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[narrator] new york city:
By the end of the 1970s,
it was a city on its knees,
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00:00:09,659 --> 00:00:11,427
In a country
that was losing its mind.
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00:00:11,536 --> 00:00:13,012
[man] it's a war
out on the street.
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00:00:13,197 --> 00:00:16,348
The american dream
had become a nightmare,
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00:00:16,534 --> 00:00:20,728
And no place felt as rotten
and as hopeless as new york.
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00:00:20,913 --> 00:00:23,063
[man 2] they're gonna make
a ghost town
out of the city of new york.
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00:00:23,249 --> 00:00:28,944
[darryl mcdaniels] it was a war
zone, without tanks and planes
and people dropping bombs.
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00:00:29,054 --> 00:00:30,070
But, suddenly...
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00:00:30,847 --> 00:00:32,948
[woman] happy new year!
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00:00:33,058 --> 00:00:34,783
...At the dawn
of a new decade...
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[woman 2] it felt
like really good sex.
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00:00:36,728 --> 00:00:40,164
...There was something else
in the air:
Opportunity.
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00:00:40,357 --> 00:00:41,999
[man 3] boom times.
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00:00:42,192 --> 00:00:45,252
It was everywhere in the 80s,
and five new yorkers pounced.
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00:00:45,788 --> 00:00:49,048
[news reader] ivan boesky,
wall street's
biggest independent speculator,
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00:00:49,233 --> 00:00:51,800
And according to forbes,
one of the richest men
in this country.
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00:00:51,910 --> 00:00:55,387
One of the great things
about this nation
is that we can seek profit.
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00:00:55,573 --> 00:00:59,892
[news reader] leona helmsley,
the emblem
of the helmsley hotel empire.
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00:01:00,210 --> 00:01:02,811
[leona helmsley]
I'm a dangerous character.
Watch out, everybody.
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00:01:02,971 --> 00:01:07,524
[news reader] trump, it's taking
on new meaning;
tycoon, billionaire, maverick.
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00:01:07,717 --> 00:01:09,318
[donald trump] the concept
of what I'm trying to do,
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00:01:09,427 --> 00:01:11,570
In terms of real estate,
is the best.
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00:01:11,755 --> 00:01:14,990
[news reader] john gotti,
alias the godfather, the boss.
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[john gotti] you guys
[inaudible].
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[news reader] giuliani
has sewn himself
into the fabric of this city.
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[rudolph giuliani]
this is a terrible,
terrible emergency.
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They broke rule,
flaunted their wealth...
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00:01:27,404 --> 00:01:29,546
42 million.
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...Bulldozed anyone
in their way...
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Hey, tell me about it.
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...And we worshiped them for it.
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[andrew j. Maloney]
he's a murderer.
He's not a folk hero.
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By the end of the decade,
they had reshaped the city
in their own image...
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Look at this. I mean,
wouldn't you want your daughter
to bring this guy home?
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00:01:45,797 --> 00:01:47,147
...And at what cost?
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00:01:49,134 --> 00:01:53,153
[tovah feldshuh] a tipster
had information
that would clearly prove
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00:01:53,339 --> 00:01:55,697
That they were defrauding
the united states government.
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[charles bagli] he agreed to act
as an undercover agent.
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00:02:07,152 --> 00:02:08,669
[bethany mclean] it's really
a shocking turn of events.
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00:02:08,854 --> 00:02:10,712
You know it's all gonna come
to a crashing halt.
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Pick your poison.
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00:02:13,525 --> 00:02:15,384
It might be money,
it might be sex,
it might be drugs.
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[gil troy] he said,
"I wish you
could see her naked."
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Even today,
it makes me uncomfortable.
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00:02:20,999 --> 00:02:23,600
[david cay johnston]
if you think
I just slandered you, sue me.
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00:02:23,793 --> 00:02:27,771
These five titans
would change the meaning
of the american dream,
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And help define
the way we live now.
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The city,
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00:02:33,729 --> 00:02:34,736
Our country,
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00:02:35,731 --> 00:02:41,577
The world,
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00:03:04,042 --> 00:03:09,855
Good evening, and welcome
to nbc news's coverage of
the 1980 presidential election.
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Our team of correspondents,
analysts, pollsters,
and commentators
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00:03:13,752 --> 00:03:16,111
Is assembled here in new york
and around the country
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To see if jimmy carter
can win re-election,
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Or if ronald reagan
will be going to the oval office
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-[reagan] are you better off
than you were four years ago?
-No.
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00:03:26,114 --> 00:03:29,958
[jimmy carter]
it is a crisis of confidence.
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[gil troy] jimmy carter
was a perfect fit for the 1970s:
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00:03:33,230 --> 00:03:36,215
A misfire of a president
for a misfire of a decade.
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00:03:36,625 --> 00:03:42,012
It's a decade of inflation,
of vietnam, of watergate...
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00:03:42,205 --> 00:03:45,515
[richard nixon] I shall resign
the presidency,
effective at noon tomorrow.
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...A decade where americans
are starting to wonder whether
the american dream is over.
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It's a decade where,
all of a sudden,
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The greatest city in the world,
new york city,
might go bankrupt.
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[news reader] the city of dreams
is becoming a nightmare.
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00:04:00,390 --> 00:04:04,993
$13 billion in debt
and teetering on bankruptcy.
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00:04:06,396 --> 00:04:10,791
New york is hanging by a thread,
and only seems
to be getting worse.
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00:04:11,493 --> 00:04:14,086
[news reader] 19,000
municipal workers
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00:04:14,271 --> 00:04:17,297
Lost their jobs today,
because of budget cuts.
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00:04:17,833 --> 00:04:20,926
[michael holman] a whole block
would be covered
with garbage bags,
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00:04:21,111 --> 00:04:23,053
That would sit there for weeks
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00:04:23,246 --> 00:04:27,182
And stink up the place,
and this was normal.
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00:04:27,292 --> 00:04:30,060
[news reader] about 5,000
policeman, also, were laid off.
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00:04:30,253 --> 00:04:34,564
This is comparable to laying off
soldiers during a war.
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[news read] four people
are murdered here every day.
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00:04:37,461 --> 00:04:40,279
There's a violent crime
every four minutes
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[darryl mcdaniels]
"it's just like
a jungle sometimes.
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00:04:42,599 --> 00:04:46,660
It makes me wonder
how I keep from going under,"
was the vibe of everybody.
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00:04:48,030 --> 00:04:51,248
[news reader] some people
once called new york
"fun city."
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00:04:51,441 --> 00:04:56,003
Now, police and firemen unions
in new york are calling it
"fear city."
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00:04:56,188 --> 00:05:00,549
[troy] new york city becomes
the center and the symbol
of america's decline.
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00:05:01,451 --> 00:05:03,343
[mcdaniels] new york
was finished.
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00:05:05,497 --> 00:05:09,182
But, in the midst of chaos
lies opportunity.
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00:05:09,368 --> 00:05:13,520
And some savvy new yorkers
were ready to make their move
in 1980,
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00:05:13,705 --> 00:05:16,398
When an unlikely candidate
shocked the world.
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00:05:17,133 --> 00:05:19,443
[news reader] reagan is
our projected winner.
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00:05:19,636 --> 00:05:24,364
Ronald wilson reagan
of california:
A sports announcer, a film actor
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00:05:24,900 --> 00:05:28,410
This man, who's dismissed.
Ronald reagan? He's a joke.
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00:05:28,978 --> 00:05:32,581
Ronald reagan? He's an actor.
Ronald reagan? He's an imbecile.
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00:05:32,741 --> 00:05:34,291
[news reader] I don't think
anyone anticipated
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00:05:34,484 --> 00:05:37,002
That it eventually
would become a floodgate,
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00:05:37,187 --> 00:05:40,756
Of one kind or another,
where the votes would just
flood in for ronald reagan.
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00:05:41,658 --> 00:05:46,178
[troy] but ronald reagan
understood that hope is a drug,
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00:05:46,363 --> 00:05:50,182
And he sold
this story of america
on the way back.
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[reagan] this country
needs a new administration,
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Where there will be
new dedication
to the dream of america:
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00:05:56,039 --> 00:06:00,859
An administration that will give
that dream new life,
and make america great again.
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00:06:01,044 --> 00:06:05,072
[ken auletta] reagan comes in
in 1980,
and he believes in capitalism.
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00:06:05,257 --> 00:06:08,658
He believes
that we have to lower taxes
for the wealthy,
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00:06:08,852 --> 00:06:11,161
Because that will trickle down
to everyone else.
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00:06:11,354 --> 00:06:16,416
And we have to deregulate
businesses, so business would be
freer to create jobs.
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00:06:16,602 --> 00:06:18,627
[reagan] I would like
to have a crusade today,
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00:06:18,736 --> 00:06:23,340
To take government off the backs
of the great people
of this country.
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[andrew ross sorkin]
all of a sudden, reagan shows up
on the doorstep and says,
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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,
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00:06:31,408 --> 00:06:33,809
"look at this case.
There's an anti-trust case
against ibm."
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00:06:33,918 --> 00:06:37,521
He said, "it's over."
the justin department
ended the case.
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The message was: Game on;
everything is for sale.
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Ronald reagan opens this spigot.
Ronald reagan starts getting
the money flowing again.
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It brings back a confidence
to wall street. It brings back a
confidence to the stock market.
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00:06:55,307 --> 00:06:59,793
It brings back a confidence
to the american investor. And,
in fact, changes all of them.
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00:07:01,905 --> 00:07:05,090
It enabled the rise of this
much more aggressive,
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00:07:05,275 --> 00:07:09,261
Much more hostile,
much more money-oriented
culture.
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[andrew ross sorkin] so,
as animal spirits are filling
the air everywhere,
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This new class of investor
arrives on the scene,
to become a takeover artist.
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Using debt from wall street,
they're gonna go buy companies
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That never would have been
takeover bait before.
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[news reader] takeover mania
in america. Huge corporations
are gobbling one another,
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At a rate unmatched in history.
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00:07:32,803 --> 00:07:35,203
[natalie byfield] this was
the era
of mergers and acquisitions,
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And they were being celebrated
as heroes.
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00:07:38,775 --> 00:07:41,460
Wall street becomes a symbol
of the new gilded age,
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00:07:43,446 --> 00:07:45,255
And the best symbol of that...
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00:07:47,116 --> 00:07:48,300
...Is ivan boesky.
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00:07:50,787 --> 00:07:55,056
A man who came from nothing,
and reinvented himself
on wall street.
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He was a master of secrets,
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00:07:57,219 --> 00:08:00,812
With an aggressiveness
the financial world
had never seen before.
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00:08:00,998 --> 00:08:02,856
And he had nowhere to go,
but up.
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00:08:04,576 --> 00:08:07,235
[bryan burrough] ivan boesky
was this great white shark,
out there in the ocean.
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00:08:07,562 --> 00:08:09,779
You knew he was out there.
Every now and then,
he would attack.
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00:08:10,473 --> 00:08:13,575
Very few of us
had any real sense
of ivan boesky as a person,
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00:08:13,685 --> 00:08:17,287
But the picture that emerged
was this kind of classic,
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00:08:17,572 --> 00:08:23,251
Archetypal thing
of this spectral, gaunt,
white haired guy,
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Always in black.
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He was just this ghost.
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00:08:29,918 --> 00:08:33,512
Ivan boesky was a trader,
who is known as an arbitrager.
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00:08:33,697 --> 00:08:35,805
[news reader]
"what is an arbitrager?"
you ask.
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It is a person, such as boesky,
who buys up stock
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00:08:38,869 --> 00:08:41,186
And takes a big gamble
that prices will rise,
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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,
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An arbitrager like boesky
could end up losing a bundle.
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His specialty in life
was betting on deals,
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00:08:54,718 --> 00:08:59,287
When one company was buying
another company,
whether the deal would close.
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[bryan burrough] arbs trafficked
in information:
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00:09:02,692 --> 00:09:06,878
What was going on?
Who was in play?
Who was gonna be attacked next?
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00:09:07,697 --> 00:09:10,715
[sorkin] everybody's calling
each other on the phone, trying
to get that little morsel.
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00:09:10,901 --> 00:09:14,052
What is that one little thing,
that's gonna give them an edge?
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00:09:15,538 --> 00:09:19,683
And so, boesky had
this reputation for literally
living on the telephone,
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00:09:19,876 --> 00:09:23,270
All day and night,
and literally like this,
all day long.
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00:09:23,455 --> 00:09:26,648
Pacing in front of monitors,
barking at his traders
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00:09:26,758 --> 00:09:29,776
[boesky] if we have that shot,
we'd like to [inaudible] again.
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00:09:29,961 --> 00:09:32,696
Screaming at just about anybody
who would move,
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00:09:32,889 --> 00:09:35,574
And if it didn't work out
for him, he was throwing things.
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00:09:36,392 --> 00:09:39,953
[jeff madrick] I was
in boesky's office once.
He was shouting at his traders,
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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.
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00:09:46,069 --> 00:09:50,880
He did a lot of play-acting.
His employees would do anything,
however,
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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.
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00:09:54,169 --> 00:09:55,844
Almost anything
that you can think
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00:09:55,953 --> 00:09:58,930
Of the michael douglas character
in the movie wall street...
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00:09:59,116 --> 00:10:01,433
[douglas] you keep on buying.
Dilute the son of a bitch.
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00:10:01,618 --> 00:10:03,977
...A lot of that
was based on boesky,
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00:10:04,162 --> 00:10:07,856
And not just his famous
"greed is good" speech,
which came from boesky
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00:10:08,016 --> 00:10:13,194
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?
165
00:10:17,342 --> 00:10:21,036
This self-made person,
very much invented.
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00:10:21,145 --> 00:10:22,912
[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.
168
00:10:27,018 --> 00:10:30,170
He didn't go
to harvard law school.
That was certain.
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00:10:31,489 --> 00:10:34,591
[burrough] ivan boesky didn't
really wanna tell the truth
about where he'd come from,
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00:10:34,784 --> 00:10:40,013
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.
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.
173
00:10:48,965 --> 00:10:53,943
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."
175
00:11:02,311 --> 00:11:04,704
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,
177
00:11:08,185 --> 00:11:11,252
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.
179
00:11:15,025 --> 00:11:18,843
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.
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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,
182
00:11:28,713 --> 00:11:31,022
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.
184
00:11:36,438 --> 00:11:38,655
[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.
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.
187
00:11:45,113 --> 00:11:50,625
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.
189
00:11:54,405 --> 00:11:58,383
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.
191
00:12:03,114 --> 00:12:05,181
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.
193
00:12:10,880 --> 00:12:13,732
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?
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.
196
00:12:23,468 --> 00:12:28,830
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.
198
00:12:32,602 --> 00:12:34,502
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,
200
00:12:36,273 --> 00:12:39,174
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.
202
00:12:45,173 --> 00:12:48,016
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
204
00:12:53,515 --> 00:12:57,108
And that confidence, I think,
very quickly
turns into over confidence.
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00:13:05,434 --> 00:13:07,994
[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,
207
00:13:12,367 --> 00:13:17,629
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.
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
210
00:13:28,049 --> 00:13:29,766
I was still having a good time,
mind you.
211
00:13:31,460 --> 00:13:35,063
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.
213
00:13:41,804 --> 00:13:45,949
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'
215
00:13:49,979 --> 00:13:50,954
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.
217
00:13:59,322 --> 00:14:00,839
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.
219
00:14:07,422 --> 00:14:09,222
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
221
00:14:12,335 --> 00:14:14,060
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.
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
224
00:14:24,089 --> 00:14:28,575
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.
226
00:14:34,065 --> 00:14:37,417
[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.
228
00:14:42,382 --> 00:14:43,965
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.
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?
231
00:14:54,043 --> 00:14:55,810
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.
233
00:15:00,250 --> 00:15:06,321
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,
235
00:15:09,984 --> 00:15:12,452
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,
237
00:15:14,989 --> 00:15:17,123
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.
239
00:15:20,569 --> 00:15:24,088
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.
241
00:15:26,834 --> 00:15:29,969
[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.
243
00:15:32,340 --> 00:15:35,892
[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,
245
00:15:41,458 --> 00:15:42,774
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,
247
00:15:48,764 --> 00:15:52,867
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.
249
00:15:56,864 --> 00:16:00,917
[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.
251
00:16:04,038 --> 00:16:06,965
[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,
253
00:16:11,529 --> 00:16:15,223
"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.
255
00:16:20,296 --> 00:16:23,231
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.
257
00:16:29,305 --> 00:16:35,201
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.
259
00:16:39,057 --> 00:16:41,082
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.
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.
262
00:16:51,085 --> 00:16:57,181
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.
264
00:17:00,854 --> 00:17:04,230
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.
266
00:17:09,937 --> 00:17:13,948
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.
268
00:17:18,020 --> 00:17:23,041
[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,
270
00:17:28,697 --> 00:17:33,468
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.
272
00:17:37,282 --> 00:17:39,223
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
274
00:17:47,584 --> 00:17:53,554
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
276
00:17:59,304 --> 00:18:00,912
For a little fixer-upper
in your neighborhood?
277
00:18:01,097 --> 00:18:02,789
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.
279
00:18:05,310 --> 00:18:07,460
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,
281
00:18:10,164 --> 00:18:15,968
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.
283
00:18:19,415 --> 00:18:23,392
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.
285
00:18:26,848 --> 00:18:30,691
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.
287
00:18:33,671 --> 00:18:36,906
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.
289
00:18:43,364 --> 00:18:46,541
[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.
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.
292
00:18:57,695 --> 00:18:59,220
It was a statement.
293
00:18:59,380 --> 00:19:02,306
The commodore
was just replenishing something
that existed.
294
00:19:02,809 --> 00:19:05,101
This was building something
that was new.
295
00:19:06,462 --> 00:19:08,354
[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.
297
00:19:10,667 --> 00:19:13,317
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
299
00:19:17,640 --> 00:19:19,157
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,
301
00:19:24,222 --> 00:19:27,415
That was designed to
stimulate low income housing.
302
00:19:27,575 --> 00:19:30,793
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.
304
00:19:36,342 --> 00:19:40,511
[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.
306
00:19:43,591 --> 00:19:47,310
Politicians have gotten
campaign contributions -
big ones.
307
00:19:47,503 --> 00:19:50,563
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
309
00:19:54,544 --> 00:19:57,862
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.
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.
312
00:20:10,710 --> 00:20:16,964
[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.
314
00:20:21,203 --> 00:20:24,722
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,
316
00:20:27,042 --> 00:20:30,102
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."
318
00:20:35,401 --> 00:20:37,318
[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,
320
00:20:40,757 --> 00:20:43,908
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.
322
00:20:47,822 --> 00:20:50,456
[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,
324
00:20:52,994 --> 00:20:55,586
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.
326
00:21:01,335 --> 00:21:04,971
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,
328
00:21:07,750 --> 00:21:13,729
"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.
330
00:21:15,591 --> 00:21:18,025
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.
332
00:21:22,298 --> 00:21:24,031
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.
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.
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.
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.
337
00:21:46,455 --> 00:21:48,055
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.
339
00:21:50,993 --> 00:21:54,854
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.
341
00:21:59,060 --> 00:22:02,320
[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
343
00:22:05,140 --> 00:22:08,576
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.
345
00:22:14,483 --> 00:22:19,086
[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?
347
00:22:28,330 --> 00:22:32,433
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,
349
00:22:36,539 --> 00:22:40,024
Stunning new construction
exploded
across the new york skyline.
350
00:22:40,209 --> 00:22:41,942
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.
352
00:22:45,773 --> 00:22:48,783
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.
354
00:22:53,114 --> 00:22:55,247
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
356
00:22:59,896 --> 00:23:03,255
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.
358
00:23:10,706 --> 00:23:12,306
[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
360
00:23:16,579 --> 00:23:17,937
And so many different people.
361
00:23:18,380 --> 00:23:20,231
New york influences them.
362
00:23:20,416 --> 00:23:22,983
It permeates, and they influence
new york.
363
00:23:23,144 --> 00:23:24,902
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.
365
00:23:29,266 --> 00:23:32,159
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.
367
00:23:37,232 --> 00:23:42,461
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.
369
00:23:47,451 --> 00:23:49,927
Keith haring started doing it
in the subway,
370
00:23:50,112 --> 00:23:52,763
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,
372
00:23:55,509 --> 00:23:57,768
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
374
00:24:02,959 --> 00:24:07,153
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.
376
00:24:08,805 --> 00:24:10,698
And I'm thinking to myself,
377
00:24:10,858 --> 00:24:14,702
New york is like a theme park.
378
00:24:14,811 --> 00:24:18,873
It's a magical place
for cool people.
379
00:24:18,982 --> 00:24:21,876
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.
381
00:24:28,283 --> 00:24:31,343
[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.
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,
384
00:24:40,337 --> 00:24:42,229
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]
386
00:24:47,670 --> 00:24:49,528
As opposed to just street art.
387
00:24:50,806 --> 00:24:52,990
[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.
389
00:24:57,555 --> 00:24:59,830
[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,
391
00:25:03,185 --> 00:25:07,838
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,
393
00:25:14,755 --> 00:25:20,184
And racial inequality screeds,
and social commentary.
394
00:25:20,369 --> 00:25:22,561
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,
396
00:25:27,251 --> 00:25:31,779
And so new
that he became a star overnight.
397
00:25:32,347 --> 00:25:34,281
New york was the perfect city
398
00:25:34,391 --> 00:25:39,537
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
400
00:25:42,933 --> 00:25:47,378
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,
402
00:25:51,609 --> 00:25:55,594
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,
404
00:25:58,616 --> 00:26:02,393
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.
406
00:26:06,415 --> 00:26:11,151
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
408
00:26:18,135 --> 00:26:21,829
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,
410
00:26:27,828 --> 00:26:32,756
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,
412
00:26:36,987 --> 00:26:39,179
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.
414
00:26:46,272 --> 00:26:48,314
[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,
416
00:26:53,129 --> 00:26:54,612
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,
418
00:27:00,861 --> 00:27:03,954
And they had recently opened
the helmsley palace.
419
00:27:04,314 --> 00:27:06,206
[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,
421
00:27:10,813 --> 00:27:12,880
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
423
00:27:18,379 --> 00:27:20,054
Of the helmsley palace.
424
00:27:23,643 --> 00:27:27,645
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.
426
00:27:32,509 --> 00:27:35,319
She made sure
everybody knew it, too.
427
00:27:35,504 --> 00:27:38,739
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,
429
00:27:41,343 --> 00:27:43,494
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.
431
00:27:47,574 --> 00:27:53,212
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
433
00:27:59,870 --> 00:28:04,348
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,
435
00:28:12,208 --> 00:28:13,774
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,
437
00:28:19,723 --> 00:28:23,367
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,
439
00:28:26,613 --> 00:28:28,330
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.
441
00:28:31,952 --> 00:28:35,587
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.
443
00:28:41,369 --> 00:28:43,804
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.
445
00:28:48,752 --> 00:28:51,812
[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.
447
00:28:56,551 --> 00:29:01,989
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.
449
00:29:06,269 --> 00:29:09,663
But harry helmsley was the king.
450
00:29:10,398 --> 00:29:11,832
[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.
452
00:29:14,444 --> 00:29:18,672
[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.
454
00:29:23,787 --> 00:29:26,305
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.
456
00:29:32,128 --> 00:29:35,355
[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.
458
00:29:38,444 --> 00:29:44,698
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.
460
00:29:50,014 --> 00:29:54,166
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,
462
00:29:57,688 --> 00:30:02,549
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,
464
00:30:06,822 --> 00:30:09,473
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.
466
00:30:14,796 --> 00:30:18,690
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?
468
00:30:23,730 --> 00:30:25,572
Look at his head. You notice it?
469
00:30:25,732 --> 00:30:27,366
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]
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.
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]
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.
474
00:30:39,188 --> 00:30:42,589
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,
476
00:30:47,662 --> 00:30:50,931
"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
478
00:30:52,667 --> 00:30:55,060
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
480
00:30:58,214 --> 00:30:59,731
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
482
00:31:05,047 --> 00:31:08,240
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."
484
00:31:16,450 --> 00:31:19,126
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.
486
00:31:22,906 --> 00:31:25,132
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.
488
00:31:31,949 --> 00:31:35,225
[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
490
00:31:40,307 --> 00:31:43,442
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.
492
00:31:47,297 --> 00:31:51,742
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
494
00:31:54,655 --> 00:31:58,415
- 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.
496
00:32:08,502 --> 00:32:11,803
[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.
498
00:32:15,159 --> 00:32:18,185
[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.
500
00:32:23,091 --> 00:32:25,484
And when you get
those highly ambitious,
501
00:32:25,669 --> 00:32:28,695
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
503
00:32:33,635 --> 00:32:38,288
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.
505
00:32:40,442 --> 00:32:46,004
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.
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.
508
00:32:57,493 --> 00:33:02,229
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.
510
00:33:06,301 --> 00:33:09,236
[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.
512
00:33:12,883 --> 00:33:16,994
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.
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.
515
00:33:28,698 --> 00:33:31,550
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.
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.
518
00:33:42,262 --> 00:33:45,230
Ultimately,
a bidding war erupted.
It went on.
519
00:33:45,415 --> 00:33:47,024
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,
521
00:33:49,844 --> 00:33:52,279
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.
523
00:33:57,018 --> 00:33:59,244
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.
525
00:34:04,434 --> 00:34:09,796
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.
527
00:34:13,402 --> 00:34:16,595
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.
529
00:34:18,574 --> 00:34:23,602
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.
531
00:34:27,474 --> 00:34:29,608
[news reader] after government
concerns in washington
532
00:34:29,793 --> 00:34:33,653
About anti-trust
made gulf nervous,
they withdrew.
533
00:34:36,057 --> 00:34:37,949
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.
535
00:34:43,273 --> 00:34:46,166
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
537
00:34:48,812 --> 00:34:51,630
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.
539
00:34:54,742 --> 00:34:58,887
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.
541
00:35:02,458 --> 00:35:07,521
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.
543
00:35:10,125 --> 00:35:12,317
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.
545
00:35:18,358 --> 00:35:22,285
[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.
547
00:35:28,109 --> 00:35:31,128
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.
549
00:35:37,327 --> 00:35:41,930
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.
551
00:35:49,505 --> 00:35:53,775
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,
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?"
554
00:35:59,716 --> 00:36:04,828
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.
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."
557
00:36:16,233 --> 00:36:18,300
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."
559
00:36:26,834 --> 00:36:30,520
[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
561
00:36:35,009 --> 00:36:36,526
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.
563
00:36:42,850 --> 00:36:47,621
[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,
565
00:36:53,895 --> 00:36:55,879
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
567
00:37:05,073 --> 00:37:07,849
That this was gonna come
crashing down on him,
568
00:37:08,042 --> 00:37:09,184
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.
570
00:37:18,219 --> 00:37:20,028
[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,
572
00:37:25,802 --> 00:37:28,870
"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.
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.
575
00:37:39,274 --> 00:37:40,331
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.
577
00:37:45,913 --> 00:37:49,140
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.
579
00:37:53,087 --> 00:37:58,942
[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.
581
00:38:01,838 --> 00:38:07,367
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.
583
00:38:10,980 --> 00:38:14,582
All the elements of the crime
were now in place.
584
00:38:14,776 --> 00:38:17,752
There was no going back.
585
00:38:21,324 --> 00:38:26,219
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.
587
00:38:31,501 --> 00:38:35,228
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.
589
00:38:39,042 --> 00:38:41,860
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.
591
00:38:45,848 --> 00:38:49,701
[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.
593
00:38:53,073 --> 00:38:57,417
[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.
595
00:39:01,197 --> 00:39:04,883
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.
597
00:39:07,921 --> 00:39:10,597
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.
599
00:39:15,044 --> 00:39:19,939
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]
601
00:39:27,390 --> 00:39:30,742
[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,
603
00:39:35,523 --> 00:39:38,958
While he works
on indicting
alleged mafia kingpin.
604
00:39:40,069 --> 00:39:43,254
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.
606
00:39:49,036 --> 00:39:54,015
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,
608
00:39:57,378 --> 00:40:00,814
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
610
00:40:03,551 --> 00:40:08,196
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.
612
00:40:11,726 --> 00:40:15,120
But, rudy wanted
to come back home.
613
00:40:15,438 --> 00:40:16,996
[winerip] and he came
with big ambitions.
614
00:40:17,157 --> 00:40:18,656
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.
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,
617
00:40:26,149 --> 00:40:28,466
And rudy took full advantage
of that.
618
00:40:29,076 --> 00:40:30,510
[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.
620
00:40:32,338 --> 00:40:33,746
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.
622
00:40:37,627 --> 00:40:39,352
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,
624
00:40:42,348 --> 00:40:45,525
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?
626
00:40:51,933 --> 00:40:55,994
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,
628
00:40:57,939 --> 00:41:02,709
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.
630
00:41:05,538 --> 00:41:10,550
[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.
632
00:41:15,490 --> 00:41:17,223
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.
634
00:41:20,887 --> 00:41:24,606
At the same time,
giuliani comes in
with the clear goal...
635
00:41:24,799 --> 00:41:26,191
Are we all set?
636
00:41:26,376 --> 00:41:28,193
...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.
638
00:41:31,397 --> 00:41:34,908
[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.
640
00:41:40,240 --> 00:41:44,459
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
642
00:41:48,155 --> 00:41:50,215
Of the tough,
dedicated crime buster.
643
00:41:50,400 --> 00:41:53,134
[deveney] he wanted power
in new york city.
644
00:41:53,327 --> 00:41:55,136
[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?
646
00:42:00,668 --> 00:42:03,269
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.
648
00:42:11,029 --> 00:42:12,946
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.
650
00:42:17,018 --> 00:42:21,412
[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.
652
00:42:29,363 --> 00:42:34,467
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
654
00:42:37,580 --> 00:42:40,473
The meaning of success,
the world over.
655
00:42:40,633 --> 00:42:44,185
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,
657
00:42:47,715 --> 00:42:51,651
And that ultimately headed
for a clash.
658
00:42:51,811 --> 00:42:53,027
You have a perfect storm.
659
00:42:56,316 --> 00:42:58,825
[dramatic music playing]