Too Big to Fail (2011)

Trader's Film Library #33 · The 2008 crisis. The 2008 crisis from the perspective of the people who tried to stop it.

Original title: Too Big to Fail · Type: TV film · Created by: Curtis Hanson · Usefulness for traders: ★★★★☆

What it's about

September 2008 from the inside: US Treasury Secretary Henry Paulson (William Hurt), the Fed chairman and the heads of the biggest banks try to prevent the system from collapsing after Lehman Brothers' bankruptcy. Based on the book by Andrew Ross Sorkin.

What it has to do with markets

The film shows the crisis from the perspective of regulators and CEOs: the lack of liquidity, panic in the interbank lending market, weekend takeover talks. It explains systemic risk well.

Lessons for traders

• liquidity disappears fastest when it's needed most
• weekend decisions can change Monday's open
• many institutions are interconnected: dominoes

What to watch out for

Lots of dialogue and names. It helps to know the basics before watching.

Discussion

The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →

Navigation

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The description outlines the plot without revealing the ending where possible (true stories have a known outcome). Educational content, not investment advice.