WE GO TO ATLANTA, A MAJOR TEACHING SCANDAL THAT
LUCKILY FOR ONCE DOES NOT INVOLVE ANY WEIRD UNDERAGE
SEX-TYPE STUFF.
>> NEARLY A DOZEN FORMER EDUCATORS WERE CONVICT OF
RACKETEERING AND OTHER CHARGES FOR THEIR PART IN ONE OF THE
NATION'S BIGGEST CHEATING SCANDALS.
>> INFLATING THE TEST SCORES OF SOME OF THEIR MOST VULNERABLE
STUDENTS TO PROTECT THEIR OWN JOBS AND THEIR PAYCHECKS.
>> THEY WERE GOING BACK AND CORRECTING THE WRONG ANSWERS.
>> IT'S, LIKE, THE SICKEST THING THAT'S EVER HAPPENED TO THIS
TOWN.
( LAUGHTER ) >> Jon: YOU'RE-- YOU KNOW,
YOU LIVE IN ATLANTA.
( LAUGHTER ) SO I GUESS, YOU KNOW, EXCLUDING
SLAVERY AND YOUR CITY BEING BURNED TO THE GROUND, AND
SEGREGATION AND NOTORIOUS SERIAL KILLER AND THE OLYMPIC BOMBING.
( LAUGHTER ) AND CNN.
( LAUGHTER ) BUT, YOU KNOW, STILL. SICK.
( CHEERS AND APPLAUSE ) SICK. SICK. SICK.
CLEARLY, WHAT WE HAVE HERE IS A WIDESPREAD CHEATING SCANDAL,
FRAUD.
BY WHY DO THE PARTICULARS OF THIS GRADE INFLATION SCANDAL
SOUND SO FAMILIAR TO ME?
>> THE COMPANIES REPEATEDLY GAVE A.A.A. RATINGS TO INVESTMENTS
THEY KNEW INCLUDED RISKY SUBPRIME LOANS.
>> Jon: I JUST CANNOT PLACE WHERE I HAVE EXTENSIVELY HEARD
ABOUT SYSTEMIC, JUST FLAT-OUT FALSIFYING OF INFORMATION AND
CHEATING.
>> LOAN OFFICERS WOULD FALSIFY CUSTOMERS' JOB OR FINANCIAL
INFORMATION SO THEY COULD QUALIFY FOR MORTGAGES.
>> THE PATTERN OF INFLATED APPRAISALS AND EMPLOYEES
COACHING BORROWERS TO LIE.
>> Jon: IT WILL COME TO ME...
( LAUGHTER ) I CAN'T FIGURE OUT... WHERE,
PINK FLOYD'S "THE WALL."
I DON'T KNOW WHAT THAT HAS TO DO --
MERYL STREEP?
MINUS A "P."
PLUS A CUP OF TEA.
I DON'T -- WALL STREET-- WALL STREET!
OH!
IT'S WALL STREET!
SON OF A BITCH!
ARE THERE ANALOGOUS REFERENCE POINTS BETWEEN THE ATLANTA
CHEATING SCANDAL AND THE WALL STREET MELTDOWN?
HMMM.
TELL ME AGAIN, WHAT WAS THE ACTUAL FRAUD COMMITTED IN EACH?
>> EDUCATORS GAVE STUDENT ANSWERS.
>> COOK COUNTRYWIDE LOAN OFFICER TOLD HER TO CLAIM SHE MADE MORE
THAN TWICE HER ACTUAL INCOME.
>> Jon: SO, BOTH FALSIFIED INFORMATION.
>> TEST ANSWER SHEETS WERE ALTERED, FABRICATED AND FALSELY
CERTIFIED.
>> I SAW PEOPLE ALTER W2s AND ALTER PAYSTUBS TO MAKE IT APPEAR
AS IF PEOPLE MADE MORE MONEY TO QUALIFY FOR A LOAN.
>> Jon: MOTHER ( BLEEP ).
ALL RIGHT, I'M SORRY.
AN ELABORATE PURPOSEFUL SYSTEMIC CULTURE OF FALSIFIED
INFORMATION.
SO, ALL RIGHT, LACK OF ETHICAL LIMITS, COACHED ANSWERS,
ALTERED DOCUMENTS.
SOUNDS LIKE PRETTY SIMILAR BEHAVIOR.
BUT WHY DID SCHOOLS AND FINANCIAL INSTITUTIONS TAKE
THESE SHORTCUTS?
>> ATLANTA EDUCATORS COULD RECEIVE BONUSES WHEN STUDENT
PERFORMANCE IMPROVES.
>> LOAN OFFICERS RECEIVED BONUSES, COMMISSIONS.
>> Jon: PERSONAL ENRICHMENT, INCENTIVIZE FOR
PERSONAL ENRICHMENT.
AND WHY WAS THIS CULTURE OF FRAUD NOT STOPPED?
>> EDUCATORS WHO TRIED TO REPORT THE CHEATING FACED A CULTURE OF
FEAR AND INTIMIDATION.
>> THERE WERE THREATS AND INTIMIDATION.
>> WHAT KINDS OF THREATS ARE WE TALKING ABOUT?
>> YOUR TIRES WOULD BE FLAT.
>> YOUR TIRES WOULD BE FLAT?
>> YEAH.
( LAUGHTER ) >> Jon: IN NEW JERSEY,
THAT'S CONSIDERED A COMPLIMENT.
( LAUGHTER ) ( APPLAUSE )
I GOTTA SAY MORTGAGE LENDER INTIMIDATION IS PRETTY WEAK.
SOMETIMES I WOULD BRING YOGURT TO THE OFFICE, AND CHAD WOULD
EAT IT, EVEN THOUGH IT HAD MY NAME ON IT.
SO MANY EERIE SIMILARITIES, THOUGH.
IT'S SORT OF HOW LINCOLN HAD A SECRETARY NAMED IT KENNEDY AND
KENNEDY BANGED HIS SECRETARY IN THE BACK OF A LINCOLN.
( LAUGHTER )
OR SOMETHING LIKE -- ANYWAY, THERE'S GOT TO BE SOME
DIFFERENCE BETWEEN THESE TWO STORIES.
WHAT COULD IT BE?
>> THREE DISGRACED EDUCATORS, FORMER TEACHERS AND
ADMINISTRATORS, WERE SENTENCED TO 20 YEARS.
THE OTHERS, INCLUDING A PRINCIPAL AND ELEMENTARY SCHOOL
TEACHERS, WERE SENTENCED TO FIVE YEARS, SERVING ONE TO TWO OF
THEM BEHIND BARS.
>> Jon: ALL RIGHT.
AND?
>> A RECENT "NEW YORK TIMES MAGAZINE" STORY FOUND THAT
ONLY ONE PROSECUTION RELATING TO THE 2008 FINANCIAL CRISIS LED TO
A CONVICTION AND JAIL TIME.
>> Jon: I THINK I FOUND THE DIFFERENCE.
( LAUGHTER ) PUNISHMENT!
THE TEACHERS AND SCHOOL ADMINISTRATORS ARE GOING TO BE
PUNISHED WITH JAIL TIME, OR WHAT THEY MIGHT KNOW AS DETENTION
EXTREME RULES.
( LAUGHTER ) WHEREAS THE ENTIRE FINANCIAL
SECTOR IS TIED, JAIL TERM-WISE, WITH THE ECONOMY'S
EQUALLY CRITICAL "REAL HOUSEWIVES OF NEW JERSEY"
SECTOR.
OH, ACTUALLY, THEY'RE BEHIND, 2 TO 1.
SO WHY DID THE TEACHERS RECEIVE JAIL TIME AND THE FINANCIAL
INSTITUTIONS FINES?
PERHAPS THIS NUGGET IN THE JUDGE WHO SENTENCED THE TEACHERS WILL
SHED LIGHT.
>> ALL I WANT FROM ANY OF THESE PEOPLE IS JUST TO TAKE SOME
RESPONSIBILITY.
>> Jon: THE TEACHERS WERE REMORSELESS.
THEY WERE CHEATERS WHO WOULD NEVER ADMIT TO WRONGDOING.
THAT'S THE CONTRAST.
AT LEAST THOSE WHOSE FINANCIAL CRIMES NEARLY BROKE THE EARTH--
( LAUGHTER ) WERE REMORSEFUL.
>> THE STATES REACHED A $325 MILLION SETTLEMENT WITH
AMERIQUEST.
AMERIQUEST NEVER ADMITTED TO ANY WRONGDOING.
>> U.B.S. DID NOT ADMIT ANY WRONGDOING.
>> MORGAN STANLEY ISN'T ADMITTING TO ANY WRONGDOING.
>> GOLDMAN SACHS WILL NOT ADMIT ANY WRONGDOING.
>> BANK OF AMERICA IS NOT ADMITTING ANY WRONGDOING.
>> Jon: WHO PAYS $300 MILLION AND DOESN'T ADMIT
WRONGDOING?
SO THE THE NINE-FIGURE CASH SETTLEMENT IS NOT SO MUCH A FINE
AS IT IS, WHAT, A LITTLE SOMETHING FOR THE JUSTICE
DEPARTMENT FOR LOOKING THE OTHER WAY?
GOOD THING JUSTICE IS BLIND BECAUSE SHE KNOWS WHAT'S GOOD
FOR HER, HA, HA.
HERE'S WHAT, SHE KNOWS SHE DIDN'T SEE NOTHING.
SO AT THE END OF ALL THIS, YOU HAVE TO ASK YOURSELF WHAT
IS THIS HARSH PUNISHMENT FOR ATLANTA'S EDUCATORS
MEANT TO ACCOMPLISH.
>> MY HOPE IS THAT THIS VERDICT WHICH SHOWS SOME ACCOUNTABILITY
WILL SEND A SERIOUS MESSAGE.
>> Jon: AND WHAT DID THE LESS-HARSH PUNISHMENTS FOR WALL
STREET ACCOMPLISH?
>> A FEW YEARS AFTER THE MELTDOWN THAT IT'S STILL
BUSINESS AS USUAL INSIDE SOME OF THESE WALL STREET BANKS.
>> I KNOW.
>> THE REASON NOTHING HAS CHANGED ON WALL STREET IS
BECAUSE THE INCENTIVES ON WALL STREET HAVE NOT CHANGED.
>> Jon: PERHAPS WE CAN PUT THIS LESSON IN STANDARDIZED TEST
FORM.
JOHNNY IS A CHEATING TEACHER ON A TRAIN TRAVELING 80 MILES PER
HOURS WEST TO JAIL.
CHARLIE IS A CHEATING WALL STREET EXECUTIVE ON A TRAIN
TRAVELING 40 MILES PER HOUR...
I'M KIDDING.
IT'S A HELICOPTER AND HE'S GOING TO A PARTY WHERE A GIANT ICE
SCULPTURE OF DAVID IS PEEING VODKA.