,486
4000I wasn't trying to make this personal.
4001
4002927
400301:00:54,363 --> 01:00:55,405
4004Yes, you were.
4005
4006928
400701:00:59,618 --> 01:01:00,661
4008I'm sorry.
4009
4010929
401101:01:04,081 --> 01:01:06,458
4012Bernard, if we go down to Texas
4013
4014930
401501:01:06,542 --> 01:01:09,127
4016and start screwing around with Jim Crow,
4017we gonna lose.
4018
4019931
402001:01:09,211 --> 01:01:10,921
4021Don't matter whether it's legal or not.
4022
4023932
402401:01:11,421 --> 01:01:14,216
4025Even if Dr. King
4026gets civil rights legislation,
4027
4028933
402901:01:14,299 --> 01:01:15,759
4030it ain't gonna happen fast enough
4031
4032934
403301:01:15,843 --> 01:01:18,303
4034for us to get out of this
4035without losing our shirts.
4036
4037935
403801:01:21,265 --> 01:01:22,599
4039Bring your father out here.
4040
4041936
404201:01:22,683 --> 01:01:24,017
4043Help him directly.
4044
4045937
404601:01:24,351 --> 01:01:27,437
4047And get rid of that notion that you can
4048save every black man in Texas,
4049
4050938
405101:01:27,521 --> 01:01:28,772
4052'cause you can't.
4053
4054939
405501:01:29,982 --> 01:01:32,401
4056I understand if you don't want to
4057partner with me on it.
4058
4059940
406001:01:33,485 --> 01:01:35,612
4061You can't buy this bank
4062on your own, Bernard.
4063
4064941
406501:01:35,696 --> 01:01:36,697
4066Not at that price.
4067
4068942
406901:01:37,114 --> 01:01:39,116
4070Then I'll find someone else
4071to do it with me.
4072
4073943
407401:01:42,119 --> 01:01:43,662
4075Jesus H. Christ.
4076
4077944
407801:01:45,706 --> 01:01:48,166
4079I told you getting rich
4080was going to change you.
4081
4082945
408301:01:51,128 --> 01:01:55,257
4084Mark my words. This is a bad idea.
4085
4086946
408701:01:56,133 --> 01:01:59,928
4088But it's even more bodacious
4089than us buying that Bankers Building.
4090
4091947
409201:02:00,387 --> 01:02:02,389
4093And we sure enough pulled that off,
4094didn't we?
4095
4096948
409701:02:05,934 --> 01:02:07,519
4098All right. I'm in.
4099
4100949
410101:02:09,479 --> 01:02:10,522
4102Shit.
4103
4104950
410501:02:19,573 --> 01:02:23,619
4106For the record I say you guys are out of
4107your minds, completely out of your minds.
4108
4109951
411001:02:23,702 --> 01:02:24,703
4111You ready?
4112
4113952
411401:02:25,245 --> 01:02:26,288
4115I...
4116
4117953
411801:02:26,371 --> 01:02:28,707
4119Could you tell me how a bank works
4120in three sentences?
4121
4122954
412301:02:30,959 --> 01:02:34,129
4124A bakery makes a profit by selling bread
4125for more than it cost to make.
4126
4127955
412801:02:34,755 --> 01:02:35,756
4129A bank makes a profit
4130
4131956
413201:02:35,839 --> 01:02:39,676
4133by selling loans for more than it costs to
4134get the money needed to make those loans.
4135
4136957
413701:02:39,760 --> 01:02:42,763
4138Basically, a bank gets money
4139from depositors at 3%
4140
4141958
414201:02:42,846 --> 01:02:43,972
4143and loans it out at five.
4144
4145959
414601:02:44,056 --> 01:02:46,725
4147Wow. That actually was three sentences.
4148
4149960
415001:02:48,977 --> 01:02:49,978
4151Let's go.
4152
4153961
415401:02:51,146 --> 01:02:52,189
4155This should be fun.
4156
4157962
415801:02:53,106 --> 01:02:54,233
4159You gonna put the hat on?
4160
4161963
416201:02:54,316 --> 01:02:55,317
4163I'll pass.
4164
4165964
416601:02:55,776 --> 01:02:56,777
4167All righty then.
4168
4169965
417001:02:57,361 --> 01:02:58,487
4171Shall we?
4172
4173966
417401:03:07,788 --> 01:03:10,290
4175Gentlemen, Don Silverthorne.
4176
4177967
417801:03:11,333 --> 01:03:12,519
4179- Robert Florance.
4180- Matt Steiner.
4181
4182968
418301:03:12,543 --> 01:03:13,544
4184Robert Florance Jr.
4185
4186969
418701:03:14,795 --> 01:03:16,547
4188- Next.
4189- Please, gentlemen, come in.
4190
4191970
419201:03:16,630 --> 01:03:17,714
4193Thank you.
4194
4195971
419601:03:19,508 --> 01:03:21,301
4197Yes, of course. Gentlemen.
4198
4199972
420001:03:24,805 --> 01:03:28,600
4201My son's guaranteed a position
4202to protect my remaining 20% interest?
4203
4204973
420501:03:28,684 --> 01:03:29,828
4206You'll see that in the addendum.
4207
4208974
420901:03:29,852 --> 01:03:32,479
4210But he won't be the bank's
4211exclusive loan officer any longer.
4212
4213975
421401:03:32,563 --> 01:03:35,941
4215My clients' primary interest in buying
4216the bank is to increase the loan volume
4217
4218976
421901:03:36,024 --> 01:03:37,818
4220and thus the profitability of the bank.
4221
4222977
422301:03:37,901 --> 01:03:41,280
4224He'll be reporting directly to you
4225as the new bank president, Mr. Steiner?
4226
4227978
422801:03:41,363 --> 01:03:42,364
4229That's right.
4230
4231979
423201:03:44,366 --> 01:03:47,327
4233Who are Bernard Garrett and Joseph Morris?
4234
4235980
423601:03:48,328 --> 01:03:49,955
4237My financial partners in Los Angeles.
4238
4239981
424001:04:09,099 --> 01:04:10,225
4241Why aren't they here?
4242
4243982
424401:04:10,601 --> 01:04:13,520
4245Honestly? Because they're
4246too rich to bother.
4247
4248983
424901:04:13,604 --> 01:04:15,022
4250That's why they have me.
4251
4252984
425301:04:15,105 --> 01:04:17,792
4254No offense, but they have hundreds
4255of these investments across the country.
4256
4257985
425801:04:17,816 --> 01:04:19,193
4259Well, that's great for them.
4260
4261986
426201:04:19,860 --> 01:04:22,070
4263But this is the investment
4264they're closing today.
4265
4266987
426701:04:40,797 --> 01:04:43,550
4268I should note that
4269the full purchase price for the bank
4270
4271988
427201:04:43,634 --> 01:04:46,803
4273is sitting in escrow in my bank
4274as of 11:00 a.m. this morning.
4275
4276989
427701:04:46,887 --> 01:04:48,764
4278Which is all that matters.
4279
4280990
428101:04:59,358 --> 01:05:03,779
4282Congratulations, you are now
4283the owner of your hometown bank.
4284
4285991
428601:05:04,988 --> 01:05:07,115
4287Time to get my black ass back to LA.
4288
4289992
429001:05:09,576 --> 01:05:10,661
4291Don't ask.
4292
4293993
429401:05:15,415 --> 01:05:18,126
4295My partners and I now own Mainland Bank.
4296
4297994
429801:05:18,710 --> 01:05:23,257
4299And we intend to change the bank's
4300policies regarding loans to Negroes.
4301
4302995
430301:05:24,383 --> 01:05:26,301
4304<i>But we need your help to identify</i>
4305
4306996
430701:05:26,385 --> 01:05:29,513
4308<i>responsible potential borrowers
4309in your congregations.</i>
4310
4311997
431201:05:30,138 --> 01:05:32,641
4313You get the loan...
4314
4315998
431601:05:32,724 --> 01:05:36,186
4317<i>Now, it goes without saying that we cannot
4318draw attention to this new policy</i>
4319
4320999
432101:05:36,270 --> 01:05:38,772
4322<i>or to our ownership of the bank.</i>
4323
43241000
432501:05:40,274 --> 01:05:43,819
4326<i>Or everything we're trying to do
4327will be put in jeopardy.</i>
4328
43291001
433001:05:45,362 --> 01:05:49,783
4331<i>But make no mistake,
4332our goal is to foster business growth</i>
4333
43341002
433501:05:49,867 --> 01:05:54,413
4336{\an8}<i>and home ownership in our community
4337through access to capital.</i>
4338
43391003
434001:05:55,163 --> 01:05:58,166
4341Thanks to your loan,
4342we bought two new pieces of equipment.
4343
43441004
434501:05:58,250 --> 01:06:00,127
4346Doubled our revenue in three months.
4347
43481005
434901:06:08,135 --> 01:06:11,013
4350You approved 14 new loans this week?
4351
43521006
435301:06:11,930 --> 01:06:13,182
4354That sounds right.
4355
43561007
435701:06:13,599 --> 01:06:15,100
4358Only five of those were mine.
4359
43601008
436101:06:16,894 --> 01:06:19,229
4362There's a lot of underutilized capital
4363in this bank.
4364
43651009
436601:06:19,730 --> 01:06:22,709
4367You knew I was gonna start signing off
4368on loans directly to jump-start things.
4369
43701010
437101:06:22,733 --> 01:06:24,711
4372I haven't seen
4373that many viable applicants in one week
4374
43751011
437601:06:24,735 --> 01:06:26,111
4377since I've worked at this bank.
4378
43791012
438001:06:26,653 --> 01:06:28,822
4381I've been working here
4382since I was 18 years old.
4383
43841013
438501:06:29,531 --> 01:06:31,241
4386Where are you finding all these people?
4387
43881014
438901:06:32,034 --> 01:06:34,620
4390Who's "Solomon Johnson"?
4391
43921015
439301:06:36,455 --> 01:06:37,748
4394We're casting a wide net.
4395
43961016
439701:06:38,332 --> 01:06:40,459
4398The more loans we make,
4399the higher our profit.
4400
44011017
440201:06:41,084 --> 01:06:42,252
4403Goes for your stake too.
4404
44051018
440601:06:42,794 --> 01:06:44,129
4407As long as they don't default.
4408
44091019
441001:06:45,547 --> 01:06:46,840
4411That's what collateral's for.
4412
44131020
441401:07:23,210 --> 01:07:26,380
4415My partner Joe comes in town
4416every other week from LA.
4417
44181021
441901:07:26,880 --> 01:07:28,066
4420He's looking forward to meeting you.
4421
44221022
442301:07:28,090 --> 01:07:30,217
4424I told him this is
4425the best barbecue around here.
4426
44271023
442801:07:30,300 --> 01:07:31,134
4429Thank you.
4430
44311024
443201:07:31,218 --> 01:07:33,887
4433Look, the books I keep are pretty simple.
4434
44351025
443601:07:34,429 --> 01:07:36,849
4437But I can go back to the office
4438and bring 'em out.
4439
44401026
444101:07:36,932 --> 01:07:37,933
4442You can look 'em over.
4443
44441027
444501:07:38,016 --> 01:07:39,726
4446- That would be great. Thank you.
4447- Okay.
4448
44491028
445001:07:44,147 --> 01:07:45,232
4451You're late.
4452
44531029
445401:07:46,316 --> 01:07:47,901
4455Florance discovered the black loans.
4456
44571030
445801:07:49,152 --> 01:07:52,406
4459He's been wary of me from the beginning,
4460now he's watching me like a hawk.
4461
44621031
446301:07:52,906 --> 01:07:53,907
4464Any reason why?
4465
44661032
446701:07:53,991 --> 01:07:55,868
4468Well, yeah, he had dreams
4469of being the boss,
4470
44711033
447201:07:55,951 --> 01:07:58,912
4473not reporting to some guy from California
4474ten years younger than him.
4475
44761034
447701:08:38,785 --> 01:08:39,786
4478I hate it here.
4479
44801035
448101:08:42,997 --> 01:08:45,626
4482Come on.
4483We've only been here three months.
4484
44851036
448601:08:45,709 --> 01:08:46,835
4487It's enough time to know.
4488
44891037
449001:08:49,505 --> 01:08:51,173
4491Why did you agree to do this?
4492
44931038
449401:08:51,840 --> 01:08:53,634
4495I'm making 25,000 a year.
4496
44971039
449801:08:53,716 --> 01:08:56,178
4499We bought this house
4500with one month's salary.
4501
45021040
450301:08:56,261 --> 01:08:59,031
4504When you started with them you said
4505they were gonna make you a partner.
4506
45071041
450801:08:59,055 --> 01:09:01,225
4509- Yeah, and...
4510- A partner isn't on a salary.
4511
45121042
451301:09:01,308 --> 01:09:02,434
4514A partner is an owner.
4515
45161043
451701:09:03,268 --> 01:09:05,520
4518Isn't that what you always told me
4519you wanted to be?
4520
45211044
452201:09:05,604 --> 01:09:07,314
4523And I will be.
4524
45251045
452601:09:08,814 --> 01:09:10,317
4527You know, on the next bank we buy.
4528
45291046
453001:09:13,153 --> 01:09:14,446
4531You're buying another one?
4532
45331047
453401:09:16,657 --> 01:09:18,033
4535We're thinking about it, yeah.
4536
45371048
453801:09:22,120 --> 01:09:23,705
4539Now that would be something.
4540
45411049
454201:09:24,915 --> 01:09:25,916
4543Wouldn't it?
4544
45451050
454601:09:30,671 --> 01:09:33,298
4547So, we all agree
4548the barbecue place is a good bet, right?
4549
45501051
455101:09:41,974 --> 01:09:43,809
4552You must be Bernard Garrett.
4553
45541052
455501:09:45,519 --> 01:09:46,812
4556And you're Joe Morris?
4557
45581053
455901:09:46,895 --> 01:09:48,020
4560What, you follow me here?
4561
45621054
456301:09:48,104 --> 01:09:50,314
4564Just trying to understand
4565who really owns my bank.
4566
45671055
456801:09:58,532 --> 01:09:59,908
4569You boys are famous.
4570
45711056
457201:10:02,536 --> 01:10:05,330
4573That's you and Vice President Johnson,
4574if I'm not mistaken.
4575
45761057
457701:10:10,085 --> 01:10:11,086
4578Listen,
4579
45801058
458101:10:12,671 --> 01:10:14,673
4582I've got nothing against
4583you people personally.
4584
45851059
458601:10:14,756 --> 01:10:16,425
4587That's mighty white of you.
4588
45891060
459001:10:16,508 --> 01:10:18,552
4591But if this town found out
4592
45931061
459401:10:18,635 --> 01:10:22,598
4595that not only was their bank
4596regularly making loans to Negroes,
4597
45981062
459901:10:23,599 --> 01:10:25,267
4600but was actually owned by two of 'em,
4601
46021063
460301:10:26,727 --> 01:10:28,061
4604there'd be a run on the bank.
4605
46061064
460701:10:29,146 --> 01:10:30,606
4608Well, why would they find out?
4609
46101065
461101:10:32,649 --> 01:10:34,276
4612They don't have access to our books.
4613
46141066
461501:10:34,651 --> 01:10:35,485
4616You do.
4617
46181067
461901:10:35,569 --> 01:10:37,362
4620Took you three months to figure it out.
4621
46221068
462301:10:38,447 --> 01:10:40,324
4624- I could tell 'em.
4625- Yeah, you could.
4626
46271069
462801:10:40,407 --> 01:10:43,285
4629Then you'd own 20% of a failed bank
4630instead of a booming one.
4631
46321070
463301:10:45,537 --> 01:10:46,580
4634What do you want?
4635
46361071
463701:10:48,248 --> 01:10:49,499
4638To protect my investment.
4639
46401072
464101:10:50,334 --> 01:10:54,213
4642This bank collapses, my 20% is worthless.
4643
46441073
464501:10:55,506 --> 01:10:57,132
4646So, we're in this together?
4647
46481074
464901:10:57,841 --> 01:10:59,051
4650Not quite.
4651
46521075
465301:10:59,134 --> 01:11:01,803
4654See, my father didn't know
4655he was selling his bank to two Negroes,
4656
46571076
465801:11:01,887 --> 01:11:04,348
4659so that's fraud.
4660
46611077
466201:11:04,848 --> 01:11:06,433
4663I don't know about that, Bob.
4664
46651078
466601:11:07,059 --> 01:11:10,771
4667See, both our names
4668were on that bank contract you signed.
4669
46701079
467101:11:10,854 --> 01:11:12,689
4672You even asked about us.
4673
46741080
467501:11:13,398 --> 01:11:14,733
4676Don't know who told you that.
4677
46781081
467901:11:14,816 --> 01:11:17,236
4680Didn't have to be told. I was there.
4681
46821082
468301:11:17,778 --> 01:11:19,112
4684No, you weren't.
4685
46861083
468701:11:21,156 --> 01:11:22,199
4688Bring back memories?
4689
46901084
469101:11:24,993 --> 01:11:27,412
4692And for the record, your father knew.
4693
46941085
469501:11:29,248 --> 01:11:30,249
4696You're lying.
4697
46981086
469901:11:30,332 --> 01:11:34,127
4700Ask him, or I can find a letter
4701where he and Silverthorne discussed it.
4702
47031087
470401:11:36,964 --> 01:11:38,590
4705You boys think you're so smart.
4706
47071088
470801:11:38,674 --> 01:11:39,716
4709We are.
4710
47111089
471201:11:40,259 --> 01:11:41,635
4713For a couple colored boys.
4714
47151090
471601:11:43,720 --> 01:11:45,281
4717You couldn't just make a loan
4718here, there to your kind.
4719
47201091
472101:11:45,305 --> 01:11:47,558
4722You had to make 19 of them
4723right off the bat?
4724
47251092
472601:11:50,394 --> 01:11:51,854
4727Well, here's another letter.
4728
47291093
473001:11:51,937 --> 01:11:55,357
4731This one's from the Comptroller of
4732the Currency. The US Treasury Department.
4733
47341094
473501:11:55,440 --> 01:11:58,527
4736They're moving our yearly inspection up
4737two quarters.
4738
47391095
474001:11:58,610 --> 01:11:59,945
4741That's a month from now.
4742
47431096
474401:12:00,028 --> 01:12:02,823
4745Because of anonymous reports
4746we're making unsafe loans.
4747
47481097
474901:12:04,324 --> 01:12:07,786
4750You think you have this town figured out,
4751when you moved here three months ago?
4752
47531098
475401:12:08,996 --> 01:12:10,080
4755Well, you don't.
4756
47571099
475801:12:10,497 --> 01:12:11,498
4759I was born here.
4760
47611100
476201:12:11,582 --> 01:12:14,626
4763So was I. In this house.
4764
47651101
476601:12:18,422 --> 01:12:19,548
4767Well,
4768
47691102
477001:12:20,090 --> 01:12:22,968
4771then you should've known
4772you couldn't keep this a secret very long.
4773
47741103
477501:12:45,157 --> 01:12:48,660
4776We're gonna have to stop giving out loans
4777to Negroes until after this inspection.
4778
47791104
478001:12:48,744 --> 01:12:51,163
4781What about the ones already on the books?
4782
47831105
478401:12:53,332 --> 01:12:54,833
4785Can I propose something?
4786
47871106
478801:12:54,917 --> 01:12:56,460
4789Can I get a stiff drink?
4790
47911107
479201:12:58,587 --> 01:13:00,088
4793We should buy another bank.
4794
47951108
479601:13:00,172 --> 01:13:01,590
4797Make that a double.
4798
47991109
480001:13:02,633 --> 01:13:03,967
4801What? No, I'm...
4802
48031110
480401:13:04,051 --> 01:13:05,177
4805I'm serious.
4806
48071111
480801:13:14,144 --> 01:13:15,938
4809Okay, the Bank of Marlin is small.
4810
48111112
481201:13:16,021 --> 01:13:18,690
4813You can purchase it outright for 274,000,
4814
48151113
481601:13:18,774 --> 01:13:21,318
4817half of what you paid for 80% of Mainland.
4818
48191114
482001:13:21,401 --> 01:13:22,653
4821As president of both banks,
4822
48231115
482401:13:22,736 --> 01:13:25,948
4825I could move all the Negro loans
4826we made at Mainland to the Bank of Marlin
4827
48281116
482901:13:26,031 --> 01:13:27,658
4830before Mainland gets inspected.
4831
48321117
483301:13:28,116 --> 01:13:30,369
4834It should keep the government
4835out of our business
4836
48371118
483801:13:30,452 --> 01:13:32,454
4839and hopefully make Florance an ally.
4840
48411119
484201:13:32,913 --> 01:13:34,122
4843It's an interesting idea,
4844
48451120
484601:13:34,206 --> 01:13:38,418
4847but Joe and I don't have
4848$274,000 in cash laying around.
4849
48501121
485101:13:39,127 --> 01:13:42,506
4852And I doubt Silverthorne will finance us
4853buying another bank in Texas.
4854
48551122
485601:13:42,589 --> 01:13:45,300
4857Right, well, I think I have
4858a solution to that.
4859
48601123
486101:13:46,343 --> 01:13:48,345
4862The Bank of Marlin has
4863two million in deposits,
4864
48651124
486601:13:48,428 --> 01:13:50,180
4867but it's only made one million in loans.
4868
48691125
487001:13:50,264 --> 01:13:51,932
4871Which is why it's not making a profit.
4872
48731126
487401:13:52,015 --> 01:13:53,058
4875So, we buy the bank.
4876
48771127
487801:13:53,141 --> 01:13:56,395
4879We use that extra million in deposits
4880to purchase loans from an aggregator.
4881
48821128
488301:13:56,770 --> 01:14:01,650
4884I've already identified a package of loans
4885with an 8% interest offered at 6.5%.
4886
48871129
488801:14:01,733 --> 01:14:04,945
4889That 1.5% spread
4890puts the bank instantly in profit.
4891
48921130
489301:14:05,028 --> 01:14:06,613
4894Unless there's a high default rate.
4895
48961131
489701:14:06,697 --> 01:14:08,282
4898Check the underlying loans yourself.
4899
49001132
490101:14:08,365 --> 01:14:09,950
4902They seem rock-solid to me.
4903
49041133
490501:14:10,033 --> 01:14:12,619
4906The whole package is for sale
4907for 971,000.
4908
49091134
491001:14:12,703 --> 01:14:15,831
4911Yeah, that doesn't help
4912the cash flow problem for Joe and me.
4913
49141135
491501:14:15,914 --> 01:14:19,793
4916All right, it doesn't,
4917but if you and Joe incorporate as brokers,
4918
49191136
492001:14:19,877 --> 01:14:21,753
4921the Bank of Marlin
4922can pay you a commission
4923
49241137
492501:14:21,837 --> 01:14:24,464
4926of close to 200,000
4927on that package of mortgages.
4928
49291138
493001:14:24,548 --> 01:14:28,302
4931That's an awful lot of commission
4932on a million-dollar package of mortgages.
4933
49341139
493501:14:28,385 --> 01:14:30,470
4936Maybe, but it's completely legal.
4937
49381140
493901:14:30,554 --> 01:14:32,139
4940It cuts your investment by two-thirds.
4941
49421141
494301:14:32,222 --> 01:14:35,142
4944The bank stays profitable
4945and we keep loaning to Negroes.
4946
49471142
494801:14:35,225 --> 01:14:36,226
4949Everyone wins.
4950
49511143
495201:14:36,310 --> 01:14:37,769
4953It sounds too good to be true.
4954
49551144
495601:14:38,228 --> 01:14:39,980
4957Well, then have your lawyers check.
4958
49591145
496001:14:41,064 --> 01:14:43,817
4961Look, Matt, even if it does check out,
4962
49631146
496401:14:44,610 --> 01:14:47,988
4965Joe has to spend his time in LA
4966overseeing our properties there.
4967
49681147
496901:14:48,488 --> 01:14:50,908
4970And I'm here
4971overseeing you and Mainland Bank,
4972
49731148
497401:14:50,991 --> 01:14:53,285
4975which I can't even get in
4976the front door of.
4977
49781149
497901:14:54,661 --> 01:14:58,373
4980I just don't think it's the right time
4981for us to pick up a second bank in Texas.
4982
49831150
498401:14:58,457 --> 01:15:00,959
4985Well, you won't have to,
4986if you let me run this one.
4987
49881151
498901:15:01,793 --> 01:15:02,793
4990I mean really run it.
4991
49921152
499301:15:05,589 --> 01:15:06,589
4994Matt,
4995
49961153
499701:15:07,674 --> 01:15:10,427
4998I can't speak for Joe,
4999but I'm not comfortable with that.
5000
50011154
500201:15:11,512 --> 01:15:13,805
5003I'm sorry to interrupt.
5004
50051155
500601:15:13,889 --> 01:15:14,973
5007Would you like one?
5008
50091156
501001:15:15,057 --> 01:15:16,141
5011- No.
5012- Okay.
5013
50141157
501501:15:26,235 --> 01:15:28,946
5016Look, we agreed I'd co-own the next bank.
5017
50181158
501901:15:29,029 --> 01:15:30,405
5020We even put it in the contract.
5021
50221159
502301:15:30,822 --> 01:15:33,301
5024Three months ago, you didn't know
5025the first thing about banking.
5026
50271160
502801:15:33,325 --> 01:15:34,844
5029Come on. I've learnt a lot in that time.
5030
50311161
503201:15:34,868 --> 01:15:37,162
5033It's not that I don't have faith in you,
5034it's just...
5035
50361162
503701:15:38,205 --> 01:15:39,206
5038What?
5039
50401163
504101:15:40,165 --> 01:15:44,628
5042It's $274,000 of Joe's and my money.
5043
50441164
504501:15:45,379 --> 01:15:47,631
5046We should at least
5047have the final say, right?
5048
50491165
505001:15:51,927 --> 01:15:53,303
5051If I can't become my own man here,
5052
50531166
505401:15:53,387 --> 01:15:55,514
5055then I think I need to resign
5056and go back to LA.
5057
50581167
505901:15:58,183 --> 01:16:00,727
5060- Is this you blackmailing us?
5061- No.
5062
50631168
506401:16:01,436 --> 01:16:02,563
5065No, that's not fair, Joe.
5066
50671169
506801:16:02,646 --> 01:16:04,147
5069You guys have taught me so much.
5070
50711170
507201:16:04,231 --> 01:16:05,649
5073I just wanna be more like you.
5074
50751171
507601:16:06,066 --> 01:16:07,067
5077An owner.
5078
50791172
508001:16:08,360 --> 01:16:09,778
5081Whatever you decide...
5082
50831173
508401:16:11,196 --> 01:16:13,782
5085I really appreciate
5086everything you guys have done for me.
5087
50881174
508901:16:17,786 --> 01:16:20,038
5090You said this was gonna be complicated.
5091
50921175
509301:16:20,122 --> 01:16:24,209
5094What I said was, "This is a bad idea."
5095
50961176
509701:16:25,502 --> 01:16:29,006
5098Then I agreed to drive off the cliff
5099with you and here we are.
5100
51011177
510201:16:29,965 --> 01:16:34,803
5103Now, we gotta buy a kid with 90 days of
5104banking experience his own goddamn bank.
5105
51061178
510701:16:36,597 --> 01:16:37,681
5108Without a chaperone.
5109
51101179
511101:16:45,731 --> 01:16:49,526
5112Hey, everyone, I just wanted to say
5113I'm excited to work with all of you.
5114
51151180
511601:16:49,610 --> 01:16:51,653
5117We're gonna do great things
5118with this bank.
5119
51201181
512101:16:51,737 --> 01:16:55,282
5122Growing it while helping the community
5123around it grow at the same time.
5124
51251182
512601:16:56,700 --> 01:16:57,868
5127My door is always open.
5128
51291183
513001:16:58,619 --> 01:17:00,412
5131Let's show the public our new face.
5132
51331184
513401:17:12,341 --> 01:17:15,010
5135Twelfth loan in the package,
5136it's that one right there.
5137
51381185
513901:17:16,011 --> 01:17:18,263
5140Another beautiful house
5141in a white neighborhood.
5142
51431186
514401:17:18,347 --> 01:17:19,515
5145Give it a five.
5146
51471187
514801:17:22,434 --> 01:17:23,644
5149Thank you for doing this.
5150
51511188
515201:17:25,604 --> 01:17:27,064
5153How else am I supposed to learn?
5154
51551189
515601:17:37,241 --> 01:17:38,242
5157You can stop.
5158
51591190
516001:17:38,325 --> 01:17:40,536
5161There's no one here
5162to see you cleaning anymore.
5163
51641191
516501:17:40,619 --> 01:17:43,038
5166Whatever I do, I try to do my best.
5167
51681192
516901:17:46,959 --> 01:17:48,418
5170I'm sorry you have to wear that.
5171
51721193
517301:17:49,753 --> 01:17:52,339
5174I wish they'd just trust me,
5175then you wouldn't have to.
5176
51771194
517801:17:53,173 --> 01:17:54,716
5179Do you resent me being here?
5180
51811195
518201:17:57,511 --> 01:17:58,512
5183A little.
5184
51851196
518601:18:02,099 --> 01:18:04,309
5187Do you resent me
5188for wanting to run my own bank?
5189
51901197
519101:18:07,145 --> 01:18:08,146
5192A little.
5193
51941198
519501:18:09,064 --> 01:18:10,107
5196Really?
5197
51981199
519901:18:12,359 --> 01:18:14,403
5200Come on. You know
5201I wasn't born into money.
5202
52031200
520401:18:15,070 --> 01:18:16,989
5205I just learnt to fake it.
5206And you helped me.
5207
52081201
520901:18:20,325 --> 01:18:21,368
5210I do realize...
5211
52121202
521301:18:22,327 --> 01:18:23,954
5214I had to be white for that to work.
5215
52161203
521701:18:25,414 --> 01:18:26,456
5218And a man.
5219
52201204
522101:18:29,501 --> 01:18:30,502
5222I just...
5223
52241205
522501:18:32,212 --> 01:18:34,840
5226I wanna be respected
5227for what I've done for the business.
5228
52291206
523001:18:37,176 --> 01:18:38,886
5231Respect is a big thing.
5232
52331207
523401:18:39,553 --> 01:18:42,639
5235Sometimes people take big risks
5236to chase it.
5237
52381208
523901:18:43,891 --> 01:18:46,143
5240I want this bank to succeed
5241just as much as you do.
5242
52431209
524401:18:46,226 --> 01:18:47,603
5245I want you to succeed.
5246
52471210
524801:18:48,604 --> 01:18:50,814
5249And I hope you don't take this
5250the wrong way,
5251
52521211
525301:18:51,815 --> 01:18:54,484
5254but you just took up banking
5255three months ago.
5256
52571212
525801:18:57,237 --> 01:18:58,238
5259So did Bernard.
5260
52611213
526201:19:08,957 --> 01:19:09,958
5263They're all solid.
5264
52651214
526601:19:10,042 --> 01:19:12,461
5267We looked at the property
5268securing every single loan.
5269
52701215
527101:19:12,961 --> 01:19:14,087
5272That was fast.
5273
52741216
527501:19:14,171 --> 01:19:18,050
5276Just be sure the documentation matches
5277exactly before handing over any money.
5278
52791217
528001:19:18,133 --> 01:19:18,967
5281Yeah, of course.
5282
52831218
528401:19:19,051 --> 01:19:21,303
5285And contact that lawyer I told you about
5286in Houston.
5287
52881219
528901:19:21,386 --> 01:19:24,306
5290I worked with him before.
5291O'Keefe. Michael O'Keefe. I trust him.
5292
52931220
529401:19:24,389 --> 01:19:25,909
5295I already did. He said he'll be there.
5296
52971221
529801:19:25,933 --> 01:19:26,934
5299Perfect.
5300
53011222
530201:19:27,476 --> 01:19:28,477
5303Excuse me.
5304
53051223
530601:19:29,353 --> 01:19:30,771
5307Man, this place is so good.
5308
53091224
531001:19:31,855 --> 01:19:33,857
5311So, I'm gonna head back in the morning.
5312
53131225
531401:19:35,859 --> 01:19:37,236
5315It's okay.
5316
53171226
531801:19:38,070 --> 01:19:39,905
5319I'll have it fixed in no time.
5320
53211227
532201:19:47,371 --> 01:19:48,539
5323Okay.
5324
53251228
532601:19:56,505 --> 01:19:58,841
5327<i>I thought his statement
5328was rather cautiously worded.</i>
5329
53301229
533101:19:58,924 --> 01:20:01,802
5332<i>I didn't get any assurances
5333that Mr. Khrushchev or the Soviet Union</i>
5334
53351230
533601:20:01,885 --> 01:20:04,054
5337<i>was out of the space race at all.</i>
5338
53391231
534001:20:04,137 --> 01:20:04,972
5341<i>I think it's...</i>
5342
53431232
534401:20:05,055 --> 01:20:08,684
5345Mr. Steiner, your attorney's almost
5346finished reviewing the packet of loans.
5347
53481233
534901:20:08,767 --> 01:20:09,810
5350Great.
5351
53521234
535301:20:16,441 --> 01:20:18,277
5354- Let me know if you need anything.
5355- Thanks.
5356
53571235
535801:20:18,819 --> 01:20:21,405
5359Thank you again for doing this so quickly.
5360
53611236
536201:20:21,822 --> 01:20:23,448
5363How are the underlying loans looking?
5364
53651237
536601:20:23,532 --> 01:20:25,993
5367Solid. You can start
5368signing the contracts now.
5369
53701238
537101:20:26,076 --> 01:20:27,077
5372Great.
5373
53741239
537501:20:50,184 --> 01:20:51,351
5376- Hi.
5377- Hey.
5378
53791240
538001:20:54,354 --> 01:20:55,606
5381Hi. How are you?
5382
53831241
538401:20:55,689 --> 01:20:56,732
5385Good, how are you?
5386
53871242
538801:20:56,815 --> 01:20:58,066
5389Good.
5390
53911243
539201:20:58,150 --> 01:20:59,193
5393How'd it go?
5394
53951244
539601:21:00,277 --> 01:21:03,238
5397Well, I just wrote a check for $971,000.
5398
53991245
540001:21:03,947 --> 01:21:04,948
5401Never done that before.
5402
54031246
540401:21:05,490 --> 01:21:07,034
5405You're a natural businessman.
5406
54071247
540801:21:07,910 --> 01:21:09,328
5409I don't know. I mean...
5410
54111248
541201:21:09,870 --> 01:21:12,515
5413tell that to the people who invested
5414in the drive-in ice cream shop.
5415
54161249
541701:21:12,539 --> 01:21:13,665
5418You were 19.
5419
54201250
542101:21:14,082 --> 01:21:16,502
5422Yeah. But, I dunno,
5423it was my dad's savings.
5424
54251251
542601:21:16,585 --> 01:21:19,296
5427I just don't want to lose
5428Bernard and Joe's money the same way.
5429
54301252
543101:21:19,379 --> 01:21:20,631
5432They're lucky to have you.
5433
54341253
543501:21:20,714 --> 01:21:24,051
5436No. I'm the lucky one. I'm learning
5437from people a lot smarter than I am.
5438
54391254
544001:21:25,135 --> 01:21:26,220
5441Matt,
5442
54431255
544401:21:26,303 --> 01:21:27,763
5445they're not smarter than you.
5446
54471256
544801:21:28,222 --> 01:21:30,015
5449I mean, they can't be.
5450
54511257
545201:21:31,517 --> 01:21:32,643
5453They're my friends.
5454
54551258
545601:21:33,435 --> 01:21:35,896
5457Hey. Look, I'm sorry. I didn't...
5458
54591259
546001:21:35,979 --> 01:21:37,523
5461- No.
5462- Just... Matt.
5463
54641260
546501:21:38,232 --> 01:21:39,316
5466Don't talk like that.
5467
54681261
546901:21:40,901 --> 01:21:41,944
5470Hello?
5471
54721262
547301:21:42,694 --> 01:21:43,694
5474It's Florance.
5475
54761263
547701:21:45,197 --> 01:21:46,698
5478I've got four white customers here
5479
54801264
548101:21:46,782 --> 01:21:49,201
5482saying they wanna withdraw all their money
5483from the bank
5484
54851265
548601:21:49,284 --> 01:21:50,577
5487because they think it's owned
5488
54891266
549001:21:50,661 --> 01:21:53,705
5491by the National Association
5492for the Advancement of Colored People.
5493
54941267
549501:22:06,760 --> 01:22:08,470
5496This was on the door at Mainland.
5497
54981268
549901:22:10,347 --> 01:22:11,348
5500Subtle.
5501
55021269
550301:22:12,391 --> 01:22:16,103
5504Five white customers withdrew
5505all their money in the past two days.
5506
55071270
550801:22:16,478 --> 01:22:18,897
5509Nine were convinced by Florance to stay.
5510
55111271
551201:22:19,523 --> 01:22:20,524
5513Fitting.
5514
55151272
551601:22:20,607 --> 01:22:25,237
5517Considering Florance probably the one
5518who started and spread the rumors himself.
5519
55201273
552101:22:25,320 --> 01:22:27,239
5522What? Why would you say that?
5523
55241274
552501:22:28,657 --> 01:22:30,617
5526Told you long time ago, Bernard.
5527
55281275
552901:22:30,701 --> 01:22:31,702
5530I don't trust people.
5531
55321276
553301:22:32,619 --> 01:22:34,580
5534Especially white people. I remember.
5535
55361277
553701:22:34,663 --> 01:22:38,667
5538No, what I said was white and black.
5539
55401278
554101:22:38,750 --> 01:22:42,004
5542The difference is,
5543when a white person screws you over,
5544
55451279
554601:22:42,087 --> 01:22:45,299
5547they can count on other white folks
5548out there to look the other way.
5549
55501280
555101:22:45,382 --> 01:22:48,760
5552And just knowing that
5553brings out the worst in people.
5554
55551281
555601:22:49,970 --> 01:22:53,348
5557How can you be so pessimistic
5558and still get out the bed in the morning?
5559
55601282
556101:22:54,433 --> 01:22:56,894
5562Even a rigged game's fun to play, Bernard.
5563
55641283
556501:23:06,695 --> 01:23:07,696
5566Matt Steiner?
5567
55681284
556901:23:08,530 --> 01:23:09,698
5570Yes.
5571
55721285
557301:23:09,781 --> 01:23:12,743
5574I'm an examiner with the office
5575of the Comptroller of the Currency.
5576
55771286
557801:23:14,620 --> 01:23:15,704
5579How can I help you?
5580
55811287
558201:23:24,421 --> 01:23:25,422
5583Hello?
5584
55851288
558601:23:25,506 --> 01:23:27,841
5587A federal bank examiner
5588just left my office.
5589
55901289
559101:23:27,925 --> 01:23:29,635
5592<i>I thought that wasn't until next month.</i>
5593
55941290
559501:23:29,718 --> 01:23:31,470
5596No, I meant Marlin, not Mainland.
5597
55981291
559901:23:33,764 --> 01:23:34,890
5600What did he say?
5601
56021292
560301:23:35,766 --> 01:23:38,227
5604To get the master books out.
5605He's coming back in an hour.
5606
56071293
560801:23:39,811 --> 01:23:40,812
5609Shit.
5610
56111294
561201:23:42,898 --> 01:23:43,941
5613This can't be chance.
5614
56151295
561601:23:44,024 --> 01:23:45,192
5617Matt's not ready.
5618
56191296
562001:23:45,275 --> 01:23:46,276
5621Well, how could he be?
5622
56231297
562401:23:46,360 --> 01:23:47,778
5625And he's gonna get tripped up.
5626
56271298
562801:23:47,861 --> 01:23:49,154
5629We can't let that happen.
5630
56311299
563201:23:49,238 --> 01:23:53,075
5633I'd have to be sitting in the room next to
5634him the whole time for it not to happen.
5635
56361300
563701:23:53,158 --> 01:23:55,244
5638And I can't exactly do that, now can I?
5639
56401301
564101:23:55,327 --> 01:23:57,246
5642Well, you could do something close to it.
5643
56441302
564501:23:59,498 --> 01:24:01,083
5646There's gotta be another way.
5647
56481303
564901:24:03,961 --> 01:24:06,672
5650Well, Joe's not too proud
5651to put on a chauffeur's uniform.
5652
56531304
565401:24:06,755 --> 01:24:09,424
5655Well, Joe was born
5656with a silver spoon in his mouth.
5657
56581305
565901:24:09,508 --> 01:24:11,051
5660For him it's like playing dress-up.
5661
56621306
566301:24:11,134 --> 01:24:13,804
5664Well, I wasn't.
5665I was barely born with a spoon.
5666
56671307
566801:24:13,887 --> 01:24:16,557
5669How many times have I worn this uniform
5670to help this business?
5671
56721308
567301:24:16,640 --> 01:24:17,641
5674You're...
5675
56761309
567701:24:18,183 --> 01:24:19,685
5678- A woman?
5679- Yeah.
5680
56811310
568201:24:21,895 --> 01:24:22,771
5683I love you, Bernard.
5684
56851311
568601:24:22,855 --> 01:24:24,791
5687But how is that any different
5688from a white man telling you
5689
56901312
569101:24:24,815 --> 01:24:26,900
5692you shouldn't mind
5693some daily assault on your dignity
5694
56951313
569601:24:26,984 --> 01:24:27,985
5697because you're black?
5698
56991314
570001:25:28,128 --> 01:25:30,506
5701Should've took limo driver
5702when you had the chance.
5703
57041315
570501:25:31,757 --> 01:25:34,510
5706I don't like what hats do
5707to the shape of my face.
5708
57091316
571001:25:35,219 --> 01:25:36,845
5711You made an actual joke.
5712
57131317
571401:25:36,929 --> 01:25:38,931
5715Well, what else can I do
5716in this situation?
5717
57181318
571901:25:40,724 --> 01:25:43,185
5720See, you find out how life really works,
5721
57221319
572301:25:44,269 --> 01:25:45,646
5724can't do nothing but laugh.
5725
57261320
572701:25:49,566 --> 01:25:51,944
5728You sure you don't want
5729a coffee or anything?
5730
57311321
573201:25:52,027 --> 01:25:53,028
5733No, thank you.
5734
57351322
573601:25:53,111 --> 01:25:54,655
5737A cold water maybe?
5738
57391323
574001:25:54,738 --> 01:25:56,615
5741As of close of business Friday,
5742
57431324
574401:25:56,698 --> 01:26:00,285
5745the total number of loans delinquent
5746beyond 60 days was under 5%?
5747
57481325
574901:26:01,703 --> 01:26:02,704
5750Yes.
5751
57521326
575301:26:02,788 --> 01:26:04,206
5754What was the exact percentage?
5755
57561327
575701:26:07,125 --> 01:26:08,418
57583%.
5759
57601328
576101:26:17,886 --> 01:26:21,473
5762We are discussing
5763confidential information.
5764
57651329
576601:26:21,932 --> 01:26:23,851
5767I'm sure the janitor
5768wouldn't understand it.
5769
57701330
577101:26:23,934 --> 01:26:25,102
5772Someone else might.
5773
57741331
577501:26:29,481 --> 01:26:31,066
5776Take me through this transaction.
5777
57781332
577901:26:31,775 --> 01:26:35,362
5780That's a package of loans we bought
5781to increase our loan-to-capital ratio.
5782
57831333
578401:26:37,865 --> 01:26:38,866
5785He's in trouble.
5786
57871334
578801:26:41,702 --> 01:26:43,537
5789I can read the description myself.
5790
57911335
579201:26:43,620 --> 01:26:45,914
5793I'm curious about this related charge.
5794
57951336
579601:26:45,998 --> 01:26:52,129
5797$189,186.04
5798to Valley National Mortgage Company.
5799
58001337
580101:26:52,713 --> 01:26:54,381
5802There's no description for that.
5803
58041338
580501:26:54,882 --> 01:26:56,175
5806It's a broker's fee.
5807
58081339
580901:26:58,010 --> 01:27:04,433
5810$189,000 as a finder's fee
5811for a $971,000 package of loans
5812
58131340
581401:27:05,017 --> 01:27:06,935
5815sitting in an aggregator's office
5816in Houston?
5817
58181341
581901:27:07,603 --> 01:27:09,146
5820That's a pretty hefty finder's fee.
5821
58221342
582301:27:09,771 --> 01:27:14,234
5824No, 19.5%, but that includes payment
5825for future consultation.
5826
58271343
582801:27:14,776 --> 01:27:16,612
5829Well, that's a strange arrangement.
5830
58311344
583201:27:16,695 --> 01:27:18,113
5833Mr. Garrett and Mr. Morris?
5834
58351345
583601:27:18,197 --> 01:27:20,449
5837Is that something that should concern you?
5838
58391346
584001:27:20,532 --> 01:27:22,618
5841Aren't you here
5842to make sure my bank is sound?
5843
58441347
584501:27:23,869 --> 01:27:25,913
5846Okay, let's turn to the loans themselves.
5847
58481348
584901:27:26,997 --> 01:27:30,834
5850You paid $971,213 for these loans.
5851
58521349
585301:27:30,918 --> 01:27:33,128
5854You have them valued as such
5855on your books.
5856
58571350
585801:27:33,212 --> 01:27:34,546
5859Yes, of course.
5860
58611351
586201:27:34,630 --> 01:27:37,966
5863Show me the methodology you used
5864to justify that book value.
5865
58661352
586701:27:39,635 --> 01:27:41,011
5868I have an expert to do that.
5869
58701353
587101:27:41,094 --> 01:27:42,179
5872Bring him in, please.
5873
58741354
587501:27:44,389 --> 01:27:45,432
5876He's not in today.
5877
58781355
587901:27:50,479 --> 01:27:53,273
5880But I can check his files.
5881
58821356
588301:27:53,774 --> 01:27:54,900
5884Please.
5885
58861357
588701:28:08,872 --> 01:28:12,668
5888He wants to know the exact methodology
5889we used to value the loans in the package.
5890
58911358
589201:28:12,751 --> 01:28:13,752
5893Okay.
5894
58951359
589601:28:14,545 --> 01:28:15,546
5897Pay attention.
5898
58991360
590001:28:16,588 --> 01:28:18,549
5901It's a standard present value equation.
5902
59031361
590401:28:19,550 --> 01:28:22,636
5905This is an individual loan's
5906monthly payment schedule.
5907
59081362
590901:28:22,719 --> 01:28:25,347
5910Now, adjust that
5911with the risk factor for default.
5912
59131363
591401:28:25,430 --> 01:28:27,516
5915Standard 5% in Texas.
5916
59171364
591801:28:27,975 --> 01:28:28,976
5919That's what I used.
5920
59211365
592201:28:30,018 --> 01:28:31,144
5923Tear that out for me.
5924
59251366
592601:28:31,228 --> 01:28:33,122
5927You can't go in the room
5928with that piece of paper.
5929
59301367
593101:28:33,146 --> 01:28:34,773
5932It's got Bernard's handwriting on it.
5933
59341368
593501:28:34,857 --> 01:28:35,875
5936- Memorize it.
5937- No, I can't.
5938
59391369
594001:28:35,899 --> 01:28:38,110
5941Sure you can. You got a great memory.
5942
59431370
594401:28:38,193 --> 01:28:39,069
5945No, I'm too nervous.
5946
59471371
594801:28:39,152 --> 01:28:40,279
5949Hey, listen.
5950
59511372
595201:28:40,362 --> 01:28:43,282
5953You fail this test
5954and he's gonna write down those loans
5955
59561373
595701:28:43,365 --> 01:28:45,125
5958and it'll threaten
5959the stability of the bank.
5960
59611374
596201:28:45,158 --> 01:28:46,158
5963Your bank.
5964
59651375
596601:28:46,618 --> 01:28:47,703
5967This is your bank, Matt.
5968
59691376
597001:28:47,786 --> 01:28:50,205
5971Now, pull it together
5972and go out there and save it.
5973
59741377
597501:28:52,082 --> 01:28:53,709
5976Okay, let me see that one more time.
5977
59781378
597901:28:59,256 --> 01:29:02,426
5980Okay, I have the methodology.
5981
59821379
598301:29:02,509 --> 01:29:03,594
5984Put a pin in that.
5985
59861380
598701:29:03,677 --> 01:29:06,305
5988I found problems with individual loans
5989while you were gone.
5990
59911381
599201:29:06,972 --> 01:29:09,099
5993I valued those loans conservatively.
5994
59951382
599601:29:09,516 --> 01:29:10,809
5997We didn't do anything wrong.
5998
59991383
600001:29:10,893 --> 01:29:14,354
6001They wanna shut us down,
6002they got plenty ways they can do that.
6003
60041384
600501:29:14,771 --> 01:29:16,773
6006"5% default rate?
6007
60081385
600901:29:17,649 --> 01:29:20,152
6010Hell. What if there's a drought?
6011
60121386
601301:29:20,235 --> 01:29:22,571
6014You niggers need to value them loans
6015
60161387
601701:29:22,654 --> 01:29:26,575
6018assuming there's gonna be
6019a once-in-a-generation drought.
6020
60211388
602201:29:27,075 --> 01:29:29,661
602325% default rate for y'all."
6024
60251389
602601:29:31,705 --> 01:29:34,208
6027This loan's gonna have to be
6028sold off immediately.
6029
60301390
603101:29:35,375 --> 01:29:36,710
6032And this one.
6033
60341391
603501:29:37,127 --> 01:29:39,087
6036And this one.
6037
60381392
603901:29:39,171 --> 01:29:41,215
6040Why? Why? What's wrong with them?
6041
60421393
604301:29:41,298 --> 01:29:43,175
6044Well, that loan is for $21,000.
6045
60461394
604701:29:43,258 --> 01:29:45,844
6048Your capital account is $200,000.
6049
60501395
605101:29:45,928 --> 01:29:46,929
6052Okay.
6053
60541396
605501:29:49,139 --> 01:29:51,391
6056You don't understand why that's a problem,
6057do you?
6058
60591397
606001:29:52,935 --> 01:29:57,439
6061The National Banking Act specifies that no
6062bank shall have a single loan on the books
6063
60641398
606501:29:57,523 --> 01:29:59,858
6066that exceeds 10% of equity capital.
6067
60681399
606901:29:59,942 --> 01:30:02,069
6070Or $20,000 in this case.
6071
60721400
607301:30:02,986 --> 01:30:03,986
6074Right.
6075
60761401
607701:30:07,574 --> 01:30:09,284
6078Okay, but this one's only 4,000.
6079
60801402
608101:30:09,368 --> 01:30:11,578
6082It's for a 25-year term.
6083Same with this one.
6084
60851403
608601:30:13,080 --> 01:30:15,582
6087A bank of this size
6088is limited to 20-year terms.
6089
60901404
609101:30:16,750 --> 01:30:20,879
6092And this loan is legal on its face,
6093but it's three months delinquent.
6094
60951405
609601:30:21,797 --> 01:30:24,716
6097I'm not gonna require you to sell it,
6098but I'm gonna classify it.
6099
61001406
610101:30:24,800 --> 01:30:27,135
6102Take its value down on your books by 40%
6103
61041407
610501:30:27,219 --> 01:30:29,137
6106to account for the elevated risk
6107of default.
6108
61091408
611001:30:35,394 --> 01:30:38,146
6111Hold on. I'll be right back.
6112
61131409
611401:30:43,569 --> 01:30:45,612
6115How the hell
6116did these loans get in the package?
6117
61181410
611901:30:45,696 --> 01:30:47,573
6120- I don't know.
6121- Unacceptable.
6122
61231411
612401:30:47,656 --> 01:30:49,658
6125I looked over every individual loan, Matt.
6126
61271412
612801:30:49,741 --> 01:30:52,578
6129There was nothing over $20,000.
6130Nothing over 20 years.
6131
61321413
613301:30:52,661 --> 01:30:54,913
6134Did you look at the loans
6135when you picked them up?
6136
61371414
613801:30:55,581 --> 01:30:57,666
6139Did you look at the goddamn loans?
6140
61411415
614201:30:57,749 --> 01:30:59,909
6143Yes, I looked through them.
6144Maybe not carefully enough.
6145
61461416
614701:30:59,960 --> 01:31:00,961
6148I read the top sheet...
6149
61501417
615101:31:01,044 --> 01:31:02,171
6152Unbelievable.
6153
61541418
615501:31:02,713 --> 01:31:04,381
6156Well, they can't lie on the top sheet.
6157
61581419
615901:31:04,464 --> 01:31:07,050
6160Matt, there aren't any limiters.
6161
61621420
616301:31:07,134 --> 01:31:07,926
6164What?
6165
61661421
616701:31:08,010 --> 01:31:10,929
6168There isn't anything on this top sheet
6169about individual loan limits,
6170
61711422
617201:31:11,013 --> 01:31:12,598
6173dollar amounts or durations.
6174
61751423
617601:31:12,681 --> 01:31:13,932
6177They're all averages.
6178
61791424
618001:31:15,142 --> 01:31:16,268
6181They didn't lie.
6182
61831425
618401:31:16,351 --> 01:31:18,270
6185They just hid the shit in the averages.
6186
61871426
618801:31:18,353 --> 01:31:20,689
6189How the hell did our lawyer miss that?
6190
61911427
619201:31:21,315 --> 01:31:23,400
6193- I couldn't use O'Keefe.
6194- What?
6195
61961428
619701:31:23,483 --> 01:31:26,163
6198Bernard checked the properties so fast
6199I moved up the purchase date.
6200
62011429
620201:31:26,236 --> 01:31:28,047
6203O'Keefe couldn't make it,
6204so I hired someone else.
6205
62061430
620701:31:28,071 --> 01:31:29,671
6208- How did you find him?
6209- I asked around.
6210
62111431
621201:31:29,698 --> 01:31:32,075
6213You asked... He asked around.
6214What the hell's that mean?
6215
62161432
621701:31:32,159 --> 01:31:34,912
6218We told you you weren't ready
6219to run your own bank. We told you.
6220
62211433
622201:31:34,995 --> 01:31:36,830
6223You forced our hand. Now here we are.
6224
62251434
622601:31:36,914 --> 01:31:37,915
6227Whoa, whoa, whoa.
6228
62291435
623001:31:38,624 --> 01:31:43,295
6231Who exactly did you ask
6232to find this lawyer?
6233
62341436
623501:31:45,672 --> 01:31:46,673
6236Who, Matt?
6237
62381437
623901:31:47,508 --> 01:31:48,509
6240Florance.
6241
62421438
624301:31:49,593 --> 01:31:50,719
6244Florance?
6245
62461439
624701:31:51,303 --> 01:31:52,888
6248You asked Florance?
6249
62501440
625101:31:54,264 --> 01:31:56,558
6252He switched the goddamn mortgages.
6253
62541441
625501:31:56,642 --> 01:31:57,809
6256Why? Why would he do that?
6257
62581442
625901:31:57,893 --> 01:31:59,228
6260To kill Marlin.
6261
62621443
626301:31:59,311 --> 01:32:03,023
6264And the worst part is I have to learn
6265about it here, in this ridiculous outfit,
6266
62671444
626801:32:03,106 --> 01:32:04,274
6269that you helped him do it!
6270
62711445
627201:32:04,358 --> 01:32:05,901
6273No, that's gotta be illegal, right?
6274
62751446
627601:32:06,902 --> 01:32:08,487
6277What does he get from that, anyway?
6278
62791447
628001:32:08,570 --> 01:32:09,988
6281Leverage.
6282
62831448
628401:32:10,072 --> 01:32:12,282
6285Against us at Mainland.
6286
62871449
628801:32:13,075 --> 01:32:14,868
6289Or maybe just to watch us fail.
6290
62911450
629201:32:24,127 --> 01:32:29,883
6293We have to sell 27 bad loans in a week
6294and cover all the markdowns ourselves.
6295
62961451
629701:32:31,176 --> 01:32:33,053
6298We're gonna lose $300,000,
6299
63001452
630101:32:33,136 --> 01:32:38,308
6302unless Matt Steiner can make Marlin
6303the most successful bank in Texas history.
6304
63051453
630601:32:41,854 --> 01:32:43,647
6307Or you could let it close.
6308
63091454
631001:32:45,899 --> 01:32:47,359
6311Matt got you here, you didn't.
6312
63131455
631401:32:47,442 --> 01:32:49,570
6315No, I did.
6316
63171456
631801:32:50,404 --> 01:32:54,074
6319Soon as I thought I was clever enough
6320to come down here and take on all of this.
6321
63221457
632301:32:54,867 --> 01:32:55,909
6324Joe warned me.
6325
63261458
632701:32:57,035 --> 01:32:58,036
6328You warned me.
6329
63301459
633101:33:00,497 --> 01:33:02,499
6332My daddy warned me when I was 13.
6333
63341460
633501:33:07,004 --> 01:33:10,465
6336If this was easy, somebody else
6337would have done it a long time ago.
6338
63391461
634001:33:16,263 --> 01:33:18,098
6341So, you're just gonna walk away from it?
6342
63431462
634401:33:18,640 --> 01:33:20,184
6345It's the only rational thing to do.
6346
63471463
634801:33:20,267 --> 01:33:21,727
6349No, we could sue the bastards.
6350
63511464
635201:33:21,810 --> 01:33:25,147
6353You signed a document saying
6354you knew exactly what you were buying.
6355
63561465
635701:33:25,230 --> 01:33:27,065
6358But the lawyer lied to me. We can sue him.
6359
63601466
636101:33:27,149 --> 01:33:29,318
6362Maybe you can, Matt, but we can't.
6363
63641467
636501:33:29,943 --> 01:33:32,654
6366Me and Bernard can't win that case,
6367not in Texas.
6368
63691468
637001:33:33,197 --> 01:33:36,241
6371Plus, Marlin will be gone by then anyway.
6372
63731469
637401:33:36,325 --> 01:33:39,036
6375I'm not gonna lose Marlin.
6376There's gotta be something I can do.
6377
63781470
637901:33:39,119 --> 01:33:40,120
6380Look, I'm sorry, Matt.
6381
63821471
638301:33:40,204 --> 01:33:43,081
6384I know it was your baby,
6385but I need you to focus on Mainland now.
6386
63871472
638801:33:45,459 --> 01:33:46,460
6389Well, how?
6390
63911473
639201:33:46,543 --> 01:33:47,961
6393Keep an eye on Florance.
6394
63951474
639601:33:48,045 --> 01:33:50,172
6397And make sure when white folks
6398come in that bank,
6399
64001475
640101:33:50,255 --> 01:33:52,591
6402they see a white man
6403in the president's office
6404
64051476
640601:33:52,674 --> 01:33:54,468
6407so they won't pull their deposits.
6408
64091477
641001:34:15,322 --> 01:34:16,532
6411Garrett residence.
6412
64131478
641401:34:17,074 --> 01:34:19,201
6415Yes, he's here. Just a moment.
6416
64171479
641801:34:19,701 --> 01:34:21,161
6419Joe, it's for you.
6420
64211480
642201:34:23,330 --> 01:34:24,498
6423Yeah, this is Joe.
6424
64251481
642601:34:24,581 --> 01:34:25,642
6427You didn't hear this from me,
6428
64291482
643001:34:25,666 --> 01:34:29,044
6431but I got a friend at the Comptroller's
6432office who kind of looks out for me.
6433
64341483
643501:34:29,753 --> 01:34:30,921
6436Called me yesterday to say
6437
64381484
643901:34:31,004 --> 01:34:34,091
6440Matt Steiner managed to get all
6441"must sell" loans off Marlin's books.
6442
64431485
644401:34:34,591 --> 01:34:35,425
6445That don't matter,
6446
64471486
644801:34:35,509 --> 01:34:38,071
6449'cause we decided we ain't gonna
6450put no more money in there anyhow.
6451
64521487
645301:34:38,095 --> 01:34:39,805
6454At face value. No discount.
6455
64561488
645701:34:39,888 --> 01:34:42,516
6458Which means Marlin's in the black again,
6459fully solvent...
6460
64611489
646201:34:43,725 --> 01:34:45,018
6463without capital from you.
6464
64651490
646601:34:46,019 --> 01:34:49,273
6467Who the hell would pay face value
6468for those piece of shit loans?
6469
64701491
647101:34:49,898 --> 01:34:51,817
6472Mainland bank in Willis, Texas.
6473
64741492
647501:34:51,900 --> 01:34:53,026
6476Say what?
6477
64781493
647901:34:53,569 --> 01:34:55,404
6480Son of a bitch!
6481
64821494
648301:35:18,927 --> 01:35:20,220
6484What the hell are you doing?
6485
64861495
648701:35:20,304 --> 01:35:21,889
6488You had Mainland pay face value
6489
64901496
649101:35:21,972 --> 01:35:24,558
6492for the loans the feds
6493already had you mark down at Marlin?
6494
64951497
649601:35:24,641 --> 01:35:25,809
6497It's just temporary.
6498
64991498
650001:35:25,893 --> 01:35:28,145
6501- It's fraud.
6502- No, if we classify them differently...
6503
65041499
650501:35:28,228 --> 01:35:31,064
6506If you keep this up,
6507you're gonna sink both banks, Matt.
6508
65091500
651001:35:31,815 --> 01:35:32,941
6511Get the books.
6512
65131501
651401:35:33,609 --> 01:35:35,944
6515- Shouldn't we wait until...
6516- Get the goddamn books now.
6517
65181502
651901:35:54,922 --> 01:35:57,090
6520All I did was transfer the...
6521
65221503
652301:35:57,174 --> 01:35:59,551
6524Matthew Steiner,
6525president of Mainland Bank?
6526
65271504
652801:36:00,761 --> 01:36:01,762
6529- Yes.
6530- I'm Norman Dunn,
6531
65321505
653301:36:01,845 --> 01:36:04,765
6534Deputy Comptroller of the Currency
6535for the Southern District.
6536
65371506
653801:36:04,848 --> 01:36:08,101
6539The Treasury Department has revoked
6540Mainland's license to do banking.
6541
65421507
654301:36:08,185 --> 01:36:11,897
6544Your bank is being placed in FDIC
6545receivership per the National Banking Act.
6546
65471508
654801:36:11,980 --> 01:36:13,899
6549This is Mr. Amos of the FDIC.
6550
65511509
655201:36:14,316 --> 01:36:16,610
6553Mr. Steiner, you're fired.
6554
65551510
655601:36:16,693 --> 01:36:18,546
6557I'm going to need to escort you
6558from the building now.
6559
65601511
656101:36:18,570 --> 01:36:20,531
6562Please leave the ledgers where they are.
6563
65641512
656501:36:22,950 --> 01:36:24,159
6566Ladies and gentlemen,
6567
65681513
656901:36:24,243 --> 01:36:28,288
6570the United States Treasury Department
6571has closed this bank until further notice.
6572
65731514
657401:36:28,372 --> 01:36:32,459
6575All deposits up to $10,000
6576are insured by the federal government.
6577
65781515
657901:36:32,543 --> 01:36:36,380
6580Upon FDIC review of the bank's books,
6581your money will be returned to you.
6582
65831516
658401:36:36,880 --> 01:36:38,799
6585The building is now closed to the public.
6586
65871517
658801:36:38,882 --> 01:36:40,968
6589We must ask that you leave.
6590
65911518
659201:36:50,644 --> 01:36:53,188
6593I'm so sorry.
6594I thought that I could save both...
6595
65961519
659701:36:53,272 --> 01:36:54,314
6598Get out of my face.
6599
66001520
660101:36:55,065 --> 01:36:57,192
6602- Bernard Garrett and Joseph Morris?
6603- Yes.
6604
66051521
660601:36:57,276 --> 01:36:59,111
6607- FBI. You're under arrest.
6608- For what?
6609
66101522
661101:36:59,194 --> 01:37:00,338
6612Turn around and face the wall.
6613
66141523
661501:37:00,362 --> 01:37:02,757
6616No. What are we under arrest for?
6617What did we do that's illegal?
6618
66191524
662001:37:02,781 --> 01:37:04,008
6621- The judge will tell you that.
6622- No, screw the judge.
6623
66241525
662501:37:04,032 --> 01:37:05,885
6626- You tell me what we did that's illegal.
6627- Bernard.
6628
66291526
663001:37:05,909 --> 01:37:07,220
6631- What's he complaining about?
6632- I get it.
6633
66341527
663501:37:07,244 --> 01:37:10,098
6636A black man makes some money and it's okay
6637as long as he keeps to himself.
6638
66391528
664001:37:10,122 --> 01:37:12,433
6641But if he try to bring other brothers up,
6642that's intolerable.
6643
66441529
664501:37:12,457 --> 01:37:14,126
6646This is happening, Mr. Garrett.
6647
66481530
664901:37:14,209 --> 01:37:17,379
6650The only question to ask yourself
6651is do you want to get hurt fighting it?
6652
66531531
665401:37:18,255 --> 01:37:20,257
6655- Hey, get off of him!
6656- Bernard, no! No!
6657
66581532
665901:37:25,262 --> 01:37:26,263
6660Come on.
6661
66621533
666301:37:36,899 --> 01:37:40,068
6664<i>The state banking charges
6665have all been dropped.</i>
6666
66671534
666801:37:40,152 --> 01:37:43,822
6669The federal charges,
6670however, are all still in place.
6671
66721535
667301:37:44,656 --> 01:37:48,410
6674Now, it's my feeling
6675that we're in a political space here.
6676
66771536
667801:37:48,785 --> 01:37:50,454
6679So if we play our cards right,
6680
66811537
668201:37:50,954 --> 01:37:53,332
6683we'll be able to get
6684those charges dropped as well.
6685
66861538
668701:37:53,415 --> 01:37:54,499
6688Political how?
6689
66901539
669101:37:55,334 --> 01:37:57,503
6692Well, Senator John McClellan of Arkansas
6693
66941540
669501:37:57,586 --> 01:38:01,632
6696is holding a set of hearings
6697on federally funded banks.
6698
66991541
670001:38:01,715 --> 01:38:07,221
6701The goal seems to be to shit all over
6702the so-called "lax oversight"
6703
67041542
670501:38:07,304 --> 01:38:09,139
6706that our Treasury provides,
6707
67081543
670901:38:09,723 --> 01:38:13,685
6710so as to justify his committee
6711expanding its jurisdiction.
6712
67131544
671401:38:13,769 --> 01:38:18,106
6715Thereby ensuring a steady stream
6716of campaign donations
6717
67181545
671901:38:18,190 --> 01:38:20,734
6720and favors from the banking industry.
6721
67221546
672301:38:20,817 --> 01:38:22,819
6724So, what does that have to do with me?
6725
67261547
672701:38:22,903 --> 01:38:24,988
6728You want the stated
6729or the unstated version?
6730
67311548
673201:38:26,365 --> 01:38:27,366
6733Unstated.
6734
67351549
673601:38:27,449 --> 01:38:29,243
6737"We need to change these laws.
6738
67391550
674001:38:29,326 --> 01:38:30,619
6741And I mean quick!
6742
67431551
674401:38:30,702 --> 01:38:35,290
6745Or niggers like these can own banks
6746and loan money to other niggers."
6747
67481552
674901:38:35,374 --> 01:38:36,375
6750That.
6751
67521553
675301:38:37,376 --> 01:38:39,044
6754On the bright side, Bernard,
6755
67561554
675701:38:39,127 --> 01:38:42,881
6758'cause we fit so neatly
6759into McClellan's power grab,
6760
67611555
676201:38:43,382 --> 01:38:47,845
6763the whole country's talkin' about
6764how two Negroes managed to buy two banks
6765
67661556
676701:38:47,928 --> 01:38:52,057
6768full of white folks' money in Texas
6769and loan it to other Negroes.
6770
67711557
677201:38:52,432 --> 01:38:55,769
6773I thought McClellan was one of the first
6774people to stand up to McCarthyism.
6775
67761558
677701:38:55,853 --> 01:38:56,687
6778He was.
6779
67801559
678101:38:56,770 --> 01:38:58,856
6782So he must be a decent man, right?
6783
67841560
678501:39:02,109 --> 01:39:06,196
6786You know, Bernard, I don't have
6787the ability to look into a man's soul.
6788
67891561
679001:39:07,406 --> 01:39:09,032
6791But I will tell you this...
6792
67931562
679401:39:09,616 --> 01:39:11,994
6795he means to make a point
6796with these hearings.
6797
67981563
679901:39:12,077 --> 01:39:14,162
6800And if you want
6801to help him make that point,
6802
68031564
680401:39:14,746 --> 01:39:19,710
6805I highly doubt that you're gonna have any
6806problem with any kind of criminal charges.
6807
68081565
680901:39:21,837 --> 01:39:23,547
6810So, where's Matt in all this?
6811
68121566
681301:39:23,630 --> 01:39:26,341
6814Now, that is a good question.
6815
68161567
681701:39:35,475 --> 01:39:37,019
6818My lawyer doesn't want me here.
6819
68201568
682101:39:38,020 --> 01:39:40,814
6822Then your lawyer doesn't have
6823your best interests at heart, Matt.
6824
68251569
682601:39:41,315 --> 01:39:44,026
6827Because we can make a deal here
6828that could save your life.
6829
68301570
683101:39:44,109 --> 01:39:45,319
6832How does that work exactly?
6833
68341571
683501:39:46,570 --> 01:39:47,571
6836You're gonna...
6837
68381572
683901:39:48,155 --> 01:39:50,574
6840give me back my money? My house?
6841
68421573
684301:39:51,658 --> 01:39:52,868
6844Hardly.
6845
68461574
684701:39:52,951 --> 01:39:55,037
6848But I can give you immunity.
6849
68501575
685101:39:55,495 --> 01:39:57,623
6852And you might avoid
6853being called to account
6854
68551576
685601:39:58,248 --> 01:40:01,001
6857for lying to the public
6858on 23 separate occasions
6859
68601577
686101:40:01,084 --> 01:40:04,171
6862about the true ownership
6863of the Mainland and Marlin banks.
6864
68651578
686601:40:05,172 --> 01:40:08,091
6867Fraudulently valuing loans in these banks.
6868
68691579
687001:40:09,134 --> 01:40:13,263
6871Illegally transferring said loans
6872between the banks in question.
6873
68741580
687501:40:16,850 --> 01:40:18,101
6876It's an easy story to tell,
6877
68781581
687901:40:18,894 --> 01:40:22,105
6880how these two men manipulated you,
6881
68821582
688301:40:23,190 --> 01:40:27,402
6884used you to make money by duping everyday
6885citizens into thinking you were the boss,
6886
68871583
688801:40:27,486 --> 01:40:30,948
6889when really it was
6890two Negroes pulling the strings.
6891
68921584
689301:40:32,908 --> 01:40:35,327
6894But they didn't force me
6895to do the things I did.
6896
68971585
689801:40:36,286 --> 01:40:37,955
6899They were careful to follow the law.
6900
69011586
690201:40:38,038 --> 01:40:40,499
6903You won't find any evidence
6904that they committed a crime.
6905
69061587
690701:40:40,874 --> 01:40:42,793
6908See, that's the thing about banking crime,
6909
69101588
691101:40:43,794 --> 01:40:45,712
6912there's always a subjective element to it.
6913
69141589
691501:40:46,797 --> 01:40:47,840
6916Now,
6917
69181590
691901:40:48,465 --> 01:40:51,134
6920these two Negroes earned...
6921
69221591
692301:40:52,886 --> 01:40:55,681
6924189,000 between the two of them,
6925
69261592
692701:40:56,682 --> 01:41:02,521
6928off a $971,000 purchase of mortgages
6929that in fact were worth 663,000.
6930
69311593
693201:41:02,604 --> 01:41:06,483
6933See, that is a misuse of bank funds
6934in my book.
6935
69361594
693701:41:07,484 --> 01:41:09,152
6938And a misuse of bank funds is a crime.
6939
69401595
694101:41:09,236 --> 01:41:10,737
6942It's more complicated than that.
6943
69441596
694501:41:10,821 --> 01:41:12,406
6946I don't think it is, Mr. Steiner.
6947
69481597
694901:41:13,907 --> 01:41:17,703
6950Unless you're telling me they didn't force
6951you to buy these dog-shit mortgages...
6952
69531598
695401:41:19,705 --> 01:41:23,083
6955so they could bilk the bank
6956of $189,000 of commission.
6957
69581599
695901:41:25,794 --> 01:41:27,212
6960Then maybe they are innocent
6961
69621600
696301:41:28,964 --> 01:41:31,049
6964and maybe
6965someone else needs to go to prison.
6966
69671601
696801:41:39,057 --> 01:41:41,059
6969I'm really sorry I ever brought him in.
6970
69711602
697201:41:41,143 --> 01:41:42,561
6973You didn't force me to hire him.
6974
69751603
697601:41:43,061 --> 01:41:45,189
6977Joe warned me a dozen times as well.
6978
69791604
698001:41:47,733 --> 01:41:49,526
6981Just wanted to believe in him, I guess.
6982
69831605
698401:41:52,112 --> 01:41:55,490
6985I hope whoever owns this place is taking
6986good care of you for the renovation.
6987
69881606
698901:41:58,493 --> 01:41:59,494
6990He is...
6991
69921607
699301:42:01,205 --> 01:42:02,206
6994'cause it's me.
6995
69961608
699701:42:05,626 --> 01:42:06,627
6998Yeah.
6999
70001609
700101:42:07,503 --> 01:42:09,046
7002Yeah.
7003
70041610
700501:42:28,690 --> 01:42:31,777
7006<i>So, it's your testimony that
7007you've always been under the direction</i>
7008
70091611
701001:42:31,860 --> 01:42:33,570
7011of Bernard Garrett and Joe Morris.
7012
70131612
701401:42:33,654 --> 01:42:34,780
7015Is that correct?
7016
70171613
701801:42:38,450 --> 01:42:39,701
7019It is. Yes.
7020
70211614
702201:42:40,619 --> 01:42:42,829
7023You ever refuse an order
7024from Garrett or Morris?
7025
70261615
702701:42:44,581 --> 01:42:48,752
7028For example, the initial purchase
7029of mortgages by the Marlin bank,
7030
70311616
703201:42:49,545 --> 01:42:54,132
7033for which Garrett and Morris
7034were compensated $189,000,
7035
70361617
703701:42:55,008 --> 01:42:58,887
7038or Mainland Bank's subsequent purchase
7039at grossly inflated prices
7040
70411618
704201:42:59,805 --> 01:43:01,640
7043of problem mortgages from Marlin?
7044
70451619
704601:43:04,768 --> 01:43:07,646
7047They were my employers.
7048I carried out their wishes to the letter.
7049
70501620
705101:43:51,607 --> 01:43:53,817
7052<i>I'm surprised
7053you requested this meeting, Melvin.</i>
7054
70551621
705601:43:54,651 --> 01:43:57,779
7057{\an8}It seemed my offer required
7058a simple answer, yes or no.
7059
70601622
706101:43:58,572 --> 01:44:00,908
7062{\an8}Especially given
7063how solid Steiner was today.
7064
70651623
706601:44:01,742 --> 01:44:03,869
7067Well, John, Bernard's not the kind of man
7068
70691624
707001:44:03,952 --> 01:44:06,705
7071to make a deal
7072without checking all the details.
7073
70741625
707501:44:08,624 --> 01:44:11,251
7076It seems to me
7077that a large part of his purported defense
7078
70791626
708001:44:11,335 --> 01:44:12,461
7081is that he did just that.
7082
70831627
708401:44:14,463 --> 01:44:17,424
7085You want me to put the banking rules
7086on trial in my testimony.
7087
70881628
708901:44:17,841 --> 01:44:19,259
7090I want you to tell the truth.
7091
70921629
709301:44:20,093 --> 01:44:21,720
7094Which should have that result, yes.
7095
70961630
709701:44:23,472 --> 01:44:26,934
7098The rules allowed you
7099to hide your identity from the public
7100
71011631
710201:44:27,017 --> 01:44:32,397
7103and take the successive actions that led
7104to two national banks becoming insolvent,
7105
71061632
710701:44:33,982 --> 01:44:37,778
7108risking the savings
7109of thousands of innocent depositors.
7110
71111633
711201:44:39,029 --> 01:44:40,906
7113You and I see the truth very differently.
7114
71151634
711601:44:42,741 --> 01:44:44,034
7117Son, I'm from Arkansas.
7118
71191635
712001:44:44,660 --> 01:44:48,121
7121You don't have to tell me that Negroes
7122sometimes get the short end of the stick.
7123
71241636
712501:44:48,580 --> 01:44:49,706
7126"Sometimes."
7127
71281637
712901:44:52,709 --> 01:44:54,169
7130We're not gonna change that here.
7131
71321638
713301:44:56,380 --> 01:44:59,633
7134The truth is, whatever obstacles
7135they put in your way,
7136
71371639
713801:44:59,716 --> 01:45:02,219
7139you kept your head down,
7140did your business,
7141
71421640
714301:45:02,594 --> 01:45:06,265
7144became one of the richest Negroes
7145in the country.
7146
71471641
714801:45:10,352 --> 01:45:12,187
7149You were living the American dream
7150
71511642
715201:45:14,398 --> 01:45:19,444
7153before you decided to go mucking around
7154with the social order in Texas.
7155
71561643
715701:45:21,572 --> 01:45:22,948
7158Might be a lesson there.
7159
71601644
716101:45:23,657 --> 01:45:24,741
7162You have a choice now.
7163
71641645
716501:45:26,827 --> 01:45:28,704
7166Take the immunity deal.
7167
71681646
716901:45:28,787 --> 01:45:32,457
7170Go in there and confirm
7171what Steiner just told us,
7172
71731647
717401:45:32,541 --> 01:45:37,880
7175that you took advantage of lax rules
7176in order to enrich yourself.
7177
71781648
717901:45:38,839 --> 01:45:42,092
7180And let Congress fix those rules,
7181and you'll be a free man.
7182
71831649
718401:45:43,177 --> 01:45:45,762
7185Or you can refuse the deal...
7186
71871650
718801:45:46,847 --> 01:45:48,015
7189and say whatever you want.
7190
71911651
719201:45:50,184 --> 01:45:51,185
7193But just know,
7194
71951652
719601:45:52,728 --> 01:45:58,400
7197after you're done saying your piece
7198about racism and the plight of the Negro,
7199
72001653
720101:45:58,483 --> 01:46:01,195
7202we're gonna compare your testimony
7203point for point
7204
72051654
720601:46:01,278 --> 01:46:03,322
7207with what we heard
7208from Steiner and Florance,
7209
72101655
721101:46:03,405 --> 01:46:05,157
7212and a whole bunch of other white people.
7213
72141656
721501:46:05,240 --> 01:46:08,994
7216Well, thank God the Constitution
7217doesn't make those types of distinctions.
7218
72191657
722001:46:10,120 --> 01:46:11,914
7221Well, at the end of all that,
7222
72231658
722401:46:11,997 --> 01:46:14,124
7225a determination will be made
7226by a court of law
7227
72281659
722901:46:14,208 --> 01:46:15,876
7230to decide who's telling the truth...
7231
72321660
723301:46:16,919 --> 01:46:17,920
7234and who's lying.
7235
72361661
723701:46:19,505 --> 01:46:21,006
7238And the liars are going to prison.
7239
72401662
724101:46:25,761 --> 01:46:27,763
7242Sure is pretty from the outside.
7243
72441663
724501:46:31,767 --> 01:46:32,893
7246Guess you were right.
7247
72481664
724901:46:33,685 --> 01:46:36,813
7250It was too early
7251for two Negroes to own a bank in Texas.
7252
72531665
725401:46:38,398 --> 01:46:39,399
7255Maybe.
7256
72571666
725801:46:39,983 --> 01:46:41,985
7259Or maybe you were right to do it now.
7260
72611667
726201:46:44,238 --> 01:46:45,322
7263Why?
7264
72651668
726601:46:47,783 --> 01:46:48,992
7267Look where you ended up.
7268
72691669
727001:46:51,620 --> 01:46:54,331
7271White people get to buy homes
7272and build businesses
7273
72741670
727501:46:54,414 --> 01:46:56,083
7276because banks will loan them money.
7277
72781671
727901:46:57,376 --> 01:46:58,669
7280Black people don't.
7281
72821672
728301:46:58,752 --> 01:47:01,755
7284And maybe it is time that someone
7285shine a bright light on that now,
7286
72871673
728801:47:02,339 --> 01:47:04,007
7289in order for things to change.
7290
72911674
729201:47:05,259 --> 01:47:09,012
7293Well, if I shine the light too bright,
7294McClellan will get rid of my immunity.
7295
72961675
729701:47:12,099 --> 01:47:13,809
7298What do you think I should do in there?
7299
73001676
730101:47:15,853 --> 01:47:18,021
7302Everyone thought I was crazy to marry you.
7303
73041677
730501:47:20,232 --> 01:47:22,776
7306You always thought differently
7307from everyone else.
7308
73091678
731001:47:24,403 --> 01:47:26,738
7311But that's why
7312I fell in love with you, Bernard.
7313
73141679
731501:47:27,906 --> 01:47:31,702
7316And whatever you decide to do
7317in there today is not gonna change that.
7318
73191680
732001:47:45,132 --> 01:47:46,842
7321Would you mind giving me a minute?
7322
73231681
732401:47:50,554 --> 01:47:52,806
7325Should I be jealous
7326you get to testify first?
7327
73281682
732901:47:52,890 --> 01:47:53,974
7330No, man.
7331
73321683
733301:47:54,808 --> 01:47:57,895
7334I'm just a warm-up act
7335for the criminal mastermind to follow.
7336
73371684
733801:47:59,146 --> 01:48:00,898
7339Well, they gonna be disappointed as hell
7340
73411685
734201:48:00,981 --> 01:48:02,983
7343because I plan to
7344blame all this shit on you.
7345
73461686
734701:48:03,066 --> 01:48:05,152
7348Damn. That was my plan too.
7349
73501687
735101:48:07,529 --> 01:48:09,406
7352You know, when I first laid eyes on you,
7353
73541688
735501:48:09,489 --> 01:48:12,951
7356I thought you were this uptight,
7357square-ass Negro
7358
73591689
736001:48:13,035 --> 01:48:15,329
7361who wouldn't know
7362whitey's hand was 'round his neck
7363
73641690
736501:48:15,412 --> 01:48:17,039
7366if he was staring at it in a mirror.
7367
73681691
736901:48:18,332 --> 01:48:20,292
7370Glad I made such a good first impression.
7371
73721692
737301:48:21,835 --> 01:48:22,836
7374Turns out,
7375
73761693
737701:48:23,754 --> 01:48:25,589
7378you a goddamn revolutionary.
7379
73801694
738101:48:27,049 --> 01:48:28,634
7382You know, when I first met you,
7383
73841695
738501:48:29,426 --> 01:48:32,012
7386I thought you were
7387an entitled playboy clown.
7388
73891696
739001:48:34,056 --> 01:48:35,098
7391Man,
7392
73931697
739401:48:36,558 --> 01:48:40,145
7395you saw things years before I did.
7396
73971698
739801:48:41,647 --> 01:48:42,731
7399Even about myself,
7400
74011699
740201:48:45,692 --> 01:48:47,110
7403five minutes after meeting me.
7404
74051700
740601:49:16,056 --> 01:49:18,517
7407Committee calls Bernard S. Garrett
7408to testify.
7409
74101701
741101:49:22,771 --> 01:49:25,107
7412Do you have his glasses?
7413He doesn't have his glasses.
7414
74151702
741601:49:25,190 --> 01:49:26,358
7417He doesn't need 'em.
7418
74191703
742001:49:26,859 --> 01:49:28,569
7421He's got to read his opening statement.
7422
74231704
742401:49:29,069 --> 01:49:31,864
7425He doesn't need his glasses. He never has.
7426
74271705
742801:49:34,449 --> 01:49:37,494
7429Mr. Garrett,
7430I think you understand the stakes.
7431
74321706
743301:49:41,915 --> 01:49:43,250
7434We'll take your statement now.
7435
74361707
743701:49:44,835 --> 01:49:45,919
7438Mr. Chairman.
7439
74401708
744101:49:46,795 --> 01:49:51,675
7442Our nation's founding documents declare
7443that "all men are created equal"
7444
74451709
744601:49:52,301 --> 01:49:54,052
7447and endeavor to create a society
7448
74491710
745001:49:54,136 --> 01:49:57,264
7451where citizens receive
7452the equal protection of our laws.
7453
74541711
745501:49:57,931 --> 01:49:59,057
7456It's a noble goal.
7457
74581712
745901:50:00,058 --> 01:50:03,604
7460But we all know,
7461for many citizens it's a lie.
7462
74631713
746401:50:05,814 --> 01:50:07,232
7465This hearing is supposed to be
7466
74671714
746801:50:07,316 --> 01:50:12,863
7469about uncovering and reforming
7470unsafe banking practices.
7471
74721715
747301:50:13,697 --> 01:50:14,907
7474But I think it's really about
7475
74761716
747701:50:14,990 --> 01:50:19,912
7478how on earth did two black men
7479pull off owning a bank in Texas.
7480
74811717
748201:50:19,995 --> 01:50:23,457
7483Mr. Garrett, I think you
7484should tread carefully now.
7485
74861718
748701:50:25,083 --> 01:50:27,044
7488Well, I can talk at length about that.
7489
74901719
749101:50:27,669 --> 01:50:30,839
7492Or I can sum it up with this.
7493
74941720
749501:50:33,800 --> 01:50:34,800
7496The dress code.
7497
74981721
749901:50:35,344 --> 01:50:37,137
7500Mr. Garrett, you are out of order, sir.
7501
75021722
750301:50:37,221 --> 01:50:38,639
7504- I'm not finished.
7505- Out of order.
7506
75071723
750801:50:38,722 --> 01:50:41,558
7509If you can't get a loan,
7510you can't own a home.
7511
75121724
751301:50:41,642 --> 01:50:42,722
7514You can't start a business.
7515
75161725
751701:50:42,768 --> 01:50:44,269
7518Mr. Garrett, you have been warned.
7519
75201726
752101:50:44,353 --> 01:50:46,980
7522- Which means you can't build wealth.
7523- Mr. Garrett!
7524
75251727
752601:50:47,064 --> 01:50:48,982
7527And you're excluded
7528from the American dream.
7529
75301728
753101:50:49,066 --> 01:50:50,692
7532Sergeant-at-arms, remove the witness.
7533
75341729
753501:50:50,776 --> 01:50:55,030
7536Why is it so important to you
7537to exclude an entire race of people
7538
75391730
754001:50:55,113 --> 01:50:56,657
7541from the American dream?
7542
75431731
754401:52:15,777 --> 01:52:17,654
7545Figures they'd let you out before me.
7546
75471732
754801:52:17,738 --> 01:52:19,948
7549Man, they couldn't wait
7550to get rid of my ass.
7551
75521733
755301:52:25,412 --> 01:52:26,622
7554Let's go home.
7555
75561734
755701:52:28,498 --> 01:52:29,791
7558They took 'em all, remember?
7559
75601735
756101:52:29,875 --> 01:52:31,126
7562Well, let's go somewhere.
7563
75641736
756501:52:34,630 --> 01:52:36,048
7566What are you two laughing about?
7567
75681737
756901:52:36,131 --> 01:52:37,382
7570They didn't take all of 'em.
7571
75721738
757301:52:37,466 --> 01:52:40,219
7574They didn't know about the two
7575we bought next door to each other
7576
75771739
757801:52:40,302 --> 01:52:41,303
7579in the Bahamas.
7580
75811740
758201:52:41,386 --> 01:52:42,386
7583What?
7584
75851741
758601:52:43,514 --> 01:52:44,973
7587Bernard, how did you do that?
7588
75891742
759001:52:47,601 --> 01:52:49,978
7591<i>Matt called me
7592the night before he testified.</i>
7593
75941743
759501:52:51,313 --> 01:52:52,606
7596<i>He was pretty broken up.</i>
7597
75981744
759901:53:01,740 --> 01:53:02,741
7600<i>Hello?</i>
7601
76021745
760301:53:03,367 --> 01:53:04,368
7604It's Matt.
7605
76061746
760701:53:06,620 --> 01:53:07,621
7608Can we talk?
7609
76101747
761101:53:08,872 --> 01:53:11,416
7612<i>He told me
7613he was facing 50 years in prison</i>
7614
76151748
761601:53:11,500 --> 01:53:13,710
7617<i>if he didn't say
7618what they wanted him to say.</i>
7619
76201749
762101:53:15,295 --> 01:53:17,297
7622<i>I told him to do what he had to do,</i>
7623
76241750
762501:53:18,841 --> 01:53:21,552
7626<i>but since the government
7627hadn't taken all of our money yet,</i>
7628
76291751
763001:53:25,639 --> 01:53:27,140
7631I asked him to do me a favor.