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1 00:00:03,987 00:00:09,466 [narrator] new york city: By the end of the 1970s, it was a city on its knees, [narrator] new york city: By the end of the 1970s, it was a city on its knees,
2 00:00:09,659 00:00:11,427 In a country that was losing its mind. In a country that was losing its mind.
3 00:00:11,536 00:00:13,012 [man] it's a war out on the street. [man] it's a war out on the street.
4 00:00:13,197 00:00:16,348 The american dream had become a nightmare, The american dream had become a nightmare,
5 00:00:16,534 00:00:20,728 And no place felt as rotten and as hopeless as new york. And no place felt as rotten and as hopeless as new york.
6 00:00:20,913 00:00:23,063 [man 2] they're gonna make a ghost town out of the city of new york. [man 2] they're gonna make a ghost town out of the city of new york.
7 00:00:23,249 00:00:28,944 [darryl mcdaniels] it was a war zone, without tanks and planes and people dropping bombs. [darryl mcdaniels] it was a war zone, without tanks and planes and people dropping bombs.
8 00:00:29,054 00:00:30,070 But, suddenly... But, suddenly...
9 00:00:30,847 00:00:32,948 [woman] happy new year! [woman] happy new year!
10 00:00:33,058 00:00:34,783 ...At the dawn of a new decade... ...At the dawn of a new decade...
11 00:00:34,893 00:00:36,618 [woman 2] it felt like really good sex. [woman 2] it felt like really good sex.
12 00:00:36,728 00:00:40,164 ...There was something else in the air: Opportunity. ...There was something else in the air: Opportunity.
13 00:00:40,357 00:00:41,999 [man 3] boom times. [man 3] boom times.
14 00:00:42,192 00:00:45,252 It was everywhere in the 80s, and five new yorkers pounced. It was everywhere in the 80s, and five new yorkers pounced.
15 00:00:45,788 00:00:49,048 [news reader] ivan boesky, wall street's biggest independent speculator, [news reader] ivan boesky, wall street's biggest independent speculator,
16 00:00:49,233 00:00:51,800 And according to forbes, one of the richest men in this country. And according to forbes, one of the richest men in this country.
17 00:00:51,910 00:00:55,387 One of the great things about this nation is that we can seek profit. One of the great things about this nation is that we can seek profit.
18 00:00:55,573 00:00:59,892 [news reader] leona helmsley, the emblem of the helmsley hotel empire. [news reader] leona helmsley, the emblem of the helmsley hotel empire.
19 00:01:00,210 00:01:02,811 [leona helmsley] I'm a dangerous character. Watch out, everybody. [leona helmsley] I'm a dangerous character. Watch out, everybody.
20 00:01:02,971 00:01:07,524 [news reader] trump, it's taking on new meaning; tycoon, billionaire, maverick. [news reader] trump, it's taking on new meaning; tycoon, billionaire, maverick.
21 00:01:07,717 00:01:09,318 [donald trump] the concept of what I'm trying to do, [donald trump] the concept of what I'm trying to do,
22 00:01:09,427 00:01:11,570 In terms of real estate, is the best. In terms of real estate, is the best.
23 00:01:11,755 00:01:14,990 [news reader] john gotti, alias the godfather, the boss. [news reader] john gotti, alias the godfather, the boss.
24 00:01:15,100 00:01:17,242 [john gotti] you guys [inaudible]. [john gotti] you guys [inaudible].
25 00:01:18,061 00:01:20,746 [news reader] giuliani has sewn himself into the fabric of this city. [news reader] giuliani has sewn himself into the fabric of this city.
26 00:01:20,931 00:01:22,706 [rudolph giuliani] this is a terrible, terrible emergency. [rudolph giuliani] this is a terrible, terrible emergency.
27 00:01:23,942 00:01:27,211 They broke rule, flaunted their wealth... They broke rule, flaunted their wealth...
28 00:01:27,404 00:01:29,546 42 million. 42 million.
29 00:01:29,739 00:01:31,507 ...Bulldozed anyone in their way... ...Bulldozed anyone in their way...
30 00:01:31,616 00:01:32,508 Hey, tell me about it. Hey, tell me about it.
31 00:01:33,910 00:01:35,761 ...And we worshiped them for it. ...And we worshiped them for it.
32 00:01:35,946 00:01:38,055 [andrew j. Maloney] he's a murderer. He's not a folk hero. [andrew j. Maloney] he's a murderer. He's not a folk hero.
33 00:01:38,248 00:01:41,767 By the end of the decade, they had reshaped the city in their own image... By the end of the decade, they had reshaped the city in their own image...
34 00:01:41,952 00:01:45,687 Look at this. I mean, wouldn't you want your daughter to bring this guy home? Look at this. I mean, wouldn't you want your daughter to bring this guy home?
35 00:01:45,797 00:01:47,147 ...And at what cost? ...And at what cost?
36 00:01:49,134 00:01:53,153 [tovah feldshuh] a tipster had information that would clearly prove [tovah feldshuh] a tipster had information that would clearly prove
37 00:01:53,339 00:01:55,697 That they were defrauding the united states government. That they were defrauding the united states government.
38 00:01:55,807 00:01:59,993 [charles bagli] he agreed to act as an undercover agent. [charles bagli] he agreed to act as an undercover agent.
39 00:02:07,152 00:02:08,669 [bethany mclean] it's really a shocking turn of events. [bethany mclean] it's really a shocking turn of events.
40 00:02:08,854 00:02:10,712 You know it's all gonna come to a crashing halt. You know it's all gonna come to a crashing halt.
41 00:02:11,874 00:02:13,340 Pick your poison. Pick your poison.
42 00:02:13,525 00:02:15,384 It might be money, it might be sex, it might be drugs. It might be money, it might be sex, it might be drugs.
43 00:02:15,493 00:02:17,928 [gil troy] he said, "I wish you could see her naked." [gil troy] he said, "I wish you could see her naked."
44 00:02:18,121 00:02:20,389 Even today, it makes me uncomfortable. Even today, it makes me uncomfortable.
45 00:02:20,999 00:02:23,600 [david cay johnston] if you think I just slandered you, sue me. [david cay johnston] if you think I just slandered you, sue me.
46 00:02:23,793 00:02:27,771 These five titans would change the meaning of the american dream, These five titans would change the meaning of the american dream,
47 00:02:27,964 00:02:30,899 And help define the way we live now. And help define the way we live now.
48 00:02:31,727 00:02:32,526 The city, The city,
49 00:02:33,729 00:02:34,736 Our country, Our country,
50 00:02:35,731 00:02:41,577 The world, The world,
51 00:03:04,042 00:03:09,855 Good evening, and welcome to nbc news's coverage of the 1980 presidential election. Good evening, and welcome to nbc news's coverage of the 1980 presidential election.
52 00:03:10,040 00:03:13,567 Our team of correspondents, analysts, pollsters, and commentators Our team of correspondents, analysts, pollsters, and commentators
53 00:03:13,752 00:03:16,111 Is assembled here in new york and around the country Is assembled here in new york and around the country
54 00:03:16,221 00:03:18,322 To see if jimmy carter can win re-election, To see if jimmy carter can win re-election,
55 00:03:18,515 00:03:20,824 Or if ronald reagan will be going to the oval office Or if ronald reagan will be going to the oval office
56 00:03:21,017 00:03:25,495 -[reagan] are you better off than you were four years ago? -No. -[reagan] are you better off than you were four years ago? -No.
57 00:03:26,114 00:03:29,958 [jimmy carter] it is a crisis of confidence. [jimmy carter] it is a crisis of confidence.
58 00:03:30,068 00:03:33,045 [gil troy] jimmy carter was a perfect fit for the 1970s: [gil troy] jimmy carter was a perfect fit for the 1970s:
59 00:03:33,230 00:03:36,215 A misfire of a president for a misfire of a decade. A misfire of a president for a misfire of a decade.
60 00:03:36,625 00:03:42,012 It's a decade of inflation, of vietnam, of watergate... It's a decade of inflation, of vietnam, of watergate...
61 00:03:42,205 00:03:45,515 [richard nixon] I shall resign the presidency, effective at noon tomorrow. [richard nixon] I shall resign the presidency, effective at noon tomorrow.
62 00:03:45,709 00:03:51,480 ...A decade where americans are starting to wonder whether the american dream is over. ...A decade where americans are starting to wonder whether the american dream is over.
63 00:03:51,589 00:03:53,273 It's a decade where, all of a sudden, It's a decade where, all of a sudden,
64 00:03:53,459 00:03:56,443 The greatest city in the world, new york city, might go bankrupt. The greatest city in the world, new york city, might go bankrupt.
65 00:03:57,387 00:04:00,197 [news reader] the city of dreams is becoming a nightmare. [news reader] the city of dreams is becoming a nightmare.
66 00:04:00,390 00:04:04,993 $13 billion in debt and teetering on bankruptcy. $13 billion in debt and teetering on bankruptcy.
67 00:04:06,396 00:04:10,791 New york is hanging by a thread, and only seems to be getting worse. New york is hanging by a thread, and only seems to be getting worse.
68 00:04:11,493 00:04:14,086 [news reader] 19,000 municipal workers [news reader] 19,000 municipal workers
69 00:04:14,271 00:04:17,297 Lost their jobs today, because of budget cuts. Lost their jobs today, because of budget cuts.
70 00:04:17,833 00:04:20,926 [michael holman] a whole block would be covered with garbage bags, [michael holman] a whole block would be covered with garbage bags,
71 00:04:21,111 00:04:23,053 That would sit there for weeks That would sit there for weeks
72 00:04:23,246 00:04:27,182 And stink up the place, and this was normal. And stink up the place, and this was normal.
73 00:04:27,292 00:04:30,060 [news reader] about 5,000 policeman, also, were laid off. [news reader] about 5,000 policeman, also, were laid off.
74 00:04:30,253 00:04:34,564 This is comparable to laying off soldiers during a war. This is comparable to laying off soldiers during a war.
75 00:04:34,758 00:04:37,276 [news read] four people are murdered here every day. [news read] four people are murdered here every day.
76 00:04:37,461 00:04:40,279 There's a violent crime every four minutes There's a violent crime every four minutes
77 00:04:40,464 00:04:42,406 [darryl mcdaniels] "it's just like a jungle sometimes. [darryl mcdaniels] "it's just like a jungle sometimes.
78 00:04:42,599 00:04:46,660 It makes me wonder how I keep from going under," was the vibe of everybody. It makes me wonder how I keep from going under," was the vibe of everybody.
79 00:04:48,030 00:04:51,248 [news reader] some people once called new york "fun city." [news reader] some people once called new york "fun city."
80 00:04:51,441 00:04:56,003 Now, police and firemen unions in new york are calling it "fear city." Now, police and firemen unions in new york are calling it "fear city."
81 00:04:56,188 00:05:00,549 [troy] new york city becomes the center and the symbol of america's decline. [troy] new york city becomes the center and the symbol of america's decline.
82 00:05:01,451 00:05:03,343 [mcdaniels] new york was finished. [mcdaniels] new york was finished.
83 00:05:05,497 00:05:09,182 But, in the midst of chaos lies opportunity. But, in the midst of chaos lies opportunity.
84 00:05:09,368 00:05:13,520 And some savvy new yorkers were ready to make their move in 1980, And some savvy new yorkers were ready to make their move in 1980,
85 00:05:13,705 00:05:16,398 When an unlikely candidate shocked the world. When an unlikely candidate shocked the world.
86 00:05:17,133 00:05:19,443 [news reader] reagan is our projected winner. [news reader] reagan is our projected winner.
87 00:05:19,636 00:05:24,364 Ronald wilson reagan of california: A sports announcer, a film actor Ronald wilson reagan of california: A sports announcer, a film actor
88 00:05:24,900 00:05:28,410 This man, who's dismissed. Ronald reagan? He's a joke. This man, who's dismissed. Ronald reagan? He's a joke.
89 00:05:28,978 00:05:32,581 Ronald reagan? He's an actor. Ronald reagan? He's an imbecile. Ronald reagan? He's an actor. Ronald reagan? He's an imbecile.
90 00:05:32,741 00:05:34,291 [news reader] I don't think anyone anticipated [news reader] I don't think anyone anticipated
91 00:05:34,484 00:05:37,002 That it eventually would become a floodgate, That it eventually would become a floodgate,
92 00:05:37,187 00:05:40,756 Of one kind or another, where the votes would just flood in for ronald reagan. Of one kind or another, where the votes would just flood in for ronald reagan.
93 00:05:41,658 00:05:46,178 [troy] but ronald reagan understood that hope is a drug, [troy] but ronald reagan understood that hope is a drug,
94 00:05:46,363 00:05:50,182 And he sold this story of america on the way back. And he sold this story of america on the way back.
95 00:05:50,367 00:05:53,101 [reagan] this country needs a new administration, [reagan] this country needs a new administration,
96 00:05:53,211 00:05:55,854 Where there will be new dedication to the dream of america: Where there will be new dedication to the dream of america:
97 00:05:56,039 00:06:00,859 An administration that will give that dream new life, and make america great again. An administration that will give that dream new life, and make america great again.
98 00:06:01,044 00:06:05,072 [ken auletta] reagan comes in in 1980, and he believes in capitalism. [ken auletta] reagan comes in in 1980, and he believes in capitalism.
99 00:06:05,257 00:06:08,658 He believes that we have to lower taxes for the wealthy, He believes that we have to lower taxes for the wealthy,
100 00:06:08,852 00:06:11,161 Because that will trickle down to everyone else. Because that will trickle down to everyone else.
101 00:06:11,354 00:06:16,416 And we have to deregulate businesses, so business would be freer to create jobs. And we have to deregulate businesses, so business would be freer to create jobs.
102 00:06:16,602 00:06:18,627 [reagan] I would like to have a crusade today, [reagan] I would like to have a crusade today,
103 00:06:18,736 00:06:23,340 To take government off the backs of the great people of this country. To take government off the backs of the great people of this country.
104 00:06:24,033 00:06:27,344 [andrew ross sorkin] all of a sudden, reagan shows up on the doorstep and says, [andrew ross sorkin] all of a sudden, reagan shows up on the doorstep and says,
105 00:06:27,537 00:06:31,223 "no, no, no. We're deregulating everything." one of the first things he does is he says, "no, no, no. We're deregulating everything." one of the first things he does is he says,
106 00:06:31,408 00:06:33,809 "look at this case. There's an anti-trust case against ibm." "look at this case. There's an anti-trust case against ibm."
107 00:06:33,918 00:06:37,521 He said, "it's over." the justin department ended the case. He said, "it's over." the justin department ended the case.
108 00:06:37,755 00:06:42,442 The message was: Game on; everything is for sale. The message was: Game on; everything is for sale.
109 00:06:45,814 00:06:50,575 Ronald reagan opens this spigot. Ronald reagan starts getting the money flowing again. Ronald reagan opens this spigot. Ronald reagan starts getting the money flowing again.
110 00:06:50,761 00:06:55,122 It brings back a confidence to wall street. It brings back a confidence to the stock market. It brings back a confidence to wall street. It brings back a confidence to the stock market.
111 00:06:55,307 00:06:59,793 It brings back a confidence to the american investor. And, in fact, changes all of them. It brings back a confidence to the american investor. And, in fact, changes all of them.
112 00:07:01,905 00:07:05,090 It enabled the rise of this much more aggressive, It enabled the rise of this much more aggressive,
113 00:07:05,275 00:07:09,261 Much more hostile, much more money-oriented culture. Much more hostile, much more money-oriented culture.
114 00:07:09,579 00:07:12,973 [andrew ross sorkin] so, as animal spirits are filling the air everywhere, [andrew ross sorkin] so, as animal spirits are filling the air everywhere,
115 00:07:13,158 00:07:17,978 This new class of investor arrives on the scene, to become a takeover artist. This new class of investor arrives on the scene, to become a takeover artist.
116 00:07:18,588 00:07:22,232 Using debt from wall street, they're gonna go buy companies Using debt from wall street, they're gonna go buy companies
117 00:07:22,425 00:07:26,445 That never would have been takeover bait before. That never would have been takeover bait before.
118 00:07:26,630 00:07:30,657 [news reader] takeover mania in america. Huge corporations are gobbling one another, [news reader] takeover mania in america. Huge corporations are gobbling one another,
119 00:07:30,842 00:07:32,617 At a rate unmatched in history. At a rate unmatched in history.
120 00:07:32,803 00:07:35,203 [natalie byfield] this was the era of mergers and acquisitions, [natalie byfield] this was the era of mergers and acquisitions,
121 00:07:35,313 00:07:38,582 And they were being celebrated as heroes. And they were being celebrated as heroes.
122 00:07:38,775 00:07:41,460 Wall street becomes a symbol of the new gilded age, Wall street becomes a symbol of the new gilded age,
123 00:07:43,446 00:07:45,255 And the best symbol of that... And the best symbol of that...
124 00:07:47,116 00:07:48,300 ...Is ivan boesky. ...Is ivan boesky.
125 00:07:50,787 00:07:55,056 A man who came from nothing, and reinvented himself on wall street. A man who came from nothing, and reinvented himself on wall street.
126 00:07:55,166 00:07:57,058 He was a master of secrets, He was a master of secrets,
127 00:07:57,219 00:08:00,812 With an aggressiveness the financial world had never seen before. With an aggressiveness the financial world had never seen before.
128 00:08:00,998 00:08:02,856 And he had nowhere to go, but up. And he had nowhere to go, but up.
129 00:08:04,576 00:08:07,235 [bryan burrough] ivan boesky was this great white shark, out there in the ocean. [bryan burrough] ivan boesky was this great white shark, out there in the ocean.
130 00:08:07,562 00:08:09,779 You knew he was out there. Every now and then, he would attack. You knew he was out there. Every now and then, he would attack.
131 00:08:10,473 00:08:13,575 Very few of us had any real sense of ivan boesky as a person, Very few of us had any real sense of ivan boesky as a person,
132 00:08:13,685 00:08:17,287 But the picture that emerged was this kind of classic, But the picture that emerged was this kind of classic,
133 00:08:17,572 00:08:23,251 Archetypal thing of this spectral, gaunt, white haired guy, Archetypal thing of this spectral, gaunt, white haired guy,
134 00:08:23,361 00:08:24,211 Always in black. Always in black.
135 00:08:25,655 00:08:27,631 He was just this ghost. He was just this ghost.
136 00:08:29,918 00:08:33,512 Ivan boesky was a trader, who is known as an arbitrager. Ivan boesky was a trader, who is known as an arbitrager.
137 00:08:33,697 00:08:35,805 [news reader] "what is an arbitrager?" you ask. [news reader] "what is an arbitrager?" you ask.
138 00:08:35,999 00:08:38,683 It is a person, such as boesky, who buys up stock It is a person, such as boesky, who buys up stock
139 00:08:38,869 00:08:41,186 And takes a big gamble that prices will rise, And takes a big gamble that prices will rise,
140 00:08:41,371 00:08:45,524 So that he can sell the stock at a higher price. Of course, if no takeover occurs, So that he can sell the stock at a higher price. Of course, if no takeover occurs,
141 00:08:45,709 00:08:48,735 An arbitrager like boesky could end up losing a bundle. An arbitrager like boesky could end up losing a bundle.
142 00:08:48,920 00:08:54,533 His specialty in life was betting on deals, His specialty in life was betting on deals,
143 00:08:54,718 00:08:59,287 When one company was buying another company, whether the deal would close. When one company was buying another company, whether the deal would close.
144 00:08:59,614 00:09:02,415 [bryan burrough] arbs trafficked in information: [bryan burrough] arbs trafficked in information:
145 00:09:02,692 00:09:06,878 What was going on? Who was in play? Who was gonna be attacked next? What was going on? Who was in play? Who was gonna be attacked next?
146 00:09:07,697 00:09:10,715 [sorkin] everybody's calling each other on the phone, trying to get that little morsel. [sorkin] everybody's calling each other on the phone, trying to get that little morsel.
147 00:09:10,901 00:09:14,052 What is that one little thing, that's gonna give them an edge? What is that one little thing, that's gonna give them an edge?
148 00:09:15,538 00:09:19,683 And so, boesky had this reputation for literally living on the telephone, And so, boesky had this reputation for literally living on the telephone,
149 00:09:19,876 00:09:23,270 All day and night, and literally like this, all day long. All day and night, and literally like this, all day long.
150 00:09:23,455 00:09:26,648 Pacing in front of monitors, barking at his traders Pacing in front of monitors, barking at his traders
151 00:09:26,758 00:09:29,776 [boesky] if we have that shot, we'd like to [inaudible] again. [boesky] if we have that shot, we'd like to [inaudible] again.
152 00:09:29,961 00:09:32,696 Screaming at just about anybody who would move, Screaming at just about anybody who would move,
153 00:09:32,889 00:09:35,574 And if it didn't work out for him, he was throwing things. And if it didn't work out for him, he was throwing things.
154 00:09:36,392 00:09:39,953 [jeff madrick] I was in boesky's office once. He was shouting at his traders, [jeff madrick] I was in boesky's office once. He was shouting at his traders,
155 00:09:40,138 00:09:45,417 And he would say, "act one, scene one." he said that to me, like he was play-acting. And he would say, "act one, scene one." he said that to me, like he was play-acting.
156 00:09:46,069 00:09:50,880 He did a lot of play-acting. His employees would do anything, however, He did a lot of play-acting. His employees would do anything, however,
157 00:09:51,074 00:09:53,717 Because he made a heck of a lot of money, and they thought he was a magician. Because he made a heck of a lot of money, and they thought he was a magician.
158 00:09:54,169 00:09:55,844 Almost anything that you can think Almost anything that you can think
159 00:09:55,953 00:09:58,930 Of the michael douglas character in the movie wall street... Of the michael douglas character in the movie wall street...
160 00:09:59,116 00:10:01,433 [douglas] you keep on buying. Dilute the son of a bitch. [douglas] you keep on buying. Dilute the son of a bitch.
161 00:10:01,618 00:10:03,977 ...A lot of that was based on boesky, ...A lot of that was based on boesky,
162 00:10:04,162 00:10:07,856 And not just his famous "greed is good" speech, which came from boesky And not just his famous "greed is good" speech, which came from boesky
163 00:10:08,016 00:10:13,194 Greed, for lack of a better word, is good. Greed, for lack of a better word, is good.
164 00:10:13,688 00:10:17,157 Ivan boesky is, in some ways, kind of a great gatsby character, right? Ivan boesky is, in some ways, kind of a great gatsby character, right?
165 00:10:17,342 00:10:21,036 This self-made person, very much invented. This self-made person, very much invented.
166 00:10:21,145 00:10:22,912 [jeff madrick] he was a classic outsider. [jeff madrick] he was a classic outsider.
167 00:10:23,106 00:10:26,833 Ivan boesky was deeply insecure. He didn't do well in school. Ivan boesky was deeply insecure. He didn't do well in school.
168 00:10:27,018 00:10:30,170 He didn't go to harvard law school. That was certain. He didn't go to harvard law school. That was certain.
169 00:10:31,489 00:10:34,591 [burrough] ivan boesky didn't really wanna tell the truth about where he'd come from, [burrough] ivan boesky didn't really wanna tell the truth about where he'd come from,
170 00:10:34,784 00:10:40,013 And so he often made these hints of mysterious things in his background. And so he often made these hints of mysterious things in his background.
171 00:10:40,198 00:10:43,308 Maybe he'd gone to harvard. Well, no, he actually bought his way into the harvard club. Maybe he'd gone to harvard. Well, no, he actually bought his way into the harvard club.
172 00:10:43,493 00:10:48,772 Maybe he'd been with the cia in iran. No, he was just visiting a friend's family. Maybe he'd been with the cia in iran. No, he was just visiting a friend's family.
173 00:10:48,965 00:10:53,943 But all that's much better to say than, "I came to new york But all that's much better to say than, "I came to new york
174 00:10:54,137 00:10:57,447 'cause I needed a job, after bankrupting my family's strip joint." 'cause I needed a job, after bankrupting my family's strip joint."
175 00:11:02,311 00:11:04,704 Ivan was the son of russian immigrants. Ivan was the son of russian immigrants.
176 00:11:04,890 00:11:07,999 From an early age, he had his eyes to the sky, From an early age, he had his eyes to the sky,
177 00:11:08,185 00:11:11,252 And one of the things he did was he married well. And one of the things he did was he married well.
178 00:11:11,362 00:11:14,839 Seema silberstein came from a very wealthy real estate family. Seema silberstein came from a very wealthy real estate family.
179 00:11:15,025 00:11:18,843 They owned the beverley hills hotel. And so, he gets a lot more money They owned the beverley hills hotel. And so, he gets a lot more money
180 00:11:19,029 00:11:22,222 A lot more capital, and they allowed ivan to move up the social ladder. A lot more capital, and they allowed ivan to move up the social ladder.
181 00:11:23,708 00:11:28,603 [madrick] ivan had a friend who was in risk arbitrage, and the guy was doing very well, [madrick] ivan had a friend who was in risk arbitrage, and the guy was doing very well,
182 00:11:28,713 00:11:31,022 So he went home to seema and he said, So he went home to seema and he said,
183 00:11:31,208 00:11:35,819 "seema, this sounds like the thing for me." so, ivan went to wall street. "seema, this sounds like the thing for me." so, ivan went to wall street.
184 00:11:36,438 00:11:38,655 [james b. Stewart] one of the ironies of the boesky story [james b. Stewart] one of the ironies of the boesky story
185 00:11:38,848 00:11:40,865 Is that, at his first job, he lost money. Is that, at his first job, he lost money.
186 00:11:41,051 00:11:44,077 He got fired. He tried to get other jobs. He couldn't get a job anywhere. He got fired. He tried to get other jobs. He couldn't get a job anywhere.
187 00:11:45,113 00:11:50,625 Thanks, in part, to his wife's family money, who bankrolled a new operation, Thanks, in part, to his wife's family money, who bankrolled a new operation,
188 00:11:50,735 00:11:53,795 He started his own arbitrage firm. He started his own arbitrage firm.
189 00:11:54,405 00:11:58,383 Ivan boesky quickly became one of the best known risk arbitragers. Ivan boesky quickly became one of the best known risk arbitragers.
190 00:11:59,294 00:12:02,929 [burrough] when you look at his career, early on, some big wins. [burrough] when you look at his career, early on, some big wins.
191 00:12:03,114 00:12:05,181 Ivan has rebounded. Ivan has rebounded.
192 00:12:05,374 00:12:10,687 It's a type of reinvention that, there are very few places in america you can achieve. It's a type of reinvention that, there are very few places in america you can achieve.
193 00:12:10,880 00:12:13,732 It's often a field that's described in gambling terms: It's often a field that's described in gambling terms:
194 00:12:13,917 00:12:17,152 A roll of the dice, high stakes, speculators. Are you a gambler? A roll of the dice, high stakes, speculators. Are you a gambler?
195 00:12:17,261 00:12:23,283 Part of the magic of wall street in the 1980s was this almost lottery-like element. Part of the magic of wall street in the 1980s was this almost lottery-like element.
196 00:12:23,468 00:12:28,830 I really think it's a highly conservative activity, that is often misunderstood. I really think it's a highly conservative activity, that is often misunderstood.
197 00:12:28,940 00:12:32,417 I don't feel like I'm a gambler and I hope you don't think I look like one. I don't feel like I'm a gambler and I hope you don't think I look like one.
198 00:12:32,602 00:12:34,502 No, but I'll bet you have nerves of steel. No, but I'll bet you have nerves of steel.
199 00:12:34,612 00:12:36,087 Well, I can't say that, Well, I can't say that,
200 00:12:36,273 00:12:39,174 Except that one has to be able to withstand a certain amount of pressure. Except that one has to be able to withstand a certain amount of pressure.
201 00:12:40,743 00:12:43,178 [sorkin] all of a sudden, you're doubling your money. [sorkin] all of a sudden, you're doubling your money.
202 00:12:45,173 00:12:48,016 And that can be a very empowering feeling, And that can be a very empowering feeling,
203 00:12:48,125 00:12:52,771 But also a dangerous one, because it creates an enormous amount of confidence But also a dangerous one, because it creates an enormous amount of confidence
204 00:12:53,515 00:12:57,108 And that confidence, I think, very quickly turns into over confidence. And that confidence, I think, very quickly turns into over confidence.
205 00:13:05,434 00:13:07,994 [news read] new york city, it is a paradox. [news read] new york city, it is a paradox.
206 00:13:08,363 00:13:12,207 Amid the frenzy of chasing a dream, and perhaps a fortune, Amid the frenzy of chasing a dream, and perhaps a fortune,
207 00:13:12,367 00:13:17,629 It is a decaying metropolis where charles dickens would find a lot to write about: It is a decaying metropolis where charles dickens would find a lot to write about:
208 00:13:17,814 00:13:20,173 A city literally falling apart. A city literally falling apart.
209 00:13:22,285 00:13:27,889 [nikki haskell] in the 70s and the beginning of the 80s, new york was really at a low ebb [nikki haskell] in the 70s and the beginning of the 80s, new york was really at a low ebb
210 00:13:28,049 00:13:29,766 I was still having a good time, mind you. I was still having a good time, mind you.
211 00:13:31,460 00:13:35,063 There were great clubs, great restaurants. There were great clubs, great restaurants.
212 00:13:36,224 00:13:41,611 I went dancing every night. There was a club called la club, and it was a private club. I went dancing every night. There was a club called la club, and it was a private club.
213 00:13:41,804 00:13:45,949 It was very chic, had a little dance floor, and everybody went there. It was very chic, had a little dance floor, and everybody went there.
214 00:13:46,326 00:13:49,786 And a man walked in, and I saw him walk in, and I went up to the maître d' And a man walked in, and I saw him walk in, and I went up to the maître d'
215 00:13:49,979 00:13:50,954 And I said, "who is that?" And I said, "who is that?"
216 00:13:54,000 00:13:55,875 He said, "oh, you know, he's a new member. He said, "oh, you know, he's a new member.
217 00:13:59,322 00:14:00,839 His name is donald trump." His name is donald trump."
218 00:14:03,585 00:14:07,262 A kid from queens, with charisma to spare and something to prove. A kid from queens, with charisma to spare and something to prove.
219 00:14:07,422 00:14:09,222 In a city where image was everything, In a city where image was everything,
220 00:14:09,407 00:14:12,141 He knew that to be the king of new york real estate He knew that to be the king of new york real estate
221 00:14:12,335 00:14:14,060 He only needed to act like it. He only needed to act like it.
222 00:14:15,780 00:14:17,313 Well, I'm very happy, and I think the city of new york is going to be very happy. Well, I'm very happy, and I think the city of new york is going to be very happy.
223 00:14:19,209 00:14:23,903 Donald was a man about town. He was someone who was going to all of the fanciest restaurants Donald was a man about town. He was someone who was going to all of the fanciest restaurants
224 00:14:24,089 00:14:28,575 With a beautiful wife, trying to make the zaniest real estate deals. With a beautiful wife, trying to make the zaniest real estate deals.
225 00:14:29,536 00:14:33,329 He was someone who really wanted to make his name, and make his mark. He was someone who really wanted to make his name, and make his mark.
226 00:14:34,065 00:14:37,417 [charles bagli] and that meant getting something going in manhattan. [charles bagli] and that meant getting something going in manhattan.
227 00:14:37,602 00:14:42,171 And to establish his reputation, he needed to do something splashy. And to establish his reputation, he needed to do something splashy.
228 00:14:42,382 00:14:43,965 We're going to do something, which is going to be We're going to do something, which is going to be
229 00:14:44,292 00:14:46,593 A great stride forward for new york city. A great stride forward for new york city.
230 00:14:48,704 00:14:53,850 [bagli] you've got this crisis of confidence. Is the city gonna come out of the doldrums? [bagli] you've got this crisis of confidence. Is the city gonna come out of the doldrums?
231 00:14:54,043 00:14:55,810 Is there gonna be new development? Is there gonna be new development?
232 00:14:55,970 00:15:00,064 And trump, very craftily, wanted to take advantage of that. And trump, very craftily, wanted to take advantage of that.
233 00:15:00,250 00:15:06,321 When you need to re-develop an area, the first mover gets the best deal. When you need to re-develop an area, the first mover gets the best deal.
234 00:15:06,481 00:15:09,824 When new york was almost broke, and other builders were jumping ship, When new york was almost broke, and other builders were jumping ship,
235 00:15:09,984 00:15:12,452 Trump took a chance on the old commodore hotel. Trump took a chance on the old commodore hotel.
236 00:15:12,637 00:15:14,829 [trump] the commodore hotel, an abandoned building, [trump] the commodore hotel, an abandoned building,
237 00:15:14,989 00:15:17,123 Next to grand central terminal in new york. Next to grand central terminal in new york.
238 00:15:17,308 00:15:20,376 The city was in serious trouble. That location was not considered good. The city was in serious trouble. That location was not considered good.
239 00:15:20,569 00:15:24,088 This was gonna prove that he could compete with the big guys, This was gonna prove that he could compete with the big guys,
240 00:15:24,274 00:15:26,674 With the prominent manhattan developers. With the prominent manhattan developers.
241 00:15:26,834 00:15:29,969 [news reader] trump spent millions transforming it into the grand hyatt, [news reader] trump spent millions transforming it into the grand hyatt,
242 00:15:30,155 00:15:32,180 And the city got a shot in the arm. And the city got a shot in the arm.
243 00:15:32,340 00:15:35,892 [hugh carey] hyatt regency is now an architectural gem. [hugh carey] hyatt regency is now an architectural gem.
244 00:15:36,085 00:15:41,272 Its mirrored finish reflects a new day on this, the street of dreams, Its mirrored finish reflects a new day on this, the street of dreams,
245 00:15:41,458 00:15:42,774 42nd street. 42nd street.
246 00:15:44,535 00:15:48,571 Donald trump deserves tremendous credit for coming into new york in the late 1970s, Donald trump deserves tremendous credit for coming into new york in the late 1970s,
247 00:15:48,764 00:15:52,867 Seeing a hulking, depressing, decaying hotel, Seeing a hulking, depressing, decaying hotel,
248 00:15:53,027 00:15:56,704 And turning it into the magic of the grand central station hyatt. And turning it into the magic of the grand central station hyatt.
249 00:15:56,864 00:16:00,917 [news read] donald trump would probably say he's already proven himself a master builder. [news read] donald trump would probably say he's already proven himself a master builder.
250 00:16:01,110 00:16:03,878 He feels the grand hyatt hotel proved him a man of vision. He feels the grand hyatt hotel proved him a man of vision.
251 00:16:04,038 00:16:06,965 [barbara res] I think the hyatt was a water ship for trump's career, [barbara res] I think the hyatt was a water ship for trump's career,
252 00:16:07,150 00:16:11,344 Because he was really not well known. It was a turning point where you said, Because he was really not well known. It was a turning point where you said,
253 00:16:11,529 00:16:15,223 "okay, we have to take this guy seriously. He's accomplished something." "okay, we have to take this guy seriously. He's accomplished something."
254 00:16:16,217 00:16:20,061 [troy] the new york times is impressed by his bravado. [troy] the new york times is impressed by his bravado.
255 00:16:20,296 00:16:23,231 They called him, "the brash adonis from the outer boroughs." They called him, "the brash adonis from the outer boroughs."
256 00:16:23,391 00:16:28,444 And donald trump, in the 1980s, in many ways becomes a symbol of new york's return. And donald trump, in the 1980s, in many ways becomes a symbol of new york's return.
257 00:16:29,305 00:16:35,201 Donald plays right into this. He presents himself as this super genius of business Donald plays right into this. He presents himself as this super genius of business
258 00:16:35,386 00:16:38,871 From a real estate standpoint, it's probably become the hottest city in the world. From a real estate standpoint, it's probably become the hottest city in the world.
259 00:16:39,057 00:16:41,082 People are flocking here by droves, People are flocking here by droves,
260 00:16:41,242 00:16:43,876 And I guess a lot of things had to do with it. And I guess a lot of things had to do with it.
261 00:16:44,062 00:16:48,965 Mostly it was the psychology of making new york a winner, as opposed to a loser. Mostly it was the psychology of making new york a winner, as opposed to a loser.
262 00:16:51,085 00:16:57,181 But, donald's success with his first project was very much tied to his father But, donald's success with his first project was very much tied to his father
263 00:16:57,367 00:16:59,642 Whether he acknowledged it, or not, publicly. Whether he acknowledged it, or not, publicly.
264 00:17:00,854 00:17:04,230 His father was a very big outer borough developer. His father was a very big outer borough developer.
265 00:17:04,691 00:17:09,777 He had built many buildings for middle and working class people in brooklyn. He had built many buildings for middle and working class people in brooklyn.
266 00:17:09,937 00:17:13,948 It was a sort of meat and potatoes, but he was a millionaire It was a sort of meat and potatoes, but he was a millionaire
267 00:17:14,108 00:17:17,160 And he was very well connected, politically. And he was very well connected, politically.
268 00:17:18,020 00:17:23,041 [johnston] when his older son, fred jr., turned out to be a rather sensitive fellow, [johnston] when his older son, fred jr., turned out to be a rather sensitive fellow,
269 00:17:23,226 00:17:27,712 Who couldn't put up with his tyrannical father's nature and coldness, Who couldn't put up with his tyrannical father's nature and coldness,
270 00:17:28,697 00:17:33,468 Donald saw opportunity, and he stepped forward and became the favored son. Donald saw opportunity, and he stepped forward and became the favored son.
271 00:17:33,628 00:17:37,096 But donald didn't wanna be his father, at the end of avenue z in brooklyn. But donald didn't wanna be his father, at the end of avenue z in brooklyn.
272 00:17:37,282 00:17:39,223 He wanted to be a star in manhattan. He wanted to be a star in manhattan.
273 00:17:40,876 00:17:47,398 If he failed, he'd have to retreat to queens and become just another one If he failed, he'd have to retreat to queens and become just another one
274 00:17:47,584 00:17:53,554 Of the faceless outer borough developers. And that was his worst fear. Of the faceless outer borough developers. And that was his worst fear.
275 00:17:57,560 00:17:59,118 Trying to scrape up a down payment Trying to scrape up a down payment
276 00:17:59,304 00:18:00,912 For a little fixer-upper in your neighborhood? For a little fixer-upper in your neighborhood?
277 00:18:01,097 00:18:02,789 Take a look at my next guest. Take a look at my next guest.
278 00:18:02,974 00:18:05,124 There's a report around wall street, that this is what he has in mind. There's a report around wall street, that this is what he has in mind.
279 00:18:05,310 00:18:07,460 This is donald trump, 33 years old, This is donald trump, 33 years old,
280 00:18:07,645 00:18:10,004 And some people think that he wants to buy the world trade center, And some people think that he wants to buy the world trade center,
281 00:18:10,164 00:18:15,968 110-story manhattan skyscraper that anyone can pick up, if they've got the coins. 110-story manhattan skyscraper that anyone can pick up, if they've got the coins.
282 00:18:16,154 00:18:19,222 Donald trump, as I say, is just 33 years old. Donald trump, as I say, is just 33 years old.
283 00:18:19,415 00:18:23,392 He took his father's rather modest, by current standards, He took his father's rather modest, by current standards,
284 00:18:23,586 00:18:26,687 Real estate empire in brooklyn and expanded it considerably. Real estate empire in brooklyn and expanded it considerably.
285 00:18:26,848 00:18:30,691 He now has an apartment for sale in a new trump building, He now has an apartment for sale in a new trump building,
286 00:18:30,801 00:18:33,486 Called the trump tower, going up on fifth avenue. Called the trump tower, going up on fifth avenue.
287 00:18:33,671 00:18:36,906 There it is. You can buy this apartment, one floor of it - There it is. You can buy this apartment, one floor of it -
288 00:18:37,099 00:18:42,662 One whole floor of that building, that is - $11 billion altogether. One whole floor of that building, that is - $11 billion altogether.
289 00:18:43,364 00:18:46,541 [res] donald trump wanted trump tower to be iconic. [res] donald trump wanted trump tower to be iconic.
290 00:18:46,701 00:18:50,837 He wanted it to be the first of its kind. He wanted it to be world famous. He wanted it to be the first of its kind. He wanted it to be world famous.
291 00:18:51,022 00:18:57,510 He wanted to make a ton of money from it, and he wanted to become the new york developer. He wanted to make a ton of money from it, and he wanted to become the new york developer.
292 00:18:57,695 00:18:59,220 It was a statement. It was a statement.
293 00:18:59,380 00:19:02,306 The commodore was just replenishing something that existed. The commodore was just replenishing something that existed.
294 00:19:02,809 00:19:05,101 This was building something that was new. This was building something that was new.
295 00:19:06,462 00:19:08,354 [news reader] donald trump is the young entrepreneur, [news reader] donald trump is the young entrepreneur,
296 00:19:08,539 00:19:10,481 Whose buildings keep popping up all over town like mushrooms. Whose buildings keep popping up all over town like mushrooms.
297 00:19:10,667 00:19:13,317 He wants a certain tax abatement on one of them, the trump tower. He wants a certain tax abatement on one of them, the trump tower.
298 00:19:13,503 00:19:17,446 [bagli] pretty early on, donald discovered that the best way to operate [bagli] pretty early on, donald discovered that the best way to operate
299 00:19:17,640 00:19:19,157 Is with other people's money. Is with other people's money.
300 00:19:19,342 00:19:24,036 So, he had his hand out to the city for a tax break, So, he had his hand out to the city for a tax break,
301 00:19:24,222 00:19:27,415 That was designed to stimulate low income housing. That was designed to stimulate low income housing.
302 00:19:27,575 00:19:30,793 He felt that he qualified for that, He felt that he qualified for that,
303 00:19:30,986 00:19:36,132 Even though trump tower was for the most elite of new yorkers. Even though trump tower was for the most elite of new yorkers.
304 00:19:36,342 00:19:40,511 [news reader] trump is an expert at getting what he wants, particularly from politicians. [news reader] trump is an expert at getting what he wants, particularly from politicians.
305 00:19:40,697 00:19:43,431 He's gotten tax abatements and other concessions. He's gotten tax abatements and other concessions.
306 00:19:43,591 00:19:47,310 Politicians have gotten campaign contributions - big ones. Politicians have gotten campaign contributions - big ones.
307 00:19:47,503 00:19:50,563 But then, you get a new mayor. But then, you get a new mayor.
308 00:19:50,748 00:19:54,358 [ed koch] how have you the chutzpah to say [ed koch] how have you the chutzpah to say
309 00:19:54,544 00:19:57,862 That this government has been anti-development? That this government has been anti-development?
310 00:19:58,847 00:20:04,243 Ed koch was elected mayor, and he injected great spirit into new york. Ed koch was elected mayor, and he injected great spirit into new york.
311 00:20:04,429 00:20:09,790 He was a little bit more of a populist, and wasn't so enamored of donald trump. He was a little bit more of a populist, and wasn't so enamored of donald trump.
312 00:20:10,710 00:20:16,964 [george arzt] donald had contributed something like $700,000 to koch's campaigns, [george arzt] donald had contributed something like $700,000 to koch's campaigns,
313 00:20:17,124 00:20:21,010 And he felt that he could just walk in the door at city hall, and get what he wanted. And he felt that he could just walk in the door at city hall, and get what he wanted.
314 00:20:21,203 00:20:24,722 He found that, under koch, it was never true. He found that, under koch, it was never true.
315 00:20:25,207 00:20:26,849 [michael kruse] with respect to trump tower, [michael kruse] with respect to trump tower,
316 00:20:27,042 00:20:30,102 Ed koch was pushing back pretty hard on the idea of a tax break. Ed koch was pushing back pretty hard on the idea of a tax break.
317 00:20:30,288 00:20:34,649 So, when trump applied for it, they said, "rejected." So, when trump applied for it, they said, "rejected."
318 00:20:35,401 00:20:37,318 [news reader] place of prosperity, for sure. [news reader] place of prosperity, for sure.
319 00:20:37,428 00:20:40,571 Too prosperous, in the eyes of state appeals court judges, Too prosperous, in the eyes of state appeals court judges,
320 00:20:40,757 00:20:43,908 Who turned down trump's attempt to get a tax abatement for the project. Who turned down trump's attempt to get a tax abatement for the project.
321 00:20:44,819 00:20:47,662 This did not make donald trump happy. This did not make donald trump happy.
322 00:20:47,822 00:20:50,456 [bagli] so, donald trump sued the city. [bagli] so, donald trump sued the city.
323 00:20:50,641 00:20:52,708 [news reader] donald trump to fight the city in the court, [news reader] donald trump to fight the city in the court,
324 00:20:52,994 00:20:55,586 Demanding tens of millions of dollars in tax abatements. Demanding tens of millions of dollars in tax abatements.
325 00:20:55,772 00:21:00,466 [andrew kirtzman] you had these two titanic egos, in donald trump and ed koch. [andrew kirtzman] you had these two titanic egos, in donald trump and ed koch.
326 00:21:01,335 00:21:04,971 What was most interesting, was kind of watching them clash with one another. What was most interesting, was kind of watching them clash with one another.
327 00:21:05,156 00:21:07,556 We're not able to say to donald trump, We're not able to say to donald trump,
328 00:21:07,750 00:21:13,729 "donald, get richer on the backs of the people of the city and their treasury." "donald, get richer on the backs of the people of the city and their treasury."
329 00:21:13,922 00:21:15,398 I can't do that. I can't do that.
330 00:21:15,591 00:21:18,025 I would say he's got no talent, and only moderate intelligence. I would say he's got no talent, and only moderate intelligence.
331 00:21:18,185 00:21:22,113 Donald trump learned from his father, you're a winner or you're a loser. Donald trump learned from his father, you're a winner or you're a loser.
332 00:21:22,298 00:21:24,031 The ends justify the means. The ends justify the means.
333 00:21:24,191 00:21:27,910 What ed koch has is nothing. The man has not got it. What ed koch has is nothing. The man has not got it.
334 00:21:29,104 00:21:34,709 Here he is, suing the city and arguing with the mayor in the most bitter terms. Here he is, suing the city and arguing with the mayor in the most bitter terms.
335 00:21:34,869 00:21:39,922 And, on the other hand, he was also telling the public that this was for their good. And, on the other hand, he was also telling the public that this was for their good.
336 00:21:40,115 00:21:46,262 He was gonna build a golden-hued tower, that would put new york back on the map. He was gonna build a golden-hued tower, that would put new york back on the map.
337 00:21:46,455 00:21:48,055 Who could argue with that? Who could argue with that?
338 00:21:48,215 00:21:50,808 Trump went to court, and he won. He got his abatement. Trump went to court, and he won. He got his abatement.
339 00:21:50,993 00:21:54,854 This tax break was never intended for a luxury project, This tax break was never intended for a luxury project,
340 00:21:55,039 00:21:58,899 And after a long court fight, he did get a tax break. And after a long court fight, he did get a tax break.
341 00:21:59,060 00:22:02,320 [news reader] developer donald trump will enjoy the largess of the city, [news reader] developer donald trump will enjoy the largess of the city,
342 00:22:02,505 00:22:04,947 In the form of what the city says is a tax abatement In the form of what the city says is a tax abatement
343 00:22:05,140 00:22:08,576 Worth $20 million, over the next ten years. Worth $20 million, over the next ten years.
344 00:22:08,736 00:22:13,831 From then on, it was off to the races. And the trump brand began. From then on, it was off to the races. And the trump brand began.
345 00:22:14,483 00:22:19,086 [kruse] but the more successes he had, the bolder and the more brazen he got. [kruse] but the more successes he had, the bolder and the more brazen he got.
346 00:22:19,246 00:22:24,133 What could he possibly do, that would trump trump tower? What could he possibly do, that would trump trump tower?
347 00:22:28,330 00:22:32,433 A few years into the 80s, change was literally in the air. A few years into the 80s, change was literally in the air.
348 00:22:32,543 00:22:36,354 Driven by visionaries with an insatiable appetite for success, Driven by visionaries with an insatiable appetite for success,
349 00:22:36,539 00:22:40,024 Stunning new construction exploded across the new york skyline. Stunning new construction exploded across the new york skyline.
350 00:22:40,209 00:22:41,942 Sold. Two trades at six. Sold. Two trades at six.
351 00:22:42,103 00:22:45,613 On wall street, charts were rising with no limit in sight. On wall street, charts were rising with no limit in sight.
352 00:22:45,773 00:22:48,783 But while certain corners of new york were thriving, But while certain corners of new york were thriving,
353 00:22:48,943 00:22:52,953 Others were being left to fend for themselves. Others were being left to fend for themselves.
354 00:22:53,114 00:22:55,247 And they, too, would find a way to break through. And they, too, would find a way to break through.
355 00:22:55,433 00:22:59,710 Out of the darkness, despair, destruction, and death Out of the darkness, despair, destruction, and death
356 00:22:59,896 00:23:03,255 Of the late 70s and early 80s, Of the late 70s and early 80s,
357 00:23:03,532 00:23:10,471 It wasn't politics that was gonna save us, and it wasn't religion. It was the arts. It wasn't politics that was gonna save us, and it wasn't religion. It was the arts.
358 00:23:10,706 00:23:12,306 [rap music playing] [rap music playing]
359 00:23:13,910 00:23:16,394 [michael holman] takes a city like new york, with so many different tribes [michael holman] takes a city like new york, with so many different tribes
360 00:23:16,579 00:23:17,937 And so many different people. And so many different people.
361 00:23:18,380 00:23:20,231 New york influences them. New york influences them.
362 00:23:20,416 00:23:22,983 It permeates, and they influence new york. It permeates, and they influence new york.
363 00:23:23,144 00:23:24,902 Whatever you wanted to do, you could do, Whatever you wanted to do, you could do,
364 00:23:25,087 00:23:28,072 Because there was nobody there to police any of this. Because there was nobody there to police any of this.
365 00:23:29,266 00:23:32,159 And now, you see graffiti on every block, And now, you see graffiti on every block,
366 00:23:32,269 00:23:35,830 But they're doing all this incredible, creative work. But they're doing all this incredible, creative work.
367 00:23:37,232 00:23:42,461 So many different artists came here during that time, saying "new york, I'm here." So many different artists came here during that time, saying "new york, I'm here."
368 00:23:42,647 00:23:46,632 It creates a competitiveness, a cultural competition. It creates a competitiveness, a cultural competition.
369 00:23:47,451 00:23:49,927 Keith haring started doing it in the subway, Keith haring started doing it in the subway,
370 00:23:50,112 00:23:52,763 By doing chalk drawings on old advertisements. By doing chalk drawings on old advertisements.
371 00:23:52,949 00:23:55,349 [keith haring] at that time, graffiti in new york was really at a peak, [keith haring] at that time, graffiti in new york was really at a peak,
372 00:23:55,509 00:23:57,768 And I think that was also a main source of inspiration. And I think that was also a main source of inspiration.
373 00:23:57,954 00:24:02,773 [holman] jean-michel basquiat had come up with equally revolutionary ways [holman] jean-michel basquiat had come up with equally revolutionary ways
374 00:24:02,959 00:24:07,153 Of expressing himself, by finding doors in the garbage and using them as a canvass, Of expressing himself, by finding doors in the garbage and using them as a canvass,
375 00:24:07,338 00:24:08,320 And painting on them. And painting on them.
376 00:24:08,805 00:24:10,698 And I'm thinking to myself, And I'm thinking to myself,
377 00:24:10,858 00:24:14,702 New york is like a theme park. New york is like a theme park.
378 00:24:14,811 00:24:18,873 It's a magical place for cool people. It's a magical place for cool people.
379 00:24:18,982 00:24:21,876 It's like disneyland for the hip. It's like disneyland for the hip.
380 00:24:22,778 00:24:27,715 Very quickly, it was recognized that we've got something special here. Very quickly, it was recognized that we've got something special here.
381 00:24:28,283 00:24:31,343 [news reader] certainly, one man's vandalism is another man's masterpiece. [news reader] certainly, one man's vandalism is another man's masterpiece.
382 00:24:31,529 00:24:34,346 Graffiti is entering the mainstream art scene. Graffiti is entering the mainstream art scene.
383 00:24:35,141 00:24:40,227 [thurston moore] there was this art that I had been seeing on doors and walls of buildings, [thurston moore] there was this art that I had been seeing on doors and walls of buildings,
384 00:24:40,337 00:24:42,229 All around soho and the east village. All around soho and the east village.
385 00:24:42,389 00:24:47,485 And I remember thinking, they're actually turning this into real art [laughs] And I remember thinking, they're actually turning this into real art [laughs]
386 00:24:47,670 00:24:49,528 As opposed to just street art. As opposed to just street art.
387 00:24:50,806 00:24:52,990 [news reader] now, as post-graffiti artists, [news reader] now, as post-graffiti artists,
388 00:24:53,175 00:24:57,369 They are getting upwards of $3,000 per canvas. They are getting upwards of $3,000 per canvas.
389 00:24:57,555 00:24:59,830 [moore] I remember going to the fun gallery, [moore] I remember going to the fun gallery,
390 00:25:00,016 00:25:03,000 And seeing jean-michel's big coming out show, And seeing jean-michel's big coming out show,
391 00:25:03,185 00:25:07,838 And the entire community of downtown was just like at this fun gallery. And the entire community of downtown was just like at this fun gallery.
392 00:25:09,324 00:25:14,595 [michael musto] basquiat mixed sort of a graffiti element, a voodoo element, [michael musto] basquiat mixed sort of a graffiti element, a voodoo element,
393 00:25:14,755 00:25:20,184 And racial inequality screeds, and social commentary. And racial inequality screeds, and social commentary.
394 00:25:20,369 00:25:22,561 It's all extremely original. It's all extremely original.
395 00:25:22,855 00:25:27,066 Jean-michel basquiat's work was so brilliant, so beautiful, so powerful, Jean-michel basquiat's work was so brilliant, so beautiful, so powerful,
396 00:25:27,251 00:25:31,779 And so new that he became a star overnight. And so new that he became a star overnight.
397 00:25:32,347 00:25:34,281 New york was the perfect city New york was the perfect city
398 00:25:34,391 00:25:39,537 To receive this wave of creative power and talent. To receive this wave of creative power and talent.
399 00:25:40,355 00:25:42,748 And when you can make it here, you can make it anywhere And when you can make it here, you can make it anywhere
400 00:25:42,933 00:25:47,378 Because this is the city of competition, and the winner takes all. Because this is the city of competition, and the winner takes all.
401 00:25:49,197 00:25:51,423 For self-invented dreamers and schemers, For self-invented dreamers and schemers,
402 00:25:51,609 00:25:55,594 New york in the early 80s was the place to be. New york in the early 80s was the place to be.
403 00:25:55,780 00:25:58,430 A new city was rising like a phoenix from the ashes, A new city was rising like a phoenix from the ashes,
404 00:25:58,616 00:26:02,393 And while artists were leaving their mark for all to see downtown, And while artists were leaving their mark for all to see downtown,
405 00:26:02,578 00:26:06,230 Uptown, a real estate battle was brewing. Uptown, a real estate battle was brewing.
406 00:26:06,415 00:26:11,151 By the time the smoke cleared, the skyline would never be the same. By the time the smoke cleared, the skyline would never be the same.
407 00:26:16,133 00:26:17,950 You're gonna have to start pusa little ridiculousow, as far as I'm concerned. Itg You're gonna have to start pusa little ridiculousow, as far as I'm concerned. Itg
408 00:26:18,135 00:26:21,829 So, just start pushing, and start pushing as hard as possible. So, just start pushing, and start pushing as hard as possible.
409 00:26:21,989 00:26:27,668 As much as donald trump wanted to be known as the developer for the wealthy, for the elite, As much as donald trump wanted to be known as the developer for the wealthy, for the elite,
410 00:26:27,828 00:26:32,756 He had a rival that was already established in manhattan. He had a rival that was already established in manhattan.
411 00:26:34,409 00:26:36,802 [news reader] the helmsley palace hotel, [news reader] the helmsley palace hotel,
412 00:26:36,987 00:26:39,179 A 100-year-old roman renaissance mansion, A 100-year-old roman renaissance mansion,
413 00:26:39,289 00:26:45,019 Which has been lovingly restored is a tribute to the vision of mr. And mrs. Harry helmsley. Which has been lovingly restored is a tribute to the vision of mr. And mrs. Harry helmsley.
414 00:26:46,272 00:26:48,314 [glenn plaskin] at the same time that donald trump [glenn plaskin] at the same time that donald trump
415 00:26:48,499 00:26:52,943 Is the up and coming king of real estate in new york city, Is the up and coming king of real estate in new york city,
416 00:26:53,129 00:26:54,612 There was the helmsleys. There was the helmsleys.
417 00:26:56,264 00:27:00,701 Leona and harry helmsley were truly the king and queen of new york real estate, Leona and harry helmsley were truly the king and queen of new york real estate,
418 00:27:00,861 00:27:03,954 And they had recently opened the helmsley palace. And they had recently opened the helmsley palace.
419 00:27:04,314 00:27:06,206 [tovah feldshuh] the grand hyatt hotel, [tovah feldshuh] the grand hyatt hotel,
420 00:27:06,316 00:27:10,628 Which opened two weeks after the palace, and was trump's boutonnière, Which opened two weeks after the palace, and was trump's boutonnière,
421 00:27:10,813 00:27:12,880 Was a commercial hotel. It was a hotel for conferences. Was a commercial hotel. It was a hotel for conferences.
422 00:27:13,040 00:27:18,218 It didn't compare to the grace and up-stat It didn't compare to the grace and up-stat
423 00:27:18,379 00:27:20,054 Of the helmsley palace. Of the helmsley palace.
424 00:27:23,643 00:27:27,645 And the queen of the palace was leona helmsley. And the queen of the palace was leona helmsley.
425 00:27:29,005 00:27:32,399 And of new york real estate, queen she was. And of new york real estate, queen she was.
426 00:27:32,509 00:27:35,319 She made sure everybody knew it, too. She made sure everybody knew it, too.
427 00:27:35,504 00:27:38,739 The old guard embraced modesty and graciousness. The old guard embraced modesty and graciousness.
428 00:27:38,899 00:27:41,158 She ushered in a new way of doing business, She ushered in a new way of doing business,
429 00:27:41,343 00:27:43,494 Not just in new york, but in america. Not just in new york, but in america.
430 00:27:43,679 00:27:47,414 Off with the heads of anyone who didn't bend the knee. Off with the heads of anyone who didn't bend the knee.
431 00:27:47,574 00:27:53,212 If you pet me, I'll purr. But if you hit me, I might scratch. If you pet me, I'll purr. But if you hit me, I might scratch.
432 00:27:53,397 00:27:59,385 The fact that leona helmsley had risen to this level of fame and wealth The fact that leona helmsley had risen to this level of fame and wealth
433 00:27:59,870 00:28:04,348 Is because she was determined to prevail, and be number one, and to win. Is because she was determined to prevail, and be number one, and to win.
434 00:28:05,685 00:28:12,022 Leona was born into a very pedestrian, working class family, Leona was born into a very pedestrian, working class family,
435 00:28:12,208 00:28:13,774 So they did not have a lot of money. So they did not have a lot of money.
436 00:28:15,544 00:28:19,613 She had struggled for years through divorces, trying to raise a son with no money, She had struggled for years through divorces, trying to raise a son with no money,
437 00:28:19,723 00:28:23,367 Having to move in with her mother when she was 40. Having to move in with her mother when she was 40.
438 00:28:23,552 00:28:26,453 [elaine taylor-gordon] but she had fire in the belly from the start, [elaine taylor-gordon] but she had fire in the belly from the start,
439 00:28:26,613 00:28:28,330 And she wanted to be rich, And she wanted to be rich,
440 00:28:28,523 00:28:31,792 And she knew she was not going to stay where she was. And she knew she was not going to stay where she was.
441 00:28:31,952 00:28:35,587 She worked her way up, selling commercial real estate. She worked her way up, selling commercial real estate.
442 00:28:35,773 00:28:39,299 She went to work for helmsley, and that's how she met harry. She went to work for helmsley, and that's how she met harry.
443 00:28:41,369 00:28:43,804 When harry and leona met, When harry and leona met,
444 00:28:43,964 00:28:48,642 Harry was one of the biggest real estate moguls in new york. Harry was one of the biggest real estate moguls in new york.
445 00:28:48,752 00:28:51,812 [plaskin] he had worked for decades to create this empire, [plaskin] he had worked for decades to create this empire,
446 00:28:51,922 00:28:55,399 So when leona met him, it was like meeting god. So when leona met him, it was like meeting god.
447 00:28:56,551 00:29:01,989 Harry helmsley was someone that donald trump idolized and looked up to. Harry helmsley was someone that donald trump idolized and looked up to.
448 00:29:02,098 00:29:06,160 Donald trump's father never had that kind of glamorous properties. Donald trump's father never had that kind of glamorous properties.
449 00:29:06,269 00:29:09,663 But harry helmsley was the king. But harry helmsley was the king.
450 00:29:10,398 00:29:11,832 [news reader ] everybody knows the helmsleys in new york, [news reader ] everybody knows the helmsleys in new york,
451 00:29:11,942 00:29:14,334 Because sometimes it seems they own everything. Because sometimes it seems they own everything.
452 00:29:14,444 00:29:18,672 [plaskin] and his holdings amounted to more than $5 billion. [plaskin] and his holdings amounted to more than $5 billion.
453 00:29:18,782 00:29:23,010 He owned icons, like the empire state building. He owned icons, like the empire state building.
454 00:29:23,787 00:29:26,305 Harry helmsley was raised as a quaker. Harry helmsley was raised as a quaker.
455 00:29:26,490 00:29:31,477 He was very ethical and he was known to be a gentleman. He was very ethical and he was known to be a gentleman.
456 00:29:32,128 00:29:35,355 [feldshuh] leona fell fast and hard for harry helmsley. [feldshuh] leona fell fast and hard for harry helmsley.
457 00:29:35,465 00:29:37,941 She went after him like a bee to honey. She went after him like a bee to honey.
458 00:29:38,444 00:29:44,698 But, at the time he was married, and she just literally whirled into his life. But, at the time he was married, and she just literally whirled into his life.
459 00:29:45,526 00:29:49,828 [bill dowling] well, she was a very sexy, attractive woman, and that got his attention. [bill dowling] well, she was a very sexy, attractive woman, and that got his attention.
460 00:29:50,014 00:29:54,166 He was a very successful and wealthy businessman, and that got her attention. He was a very successful and wealthy businessman, and that got her attention.
461 00:29:54,351 00:29:57,503 How their personal relationship developed after that, How their personal relationship developed after that,
462 00:29:57,688 00:30:02,549 I would attribute more to leona's aggressiveness than harry's. I would attribute more to leona's aggressiveness than harry's.
463 00:30:02,659 00:30:06,637 [taylor-gordon] her next big vision was to become mrs. Leona helmsley, [taylor-gordon] her next big vision was to become mrs. Leona helmsley,
464 00:30:06,822 00:30:09,473 So she was having a torrid love affair with harry. So she was having a torrid love affair with harry.
465 00:30:09,658 00:30:14,144 [dowling] a couple years later, he divorced his wife and married leona. [dowling] a couple years later, he divorced his wife and married leona.
466 00:30:14,796 00:30:18,690 She would say, "can you believe a little jewish girl, from coney island, She would say, "can you believe a little jewish girl, from coney island,
467 00:30:18,876 00:30:23,570 Could snag the richest real estate mogul in new york city? Could snag the richest real estate mogul in new york city?
468 00:30:23,730 00:30:25,572 Look at his head. You notice it? Look at his head. You notice it?
469 00:30:25,732 00:30:27,366 Yeah, it's a good looking head. Yeah, it's a good looking head.
470 00:30:27,551 00:30:29,868 -He's got a beautiful head. Turn your head, darling. -[laughs] -He's got a beautiful head. Turn your head, darling. -[laughs]
471 00:30:30,054 00:30:32,913 -But look, I'll show you. -I don't believe it. -I swear, I'll show you. -But look, I'll show you. -I don't believe it. -I swear, I'll show you.
472 00:30:33,023 00:30:35,833 I don't believe it either, 'cause I'm behind it. What do I know? [laughs] I don't believe it either, 'cause I'm behind it. What do I know? [laughs]
473 00:30:36,018 00:30:39,002 Darling, no. I'll show you something. Turn around. Look at the shape of the head. Darling, no. I'll show you something. Turn around. Look at the shape of the head.
474 00:30:39,188 00:30:42,589 You can see, the brain just sits there. I'm very serious. Beautiful head. You can see, the brain just sits there. I'm very serious. Beautiful head.
475 00:30:42,991 00:30:47,344 It's very easy to caricature leona helmsley with the old cliché, It's very easy to caricature leona helmsley with the old cliché,
476 00:30:47,662 00:30:50,931 "she got her money the old-fashioned way: She married into it." "she got her money the old-fashioned way: She married into it."
477 00:30:51,041 00:30:52,574 It misses the fact It misses the fact
478 00:30:52,667 00:30:55,060 That she actually had a real estate experience and a real estate vision, That she actually had a real estate experience and a real estate vision,
479 00:30:55,245 00:30:58,105 And who may have been responsible for helping harry helmsley And who may have been responsible for helping harry helmsley
480 00:30:58,214 00:30:59,731 Take his empire to a whole other level. Take his empire to a whole other level.
481 00:31:01,284 00:31:04,862 [feldshuh] once he joined forces with her, the helmsley palace was born [feldshuh] once he joined forces with her, the helmsley palace was born
482 00:31:05,047 00:31:08,240 And the name went up, not just in lights, in gold. And the name went up, not just in lights, in gold.
483 00:31:08,892 00:31:15,747 Harry called me one day and said "I've decided to put leona in charge of the hotel company." Harry called me one day and said "I've decided to put leona in charge of the hotel company."
484 00:31:16,450 00:31:19,126 He made her the chief executive of the hotel chain, He made her the chief executive of the hotel chain,
485 00:31:19,286 00:31:21,545 So her word was the final word. So her word was the final word.
486 00:31:22,906 00:31:25,132 He gave her total authority. He gave her total authority.
487 00:31:26,868 00:31:31,763 And that's the american dream: We start at the bottom, and we hope to get to the top. And that's the american dream: We start at the bottom, and we hope to get to the top.
488 00:31:31,949 00:31:35,225 [feldshuh] harry helmsley had tremendous faith in her, [feldshuh] harry helmsley had tremendous faith in her,
489 00:31:35,411 00:31:40,147 And that was the tragedy. Harry, in his quaker way of life And that was the tragedy. Harry, in his quaker way of life
490 00:31:40,307 00:31:43,442 Saw his name as a signature at the bottom of a contract. Saw his name as a signature at the bottom of a contract.
491 00:31:43,627 00:31:47,112 Leona saw harry's name across the new york skyline. Leona saw harry's name across the new york skyline.
492 00:31:47,297 00:31:51,742 And there was the difference. Harry helmsley came up from the bottom, And there was the difference. Harry helmsley came up from the bottom,
493 00:31:51,927 00:31:54,494 And would have remained at the top of the top And would have remained at the top of the top
494 00:31:54,655 00:31:58,415 - Both morally, and as one of the great philanthropists of new york - - Both morally, and as one of the great philanthropists of new york -
495 00:31:58,600 00:32:01,627 Had he not married leona helmsley. Had he not married leona helmsley.
496 00:32:08,502 00:32:11,803 [news reader] 1982 has, so far, been a great year for movies. [news reader] 1982 has, so far, been a great year for movies.
497 00:32:11,989 00:32:14,973 And today, e.T. Opens across the city. And today, e.T. Opens across the city.
498 00:32:15,159 00:32:18,185 [burrough] new york is many, many things, but it has always been the place [burrough] new york is many, many things, but it has always been the place
499 00:32:18,294 00:32:22,898 Where the best and brightest of a generation come to prove themselves. Where the best and brightest of a generation come to prove themselves.
500 00:32:23,091 00:32:25,484 And when you get those highly ambitious, And when you get those highly ambitious,
501 00:32:25,669 00:32:28,695 High concentration of them in a zeitgeist, High concentration of them in a zeitgeist,
502 00:32:28,805 00:32:33,450 Which has no shame about displays of wealth, you get a moment in history Which has no shame about displays of wealth, you get a moment in history
503 00:32:33,635 00:32:38,288 Unlike any we've ever seen. Ambition was not a bad thing, anymore. Unlike any we've ever seen. Ambition was not a bad thing, anymore.
504 00:32:38,474 00:32:40,248 It was about what you could get for yourself. It was about what you could get for yourself.
505 00:32:40,442 00:32:46,004 It is not wrong to want a profit in capitalist america. It's fair. It is not wrong to want a profit in capitalist america. It's fair.
506 00:32:46,781 00:32:50,759 [jeff madrick] ivan boesky had bottomless ambitions. There's no question about that. [jeff madrick] ivan boesky had bottomless ambitions. There's no question about that.
507 00:32:50,952 00:32:57,307 But, for him, money was the coin of the realm. That's what made him important. But, for him, money was the coin of the realm. That's what made him important.
508 00:32:57,493 00:33:02,229 With wall street on the rebound, and in the midst of a hostile takeover boom, With wall street on the rebound, and in the midst of a hostile takeover boom,
509 00:33:02,338 00:33:06,108 Profits were pouring in fast and easy for the king of arbitrage. Profits were pouring in fast and easy for the king of arbitrage.
510 00:33:06,301 00:33:09,236 [stewart] ivan boesky became, far and away, [stewart] ivan boesky became, far and away,
511 00:33:09,345 00:33:12,698 The most successful of the so-called risk arbitragers. The most successful of the so-called risk arbitragers.
512 00:33:12,883 00:33:16,994 He was a legendary figure on wall street. He was a legendary figure on wall street.
513 00:33:17,179 00:33:22,416 But, in a city always looking for the next big thing, he wanted more, much more. But, in a city always looking for the next big thing, he wanted more, much more.
514 00:33:22,525 00:33:28,380 So, as soon as he got wind of the next massive takeover target he was ready to go all in. So, as soon as he got wind of the next massive takeover target he was ready to go all in.
515 00:33:28,698 00:33:31,550 One of the industries that was ripe for consolidation One of the industries that was ripe for consolidation
516 00:33:31,735 00:33:34,386 When the 80s dawned was oil and gas. When the 80s dawned was oil and gas.
517 00:33:34,571 00:33:41,309 So there was a wave of mergers. And soon, another oil company got teed up: Cities service. So there was a wave of mergers. And soon, another oil company got teed up: Cities service.
518 00:33:42,262 00:33:45,230 Ultimately, a bidding war erupted. It went on. Ultimately, a bidding war erupted. It went on.
519 00:33:45,415 00:33:47,024 There were multiple suitors who came in. There were multiple suitors who came in.
520 00:33:47,209 00:33:49,651 [news reader] when the markets reopened trading in cities service, [news reader] when the markets reopened trading in cities service,
521 00:33:49,844 00:33:52,279 The company's stock price jumped more than $6, The company's stock price jumped more than $6,
522 00:33:52,388 00:33:56,825 Reflecting investor hopes of more generous takeover offers ahead. Reflecting investor hopes of more generous takeover offers ahead.
523 00:33:57,018 00:33:59,244 Gulf oil was bidding for it. Gulf oil was bidding for it.
524 00:33:59,729 00:34:04,249 Gulf oil came through, with a hefty $63 a share bid. Gulf oil came through, with a hefty $63 a share bid.
525 00:34:04,434 00:34:09,796 Gulf comes in, and boesky effectively bet that this deal was gonna happen. Gulf comes in, and boesky effectively bet that this deal was gonna happen.
526 00:34:10,457 00:34:13,216 [stewart] boesky had this huge stake. [stewart] boesky had this huge stake.
527 00:34:13,402 00:34:16,595 He had used a lot of borrowed money to buy. He had used a lot of borrowed money to buy.
528 00:34:16,780 00:34:18,388 He was so sure this was gonna happen. He was so sure this was gonna happen.
529 00:34:18,574 00:34:23,602 And he watched the stock go up, and up, and up, and up. And he watched the stock go up, and up, and up, and up.
530 00:34:24,045 00:34:26,229 He thinks he's won the game. He thinks he's won the game.
531 00:34:27,474 00:34:29,608 [news reader] after government concerns in washington [news reader] after government concerns in washington
532 00:34:29,793 00:34:33,653 About anti-trust made gulf nervous, they withdrew. About anti-trust made gulf nervous, they withdrew.
533 00:34:36,057 00:34:37,949 Ivan was fully invested. Ivan was fully invested.
534 00:34:38,135 00:34:43,163 Suddenly, the plug was pulled and he lost an enormous amount of money. Suddenly, the plug was pulled and he lost an enormous amount of money.
535 00:34:43,273 00:34:46,166 It was a major surprise across wall street. It was a major surprise across wall street.
536 00:34:46,276 00:34:48,627 [news reader} the big news on wall street today [news reader} the big news on wall street today
537 00:34:48,812 00:34:51,630 Was still the big oil merger, that didn't go through. Was still the big oil merger, that didn't go through.
538 00:34:52,240 00:34:54,549 That has to have been a huge blow to his ego. That has to have been a huge blow to his ego.
539 00:34:54,742 00:34:58,887 To lose, and lose so publicly, and lose so big, has gotta be devastating. To lose, and lose so publicly, and lose so big, has gotta be devastating.
540 00:34:59,581 00:35:02,349 [stewart] and this was what drove boesky. [stewart] and this was what drove boesky.
541 00:35:02,458 00:35:07,521 He needed to find a way to make these deals risk free. He needed to find a way to make these deals risk free.
542 00:35:07,630 00:35:09,940 And to really eliminate risk, he had to get inside information. And to really eliminate risk, he had to get inside information.
543 00:35:10,125 00:35:12,317 And to get inside information, that's a tall order. And to get inside information, that's a tall order.
544 00:35:12,502 00:35:14,653 I mean, it's illegal for people to give it to you. I mean, it's illegal for people to give it to you.
545 00:35:18,358 00:35:22,285 [harvey pitt] boesky had friendships with a number of people, [harvey pitt] boesky had friendships with a number of people,
546 00:35:22,471 00:35:27,916 Who could provide information about things that were under consideration. Who could provide information about things that were under consideration.
547 00:35:28,109 00:35:31,128 One of his friends was martin siegel. One of his friends was martin siegel.
548 00:35:31,313 00:35:37,008 He was an investment banker at the firm of kidder peabody and company. He was an investment banker at the firm of kidder peabody and company.
549 00:35:37,327 00:35:41,930 Siegel was advising the kind of companies that were often the takeover targets. Siegel was advising the kind of companies that were often the takeover targets.
550 00:35:42,457 00:35:49,104 He would hear when bids were going to be raised, so he had a wealth of inside information. He would hear when bids were going to be raised, so he had a wealth of inside information.
551 00:35:49,505 00:35:53,775 Siegel was wildly successful. He seemed to have everything going for him, Siegel was wildly successful. He seemed to have everything going for him,
552 00:35:53,968 00:35:56,069 But like a lot of people on wall street, But like a lot of people on wall street,
553 00:35:56,179 00:35:59,531 He was always worrying about, "well, okay, this year was good, but what about next year?" He was always worrying about, "well, okay, this year was good, but what about next year?"
554 00:35:59,716 00:36:04,828 He had financial anxiety, and so boesky took advantage of that. He immediately suggested, He had financial anxiety, and so boesky took advantage of that. He immediately suggested,
555 00:36:05,013 00:36:09,124 "look, I could help you out." and then, boesky really baits the hook. "look, I could help you out." and then, boesky really baits the hook.
556 00:36:09,317 00:36:16,047 He says, "if you could put me in things with some lead time, that would really be valuable." He says, "if you could put me in things with some lead time, that would really be valuable."
557 00:36:16,233 00:36:18,300 And siegel says, And siegel says,
558 00:36:18,493 00:36:24,431 "maybe at the end of the year, we'd work out a bonus." "maybe at the end of the year, we'd work out a bonus."
559 00:36:26,834 00:36:30,520 [mclean] so, ivan boesky and martin siegel became true partners in crime, [mclean] so, ivan boesky and martin siegel became true partners in crime,
560 00:36:30,706 00:36:34,816 Because it was siegel who provided boesky with the information he needed Because it was siegel who provided boesky with the information he needed
561 00:36:35,009 00:36:36,526 To make his big profits. To make his big profits.
562 00:36:36,712 00:36:39,988 And it was boesky who provided siegel, in turn, with cash. And it was boesky who provided siegel, in turn, with cash.
563 00:36:42,850 00:36:47,621 [stewart] they came up with this scheme to hand over the money, [stewart] they came up with this scheme to hand over the money,
564 00:36:47,730 00:36:53,710 Where siegel would show up in the lobby of the plaza hotel, Where siegel would show up in the lobby of the plaza hotel,
565 00:36:53,895 00:36:55,879 And a courier would hand over a bag. And a courier would hand over a bag.
566 00:37:00,034 00:37:04,888 Siegel had this fear, this kind of guilt, this nightmare Siegel had this fear, this kind of guilt, this nightmare
567 00:37:05,073 00:37:07,849 That this was gonna come crashing down on him, That this was gonna come crashing down on him,
568 00:37:08,042 00:37:09,184 And he was panicking. And he was panicking.
569 00:37:13,047 00:37:17,901 And then, he saw the man he assumed was the courier with the case. And then, he saw the man he assumed was the courier with the case.
570 00:37:18,219 00:37:20,028 [dramatic music playing] [dramatic music playing]
571 00:37:20,763 00:37:25,617 They had code words. The courier's code was to pass siegel and say, They had code words. The courier's code was to pass siegel and say,
572 00:37:25,802 00:37:28,870 "red light." if siegel said, "green light," "red light." if siegel said, "green light,"
573 00:37:29,063 00:37:31,122 Then he handed the bag over and they kept moving. Then he handed the bag over and they kept moving.
574 00:37:33,827 00:37:39,089 There are elements to this that are all like a heist movie. It's like ocean's eleven. There are elements to this that are all like a heist movie. It's like ocean's eleven.
575 00:37:39,274 00:37:40,331 They're running around with briefcases. They're running around with briefcases.
576 00:37:40,517 00:37:43,301 They got their code names, and I think they loved that. They got their code names, and I think they loved that.
577 00:37:45,913 00:37:49,140 The mystery of marty siegel was always, "why the heck would you do this?" The mystery of marty siegel was always, "why the heck would you do this?"
578 00:37:49,326 00:37:52,644 I mean, he already had everything. He was making millions. I mean, he already had everything. He was making millions.
579 00:37:53,087 00:37:58,942 [stewart] siegel later said that he always felt guilty from that day on. [stewart] siegel later said that he always felt guilty from that day on.
580 00:37:59,127 00:38:01,653 But the line had been crossed. But the line had been crossed.
581 00:38:01,838 00:38:07,367 Ultimately, boesky made over $30 million on tips from siegel. Ultimately, boesky made over $30 million on tips from siegel.
582 00:38:07,477 00:38:10,870 Once they'd crossed the line, they'd crossed it. Once they'd crossed the line, they'd crossed it.
583 00:38:10,980 00:38:14,582 All the elements of the crime were now in place. All the elements of the crime were now in place.
584 00:38:14,776 00:38:17,752 There was no going back. There was no going back.
585 00:38:21,324 00:38:26,219 By 1982, new york city was reborn, uptown and downtown. By 1982, new york city was reborn, uptown and downtown.
586 00:38:26,379 00:38:31,391 New royalty had been anointed, new fortunes made. New royalty had been anointed, new fortunes made.
587 00:38:31,501 00:38:35,228 We put them on pedestals, this new class of the super rich. We put them on pedestals, this new class of the super rich.
588 00:38:35,388 00:38:38,857 In time, the whole world would. In time, the whole world would.
589 00:38:39,042 00:38:41,860 But there was more to new york than high society. But there was more to new york than high society.
590 00:38:42,045 00:38:45,739 In many other corners of the city, crime and chaos still reigned. In many other corners of the city, crime and chaos still reigned.
591 00:38:45,848 00:38:49,701 [winerip] in terms of crime, new york was coming apart a little bit. [winerip] in terms of crime, new york was coming apart a little bit.
592 00:38:49,886 00:38:52,912 It was a dangerous time. It was lawless, in that way. It was a dangerous time. It was lawless, in that way.
593 00:38:53,073 00:38:57,417 [news reader] former beatle, john lennon, is dead tonight of gunshot wounds. [news reader] former beatle, john lennon, is dead tonight of gunshot wounds.
594 00:38:57,577 00:39:01,087 [news reader 2] the biggest city in the country has a very serious crime problem. [news reader 2] the biggest city in the country has a very serious crime problem.
595 00:39:01,197 00:39:04,883 There are more people, more criminals, and more guns on the streets. There are more people, more criminals, and more guns on the streets.
596 00:39:05,068 00:39:07,761 [news reader 3] a lot of people are afraid of crime in new york city. [news reader 3] a lot of people are afraid of crime in new york city.
597 00:39:07,921 00:39:10,597 Operative crime statistics that keep increasing, Operative crime statistics that keep increasing,
598 00:39:10,757 00:39:14,100 And a criminal justice system that can't keep up. And a criminal justice system that can't keep up.
599 00:39:15,044 00:39:19,939 New york needed a superhero, the sheriff coming in with his white hat. New york needed a superhero, the sheriff coming in with his white hat.
600 00:39:22,218 00:39:27,280 [classical music playing] [classical music playing]
601 00:39:27,390 00:39:30,742 [news reader] this is rudolph giuliani's idea of mood music. [news reader] this is rudolph giuliani's idea of mood music.
602 00:39:30,927 00:39:35,330 The us attorney has been listening to italian composers like vivaldi lately, The us attorney has been listening to italian composers like vivaldi lately,
603 00:39:35,523 00:39:38,958 While he works on indicting alleged mafia kingpin. While he works on indicting alleged mafia kingpin.
604 00:39:40,069 00:39:43,254 Into this circus came rudy giuliani. Into this circus came rudy giuliani.
605 00:39:45,575 00:39:48,843 Crippled by corruption and crime, new york city needed a hero. Crippled by corruption and crime, new york city needed a hero.
606 00:39:49,036 00:39:54,015 An ambitious young prosecutor knew it, and he knew what it would do for him. An ambitious young prosecutor knew it, and he knew what it would do for him.
607 00:39:54,208 00:39:57,185 If ever there was a shortcut to power, it's fame, If ever there was a shortcut to power, it's fame,
608 00:39:57,378 00:40:00,814 And he would give new york one hell of a show. And he would give new york one hell of a show.
609 00:40:01,757 00:40:03,391 [randy mastro] the irony of the situation [randy mastro] the irony of the situation
610 00:40:03,551 00:40:08,196 Was that rudy giuliani left the number three position in the justice department, Was that rudy giuliani left the number three position in the justice department,
611 00:40:08,389 00:40:11,533 To go be one of over 100 us attorneys around the country. To go be one of over 100 us attorneys around the country.
612 00:40:11,726 00:40:15,120 But, rudy wanted to come back home. But, rudy wanted to come back home.
613 00:40:15,438 00:40:16,996 [winerip] and he came with big ambitions. [winerip] and he came with big ambitions.
614 00:40:17,157 00:40:18,656 He was gonna make a name for himself. He was gonna make a name for himself.
615 00:40:18,841 00:40:21,876 The number three guy doesn't get on tv very much, in the justice department. The number three guy doesn't get on tv very much, in the justice department.
616 00:40:22,069 00:40:25,964 The number one guy in new york can get on tv as much as he or she wants, The number one guy in new york can get on tv as much as he or she wants,
617 00:40:26,149 00:40:28,466 And rudy took full advantage of that. And rudy took full advantage of that.
618 00:40:29,076 00:40:30,510 [giuliani} we have to do securities fraud, [giuliani} we have to do securities fraud,
619 00:40:30,670 00:40:32,178 Because we have two stock markets here in new york. Because we have two stock markets here in new york.
620 00:40:32,338 00:40:33,746 If we don't do it, nobody's gonna do it. If we don't do it, nobody's gonna do it.
621 00:40:33,840 00:40:37,517 We have to do drug work, because we have a big drug problem in this city. We have to do drug work, because we have a big drug problem in this city.
622 00:40:37,627 00:40:39,352 And we have to do organized crime work, And we have to do organized crime work,
623 00:40:39,512 00:40:42,188 Because we have five organized crime families that have decided, Because we have five organized crime families that have decided,
624 00:40:42,348 00:40:45,525 Since the turn of the century, to locate themselves here in new york. Since the turn of the century, to locate themselves here in new york.
625 00:40:45,635 00:40:51,739 When giuliani became us attorney he had, you know, any number of targets, right? When giuliani became us attorney he had, you know, any number of targets, right?
626 00:40:51,933 00:40:55,994 So, there were the excesses on wall street. There was the mob. So, there were the excesses on wall street. There was the mob.
627 00:40:56,179 00:40:57,745 [george gabriel] the mob, in the 80s, [george gabriel] the mob, in the 80s,
628 00:40:57,939 00:41:02,709 Was probably as big and powerful and ruthless as it had ever been. Was probably as big and powerful and ruthless as it had ever been.
629 00:41:02,818 00:41:05,378 They owned the streets. I mean, they were a force to be reckoned with. They owned the streets. I mean, they were a force to be reckoned with.
630 00:41:05,538 00:41:10,550 [sean deveney] you had this dignified older generation of mob bosses, [sean deveney] you had this dignified older generation of mob bosses,
631 00:41:10,660 00:41:15,305 Being replaced by a younger more violent generation, like john gotti. Being replaced by a younger more violent generation, like john gotti.
632 00:41:15,490 00:41:17,223 This guy is a violent killer. This guy is a violent killer.
633 00:41:17,333 00:41:20,059 Come on, you know I don't know what he was talking about, john. Come on, you know I don't know what he was talking about, john.
634 00:41:20,887 00:41:24,606 At the same time, giuliani comes in with the clear goal... At the same time, giuliani comes in with the clear goal...
635 00:41:24,799 00:41:26,191 Are we all set? Are we all set?
636 00:41:26,376 00:41:28,193 ...Of bringing down the heads of the families. ...Of bringing down the heads of the families.
637 00:41:28,378 00:41:31,237 Hopefully, with an organization like the mafia, we will wear them down. Hopefully, with an organization like the mafia, we will wear them down.
638 00:41:31,397 00:41:34,908 [andrew kirtzman] in his eyes, these were bastions of immorality. [andrew kirtzman] in his eyes, these were bastions of immorality.
639 00:41:35,068 00:41:39,704 And also, they were kind of stepping stones towards fame. And also, they were kind of stepping stones towards fame.
640 00:41:40,240 00:41:44,459 Rudy wanted to make himself a hero. He wanted all the attention he could get. Rudy wanted to make himself a hero. He wanted all the attention he could get.
641 00:41:44,652 00:41:47,962 Giuliani comes across like the hollywood stereotype Giuliani comes across like the hollywood stereotype
642 00:41:48,155 00:41:50,215 Of the tough, dedicated crime buster. Of the tough, dedicated crime buster.
643 00:41:50,400 00:41:53,134 [deveney] he wanted power in new york city. [deveney] he wanted power in new york city.
644 00:41:53,327 00:41:55,136 [giuliani] I am tired of being asked, [giuliani] I am tired of being asked,
645 00:41:55,329 00:42:00,058 "which type of crime is more dangerous: Violent crime or white collar crime? "which type of crime is more dangerous: Violent crime or white collar crime?
646 00:42:00,668 00:42:03,269 Organized crime or public corruption?" Organized crime or public corruption?"
647 00:42:03,429 00:42:10,109 All of these areas of crime are dangerous and destructive of our society. All of these areas of crime are dangerous and destructive of our society.
648 00:42:11,029 00:42:12,946 This is a war that can be won, This is a war that can be won,
649 00:42:13,106 00:42:16,824 If we do not rest on our accomplishments, but rather redouble our efforts. If we do not rest on our accomplishments, but rather redouble our efforts.
650 00:42:17,018 00:42:21,412 [deveney] rudy giuliani was a bulldog, and this was his moment. [deveney] rudy giuliani was a bulldog, and this was his moment.
651 00:42:24,233 00:42:29,170 New york city, the 80s: A collision of ego and opportunity. New york city, the 80s: A collision of ego and opportunity.
652 00:42:29,363 00:42:34,467 Titans of industry, crime bosses, law men. Titans of industry, crime bosses, law men.
653 00:42:34,577 00:42:37,470 Over the coming decade, this new elite would redefine Over the coming decade, this new elite would redefine
654 00:42:37,580 00:42:40,473 The meaning of success, the world over. The meaning of success, the world over.
655 00:42:40,633 00:42:44,185 Battle lines would be drawn, and limits tested. Battle lines would be drawn, and limits tested.
656 00:42:44,378 00:42:47,522 [troy] new york had these larger-than-life personalities, [troy] new york had these larger-than-life personalities,
657 00:42:47,715 00:42:51,651 And that ultimately headed for a clash. And that ultimately headed for a clash.
658 00:42:51,811 00:42:53,027 You have a perfect storm. You have a perfect storm.
659 00:42:56,316 00:42:58,825 [dramatic music playing] [dramatic music playing]