3 English

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{\an8}[man 1] Today the United States Senate
Committee on Government Operations
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{\an8}begins hearings
on federally insured banks.
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We are concerned whether existing laws
are adequate to guarantee
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the character, experience, and integrity
of people who acquire such banks,
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which are the cornerstones
of American capitalism
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and the foundation of the American dream.
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[man 2] Be careful in there, Bernard.
They want to make an example out of you.
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[man 1] Committee calls Bernard S. Garrett
to testify.
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Mr. Garrett,
I think you understand the stakes.
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{\an8}[man 3] Carlyle and Spring?
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{\an8}[man 4] Right. Annual rental income
80,000, which is strong,
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but Mr. Miller wants us
to use a six multiplier to value it.
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[man 3] That's too high.
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[man 4] He's coming in an hour
to negotiate on it. Maybe you can step in.
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[man 3] All right.
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Boy does a pretty good shine.
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[man 4] Harder worker than most of 'em.
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There may not be comps in Willis,
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but take a look at
the other properties I own in the county.
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A six multiple is reasonable.
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[man 3]
Your other buildings are in Conroe,
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which is booming with the oil find.
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So, I'm not sure this is a good comp.
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Willis is booming too.
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Hey! What are you doing up there, boy?
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You spying on these
white people's business? Huh?
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Get back here!
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- Your dad's gonna hear about this!
- [horn honks]
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[man] Hey! Watch it, boy!
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What do you think them white folks would
do if they knew you were spying on them?
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When I was growing up
I've seen boys killed for less.
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You know what it's like to see a young boy
hanging dead from a tree?
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And don't think because it hasn't happened
recently, it couldn't happen again.
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I was just trying to learn
how they make money.
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You are so talented.
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How did you learn all this?
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You was born the wrong color, son.
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Negro man can't earn money with this.
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White man won't let him,
no matter how good at it you are.
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Maybe not in Texas.
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You really think it's gonna be different
for you, you go somewhere else?
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[woman] We're in California.
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[laughs]
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- [exhales]
- What's wrong?
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Just looking forward
to having dinner with your uncle.
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- [utensils clattering]
- [woman clears throat]
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Well, the aircraft companies are booming.
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Northrop is looking to hire 5,000
new workers for their assembly line
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and they hire our kind.
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And I can get you
an interview there tomorrow.
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Well, thank you, sir. But I came here
to try my hand at real estate.
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There's not a lot
of colored real estate agents.
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Owning property and renting it out.
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[laughing]
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You married a millionaire, Eunice?
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- [all laughing]
- Deacon.
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Well, I sure hope you're close, son.
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This isn't some one-horse town in Texas.
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Real estate is expensive here.
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Bernard saved up money
from a company we started in Houston.
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So, what do you plan to do
until you find something you can afford?
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Keep looking.
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And spend down your savings
till they're gone?
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And then can't pay your rent?
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Deacon, stop.
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You'll get your rent
the first of every month,
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one month in advance.
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I should go get Bernard Jr. in bed.
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Excuse me.
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Eunice, what does your husband have
against working?
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If we need to supplement our income
until he finds the right property,
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I'll work at the Plantation Club.
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That ain't no place
for a married woman to work.
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Bernard okay with you going back there?
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Well, we haven't had a chance
to discuss it.
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If he's a real man, he won't let you.
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That won't be for him to decide.
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What does that mean?
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My husband is a genius.
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You'll see.
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[door closes]
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I know this isn't much.
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Yeah, I don't plan on us being here long.
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Why are you so hard on yourself?
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I don't want Bernard Jr.
Growing up in a shed.
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Well, I grew up in a shed.
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Abraham Lincoln grew up in a shed.
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Abraham Lincoln grew up in a log cabin.
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Well, that's what they call a shed
when it's in the woods.
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There's no difference.
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Well, I'm gonna get you and him
out of this shed.
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As soon as possible.
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- [man] Thanks for the lift.
- [Bernard] No problem.
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I'm sorry my dad was such a jerk
last night.
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[Bernard] Was he? I didn't notice.
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Hey, nice car.
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Thanks.
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Bernard, this is my friend Matt.
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You didn't tell me you had a rich uncle.
Nice to meet you.
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Hardly rich. And I'm his cousin.
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You got a car, you're rich to me. Hmm.
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Hey, good luck finding the right place.
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[Matt] Hey.
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Hey, what's your cousin do for a living?
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He owns buildings.
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Really?
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Damn. Huh.
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[on phone]
Hello, my name is Bernard Garrett.
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I saw your property on Victoria Road.
I was wondering what the asking price...
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[in person] Hello, my name is
Bernard Garrett. Are you the owner of 12...
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[on phone] Hi, my name is Bernard Garrett.
I'm a real estate investor.
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What's the asking price?
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That high, huh?
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[in person] How can a price that high
be sustainable, given the current rents...
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[on phone] How many units are
in the building and what are they really...
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{\an8}Looks to me
the building needs a little work.
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{\an8}Maybe we can negotiate...
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{\an8}[in person] Right. I understand.
Thank you for your time.
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This is a white neighborhood, Bernard.
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Well, it won't be white for long.
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Not with the black neighborhood
two blocks away bursting at the seams.
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Well, how much
does Barker & Associates want for it?
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We have enough to buy it.
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Just won't have anything left over
to fix it up with.
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What if I got us a co-investor?
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[band playing jazz music]
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[Eunice chuckles]
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[jazz music continues]
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[ends]
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[man laughs]
All right, fellows. That was smokin'.
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Joe!
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Eunice!
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- You came back to me.
- [laughing]
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[kisses] Girl, look at you.
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Oh, stop it. Behave now.
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Oh, honey.
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Who's this?
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That uncle
you was always talking to me about?
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- [Bernard chuckles]
- Husband.
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Your hus... What?
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Wait.
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Three years.
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[laughs] Congratulations, man.
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You hit the jackpot.
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If you're the marrying type.
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I'm not, but if I were,
can't do no better than Eunice Perkins.
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- [chuckles]
- Garrett.
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Pleased to meet you, Garrett.
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No, I'm Bernard.
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I heard him say "Garrett."
Didn't you hear him say "Garrett"?
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- [woman 1] That's what I heard.
- [woman 2] Mm-hmm.
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[laughs]
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I'm just messing with you, man.
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You want a drink?
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It's 4:00 p.m.
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I know. You're starting late.
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I'll have 'em make it strong.
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Jackie, make my man here something strong.
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A triple.
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You know, see if we can blow
the stick out of his ass.
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[laughing]
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You did not even talk to him
about your idea.
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No way am I doing business with that man.
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Not for a loan.
Especially not as a business partner.
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He's a damn degenerate.
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Oh, Bernard, please!
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I don't need his help.
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You have got the wrong idea about him.
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Oh, really? You think so?
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'Cause the vice squad
seems to disagree with you.
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Well, that's the mayor, silly.
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Do you wanna meet him?
Because he's friends with Joe.
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No.
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If you won't let Joe invest,
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then you are gonna have to
make Barker come down on his price.
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Asking price is 40,000.
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You won't get a penny over 35.
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You offering 35?
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I can give you 30.
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Why would I take 30 if I can get 35?
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Well, the building needs renovations
to unlock its value.
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It's been fine for my tenants.
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Your tenants only occupy
half the building.
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But with new kitchens
and refinished floors...
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My tenants won't pay more even if they
can see the reflections in those floors.
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But another market will.
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Black doctors, lawyers, teachers
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looking for a place to move outside
the ghettos that they've been forced into.
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No one is going after that market.
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But I can.
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Oh.
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Your confidence is impressive.
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But 10,000 less than asking is not enough.
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Once I lease the units,
I can give you your full asking price.
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Let's say by...
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June.
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You want me to loan you $10,000
so you can buy my building?
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It's not a loan. It's an investment.
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It's a loan.
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For more than three times what the average
American family make in a year.
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- Two point four times.
- What?
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00:11:48,584 --> 00:11:53,172
The average American income in 1953
was $4,233.
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Ten thousand is 2.4 times
the average income.
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Well, I admire your entrepreneurial gusto,
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but, uh, it's not the way I do business.
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I'm sorry.
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Thank you for your time, Mr. Barker.
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[man 1] Look what just walked in.
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[man 2] Mighty fancy for a colored fella.
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[man 1] We'll see.
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Hi. I'm Bernard Garrett.
I'd like to speak with Mr. Reed, please.
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I'm sorry, Mr. Reed is out.
May I take a message?
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I have pretty good eyesight and I can
clearly read the nameplate on his desk.
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I'm sorry. I misspoke.
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Mr. Reed can't meet with you right now.
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But I could take a message.
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00:13:02,157 --> 00:13:04,535
No. There's no message.
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Thank you.
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Mr. Reed.
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Do I know you?
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00:13:18,048 --> 00:13:19,424
Uh, no. But you know Mr. Barker.
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00:13:19,508 --> 00:13:21,385
I'd like a loan
to buy one of his buildings.
223
00:13:21,468 --> 00:13:23,637
Uh... Yeah, you can make
an appointment inside, please.
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00:13:23,720 --> 00:13:26,765
Well, you and I both know
I'm not getting an appointment inside.
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00:13:27,766 --> 00:13:30,602
Now, this deal will benefit Mr. Barker.
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00:13:31,562 --> 00:13:32,563
You should hear me out.
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Your uncle gonna get a good laugh
out of this one.
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[Eunice] Keep looking. You're gonna
find yourself another building.
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Yeah.
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Come on. Time for bed, little man.
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- [knocking]
- Yes?
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00:13:51,206 --> 00:13:54,001
[aunt]
Bernard, there's a phone call for you.
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- Hello?
- Mr. Garrett. This is Patrick Barker.
234
00:14:02,801 --> 00:14:07,723
Did you use my name to try and get a loan
from Mr. Reed at Mid City Bank?
235
00:14:08,307 --> 00:14:09,975
Well, in a manner of speaking...
236
00:14:10,809 --> 00:14:11,643
yes.
237
00:14:11,727 --> 00:14:15,606
Oh. And do you think that follows
normal business customs?
238
00:14:16,940 --> 00:14:18,775
If I was following
normal business customs,
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I'd still be a shoeshine boy
in Texas, sir.
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00:14:20,986 --> 00:14:23,572
I didn't ask for your biography,
Mr. Garrett.
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00:14:23,655 --> 00:14:27,284
I asked if you thought
it followed normal business customs.
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- No.
- Good.
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00:14:31,121 --> 00:14:33,248
Well, at least we can agree on that. Hmm.
244
00:14:34,833 --> 00:14:38,629
Reed wants to see you at the bank
in the morning to sign off on that loan.
245
00:14:39,213 --> 00:14:40,255
Excuse me?
246
00:14:40,714 --> 00:14:42,841
I told him I'd act as guarantor.
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00:14:45,385 --> 00:14:46,428
You still there?
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00:14:47,513 --> 00:14:48,597
Wh...
249
00:14:48,680 --> 00:14:50,265
Why are you doing this, Mr. Barker?
250
00:14:50,349 --> 00:14:52,100
Because normal business customs
251
00:14:52,184 --> 00:14:54,853
are in place to screw people like you,
Mr. Garrett.
252
00:14:55,312 --> 00:14:58,315
You went to see Reed
knowing the deck was stacked
253
00:14:58,398 --> 00:15:01,193
because you have
that much confidence in this deal.
254
00:15:02,194 --> 00:15:04,112
That tells me
all I need to know about you.
255
00:15:07,324 --> 00:15:08,951
Well, do you want this loan or not?
256
00:15:12,037 --> 00:15:13,330
Yes.
257
00:15:13,413 --> 00:15:15,582
[band playing jazz music]
258
00:15:18,043 --> 00:15:22,673
Sometimes you need to take a step back
and enjoy what you've accomplished, baby.
259
00:15:39,231 --> 00:15:40,858
[no audible dialogue]
260
00:15:55,914 --> 00:15:56,999
[Joe] You like cigars?
261
00:15:58,625 --> 00:16:00,335
- I don't smoke.
- Oh.
262
00:16:03,463 --> 00:16:04,756
[Bernard sighs]
263
00:16:09,178 --> 00:16:11,096
I'm not fucking your wife.
264
00:16:12,848 --> 00:16:15,934
You go to every table in here
to reassure your patrons of that?
265
00:16:16,018 --> 00:16:18,937
No. Might have to skip some of them.
266
00:16:19,021 --> 00:16:20,939
[chuckles]
267
00:16:21,023 --> 00:16:22,357
Come on, man. Lighten up.
268
00:16:22,441 --> 00:16:24,234
I'm not the asshole you think I am.
269
00:16:24,318 --> 00:16:26,403
You a different kind of asshole, huh?
270
00:16:26,486 --> 00:16:29,489
[laughs heartily]
271
00:16:29,573 --> 00:16:31,158
I've been told that, yeah.
272
00:16:31,909 --> 00:16:33,535
Come on. Let's go outside and talk.
273
00:16:39,374 --> 00:16:42,044
[music continues, muffled]
274
00:16:45,631 --> 00:16:46,632
[Joe exhales]
275
00:16:46,715 --> 00:16:48,133
What do you want from me, man?
276
00:16:48,717 --> 00:16:50,636
You mean aside from your wife?
277
00:16:52,221 --> 00:16:53,680
[chuckles]
278
00:16:53,764 --> 00:16:57,559
Look, I like seeing black men succeed.
279
00:16:57,643 --> 00:17:00,646
Sometimes I even invest
some of my own money to back them.
280
00:17:02,022 --> 00:17:03,357
But you don't even know me.
281
00:17:03,440 --> 00:17:05,442
I know you're smart and ambitious.
282
00:17:06,818 --> 00:17:08,654
You and I both know that's not enough.
283
00:17:08,737 --> 00:17:10,239
You're also angry.
284
00:17:11,114 --> 00:17:12,241
But you don't show it.
285
00:17:12,824 --> 00:17:14,576
That's the best kind of anger.
286
00:17:14,660 --> 00:17:16,744
Fuels you without making you a target.
287
00:17:17,913 --> 00:17:18,914
I'm not angry.
288
00:17:22,041 --> 00:17:23,085
Yeah, all right.
289
00:17:27,923 --> 00:17:28,966
Nice glasses.
290
00:17:29,049 --> 00:17:30,467
You near-sighted or far-sighted?
291
00:17:31,134 --> 00:17:32,135
Does it matter?
292
00:17:33,053 --> 00:17:35,138
Just wondering what you'd look like
without 'em.
293
00:17:40,853 --> 00:17:42,437
So, you trust this Barker?
294
00:17:43,522 --> 00:17:44,773
He didn't have to help me.
295
00:17:45,858 --> 00:17:49,236
What if you can't finish the work
or rent the units fast enough?
296
00:17:50,112 --> 00:17:51,154
I'll make the date.
297
00:17:53,156 --> 00:17:55,826
See? Anger.
298
00:17:57,536 --> 00:17:58,912
I'm gonna get another drink.
299
00:18:03,917 --> 00:18:04,960
I'm not angry.
300
00:18:06,253 --> 00:18:07,337
[Joe] Yes, you are.
301
00:18:17,222 --> 00:18:18,765
What are you doing here?
302
00:18:19,224 --> 00:18:22,769
Ma'am, uh, I'm Bernard Garrett.
303
00:18:22,853 --> 00:18:25,105
Just doing some renovations
on the empty apartments.
304
00:18:25,522 --> 00:18:27,274
What hours do you work?
305
00:18:27,357 --> 00:18:31,278
Well, the city say all construction has to
be done between 8:00 a.m. and 6:00 p.m.
306
00:18:31,361 --> 00:18:34,698
- So, if you need any improvements...
- I don't need improvements.
307
00:18:35,115 --> 00:18:37,868
And you can tell
that mick that owns this place,
308
00:18:37,951 --> 00:18:41,413
when he goes jacking the rent,
he ain't jacking mine.
309
00:18:41,496 --> 00:18:42,496
Yes, ma'am.
310
00:18:42,539 --> 00:18:45,751
Mr. Barker was very clear about your lease
when he sold me the building.
311
00:18:46,835 --> 00:18:49,004
Don't you sass me, boy.
312
00:18:49,379 --> 00:18:50,881
This is a white building.
313
00:18:51,715 --> 00:18:53,634
You can't own this place.
314
00:19:04,061 --> 00:19:06,813
Hey, why don't you grab that scraper
and start on the other end?
315
00:19:07,356 --> 00:19:08,398
All right.
316
00:19:10,234 --> 00:19:11,276
- Hey, man.
- [Matt] Hey.
317
00:19:12,110 --> 00:19:13,195
Hey, thanks for coming.
318
00:19:13,278 --> 00:19:14,279
Of course.
319
00:19:15,781 --> 00:19:16,865
How's it going?
320
00:19:17,491 --> 00:19:19,076
I can offer you a buck-fifty an hour.
321
00:19:19,159 --> 00:19:20,410
That's great.
322
00:19:20,494 --> 00:19:22,204
And you're fine with working for me?
323
00:19:22,287 --> 00:19:24,122
I've been working for other men
my whole life.
324
00:19:24,206 --> 00:19:26,750
Right. But are you okay
with working for me?
325
00:19:27,876 --> 00:19:30,838
Well, your money is green.
That's the only concern about color I got.
326
00:19:31,255 --> 00:19:33,549
And I like the idea
of watching you build a business.
327
00:19:33,632 --> 00:19:35,759
It's something I'd like to do again
myself one day.
328
00:19:35,843 --> 00:19:36,885
- "Again"?
- Mmm.
329
00:19:36,969 --> 00:19:38,887
Yeah, I tried something a few years back.
330
00:19:38,971 --> 00:19:41,181
It was a drive-in ice cream shop.
331
00:19:41,974 --> 00:19:45,352
Well, it turns out people don't wanna
eat ice cream while driving their cars.
332
00:19:48,480 --> 00:19:50,274
- You serious?
- Oh, yeah.
333
00:19:51,024 --> 00:19:52,025
[scoffs]
334
00:19:54,903 --> 00:19:56,280
- Let's get to work.
- Yeah.
335
00:19:59,616 --> 00:20:01,660
Connect it here. Like this.
336
00:20:04,162 --> 00:20:05,162
Should be good.
337
00:20:13,839 --> 00:20:14,840
Step back.
338
00:20:19,178 --> 00:20:20,179
Right there.
339
00:20:20,846 --> 00:20:22,931
We want to scrape these railings
up to the front
340
00:20:23,015 --> 00:20:25,601
and paint our way back
and then go back with the stucco.
341
00:20:25,684 --> 00:20:28,020
Go from the top. Let's work our way down.
342
00:20:28,103 --> 00:20:29,521
- Bernard Garrett.
- Then let's...
343
00:20:31,064 --> 00:20:32,858
Yes, Officer. Is there a problem?
344
00:20:32,941 --> 00:20:34,610
We received a complaint about you.
345
00:20:35,110 --> 00:20:38,197
Ms. Cooper in Apartment 2A
does not like you working in the building.
346
00:20:39,489 --> 00:20:40,324
Why not?
347
00:20:40,407 --> 00:20:42,260
She said you were impersonating
the owner of the building.
348
00:20:42,284 --> 00:20:44,912
- No, he owns the building.
- I'm not talking to you.
349
00:20:47,956 --> 00:20:49,625
I do own the building, Officer.
350
00:20:49,708 --> 00:20:52,169
Um, all the paperwork is filed downtown.
351
00:20:52,252 --> 00:20:55,214
But I keep a copy with me,
just to be safe.
352
00:21:01,386 --> 00:21:02,554
This actually looks real.
353
00:21:08,352 --> 00:21:10,604
[scoffs] Yeah, I guess so.
354
00:21:13,106 --> 00:21:15,025
Try to be more respectful to your tenants.
355
00:21:16,485 --> 00:21:17,694
Yes, sir, Officer.
356
00:21:18,820 --> 00:21:20,447
Sorry for the inconvenience.
357
00:21:30,249 --> 00:21:33,627
You can't be here after 6:00 p.m.
358
00:21:33,710 --> 00:21:36,672
A contractor can't be here
after 6:00 p.m., Ms. Cooper.
359
00:21:37,214 --> 00:21:38,590
I'm a resident.
360
00:21:38,674 --> 00:21:39,675
I'm moving in.
361
00:21:44,096 --> 00:21:46,056
- [gasps]
- [door closes]
362
00:21:55,649 --> 00:21:57,693
I hope your mother enjoys her new place.
363
00:21:57,776 --> 00:21:59,069
Oh, I'm sure she will.
364
00:21:59,152 --> 00:22:00,654
- Mrs. Garrett?
- Yes.
365
00:22:00,737 --> 00:22:03,782
Anita Jefferson. We spoke about
leasing one of your apartments?
366
00:22:03,866 --> 00:22:05,784
Oh, yes, of course. It's nice to meet you.
367
00:22:08,620 --> 00:22:09,830
Fully leased.
368
00:22:09,913 --> 00:22:11,957
[Barker chuckles] Impressive.
369
00:22:15,544 --> 00:22:18,463
I have my eye on a place
two blocks east of here.
370
00:22:19,047 --> 00:22:20,132
You interested?
371
00:22:20,215 --> 00:22:21,216
You mean a partnership?
372
00:22:22,134 --> 00:22:23,260
Yeah. 50-50.
373
00:22:24,178 --> 00:22:25,262
But on one condition.
374
00:22:27,514 --> 00:22:28,515
Bernard...
375
00:22:29,141 --> 00:22:30,392
I do business with people
376
00:22:31,059 --> 00:22:33,103
who turn away from me
after we shake on the deal
377
00:22:33,187 --> 00:22:35,606
and wash their hands
because I'm a dirty Irishman.
378
00:22:36,690 --> 00:22:39,943
[sighs] But they do business with me
because I make them money.
379
00:22:41,278 --> 00:22:44,907
Now, you have the knack of knowing
the untapped value of a building.
380
00:22:46,617 --> 00:22:48,535
You'll work the phones with me.
381
00:22:49,995 --> 00:22:51,079
Work the investors.
382
00:22:51,914 --> 00:22:55,751
But when we need a face to sign the deal,
that'll be me.
383
00:22:57,419 --> 00:22:58,420
And we'll make money.
384
00:22:59,505 --> 00:23:00,506
A lot of it.
385
00:23:02,966 --> 00:23:03,967
Fifty-fifty?
386
00:23:06,678 --> 00:23:07,888
Fifty-fifty.
387
00:23:14,937 --> 00:23:15,938
This is it. Right here.
388
00:23:16,355 --> 00:23:17,356
There we go.
389
00:23:19,691 --> 00:23:20,692
Your signature.
390
00:23:23,111 --> 00:23:24,613
[indistinct]
391
00:23:28,283 --> 00:23:29,701
[phone rings]
392
00:23:30,327 --> 00:23:31,578
Hello? Yeah.
393
00:23:32,204 --> 00:23:33,205
Oh, right.
394
00:23:33,288 --> 00:23:34,998
[indistinct]
395
00:23:35,082 --> 00:23:36,602
Yeah, I was calling about the house...
396
00:23:52,057 --> 00:23:53,100
[camera shutter clicks]
397
00:23:58,397 --> 00:23:59,565
Oh.
398
00:24:01,984 --> 00:24:03,861
[Bernard] Let's try the sofa over here.
399
00:24:03,944 --> 00:24:06,321
Lamp. Right here in the corner.
400
00:24:06,405 --> 00:24:08,490
It's perfect. Perfect. Perfect.
401
00:24:08,991 --> 00:24:10,909
That looks great.
402
00:24:11,451 --> 00:24:13,370
What do you think, baby? It's nice, right?
403
00:24:13,453 --> 00:24:15,956
Uh, well. I think there's something
going on with the car.
404
00:24:16,039 --> 00:24:17,207
You wanna go check on it?
405
00:24:19,001 --> 00:24:20,460
- Right.
- Mm-hmm.
406
00:24:21,753 --> 00:24:24,256
Okay, let's move the table there,
slide the couch in,
407
00:24:24,339 --> 00:24:25,966
and put the lamp on the other side.
408
00:24:26,717 --> 00:24:29,636
And don't you dare let him move anything
when he gets back. Okay?
409
00:24:29,720 --> 00:24:31,040
- [Matt] Yes, ma'am.
- Yes, ma'am.
410
00:24:33,682 --> 00:24:37,269
[Bernard] Barker and I have been thinking
about diversifying in single family homes.
411
00:24:38,395 --> 00:24:39,396
So...
412
00:24:40,314 --> 00:24:44,651
want you to go in, tell me
what you think this house needs.
413
00:24:49,489 --> 00:24:50,699
Oh.
414
00:24:52,492 --> 00:24:53,577
- Bernard.
- [door closes]
415
00:24:56,079 --> 00:24:57,706
This place is beautiful.
416
00:24:58,498 --> 00:25:00,459
Huh. You think?
417
00:25:00,959 --> 00:25:02,711
- Yes.
- Does it need anything?
418
00:25:02,794 --> 00:25:03,962
Furniture.
419
00:25:05,130 --> 00:25:06,715
So I did a good job, huh?
420
00:25:06,798 --> 00:25:08,634
Well, it depends on the price, doesn't it?
421
00:25:10,344 --> 00:25:11,470
Not this time, baby.
422
00:25:14,348 --> 00:25:16,099
Go on. Take it. I already got a set.
423
00:25:16,183 --> 00:25:17,559
Oh. [chuckles]
424
00:25:18,227 --> 00:25:20,020
Are you serious?
425
00:25:20,437 --> 00:25:21,980
[both laughing]
426
00:25:22,064 --> 00:25:23,065
[kisses]
427
00:25:23,148 --> 00:25:25,275
[clock chiming]
428
00:25:25,359 --> 00:25:27,152
You really sleeping in late.
429
00:25:27,736 --> 00:25:29,488
Time to get up, dear.
430
00:25:36,954 --> 00:25:38,539
[ragged breathing]
431
00:25:43,836 --> 00:25:45,879
[man]
Mrs. Barker would like to offer a buyout
432
00:25:45,963 --> 00:25:49,383
for your interest
in all the Barker/Garrett properties.
433
00:25:49,466 --> 00:25:51,134
I have no reason to sell.
434
00:25:51,218 --> 00:25:53,053
I'm happy running the buildings on my own.
435
00:25:53,136 --> 00:25:54,513
That's unacceptable.
436
00:25:54,596 --> 00:25:56,036
I don't wanna be in business with...
437
00:25:57,724 --> 00:26:00,853
I prefer not to continue the arrangement.
438
00:26:02,729 --> 00:26:03,981
What's the offer?
439
00:26:12,948 --> 00:26:14,533
This is outrageous.
440
00:26:14,616 --> 00:26:17,661
I own 50% of a dozen properties.
441
00:26:17,744 --> 00:26:20,205
You want me to give it up
for pennies on the dollar?
442
00:26:20,289 --> 00:26:22,666
I don't have to pay you anything.
443
00:26:23,333 --> 00:26:25,294
Your name doesn't appear
on any of the deeds.
444
00:26:25,377 --> 00:26:26,503
Well, it couldn't.
445
00:26:27,004 --> 00:26:28,130
We had an agreement.
446
00:26:28,213 --> 00:26:30,841
And we all know
what your husband's intentions were.
447
00:26:35,220 --> 00:26:38,265
I will up my offer
to 25 cents on the dollar.
448
00:26:38,348 --> 00:26:40,517
And if you see fit
to refuse that, Mr. Garrett,
449
00:26:40,601 --> 00:26:42,227
you can walk away with nothing
450
00:26:42,769 --> 00:26:44,688
unless you wanna face me
in a court of law.
451
00:26:45,480 --> 00:26:46,773
With a different lawyer.
452
00:26:50,611 --> 00:26:53,197
[door opens, closes]
453
00:26:53,280 --> 00:26:55,657
There has to be a way
to prove Mr. Barker's intentions.
454
00:26:55,741 --> 00:26:57,868
Well, if you could find a witness, yes.
455
00:26:57,951 --> 00:26:58,952
But...
456
00:26:59,328 --> 00:27:00,329
it can't be me.
457
00:27:00,913 --> 00:27:02,331
I could get disbarred for that.
458
00:27:03,207 --> 00:27:05,334
Mr. Reed at Mid City...
459
00:27:05,417 --> 00:27:07,544
He's her banker now, Bernard.
460
00:27:08,921 --> 00:27:10,589
He's not going to intervene for you.
461
00:27:15,427 --> 00:27:16,887
I need to see Mr. Reed.
462
00:27:16,970 --> 00:27:18,388
I'm sorry, Mr. Garrett.
463
00:27:18,472 --> 00:27:20,849
Mr. Reed can't see anybody
without an appointment.
464
00:27:20,933 --> 00:27:21,934
This is urgent.
465
00:27:24,353 --> 00:27:25,395
Hold on a moment.
466
00:27:33,320 --> 00:27:34,947
467
00:28:29,084 --> 00:28:32,296
I don't know how familiar you are
with the commercial real estate market.
468
00:28:32,379 --> 00:28:35,174
Eunice told me you had two or three
income-producing buildings?
469
00:28:36,091 --> 00:28:37,301
Seventeen.
470
00:28:37,384 --> 00:28:39,636
But once you've popped your cherry,
471
00:28:39,720 --> 00:28:42,222
I mean, how much more
can you learn on each new one?
472
00:28:43,807 --> 00:28:44,850
Seventeen?
473
00:28:45,726 --> 00:28:47,144
Eighteen, if you count the club.
474
00:28:47,936 --> 00:28:49,605
My mother was a real estate agent.
475
00:28:50,898 --> 00:28:51,982
You know this building?
476
00:28:54,943 --> 00:28:57,821
Sure. Bunch of bankers headquarters
in there.
477
00:28:57,905 --> 00:29:00,824
Tallest commercial building
in downtown Los Angeles.
478
00:29:00,908 --> 00:29:01,950
I wanna buy it.
479
00:29:04,119 --> 00:29:05,162
I want us to buy it.
480
00:29:08,999 --> 00:29:13,295
That's a mighty big building to buy
on the most expensive land in the city.
481
00:29:13,378 --> 00:29:14,379
I know.
482
00:29:16,215 --> 00:29:18,217
We'd need a substantial loan.
483
00:29:18,300 --> 00:29:21,053
You don't own all 18 of those properties
outright, do you?
484
00:29:23,055 --> 00:29:27,184
I got a banker in San Francisco
I've done business with for years.
485
00:29:28,894 --> 00:29:29,895
Drink?
486
00:29:29,978 --> 00:29:31,313
No, thank you. I don't drink.
487
00:29:37,194 --> 00:29:42,741
You know there's not a single black-owned
building in downtown Los Angeles.
488
00:29:42,824 --> 00:29:44,326
There's a reason for that.
489
00:29:44,409 --> 00:29:46,703
Yeah. We're probably gonna
have to overpay to get it.
490
00:29:46,787 --> 00:29:49,623
[chuckles]
Tell me something I don't know.
491
00:29:51,166 --> 00:29:52,167
Now...
492
00:29:53,669 --> 00:29:54,711
convince me.
493
00:29:57,172 --> 00:29:58,173
Well...
494
00:30:00,008 --> 00:30:02,928
the best place to learn about the present
state of the real estate market
495
00:30:03,011 --> 00:30:04,429
is inside of a bank.
496
00:30:04,513 --> 00:30:07,224
We get that building,
we'll be inside 12 of them.
497
00:30:08,100 --> 00:30:11,854
And next time they'll think twice about
refusing to make loans to us
498
00:30:12,437 --> 00:30:13,856
if we're their landlords.
499
00:30:15,983 --> 00:30:18,527
That's very audacious, Mr. Garrett.
500
00:30:19,194 --> 00:30:21,154
I think of it in purely logical terms.
501
00:30:22,489 --> 00:30:23,490
What a shame.
502
00:30:23,907 --> 00:30:24,950
Excuse me?
503
00:30:25,033 --> 00:30:28,120
What about the thrill
of taking it to the man?
504
00:30:28,203 --> 00:30:30,455
In his own castle, no less?
505
00:30:31,790 --> 00:30:32,791
No?
506
00:30:34,918 --> 00:30:35,919
Never mind.
507
00:30:36,962 --> 00:30:41,592
But on purely logical terms,
I have a concern about your plan.
508
00:30:41,675 --> 00:30:43,010
What's that?
509
00:30:43,552 --> 00:30:47,347
All this information we'll be getting
from hanging around all these bankers
510
00:30:47,431 --> 00:30:51,268
is gonna be about
property in white neighborhoods.
511
00:30:55,314 --> 00:31:01,195
Do you plan on starting to buy real estate
in white-only neighborhoods, Mr. Garrett?
512
00:31:01,987 --> 00:31:03,655
That's exactly what we're gonna do.
513
00:31:03,739 --> 00:31:06,658
[cackles]
514
00:31:08,827 --> 00:31:12,956
And just how in the hell
do you plan on pulling that off?
515
00:31:13,790 --> 00:31:15,959
The same way we're gonna buy
the Bankers Building.
516
00:31:22,382 --> 00:31:23,800
You want me to what?
517
00:31:23,884 --> 00:31:26,512
Be us to the rest of the world.
518
00:31:27,721 --> 00:31:31,225
I don't know anything about banking.
I don't know how to buy a bank.
519
00:31:31,308 --> 00:31:33,060
[Bernard]
We're not actually buying a bank.
520
00:31:33,143 --> 00:31:35,437
We're buying a building
that the banks are in.
521
00:31:35,938 --> 00:31:37,022
The banks are tenants.
522
00:31:38,857 --> 00:31:39,691
Right.
523
00:31:39,775 --> 00:31:41,610
You'd just be the face of our partnership.
524
00:31:42,736 --> 00:31:45,030
You think I'm,
you know, qualified for this?
525
00:31:45,113 --> 00:31:46,990
We'll teach you everything
you need to know.
526
00:31:48,784 --> 00:31:49,868
Huh.
527
00:31:50,744 --> 00:31:52,955
That guy? Seriously?
528
00:31:53,455 --> 00:31:55,082
He just has to digest it.
529
00:31:55,165 --> 00:31:56,166
So, what?
530
00:31:56,250 --> 00:31:58,627
He can freeze up
soon as we send him in the room?
531
00:31:58,710 --> 00:31:59,753
He won't freeze up.
532
00:31:59,837 --> 00:32:01,505
Trust me. He's the right guy.
533
00:32:01,588 --> 00:32:05,884
I'll lay you a hundred dollars to your one
he can't go the distance.
534
00:32:06,301 --> 00:32:07,928
Don't you know any other white people
535
00:32:08,011 --> 00:32:09,930
who'd like to get paid
to be our front man?
536
00:32:10,013 --> 00:32:11,598
Not that I trust. Do you?
537
00:32:11,974 --> 00:32:13,392
I don't trust white people.
538
00:32:14,142 --> 00:32:15,853
How do you even go through life like that?
539
00:32:15,936 --> 00:32:17,896
Truth be told,
I don't trust black people either.
540
00:32:19,106 --> 00:32:20,440
What are you even saying?
541
00:32:20,524 --> 00:32:23,402
Look. I do plenty of business
with white folks.
542
00:32:23,485 --> 00:32:24,486
I'm friendly with them.
543
00:32:24,570 --> 00:32:26,321
Good friends with some.
544
00:32:26,405 --> 00:32:29,241
I'm just saying that no matter what,
545
00:32:29,324 --> 00:32:33,287
there's always something extra
going on in the relationship.
546
00:32:33,370 --> 00:32:34,830
It's just the way shit is.
547
00:32:34,913 --> 00:32:36,623
When you accept that,
548
00:32:36,707 --> 00:32:40,002
you can't get caught off guard
when it rears its ugly head.
549
00:32:40,669 --> 00:32:42,296
I can't live my life like that.
550
00:32:42,796 --> 00:32:44,339
See, that's what I like about you.
551
00:32:45,048 --> 00:32:46,592
You are a good person.
552
00:32:46,675 --> 00:32:48,802
Ain't been corrupted by the world yet.
553
00:32:48,886 --> 00:32:50,053
Like a child.
554
00:32:50,971 --> 00:32:53,724
But that's gonna change when you get rich.
555
00:32:54,725 --> 00:32:55,934
Yeah, I'll take that risk.
556
00:32:56,643 --> 00:32:58,103
You ain't gonna have no choice.
557
00:33:00,105 --> 00:33:01,982
[pop music playing on speakers]
558
00:33:06,028 --> 00:33:07,112
[plate sets on table]
559
00:33:08,238 --> 00:33:09,323
Thanks.
560
00:33:20,083 --> 00:33:21,502
Hi. [chuckles]
561
00:33:22,544 --> 00:33:23,587
Hi.
562
00:33:24,087 --> 00:33:26,256
Um, you're Matt Steiner, right?
563
00:33:29,301 --> 00:33:30,385
Hollywood High?
564
00:33:30,469 --> 00:33:31,637
- Yes.
- Right.
565
00:33:31,720 --> 00:33:35,557
You were a few years ahead of me,
but everybody knew who you were.
566
00:33:36,016 --> 00:33:37,351
[Susie chuckles]
567
00:33:39,144 --> 00:33:40,854
What are you all sour-faced about?
568
00:33:42,606 --> 00:33:43,607
I was just thinking.
569
00:33:44,149 --> 00:33:45,150
About?
570
00:33:45,901 --> 00:33:46,735
A new job.
571
00:33:46,818 --> 00:33:48,320
Mmm? Doing what?
572
00:33:49,238 --> 00:33:50,322
Real estate.
573
00:33:50,697 --> 00:33:52,533
Oh, like a... like a broker?
574
00:33:52,991 --> 00:33:54,826
You know, more like an investor.
575
00:33:54,910 --> 00:33:55,953
Oh.
576
00:33:56,036 --> 00:33:57,871
Well, I'd be working with the investors.
577
00:33:57,955 --> 00:33:58,789
Hand in hand.
578
00:33:58,872 --> 00:34:00,123
So, they're hiring you?
579
00:34:01,750 --> 00:34:02,793
Kind of a partnership.
580
00:34:03,961 --> 00:34:05,295
A partnership.
581
00:34:07,673 --> 00:34:10,300
- S-Susie.
- Yeah, yeah. Um...
582
00:34:10,384 --> 00:34:12,010
- It's good to see you.
- You too.
583
00:34:23,021 --> 00:34:24,022
I'm in.
584
00:34:25,065 --> 00:34:26,065
You sure?
585
00:34:26,149 --> 00:34:28,569
Just teach me what I need to know.
I won't let you down.
586
00:34:31,154 --> 00:34:34,116
Be at Rancho Park Golf Course
tomorrow morning, 6:00 a.m.
587
00:34:34,574 --> 00:34:35,617
Don't be late.
588
00:34:35,701 --> 00:34:36,702
Thank you.
589
00:34:38,203 --> 00:34:39,246
Thanks.
590
00:34:47,337 --> 00:34:50,799
[yawning]
591
00:34:53,969 --> 00:34:55,094
What? Is he even coming?
592
00:34:55,179 --> 00:34:56,179
[grunts]
593
00:34:57,264 --> 00:34:58,515
Morning, fellows.
594
00:34:58,599 --> 00:34:59,808
I thought you said 6:00?
595
00:34:59,892 --> 00:35:02,227
- I did. Were you here at 6:00?
- Yeah.
596
00:35:02,311 --> 00:35:03,312
Good.
597
00:35:03,896 --> 00:35:04,938
You ever play golf?
598
00:35:05,397 --> 00:35:06,607
No.
599
00:35:06,690 --> 00:35:08,817
Well, before you learn
how to talk real estate,
600
00:35:08,901 --> 00:35:10,903
you gotta learn
how to talk to rich white folks
601
00:35:10,986 --> 00:35:12,654
so it seems like you one of 'em.
602
00:35:12,738 --> 00:35:16,200
And you got one month
to learn how to play golf.
603
00:35:16,283 --> 00:35:18,678
And I mean learn to play
like you've been playing your whole life.
604
00:35:18,702 --> 00:35:19,786
Think you can do that?
605
00:35:20,579 --> 00:35:22,706
Yeah. I played
a lot of sports as a kid. So...
606
00:35:22,789 --> 00:35:24,917
So... yes?
607
00:35:25,000 --> 00:35:26,627
- Yes.
- All right, then.
608
00:35:27,044 --> 00:35:28,754
Take him over and get him outfitted.
609
00:35:28,837 --> 00:35:31,006
Show him the basics
and I'll take over from there.
610
00:35:31,089 --> 00:35:32,090
Follow me.
611
00:35:38,138 --> 00:35:39,574
[Bernard]
So a hundred dollars to my one?
612
00:35:39,598 --> 00:35:43,602
You think it's a done deal because,
what, I'm such a good golf teacher?
613
00:35:43,685 --> 00:35:45,938
You can fake math.
You can't fake a golf game.
614
00:35:46,021 --> 00:35:47,341
[man] He's right about that, Joe.
615
00:35:48,440 --> 00:35:51,652
Bernard, this is Don Silverthorne.
My banker.
616
00:35:51,735 --> 00:35:53,570
Flew all the way down
from San Francisco
617
00:35:53,654 --> 00:35:54,988
just to see how crazy we are.
618
00:35:55,072 --> 00:35:56,073
[Don] Nice to meet you.
619
00:35:59,159 --> 00:36:00,244
[Matt] Shit!
620
00:36:00,327 --> 00:36:02,079
Well, it looks like I got my answer.
621
00:36:02,162 --> 00:36:03,956
Uh, let's try that again.
622
00:36:04,039 --> 00:36:05,624
All right. What do I do differently?
623
00:36:05,707 --> 00:36:06,708
Swing lower.
624
00:36:07,292 --> 00:36:09,127
- Great, thanks.
- Keep your head still.
625
00:36:09,586 --> 00:36:11,106
[whispering] Head still, head still...
626
00:36:14,007 --> 00:36:15,133
No, you moved.
627
00:36:15,801 --> 00:36:18,679
If this charade's gonna work
and you guys want me to finance,
628
00:36:18,762 --> 00:36:21,431
I just hope you don't offer
over two million for that building.
629
00:36:22,015 --> 00:36:23,559
More than that, I don't want the risk.
630
00:36:24,601 --> 00:36:26,770
I can get that building
for under two million.
631
00:36:26,854 --> 00:36:28,730
It's not you I'm worried about,
Mr. Garrett.
632
00:36:29,857 --> 00:36:30,858
I hit it.
633
00:36:32,442 --> 00:36:33,443
It's him.
634
00:36:34,069 --> 00:36:36,196
You sure you don't wanna give me
that dollar now?
635
00:36:38,657 --> 00:36:40,337
[Bernard]
The old way of valuing a building
636
00:36:40,367 --> 00:36:43,704
is the number of years rent it takes
to pay off the price of a building.
637
00:36:44,246 --> 00:36:46,206
So, if the building costs $300,000
638
00:36:46,290 --> 00:36:50,169
and you're getting $30,000 net income
per year, it's a ten multiple.
639
00:36:50,252 --> 00:36:53,839
Today most people value buildings
using the capitalization rate.
640
00:36:54,256 --> 00:36:55,883
But they're mathematically related.
641
00:36:56,717 --> 00:36:59,595
So the cap rate
is the multiplicative inverse
642
00:36:59,678 --> 00:37:01,847
of the ten multiple
we were just talking about.
643
00:37:03,015 --> 00:37:06,602
300,000 = 30,000 x M.
644
00:37:06,685 --> 00:37:10,939
M = ten years.
645
00:37:11,023 --> 00:37:15,194
One-tenth x 300,000 = 30,000.
646
00:37:17,237 --> 00:37:20,365
One-tenth is 10%.
647
00:37:21,617 --> 00:37:22,618
Your cap rate.
648
00:37:25,204 --> 00:37:26,496
[grunts]
649
00:37:26,580 --> 00:37:28,624
Maybe we should start with a math review.
650
00:37:29,833 --> 00:37:30,918
That'd be great.
651
00:37:41,845 --> 00:37:43,764
- Right?
- You have to carry the four.
652
00:37:44,723 --> 00:37:45,724
Which four?
653
00:37:55,734 --> 00:37:59,404
Even on a putt, keep your f-ing head down.
654
00:37:59,488 --> 00:38:00,989
Keep my f-ing head down. Keep...
655
00:38:07,287 --> 00:38:10,082
There's a subtraction error in there
and that last step is wrong.
656
00:38:10,165 --> 00:38:13,418
But other than that
you're getting the gist of it.
657
00:38:15,879 --> 00:38:16,880
Sorry.
658
00:38:16,964 --> 00:38:17,965
Sorry.
659
00:38:18,048 --> 00:38:19,049
Sorry!
660
00:38:25,764 --> 00:38:26,765
Right.
661
00:38:26,849 --> 00:38:29,142
Now multiply by 1.25.
662
00:38:29,893 --> 00:38:31,478
1.25...
663
00:38:32,938 --> 00:38:35,607
No. No, no, no. Stop! Stop!
664
00:38:35,691 --> 00:38:36,733
[groans]
665
00:38:36,817 --> 00:38:39,027
[Joe laughing]
666
00:38:39,820 --> 00:38:41,029
No, no, no.
667
00:38:41,655 --> 00:38:42,781
Stop laughing.
668
00:38:44,825 --> 00:38:46,285
[Joe] What the hell?
669
00:38:46,368 --> 00:38:47,828
[laughing continues]
670
00:38:47,911 --> 00:38:49,037
Hit it.
671
00:38:49,121 --> 00:38:50,205
I am hitting it!
672
00:38:51,456 --> 00:38:52,541
Oh!
673
00:38:52,624 --> 00:38:53,834
[groans]
674
00:38:56,170 --> 00:38:57,713
Careful now. Don't hurt yourself.
675
00:39:00,007 --> 00:39:01,175
Stop. Just stop.
676
00:39:04,011 --> 00:39:07,681
We're about 50 yards from the green,
so we're gonna use a wedge.
677
00:39:08,682 --> 00:39:09,892
[Matt sighs]
678
00:39:14,396 --> 00:39:17,608
And you wanna swing it 'bout this hard.
679
00:39:22,279 --> 00:39:25,115
Remember, it's a wedge,
so don't be scared to swing it.
680
00:39:25,199 --> 00:39:26,366
What else you gonna do?
681
00:39:26,450 --> 00:39:27,910
Keep my f-ing head down.
682
00:39:27,993 --> 00:39:29,203
[softly] Jesus. Come on.
683
00:39:40,797 --> 00:39:41,798
It's right...
684
00:39:45,385 --> 00:39:48,555
- Oh!
- Holy shit. Oh, my...
685
00:39:48,639 --> 00:39:49,640
Come on.
686
00:39:50,474 --> 00:39:52,851
- I just kept my f-ing head down and...
- Whoo!
687
00:40:00,484 --> 00:40:03,862
Uh, it's 432,000.
688
00:40:06,782 --> 00:40:08,325
689
00:40:08,408 --> 00:40:10,118
Yeah. Yeah, that's right.
690
00:40:10,202 --> 00:40:11,882
You got it right, man.
You're getting this.
691
00:40:19,336 --> 00:40:20,462
692
00:41:13,515 --> 00:41:14,766
What you want, Bernard?
693
00:41:14,850 --> 00:41:15,976
This is my time.
694
00:41:17,394 --> 00:41:18,714
[Bernard] I wanna buy a building.
695
00:41:20,397 --> 00:41:24,902
It has a $100,000 annual gross income,
8% vacancy rate,
696
00:41:25,485 --> 00:41:30,490
$12,000 annual operating costs
and I require a 10% cap rate.
697
00:41:32,576 --> 00:41:34,786
What's the maximum purchase amount
I can offer?
698
00:41:41,710 --> 00:41:42,753
Where'd that go?
699
00:41:44,379 --> 00:41:47,966
Straight down the middle, 'bout, oh...
700
00:41:49,218 --> 00:41:52,387
Shit, I don't even know.
I ain't never hit a ball that far.
701
00:41:52,471 --> 00:41:53,639
It's 800,000.
702
00:41:56,725 --> 00:41:58,227
- He's right.
- You're right.
703
00:41:58,310 --> 00:41:59,561
- He's right?
- Yeah.
704
00:42:00,771 --> 00:42:02,564
We have created a monster.
705
00:42:02,648 --> 00:42:03,815
You made the algebra easy.
706
00:42:03,899 --> 00:42:06,151
A month ago, you didn't know
what algebra was, Matt.
707
00:42:06,235 --> 00:42:07,945
- That's true.
- You have a knack for it.
708
00:42:12,699 --> 00:42:13,742
He's ready.
709
00:42:14,493 --> 00:42:16,620
Yep. He's ready.
710
00:42:17,955 --> 00:42:21,250
[Bernard] The Bankers Building is owned
by Charles Renault.
711
00:42:22,209 --> 00:42:23,919
It's 14 stories.
712
00:42:24,002 --> 00:42:27,464
119,000 square feet of commercial space.
713
00:42:28,549 --> 00:42:30,342
It was built in 1929.
714
00:42:30,425 --> 00:42:33,720
And it's still the tallest
commercial building downtown
715
00:42:33,804 --> 00:42:37,140
and generally considered the crown jewel
of downtown architecture.
716
00:42:41,353 --> 00:42:42,729
That's his office?
717
00:42:42,813 --> 00:42:44,898
- That's his office.
- [door closes]
718
00:42:44,982 --> 00:42:46,900
A converted ballroom.
719
00:42:47,693 --> 00:42:49,945
[Matt] Holy shit. How rich is this guy?
720
00:42:50,028 --> 00:42:51,113
[Joe] Very.
721
00:42:51,613 --> 00:42:54,950
Now, he won't take you seriously
without a proper introduction.
722
00:42:55,033 --> 00:43:00,455
But I have arranged for you to bump
into him at the Hancock Park country club.
723
00:43:01,415 --> 00:43:03,750
Wait, that's the most exclusive club
in the city.
724
00:43:03,834 --> 00:43:05,043
I can't just walk in.
725
00:43:05,127 --> 00:43:06,211
Don't worry about that.
726
00:43:14,261 --> 00:43:16,346
[men chattering]
727
00:43:22,477 --> 00:43:24,271
Mr. Steiner, welcome.
728
00:43:24,354 --> 00:43:25,355
Thank you.
729
00:43:25,439 --> 00:43:28,317
Arrangements have been made
for you to use our club as a guest,
730
00:43:28,400 --> 00:43:31,236
per our exchange program
with your home club in Pennsylvania.
731
00:43:31,862 --> 00:43:34,198
Will your chauffeur be
waiting on the premises?
732
00:43:36,408 --> 00:43:37,951
I'll be just outside the gate.
733
00:43:38,577 --> 00:43:40,537
Anything goes south, you come find me.
734
00:43:41,371 --> 00:43:43,040
That won't happen, Mr. Morris.
735
00:43:44,791 --> 00:43:45,918
I promise.
736
00:43:46,001 --> 00:43:47,002
Thank you, Anton.
737
00:43:50,797 --> 00:43:52,716
- I'm worried.
- About what?
738
00:43:52,799 --> 00:43:54,843
I don't always do great under pressure.
739
00:43:54,927 --> 00:43:57,221
[chuckles] Come on. You're a natural.
740
00:43:57,304 --> 00:43:59,473
- Natural what?
- Performer.
741
00:44:00,432 --> 00:44:01,517
How do you know that?
742
00:44:01,600 --> 00:44:04,686
You think I got where I am in life
without being able to spot talent?
743
00:44:07,606 --> 00:44:08,607
Go get him.
744
00:44:09,858 --> 00:44:10,901
Yes, sir.
745
00:44:20,244 --> 00:44:21,286
Mr. Steiner?
746
00:44:21,995 --> 00:44:22,996
Yes?
747
00:44:23,080 --> 00:44:25,558
Jackie says you're playing as a single,
looking to be paired up.
748
00:44:25,582 --> 00:44:27,042
Always looking for a good game.
749
00:44:27,793 --> 00:44:29,670
If I can find someone to give me one.
750
00:44:29,753 --> 00:44:31,255
Charles Renault, good to meet you.
751
00:44:33,215 --> 00:44:34,675
Enjoying playing dress-up?
752
00:44:34,758 --> 00:44:36,844
You should try it sometime.
It's thrilling.
753
00:44:36,927 --> 00:44:38,846
[chuckles] No, thanks.
754
00:44:38,929 --> 00:44:42,182
Oh. So, you're okay with having
a white boy do your business for you,
755
00:44:42,266 --> 00:44:43,934
but you're not okay putting on a cap
756
00:44:44,017 --> 00:44:46,019
so you can keep an eye on him
while he does it?
757
00:44:46,562 --> 00:44:49,356
It's the only job I've been able to avoid
my entire life.
758
00:44:49,898 --> 00:44:52,484
- I'd like to try and keep it that way.
- [laughs]
759
00:45:03,912 --> 00:45:05,122
[Renault chuckles]
760
00:45:05,539 --> 00:45:07,416
Jimmy, I think we got ourselves a game.
761
00:45:09,168 --> 00:45:10,210
Okay.
762
00:45:10,961 --> 00:45:12,504
So, we're really gonna do this now?
763
00:45:12,588 --> 00:45:16,133
If by "we," you mean "you," yeah.
764
00:45:38,155 --> 00:45:39,198
Remember,
765
00:45:40,157 --> 00:45:41,283
eyes on the ball.
766
00:45:41,366 --> 00:45:42,618
And keep my f-ing head down.
767
00:45:46,914 --> 00:45:48,040
Make me proud, son.
768
00:45:57,299 --> 00:46:00,052
He's gonna claim he's renting
for 20 cents a square foot,
769
00:46:00,135 --> 00:46:01,136
but that's poppycock.
770
00:46:01,220 --> 00:46:02,221
It's more like 15.
771
00:46:04,598 --> 00:46:06,975
[Bernard]
See, this whole thing is about getting you
772
00:46:07,059 --> 00:46:08,894
to agree to a higher base value.
773
00:46:08,977 --> 00:46:10,521
Uh... Which I won't do.
774
00:46:10,604 --> 00:46:12,940
He's gonna test you. Probe you.
775
00:46:21,573 --> 00:46:25,661
You give him the slightest reason
to doubt your command of the numbers,
776
00:46:25,744 --> 00:46:27,579
he'll see straight through you.
777
00:46:27,663 --> 00:46:28,789
So you gotta impress him.
778
00:46:29,831 --> 00:46:31,166
Like you did on the first tee.
779
00:46:32,209 --> 00:46:33,210
Okay, so what do I do?
780
00:46:33,293 --> 00:46:36,755
What's the equivalent
of a 300-yard tee shot in negotiation?
781
00:46:39,007 --> 00:46:40,217
A four-course lunch.
782
00:46:46,598 --> 00:46:48,016
[chattering]
783
00:46:48,642 --> 00:46:50,394
flown in from France once a week.
784
00:46:51,478 --> 00:46:52,479
Enjoy.
785
00:46:58,110 --> 00:47:00,445
Okay, we lease at 20 cents a square foot.
786
00:47:00,529 --> 00:47:03,740
That's 272,880 gross per year.
787
00:47:03,824 --> 00:47:05,409
Eighty thousand expenses.
788
00:47:05,492 --> 00:47:07,369
That's 192,880 in profit.
789
00:47:08,036 --> 00:47:12,165
10% cap rate on that
will get us to 1,928,880.
790
00:47:12,666 --> 00:47:17,087
25% premium on that would be 2,411,100.
791
00:47:18,672 --> 00:47:21,008
If that's what you're offering,
I'm interested.
792
00:47:24,261 --> 00:47:25,470
Here's my problem, Charles.
793
00:47:25,554 --> 00:47:28,098
I know you have leases
at 15 cents a square foot.
794
00:47:28,182 --> 00:47:29,641
You know, big long-term leases.
795
00:47:29,725 --> 00:47:31,661
So even if you have
a few suckers paying 20 cents...
796
00:47:31,685 --> 00:47:32,769
More than a few.
797
00:47:34,062 --> 00:47:35,689
Fine, call the average 18 cents,
798
00:47:35,772 --> 00:47:37,524
so that would be a net income of...
799
00:47:37,608 --> 00:47:41,153
245,592. But that's not important.
800
00:47:41,236 --> 00:47:44,114
I mean, if you wanna show me your leases
and prove it, okay.
801
00:47:44,198 --> 00:47:46,283
Otherwise, I'd call it
15 cents a square foot.
802
00:47:46,366 --> 00:47:48,160
- Fifteen is too low.
- Fifteen is generous.
803
00:47:48,243 --> 00:47:51,038
Especially when you factor in vacancies,
which are at least 9%.
804
00:47:51,121 --> 00:47:52,915
- Less than that.
- I counted 12.
805
00:47:52,998 --> 00:47:54,708
How could you possibly know that?
806
00:47:55,501 --> 00:47:56,793
Charles, it's November.
807
00:47:57,669 --> 00:47:59,254
It gets dark by 5:00 p.m.
808
00:48:02,049 --> 00:48:04,110
If you wanna bullshit someone
about your vacancy rate,
809
00:48:04,134 --> 00:48:06,970
you need lights shining
in all those unleased spaces by 4:30.
810
00:48:07,513 --> 00:48:09,890
I don't blame you for not doing it.
It's a lot of work.
811
00:48:09,973 --> 00:48:12,368
But those vacancies would
take you to 13.5 cents a square foot.
812
00:48:12,392 --> 00:48:13,477
We'll fill some of those.
813
00:48:13,560 --> 00:48:15,604
Let's call it 16 cents. Fair?
814
00:48:16,271 --> 00:48:21,610
That's a $1,383,000 valuation
at a 10% cap rate.
815
00:48:22,611 --> 00:48:25,364
But, of course a 10% cap rate
is too low for this market.
816
00:48:25,447 --> 00:48:28,116
My partners and I have multiple deals
with 12% returns,
817
00:48:28,867 --> 00:48:30,244
which would be...
818
00:48:30,327 --> 00:48:36,083
$1,152,533 underlying valuation.
819
00:48:37,835 --> 00:48:42,464
- 1,152,533.
- [mouthing words]
820
00:48:44,383 --> 00:48:46,009
How do you do this in your head?
821
00:48:46,677 --> 00:48:48,762
There's no way I can do this math.
822
00:48:49,972 --> 00:48:52,391
Well, you know, maybe I could fake it?
823
00:48:53,141 --> 00:48:54,142
How?
824
00:48:56,311 --> 00:48:57,646
Practice.
825
00:48:57,729 --> 00:48:58,814
I'll just memorize it.
826
00:49:00,858 --> 00:49:02,359
- All of it?
- Mm-hmm.
827
00:49:03,068 --> 00:49:04,528
Yeah, I got a pretty good memory.
828
00:49:05,112 --> 00:49:06,572
[chuckles] That good?
829
00:49:06,655 --> 00:49:08,365
Well, I got a week to learn it, right?
830
00:49:08,448 --> 00:49:09,448
[Joe laughs]
831
00:49:09,783 --> 00:49:11,243
Hustling a hustler.
832
00:49:11,326 --> 00:49:12,578
I love it.
833
00:49:13,787 --> 00:49:15,038
But, if this works,
834
00:49:15,706 --> 00:49:17,666
Renault's gonna challenge you
on the cap rate.
835
00:49:17,749 --> 00:49:19,793
So you need to get ready for it.
836
00:49:20,752 --> 00:49:23,046
Look, this is downtown.
The risk here is very low.
837
00:49:23,672 --> 00:49:25,257
It doesn't warrant a 12% return.
838
00:49:25,799 --> 00:49:27,509
I'm firm with a 10% cap rate.
839
00:49:28,010 --> 00:49:31,513
He's gonna try to hold you
to a 10% cap rate on the underlying value,
840
00:49:31,597 --> 00:49:33,098
which we're not gonna take.
841
00:49:33,599 --> 00:49:36,018
Not with a 25% premium going to him.
842
00:49:36,101 --> 00:49:38,478
But you're gonna need
somewhere to go in the conversation.
843
00:49:38,562 --> 00:49:42,024
So I want you to memorize
the 10.5% cap rate scenario as well.
844
00:49:42,107 --> 00:49:48,447
But a 25% premium on a 10.5% cap rate
is too high, right?
845
00:49:52,201 --> 00:49:57,331
10.5% cap rate means
$1,317,000 underlying.
846
00:49:57,414 --> 00:50:02,669
With the 25% premium, that's $1,646,250.
847
00:50:03,462 --> 00:50:04,546
Too high.
848
00:50:04,630 --> 00:50:06,715
Yeah, that sounds too high.
849
00:50:06,798 --> 00:50:09,593
[slurring words]
You goddamn right it's too high.
850
00:50:11,887 --> 00:50:13,722
So maybe you can sell him a choice.
851
00:50:15,891 --> 00:50:17,267
Mr. Renault, I like you.
852
00:50:17,768 --> 00:50:20,521
First halfway decent golf game I've had
since I've moved here.
853
00:50:20,604 --> 00:50:24,441
But if you want us to value this building
at a 10% cap rate in a booming market,
854
00:50:24,525 --> 00:50:26,276
where we can get 12% elsewhere,
855
00:50:26,818 --> 00:50:29,821
we're not gonna give you
an instant 25% profit in the markup.
856
00:50:31,073 --> 00:50:32,074
Tell you what.
857
00:50:32,950 --> 00:50:34,201
I'll give you two options.
858
00:50:35,118 --> 00:50:40,415
We get an 11% capital return rate
and you get your 25% profit in the markup,
859
00:50:40,499 --> 00:50:46,755
or we get a 10.5% cap rate and you take
an 18% instead of a 25% markup.
860
00:50:47,214 --> 00:50:49,341
You can choose. But...
861
00:50:50,259 --> 00:50:51,552
he can't help you.
862
00:50:56,515 --> 00:50:58,475
You're not what I expected, Matt Steiner.
863
00:51:01,645 --> 00:51:02,729
I'll take the latter.
864
00:51:03,397 --> 00:51:04,398
Okay.
865
00:51:05,274 --> 00:51:06,316
How'd I do?
866
00:51:07,943 --> 00:51:09,611
You left 17,000 on the table.
867
00:51:09,695 --> 00:51:11,113
[both chuckling]
868
00:51:11,196 --> 00:51:12,447
Oh, well.
869
00:51:12,531 --> 00:51:16,493
- What's the number?
- $1,554,060.
870
00:51:16,577 --> 00:51:21,540
But, we can call it an even 1,560,000
if you leave me that desk.
871
00:51:23,584 --> 00:51:25,919
[all laughing]
872
00:51:26,003 --> 00:51:27,337
I can't believe it worked.
873
00:51:28,005 --> 00:51:28,881
I can.
874
00:51:28,964 --> 00:51:30,716
Tomorrow we meet the tenants,
875
00:51:30,799 --> 00:51:33,719
introduce ourselves as Matt's partners,
876
00:51:33,802 --> 00:51:37,055
and watch the jaws drop.
877
00:51:41,059 --> 00:51:44,271
Maybe I should call a photographer
so you capture the moment.
878
00:51:44,354 --> 00:51:45,856
- Joe.
- What?
879
00:51:46,440 --> 00:51:47,733
Oh. Too much?
880
00:51:47,816 --> 00:51:49,693
Yeah. Cheers.
881
00:52:10,047 --> 00:52:11,798
[phone rings]
882
00:52:12,257 --> 00:52:13,926
883
00:52:17,596 --> 00:52:19,056
Hello.
884
00:52:52,589 --> 00:52:54,591
885
00:53:13,026 --> 00:53:14,820
[indistinct]
886
00:53:18,156 --> 00:53:19,157
[photographer] Smile.
887
00:53:29,585 --> 00:53:30,919
888
00:54:38,612 --> 00:54:41,448
[laughing]
889
00:54:43,742 --> 00:54:45,160
[Eunice squeals]
890
00:54:46,203 --> 00:54:47,871
[Eunice] Hi, Pop.
891
00:54:47,955 --> 00:54:50,082
[father] Oh. How you doing?
892
00:54:50,165 --> 00:54:52,292
And who's this right here?
Who's this right here?
893
00:54:52,376 --> 00:54:53,418
Hey, Grandpa.
894
00:54:56,588 --> 00:54:57,589
Dad.
895
00:54:58,674 --> 00:55:00,592
[all laughing]
896
00:55:01,677 --> 00:55:04,096
[clicks tongue, sighs]
897
00:55:04,179 --> 00:55:06,324
- Here, get some of these sweet potatoes.
- No, thank you.
898
00:55:06,348 --> 00:55:08,684
What kind of growing boy
don't like sweet potato mash?
899
00:55:08,767 --> 00:55:10,727
Oh, sweetie, try 'em. They're delicious.
900
00:55:10,811 --> 00:55:12,187
Daddy met the vice president.
901
00:55:12,855 --> 00:55:14,189
[father] Really now?
902
00:55:14,273 --> 00:55:16,692
Yes, he did. Bernard is being modest.
903
00:55:18,068 --> 00:55:19,194
LBJ?
904
00:55:19,611 --> 00:55:22,155
Yes, sir. He came by the Bankers Building.
905
00:55:23,365 --> 00:55:24,449
Yes, son.
906
00:55:29,997 --> 00:55:31,540
Smooth. Very smooth.
907
00:55:32,207 --> 00:55:33,458
Thought you didn't smoke.
908
00:55:33,542 --> 00:55:34,543
No. I don't.
909
00:55:35,043 --> 00:55:36,545
But I know you like 'em, so...
910
00:55:37,045 --> 00:55:38,964
These are a lot nicer than what I smoke.
911
00:55:42,176 --> 00:55:44,761
You doing so well
out there in Los Angeles.
912
00:55:45,762 --> 00:55:46,889
Guess you were right.
913
00:55:47,556 --> 00:55:48,557
About what?
914
00:55:48,974 --> 00:55:50,934
Earning money the way white men do.
915
00:55:51,393 --> 00:55:53,312
Found you a place where you could do that.
916
00:55:54,313 --> 00:55:57,316
Still... no chance of doing that here.
917
00:55:57,816 --> 00:55:59,193
It might even be worse.
918
00:55:59,276 --> 00:56:02,279
No, it's not perfect in California, but...
919
00:56:03,572 --> 00:56:04,573
it is different.
920
00:56:05,490 --> 00:56:09,286
I don't... I don't think it's California.
921
00:56:12,164 --> 00:56:13,415
I'm proud of you, son.
922
00:56:28,764 --> 00:56:29,848
[Eunice] Where you going?
923
00:56:30,390 --> 00:56:31,683
Taking a walk through town.
924
00:56:34,436 --> 00:56:35,521
Dressed like that?
925
00:56:36,647 --> 00:56:38,690
Going on the other side of the tracks.
926
00:56:39,358 --> 00:56:40,609
Mmm.
927
00:56:40,692 --> 00:56:42,194
You make sure you wear your tie.
928
00:56:43,445 --> 00:56:44,446
I planned on it.
929
00:56:48,075 --> 00:56:49,243
Take Junior with you.
930
00:56:51,578 --> 00:56:53,789
He needs to see where he comes from
up close.
931
00:56:57,751 --> 00:56:59,920
["A Childhood" by Ray Charles playing]
932
00:57:27,239 --> 00:57:29,783
[continues]
933
00:57:44,214 --> 00:57:45,841
Why the fountains separated, Dad?
934
00:57:47,467 --> 00:57:48,927
[sighs]
935
00:57:49,011 --> 00:57:50,637
It's just different down here, son.
936
00:57:51,597 --> 00:57:52,598
[Bernard Jr.] Yeah.
937
00:57:53,307 --> 00:57:54,683
I'm sorry you had to see that.
938
00:57:55,893 --> 00:57:56,894
It's okay.
939
00:57:57,811 --> 00:57:59,271
Hey, how much for a shine?
940
00:57:59,354 --> 00:58:00,856
Only do white folks here, sir.
941
00:58:14,912 --> 00:58:16,392
[Bernard]
You think this is a mistake?
942
00:58:17,664 --> 00:58:19,374
I think the world is changing.
943
00:58:19,458 --> 00:58:20,667
Mmm.
944
00:58:21,251 --> 00:58:23,629
But maybe it hasn't changed enough
in Texas.
945
00:58:27,174 --> 00:58:28,675
I feel like I have to do this.
946
00:58:31,220 --> 00:58:32,346
I know.
947
00:58:33,347 --> 00:58:35,098
And that is why I support you.
948
00:58:37,851 --> 00:58:39,645
What the hell do we know about banking?
949
00:58:40,145 --> 00:58:43,690
Banks take deposits and make loans,
mostly on property.
950
00:58:44,358 --> 00:58:47,819
Owning a bank is like owning the other
side of the real estate business.
951
00:58:47,903 --> 00:58:51,114
I'm pretty sure there's a few complexities
you just left out.
952
00:58:51,740 --> 00:58:56,328
Like we black,
and this goddamn bank is in Texas.
953
00:58:56,411 --> 00:58:59,289
There's no Texas law
that says we can't own a bank.
954
00:58:59,373 --> 00:59:02,960
I concede, us being black
may be an issue, practically speaking.
955
00:59:03,043 --> 00:59:04,837
You willing to concede that?
956
00:59:04,920 --> 00:59:06,547
Well, we get Matt to front for us.
957
00:59:06,630 --> 00:59:07,714
No shit.
958
00:59:07,798 --> 00:59:10,300
But here in LA
Matt unlocks the doors for us,
959
00:59:10,384 --> 00:59:12,052
he don't run the business day-to-day,
960
00:59:12,135 --> 00:59:15,097
much less a banking business,
which is not simple.
961
00:59:15,180 --> 00:59:16,765
We'd have to monitor things closely.
962
00:59:16,849 --> 00:59:18,559
And how the hell you plan to do that?
963
00:59:18,642 --> 00:59:21,311
We can't set foot in a bank in Texas
unless we're the help.
964
00:59:21,395 --> 00:59:23,605
[chuckles] I thought that would be
your favorite part.
965
00:59:23,689 --> 00:59:24,940
I live in LA.
966
00:59:25,023 --> 00:59:27,442
I don't plan on moving to Texas. Do you?
967
00:59:27,526 --> 00:59:28,861
During the business week.
968
00:59:28,944 --> 00:59:31,822
And work as a janitor in a bank you own?
969
00:59:31,905 --> 00:59:32,906
Won't have to.
970
00:59:32,990 --> 00:59:35,868
Matt comes to me with the bank business
at the end of every day.
971
00:59:35,951 --> 00:59:39,037
What makes you think he's willing to move
to the middle of nowhere?
972
00:59:39,121 --> 00:59:41,915
No offense to your cosmopolitan hometown.
973
00:59:42,374 --> 00:59:46,044
Plus Matt's got a pretty good gig here.
974
00:59:46,128 --> 00:59:47,671
We'd have to make it worth his while.
975
00:59:47,754 --> 00:59:51,592
Great, so now we gonna pay him even more
money than we pay him to be white.
976
00:59:52,551 --> 00:59:56,138
Joe, think about all the good we can do
for the Negro community down there.
977
00:59:56,555 --> 00:59:58,390
Help 'em buy homes, start businesses.
978
00:59:59,558 --> 01:00:02,853
And aside from all that,
that bank is undervalued.
979
01:00:04,188 --> 01:00:07,149
There's enough capital
to double its loan base.
980
01:00:07,608 --> 01:00:08,901
We could make a lot of money.
981
01:00:08,984 --> 01:00:10,694
We make a lot of money now.
982
01:00:11,445 --> 01:00:13,322
You gonna stand there with a straight face
983
01:00:13,405 --> 01:00:16,408
and tell me there's a business argument
to do this?
984
01:00:16,491 --> 01:00:18,660
This is social activism, Bernard.
985
01:00:18,744 --> 01:00:19,745
Plain and simple.
986
01:00:20,162 --> 01:00:22,039
There's plenty other ways to do that.
987
01:00:22,956 --> 01:00:26,084
Or maybe you're feeling guilty about
leaving your father behind.
988
01:00:26,168 --> 01:00:27,169
Let me tell you this.
989
01:00:27,711 --> 01:00:31,757
If one trip home can
cripple your rational functions like this,
990
01:00:31,840 --> 01:00:32,841
we in trouble.
991
01:00:34,384 --> 01:00:35,636
With all due respect, Joe,
992
01:00:35,719 --> 01:00:37,763
I think this is something
you won't understand.
993
01:00:37,846 --> 01:00:38,847
Oh, I'm sorry.
994
01:00:38,931 --> 01:00:40,641
Did I not wake up black this morning?
995
01:00:40,724 --> 01:00:42,226
'Cause I'm pretty sure I did.
996
01:00:42,726 --> 01:00:44,269
Yep, still black.
997
01:00:44,353 --> 01:00:48,607
Are you telling me because I grew up
in California with a little bit of money,
998
01:00:48,690 --> 01:00:50,400
I'm not black in your eyes?
999
01:00:50,776 --> 01:00:52,486
I wasn't trying to make this personal.
1000
01:00:54,363 --> 01:00:55,405
Yes, you were.
1001
01:00:59,618 --> 01:01:00,661
I'm sorry.
1002
01:01:04,081 --> 01:01:06,458
Bernard, if we go down to Texas
1003
01:01:06,542 --> 01:01:09,127
and start screwing around with Jim Crow,
we gonna lose.
1004
01:01:09,211 --> 01:01:10,921
Don't matter whether it's legal or not.
1005
01:01:11,421 --> 01:01:14,216
Even if Dr. King
gets civil rights legislation,
1006
01:01:14,299 --> 01:01:15,759
it ain't gonna happen fast enough
1007
01:01:15,843 --> 01:01:18,303
for us to get out of this
without losing our shirts.
1008
01:01:21,265 --> 01:01:22,599
Bring your father out here.
1009
01:01:22,683 --> 01:01:24,017
Help him directly.
1010
01:01:24,351 --> 01:01:27,437
And get rid of that notion that you can
save every black man in Texas,
1011
01:01:27,521 --> 01:01:28,772
'cause you can't.
1012
01:01:29,982 --> 01:01:32,401
I understand if you don't want to
partner with me on it.
1013
01:01:33,485 --> 01:01:35,612
You can't buy this bank
on your own, Bernard.
1014
01:01:35,696 --> 01:01:36,697
Not at that price.
1015
01:01:37,114 --> 01:01:39,116
Then I'll find someone else
to do it with me.
1016
01:01:42,119 --> 01:01:43,662
Jesus H. Christ.
1017
01:01:45,706 --> 01:01:48,166
I told you getting rich
was going to change you.
1018
01:01:51,128 --> 01:01:55,257
Mark my words. This is a bad idea.
1019
01:01:56,133 --> 01:01:59,928
But it's even more bodacious
than us buying that Bankers Building.
1020
01:02:00,387 --> 01:02:02,389
And we sure enough pulled that off,
didn't we?
1021
01:02:05,934 --> 01:02:07,519
All right. I'm in.
1022
01:02:09,479 --> 01:02:10,522
Shit.
1023
01:02:19,573 --> 01:02:23,619
For the record I say you guys are out of
your minds, completely out of your minds.
1024
01:02:23,702 --> 01:02:24,703
You ready?
1025
01:02:25,245 --> 01:02:26,288
I...
1026
01:02:26,371 --> 01:02:28,707
Could you tell me how a bank works
in three sentences?
1027
01:02:30,959 --> 01:02:34,129
A bakery makes a profit by selling bread
for more than it cost to make.
1028
01:02:34,755 --> 01:02:35,756
A bank makes a profit
1029
01:02:35,839 --> 01:02:39,676
by selling loans for more than it costs to
get the money needed to make those loans.
1030
01:02:39,760 --> 01:02:42,763
Basically, a bank gets money
from depositors at 3%
1031
01:02:42,846 --> 01:02:43,972
and loans it out at five.
1032
01:02:44,056 --> 01:02:46,725
Wow. That actually was three sentences.
1033
01:02:48,977 --> 01:02:49,978
Let's go.
1034
01:02:51,146 --> 01:02:52,189
This should be fun.
1035
01:02:53,106 --> 01:02:54,292
[Joe] You gonna put the hat on?
1036
01:02:54,316 --> 01:02:55,317
I'll pass.
1037
01:02:55,776 --> 01:02:56,777
All righty then.
1038
01:02:57,361 --> 01:02:58,487
Shall we?
1039
01:03:07,788 --> 01:03:10,290
Gentlemen, Don Silverthorne.
1040
01:03:11,333 --> 01:03:12,519
- Robert Florance.
- Matt Steiner.
1041
01:03:12,543 --> 01:03:13,544
Robert Florance Jr.
1042
01:03:15,420 --> 01:03:16,606
- [teller] Next.
- [Robert Sr.] Please, gentlemen, come in.
1043
01:03:16,630 --> 01:03:17,714
[Don] Thank you.
1044
01:03:19,508 --> 01:03:21,301
Yes, of course. Gentlemen.
1045
01:03:24,805 --> 01:03:28,600
My son's guaranteed a position
to protect my remaining 20% interest?
1046
01:03:28,684 --> 01:03:29,828
You'll see that in the addendum.
1047
01:03:29,852 --> 01:03:32,479
But he won't be the bank's
exclusive loan officer any longer.
1048
01:03:32,563 --> 01:03:35,941
My clients' primary interest in buying
the bank is to increase the loan volume
1049
01:03:36,024 --> 01:03:37,818
and thus the profitability of the bank.
1050
01:03:37,901 --> 01:03:41,280
He'll be reporting directly to you
as the new bank president, Mr. Steiner?
1051
01:03:41,363 --> 01:03:42,364
That's right.
1052
01:03:44,366 --> 01:03:47,327
Who are Bernard Garrett and Joseph Morris?
1053
01:03:48,328 --> 01:03:49,955
My financial partners in Los Angeles.
1054
01:04:05,721 --> 01:04:07,055
[inaudible]
1055
01:04:09,099 --> 01:04:10,225
Why aren't they here?
1056
01:04:10,601 --> 01:04:13,520
Honestly? Because they're
too rich to bother.
1057
01:04:13,604 --> 01:04:15,022
That's why they have me.
1058
01:04:15,105 --> 01:04:17,792
No offense, but they have hundreds
of these investments across the country.
1059
01:04:17,816 --> 01:04:19,193
Well, that's great for them.
1060
01:04:19,860 --> 01:04:22,070
But this is the investment
they're closing today.
1061
01:04:40,797 --> 01:04:43,550
I should note that
the full purchase price for the bank
1062
01:04:43,634 --> 01:04:46,803
is sitting in escrow in my bank
as of 11:00 a.m. this morning.
1063
01:04:46,887 --> 01:04:48,764
Which is all that matters.
1064
01:04:59,358 --> 01:05:03,779
Congratulations, you are now
the owner of your hometown bank.
1065
01:05:04,988 --> 01:05:07,115
Time to get my black ass back to LA.
1066
01:05:09,576 --> 01:05:10,661
Don't ask.
1067
01:05:11,995 --> 01:05:14,039
[engine starts]
1068
01:05:15,415 --> 01:05:18,126
My partners and I now own Mainland Bank.
1069
01:05:18,710 --> 01:05:23,257
And we intend to change the bank's
policies regarding loans to Negroes.
1070
01:05:24,383 --> 01:05:26,301
But we need your help to identify
1071
01:05:26,385 --> 01:05:29,513
responsible potential borrowers
in your congregations.
1072
01:05:30,138 --> 01:05:32,641
You get the loan...
1073
01:05:32,724 --> 01:05:36,186
Now, it goes without saying that we cannot
draw attention to this new policy
1074
01:05:36,270 --> 01:05:38,772
or to our ownership of the bank.
1075
01:05:40,274 --> 01:05:43,819
Or everything we're trying to do
will be put in jeopardy.
1076
01:05:45,362 --> 01:05:49,783
But make no mistake,
our goal is to foster business growth
1077
01:05:49,867 --> 01:05:54,413
{\an8}and home ownership in our community
through access to capital.
1078
01:05:55,163 --> 01:05:58,166
Thanks to your loan,
we bought two new pieces of equipment.
1079
01:05:58,250 --> 01:06:00,127
Doubled our revenue in three months.
1080
01:06:08,135 --> 01:06:11,013
You approved 14 new loans this week?
1081
01:06:11,930 --> 01:06:13,182
That sounds right.
1082
01:06:13,599 --> 01:06:15,100
Only five of those were mine.
1083
01:06:16,894 --> 01:06:19,229
There's a lot of underutilized capital
in this bank.
1084
01:06:19,730 --> 01:06:22,709
You knew I was gonna start signing off
on loans directly to jump-start things.
1085
01:06:22,733 --> 01:06:24,711
I haven't seen
that many viable applicants in one week
1086
01:06:24,735 --> 01:06:26,111
since I've worked at this bank.
1087
01:06:26,653 --> 01:06:28,822
I've been working here
since I was 18 years old.
1088
01:06:29,531 --> 01:06:31,241
Where are you finding all these people?
1089
01:06:32,034 --> 01:06:34,620
Who's "Solomon Johnson"?
1090
01:06:36,455 --> 01:06:37,748
We're casting a wide net.
1091
01:06:38,332 --> 01:06:40,459
The more loans we make,
the higher our profit.
1092
01:06:41,084 --> 01:06:42,252
Goes for your stake too.
1093
01:06:42,794 --> 01:06:44,129
As long as they don't default.
1094
01:06:45,547 --> 01:06:46,840
That's what collateral's for.
1095
01:07:23,210 --> 01:07:26,380
My partner Joe comes in town
every other week from LA.
1096
01:07:26,839 --> 01:07:28,066
He's looking forward to meeting you.
1097
01:07:28,090 --> 01:07:30,217
I told him this is
the best barbecue around here.
1098
01:07:30,300 --> 01:07:31,134
Thank you.
1099
01:07:31,218 --> 01:07:33,887
Look, the books I keep are pretty simple.
1100
01:07:34,429 --> 01:07:36,849
But I can go back to the office
and bring 'em out.
1101
01:07:36,932 --> 01:07:37,933
You can look 'em over.
1102
01:07:38,016 --> 01:07:39,726
- That would be great. Thank you.
- Okay.
1103
01:07:44,147 --> 01:07:45,232
You're late.
1104
01:07:46,316 --> 01:07:47,901
Florance discovered the black loans.
1105
01:07:49,152 --> 01:07:52,406
He's been wary of me from the beginning,
now he's watching me like a hawk.
1106
01:07:52,906 --> 01:07:53,907
Any reason why?
1107
01:07:53,991 --> 01:07:55,868
Well, yeah, he had dreams
of being the boss,
1108
01:07:55,951 --> 01:07:58,912
not reporting to some guy from California
ten years younger than him.
1109
01:08:01,456 --> 01:08:03,667
[camera shutter clicking]
1110
01:08:32,362 --> 01:08:33,738
[Susie sighs]
1111
01:08:37,075 --> 01:08:38,118
Uh...
1112
01:08:38,785 --> 01:08:39,786
I hate it here.
1113
01:08:42,997 --> 01:08:45,626
Come on.
We've only been here three months.
1114
01:08:45,709 --> 01:08:46,835
It's enough time to know.
1115
01:08:49,505 --> 01:08:51,173
Why did you agree to do this?
1116
01:08:51,840 --> 01:08:53,634
I'm making 25,000 a year.
1117
01:08:53,716 --> 01:08:56,178
We bought this house
with one month's salary.
1118
01:08:56,261 --> 01:08:59,031
When you started with them you said
they were gonna make you a partner.
1119
01:08:59,055 --> 01:09:01,225
- Yeah, and...
- A partner isn't on a salary.
1120
01:09:01,308 --> 01:09:02,434
A partner is an owner.
1121
01:09:03,268 --> 01:09:05,520
Isn't that what you always told me
you wanted to be?
1122
01:09:05,604 --> 01:09:07,314
And I will be.
1123
01:09:08,814 --> 01:09:10,317
You know, on the next bank we buy.
1124
01:09:13,153 --> 01:09:14,446
You're buying another one?
1125
01:09:16,657 --> 01:09:18,033
We're thinking about it, yeah.
1126
01:09:20,035 --> 01:09:21,118
Hmm.
1127
01:09:22,120 --> 01:09:23,705
Now that would be something.
1128
01:09:24,915 --> 01:09:25,916
Wouldn't it?
1129
01:09:30,671 --> 01:09:33,298
So, we all agree
the barbecue place is a good bet, right?
1130
01:09:33,381 --> 01:09:35,133
- Mmm.
- [knocking]
1131
01:09:41,974 --> 01:09:43,809
You must be Bernard Garrett.
1132
01:09:45,519 --> 01:09:46,812
And you're Joe Morris?
1133
01:09:46,895 --> 01:09:48,020
What, you follow me here?
1134
01:09:48,104 --> 01:09:50,314
Just trying to understand
who really owns my bank.
1135
01:09:58,532 --> 01:09:59,908
You boys are famous.
1136
01:10:02,536 --> 01:10:05,330
That's you and Vice President Johnson,
if I'm not mistaken.
1137
01:10:10,085 --> 01:10:11,086
Listen,
1138
01:10:12,671 --> 01:10:14,673
I've got nothing against
you people personally.
1139
01:10:14,756 --> 01:10:16,425
That's mighty white of you.
1140
01:10:16,508 --> 01:10:18,552
But if this town found out
1141
01:10:18,635 --> 01:10:22,598
that not only was their bank
regularly making loans to Negroes,
1142
01:10:23,599 --> 01:10:25,267
but was actually owned by two of 'em,
1143
01:10:26,727 --> 01:10:28,061
there'd be a run on the bank.
1144
01:10:29,146 --> 01:10:31,690
Well, why would they find out? Huh?
1145
01:10:32,649 --> 01:10:34,276
They don't have access to our books.
1146
01:10:34,651 --> 01:10:35,485
You do.
1147
01:10:35,569 --> 01:10:37,362
Took you three months to figure it out.
1148
01:10:38,447 --> 01:10:40,324
- I could tell 'em.
- Yeah, you could.
1149
01:10:40,407 --> 01:10:43,285
Then you'd own 20% of a failed bank
instead of a booming one.
1150
01:10:45,537 --> 01:10:46,580
What do you want?
1151
01:10:48,248 --> 01:10:49,499
To protect my investment.
1152
01:10:50,334 --> 01:10:54,213
This bank collapses, my 20% is worthless.
1153
01:10:55,506 --> 01:10:57,132
So, we're in this together?
1154
01:10:57,841 --> 01:10:59,051
Not quite.
1155
01:10:59,134 --> 01:11:01,803
See, my father didn't know
he was selling his bank to two Negroes,
1156
01:11:01,887 --> 01:11:04,348
so that's fraud.
1157
01:11:04,848 --> 01:11:06,433
I don't know about that, Bob.
1158
01:11:07,059 --> 01:11:10,771
See, both our names
were on that bank contract you signed.
1159
01:11:10,854 --> 01:11:12,689
You even asked about us.
1160
01:11:13,398 --> 01:11:14,733
Don't know who told you that.
1161
01:11:14,816 --> 01:11:17,236
Didn't have to be told. I was there.
1162
01:11:17,778 --> 01:11:19,112
[chuckles] No, you weren't.
1163
01:11:21,156 --> 01:11:22,199
Bring back memories?
1164
01:11:24,993 --> 01:11:27,412
And for the record, your father knew.
1165
01:11:29,248 --> 01:11:30,249
You're lying.
1166
01:11:30,332 --> 01:11:34,127
Ask him, or I can find a letter
where he and Silverthorne discussed it.
1167
01:11:36,964 --> 01:11:38,590
You boys think you're so smart.
1168
01:11:38,674 --> 01:11:39,716
[Joe] Oh, we are.
1169
01:11:40,259 --> 01:11:41,635
For a couple colored boys.
1170
01:11:43,720 --> 01:11:45,281
You couldn't just make a loan
here, there to your kind.
1171
01:11:45,305 --> 01:11:47,558
You had to make 19 of them
right off the bat?
1172
01:11:50,394 --> 01:11:51,854
Well, here's another letter.
1173
01:11:51,937 --> 01:11:55,357
This one's from the Comptroller of
the Currency. The US Treasury Department.
1174
01:11:55,440 --> 01:11:58,527
They're moving our yearly inspection up
two quarters.
1175
01:11:58,610 --> 01:11:59,945
That's a month from now.
1176
01:12:00,028 --> 01:12:02,823
Because of anonymous reports
we're making unsafe loans.
1177
01:12:04,324 --> 01:12:07,786
You think you have this town figured out,
when you moved here three months ago?
1178
01:12:08,996 --> 01:12:10,080
Well, you don't.
1179
01:12:10,497 --> 01:12:11,498
I was born here.
1180
01:12:11,582 --> 01:12:14,626
So was I. In this house.
1181
01:12:18,422 --> 01:12:19,548
Well,
1182
01:12:20,090 --> 01:12:22,968
then you should've known
you couldn't keep this a secret very long.
1183
01:12:45,157 --> 01:12:48,660
We're gonna have to stop giving out loans
to Negroes until after this inspection.
1184
01:12:48,744 --> 01:12:51,163
What about the ones already on the books?
1185
01:12:53,332 --> 01:12:54,833
Can I propose something?
1186
01:12:54,917 --> 01:12:56,460
Can I get a stiff drink?
1187
01:12:58,587 --> 01:13:00,088
We should buy another bank.
1188
01:13:00,172 --> 01:13:01,590
Make that a double.
1189
01:13:02,633 --> 01:13:03,967
What? No, I'm...
1190
01:13:04,051 --> 01:13:05,177
I'm serious.
1191
01:13:06,178 --> 01:13:08,055
[thunderclap]
1192
01:13:14,144 --> 01:13:15,938
Okay, the Bank of Marlin is small.
1193
01:13:16,021 --> 01:13:18,690
You can purchase it outright for 274,000,
1194
01:13:18,774 --> 01:13:21,318
half of what you paid for 80% of Mainland.
1195
01:13:21,401 --> 01:13:22,653
As president of both banks,
1196
01:13:22,736 --> 01:13:25,948
I could move all the Negro loans
we made at Mainland to the Bank of Marlin
1197
01:13:26,031 --> 01:13:27,658
before Mainland gets inspected.
1198
01:13:28,116 --> 01:13:30,369
It should keep the government
out of our business
1199
01:13:30,452 --> 01:13:32,454
and hopefully make Florance an ally.
1200
01:13:32,913 --> 01:13:34,122
It's an interesting idea,
1201
01:13:34,206 --> 01:13:38,418
but Joe and I don't have
$274,000 in cash laying around.
1202
01:13:39,127 --> 01:13:42,506
And I doubt Silverthorne will finance us
buying another bank in Texas.
1203
01:13:42,589 --> 01:13:45,300
Right, well, I think I have
a solution to that.
1204
01:13:46,343 --> 01:13:48,345
The Bank of Marlin has
two million in deposits,
1205
01:13:48,428 --> 01:13:50,180
but it's only made one million in loans.
1206
01:13:50,264 --> 01:13:51,932
Which is why it's not making a profit.
1207
01:13:52,015 --> 01:13:53,058
So, we buy the bank.
1208
01:13:53,141 --> 01:13:56,395
We use that extra million in deposits
to purchase loans from an aggregator.
1209
01:13:56,770 --> 01:14:01,650
I've already identified a package of loans
with an 8% interest offered at 6.5%.
1210
01:14:01,733 --> 01:14:04,945
That 1.5% spread
puts the bank instantly in profit.
1211
01:14:05,028 --> 01:14:06,613
Unless there's a high default rate.
1212
01:14:06,697 --> 01:14:08,282
Check the underlying loans yourself.
1213
01:14:08,365 --> 01:14:09,950
They seem rock-solid to me.
1214
01:14:10,033 --> 01:14:12,619
The whole package is for sale
for 971,000.
1215
01:14:12,703 --> 01:14:15,831
Yeah, that doesn't help
the cash flow problem for Joe and me.
1216
01:14:15,914 --> 01:14:19,793
All right, it doesn't,
but if you and Joe incorporate as brokers,
1217
01:14:19,877 --> 01:14:21,753
the Bank of Marlin
can pay you a commission
1218
01:14:21,837 --> 01:14:24,464
of close to 200,000
on that package of mortgages.
1219
01:14:24,548 --> 01:14:28,302
That's an awful lot of commission
on a million-dollar package of mortgages.
1220
01:14:28,385 --> 01:14:30,470
Maybe, but it's completely legal.
1221
01:14:30,554 --> 01:14:32,139
It cuts your investment by two-thirds.
1222
01:14:32,222 --> 01:14:35,142
The bank stays profitable
and we keep loaning to Negroes.
1223
01:14:35,225 --> 01:14:36,226
Everyone wins.
1224
01:14:36,310 --> 01:14:37,769
It sounds too good to be true.
1225
01:14:38,228 --> 01:14:39,980
Well, then have your lawyers check.
1226
01:14:41,064 --> 01:14:43,817
Look, Matt, even if it does check out,
1227
01:14:44,610 --> 01:14:47,988
Joe has to spend his time in LA
overseeing our properties there.
1228
01:14:48,488 --> 01:14:50,908
And I'm here
overseeing you and Mainland Bank,
1229
01:14:50,991 --> 01:14:53,285
which I can't even get in
the front door of.
1230
01:14:54,661 --> 01:14:58,373
I just don't think it's the right time
for us to pick up a second bank in Texas.
1231
01:14:58,457 --> 01:15:00,959
Well, you won't have to,
if you let me run this one.
1232
01:15:01,793 --> 01:15:02,793
I mean really run it.
1233
01:15:05,589 --> 01:15:06,589
Matt,
1234
01:15:07,674 --> 01:15:10,427
I can't speak for Joe,
but I'm not comfortable with that.
1235
01:15:11,512 --> 01:15:13,805
[Susie] I'm sorry to interrupt.
1236
01:15:13,889 --> 01:15:14,973
Would you like one?
1237
01:15:15,057 --> 01:15:16,141
- No.
- Okay.
1238
01:15:26,235 --> 01:15:28,946
Look, we agreed I'd co-own the next bank.
1239
01:15:29,029 --> 01:15:30,405
We even put it in the contract.
1240
01:15:30,822 --> 01:15:33,301
Three months ago, you didn't know
the first thing about banking.
1241
01:15:33,325 --> 01:15:34,844
Come on. I've learnt a lot in that time.
1242
01:15:34,868 --> 01:15:37,162
It's not that I don't have faith in you,
it's just...
1243
01:15:38,205 --> 01:15:39,206
What?
1244
01:15:40,165 --> 01:15:44,628
It's $274,000 of Joe's and my money.
1245
01:15:45,379 --> 01:15:47,631
We should at least
have the final say, right?
1246
01:15:47,714 --> 01:15:48,841
[sighs]
1247
01:15:51,927 --> 01:15:53,303
If I can't become my own man here,
1248
01:15:53,387 --> 01:15:55,514
then I think I need to resign
and go back to LA.
1249
01:15:58,183 --> 01:16:00,727
- Is this you blackmailing us?
- No.
1250
01:16:01,436 --> 01:16:02,563
No, that's not fair, Joe.
1251
01:16:02,646 --> 01:16:04,147
You guys have taught me so much.
1252
01:16:04,231 --> 01:16:05,649
I just wanna be more like you.
1253
01:16:06,066 --> 01:16:07,067
An owner.
1254
01:16:08,360 --> 01:16:09,778
Whatever you decide...
1255
01:16:11,196 --> 01:16:13,782
I really appreciate
everything you guys have done for me.
1256
01:16:17,786 --> 01:16:20,038
[Bernard]
You said this was gonna be complicated.
1257
01:16:20,122 --> 01:16:24,209
What I said was, "This is a bad idea."
1258
01:16:25,502 --> 01:16:29,006
Then I agreed to drive off the cliff
with you and here we are.
1259
01:16:29,965 --> 01:16:34,803
Now, we gotta buy a kid with 90 days of
banking experience his own goddamn bank.
1260
01:16:36,597 --> 01:16:37,681
Without a chaperone.
1261
01:16:45,731 --> 01:16:49,526
Hey, everyone, I just wanted to say
I'm excited to work with all of you.
1262
01:16:49,610 --> 01:16:51,653
We're gonna do great things
with this bank.
1263
01:16:51,737 --> 01:16:55,282
Growing it while helping the community
around it grow at the same time.
1264
01:16:56,700 --> 01:16:57,868
My door is always open.
1265
01:16:58,619 --> 01:17:00,412
Let's show the public our new face.
1266
01:17:11,673 --> 01:17:15,010
Mmm. Twelfth loan in the package,
it's that one right there.
1267
01:17:16,011 --> 01:17:18,263
Another beautiful house
in a white neighborhood.
1268
01:17:18,347 --> 01:17:19,515
Give it a five.
1269
01:17:22,434 --> 01:17:23,644
Thank you for doing this.
1270
01:17:25,604 --> 01:17:27,064
How else am I supposed to learn?
1271
01:17:37,241 --> 01:17:38,242
You can stop.
1272
01:17:38,325 --> 01:17:40,536
There's no one here
to see you cleaning anymore.
1273
01:17:40,619 --> 01:17:43,038
Whatever I do, I try to do my best.
1274
01:17:46,959 --> 01:17:48,418
I'm sorry you have to wear that.
1275
01:17:49,753 --> 01:17:52,339
I wish they'd just trust me,
then you wouldn't have to.
1276
01:17:53,173 --> 01:17:54,716
Do you resent me being here?
1277
01:17:57,511 --> 01:17:58,512
A little.
1278
01:17:59,221 --> 01:18:00,389
[chuckles]
1279
01:18:02,099 --> 01:18:04,309
Do you resent me
for wanting to run my own bank?
1280
01:18:07,145 --> 01:18:08,146
A little.
1281
01:18:09,064 --> 01:18:10,107
Really?
1282
01:18:12,359 --> 01:18:14,403
Come on. You know
I wasn't born into money.
1283
01:18:15,070 --> 01:18:16,989
I just learnt to fake it.
And you helped me.
1284
01:18:20,325 --> 01:18:21,368
I do realize...
1285
01:18:22,327 --> 01:18:23,954
I had to be white for that to work.
1286
01:18:25,414 --> 01:18:26,456
And a man.
1287
01:18:29,501 --> 01:18:30,502
I just...
1288
01:18:32,212 --> 01:18:34,840
I wanna be respected
for what I've done for the business.
1289
01:18:37,176 --> 01:18:38,886
Respect is a big thing.
1290
01:18:39,553 --> 01:18:42,639
Sometimes people take big risks
to chase it.
1291
01:18:43,891 --> 01:18:46,143
I want this bank to succeed
just as much as you do.
1292
01:18:46,226 --> 01:18:47,603
I want you to succeed.
1293
01:18:48,604 --> 01:18:50,814
And I hope you don't take this
the wrong way,
1294
01:18:51,815 --> 01:18:54,484
but you just took up banking
three months ago.
1295
01:18:57,237 --> 01:18:58,238
So did Bernard.
1296
01:19:08,957 --> 01:19:09,958
They're all solid.
1297
01:19:10,042 --> 01:19:12,461
We looked at the property
securing every single loan.
1298
01:19:12,961 --> 01:19:14,087
[Matt] That was fast.
1299
01:19:14,171 --> 01:19:18,050
Just be sure the documentation matches
exactly before handing over any money.
1300
01:19:18,133 --> 01:19:18,967
Yeah, of course.
1301
01:19:19,051 --> 01:19:21,303
And contact that lawyer I told you about
in Houston.
1302
01:19:21,386 --> 01:19:24,306
I worked with him before.
O'Keefe. Michael O'Keefe. I trust him.
1303
01:19:24,389 --> 01:19:25,909
I already did. He said he'll be there.
1304
01:19:25,933 --> 01:19:26,934
Perfect.
1305
01:19:27,476 --> 01:19:28,477
Excuse me.
1306
01:19:29,353 --> 01:19:31,021
- Man, this place is so good.
- [chuckles]
1307
01:19:31,855 --> 01:19:33,857
So, I'm gonna head back in the morning.
1308
01:19:35,859 --> 01:19:37,236
It... It's okay.
1309
01:19:38,070 --> 01:19:39,905
I'll have it fixed in no time.
1310
01:19:47,371 --> 01:19:48,539
Okay.
1311
01:19:56,505 --> 01:19:58,900
[John F. Kennedy] I thought his statement
was rather cautiously worded.
1312
01:19:58,924 --> 01:20:01,802
I didn't get any assurances
that Mr. Khrushchev or the Soviet Union
1313
01:20:01,885 --> 01:20:04,054
was out of the space race at all.
1314
01:20:04,137 --> 01:20:04,972
I think it's...
1315
01:20:05,055 --> 01:20:08,684
Mr. Steiner, your attorney's almost
finished reviewing the packet of loans.
1316
01:20:08,767 --> 01:20:09,810
Great.
1317
01:20:16,441 --> 01:20:18,277
- Let me know if you need anything.
- Thanks.
1318
01:20:18,819 --> 01:20:21,405
Thank you again for doing this so quickly.
1319
01:20:21,822 --> 01:20:23,448
How are the underlying loans looking?
1320
01:20:23,532 --> 01:20:25,993
Solid. You can start
signing the contracts now.
1321
01:20:26,076 --> 01:20:27,077
Great.
1322
01:20:50,184 --> 01:20:51,351
- Hi.
- Hey.
1323
01:20:54,354 --> 01:20:55,606
Hi. How are you?
1324
01:20:55,689 --> 01:20:56,732
Good, how are you?
1325
01:20:56,815 --> 01:20:58,066
Good.
1326
01:20:58,150 --> 01:20:59,193
How'd it go?
1327
01:21:00,277 --> 01:21:03,238
Well, I just wrote a check for $971,000.
1328
01:21:03,322 --> 01:21:04,962
- [both chuckle]
- Never done that before.
1329
01:21:05,490 --> 01:21:07,034
You're a natural businessman.
1330
01:21:07,910 --> 01:21:09,328
I don't know. I mean...
1331
01:21:09,870 --> 01:21:12,515
tell that to the people who invested
in the drive-in ice cream shop.
1332
01:21:12,539 --> 01:21:13,665
You were 19.
1333
01:21:14,082 --> 01:21:16,502
Yeah. But, I dunno,
it was my dad's savings.
1334
01:21:16,585 --> 01:21:19,296
I just don't want to lose
Bernard and Joe's money the same way.
1335
01:21:19,379 --> 01:21:20,631
They're lucky to have you.
1336
01:21:20,714 --> 01:21:24,051
No. I'm the lucky one. I'm learning
from people a lot smarter than I am.
1337
01:21:25,135 --> 01:21:26,220
Matt,
1338
01:21:26,303 --> 01:21:27,763
they're not smarter than you.
1339
01:21:28,222 --> 01:21:30,015
I mean, they can't be.
1340
01:21:31,517 --> 01:21:33,352
- They're my friends.
- [phone rings]
1341
01:21:33,435 --> 01:21:35,896
Hey. Look, I'm sorry. I didn't...
1342
01:21:35,979 --> 01:21:37,523
- No.
- Just... Matt.
1343
01:21:38,232 --> 01:21:39,316
Don't talk like that.
1344
01:21:40,901 --> 01:21:41,944
Hello?
1345
01:21:42,694 --> 01:21:43,694
It's Florance.
1346
01:21:45,197 --> 01:21:46,698
I've got four white customers here
1347
01:21:46,782 --> 01:21:49,201
saying they wanna withdraw all their money
from the bank
1348
01:21:49,284 --> 01:21:50,577
because they think it's owned
1349
01:21:50,661 --> 01:21:53,705
by the National Association
for the Advancement of Colored People.
1350
01:21:55,457 --> 01:21:56,792
[sighs]
1351
01:22:06,760 --> 01:22:08,470
This was on the door at Mainland.
1352
01:22:10,347 --> 01:22:11,348
[Joe] Subtle.
1353
01:22:12,391 --> 01:22:16,103
Five white customers withdrew
all their money in the past two days.
1354
01:22:16,478 --> 01:22:18,897
Nine were convinced by Florance to stay.
1355
01:22:19,523 --> 01:22:20,524
Fitting.
1356
01:22:20,607 --> 01:22:25,237
Considering Florance probably the one
who started and spread the rumors himself.
1357
01:22:25,320 --> 01:22:27,239
What? Why would you say that?
1358
01:22:28,657 --> 01:22:30,617
Told you long time ago, Bernard.
1359
01:22:30,701 --> 01:22:31,702
I don't trust people.
1360
01:22:32,619 --> 01:22:34,580
Especially white people. I remember.
1361
01:22:34,663 --> 01:22:38,667
No, what I said was white and black.
1362
01:22:38,750 --> 01:22:42,004
The difference is,
when a white person screws you over,
1363
01:22:42,087 --> 01:22:45,299
they can count on other white folks
out there to look the other way.
1364
01:22:45,382 --> 01:22:48,760
And just knowing that
brings out the worst in people.
1365
01:22:49,970 --> 01:22:53,348
How can you be so pessimistic
and still get out the bed in the morning?
1366
01:22:54,433 --> 01:22:56,894
Even a rigged game's fun to play, Bernard.
1367
01:23:06,695 --> 01:23:07,696
Matt Steiner?
1368
01:23:08,530 --> 01:23:09,698
Yes.
1369
01:23:09,781 --> 01:23:12,743
I'm an examiner with the office
of the Comptroller of the Currency.
1370
01:23:14,620 --> 01:23:15,704
How can I help you?
1371
01:23:16,288 --> 01:23:18,749
[phone rings]
1372
01:23:24,421 --> 01:23:25,422
Hello?
1373
01:23:25,506 --> 01:23:27,841
A federal bank examiner
just left my office.
1374
01:23:27,925 --> 01:23:29,635
I thought that wasn't until next month.
1375
01:23:29,718 --> 01:23:31,470
No, I meant Marlin, not Mainland.
1376
01:23:33,764 --> 01:23:34,890
What did he say?
1377
01:23:35,766 --> 01:23:38,227
To get the master books out.
He's coming back in an hour.
1378
01:23:39,811 --> 01:23:40,812
Shit.
1379
01:23:42,898 --> 01:23:43,941
This can't be chance.
1380
01:23:44,024 --> 01:23:45,192
Matt's not ready.
1381
01:23:45,275 --> 01:23:46,276
Well, how could he be?
1382
01:23:46,360 --> 01:23:47,778
And he's gonna get tripped up.
1383
01:23:47,861 --> 01:23:49,154
We can't let that happen.
1384
01:23:49,238 --> 01:23:53,075
I'd have to be sitting in the room next to
him the whole time for it not to happen.
1385
01:23:53,158 --> 01:23:55,244
And I can't exactly do that, now can I?
1386
01:23:55,327 --> 01:23:57,246
Well, you could do something close to it.
1387
01:23:58,622 --> 01:24:01,083
[scoffs] There's gotta be another way.
1388
01:24:03,961 --> 01:24:06,672
Well, Joe's not too proud
to put on a chauffeur's uniform.
1389
01:24:06,755 --> 01:24:09,424
Well, Joe was born
with a silver spoon in his mouth.
1390
01:24:09,508 --> 01:24:11,051
For him it's like playing dress-up.
1391
01:24:11,134 --> 01:24:13,804
Well, I wasn't.
I was barely born with a spoon.
1392
01:24:13,887 --> 01:24:16,557
How many times have I worn this uniform
to help this business?
1393
01:24:16,640 --> 01:24:17,641
You're...
1394
01:24:18,183 --> 01:24:19,685
- A woman?
- Yeah.
1395
01:24:21,895 --> 01:24:22,771
I love you, Bernard.
1396
01:24:22,855 --> 01:24:24,791
But how is that any different
from a white man telling you
1397
01:24:24,815 --> 01:24:26,900
you shouldn't mind
some daily assault on your dignity
1398
01:24:26,984 --> 01:24:27,985
because you're black?
1399
01:25:28,128 --> 01:25:30,506
Should've took limo driver
when you had the chance.
1400
01:25:31,757 --> 01:25:34,510
I don't like what hats do
to the shape of my face.
1401
01:25:35,219 --> 01:25:36,845
You made an actual joke.
1402
01:25:36,929 --> 01:25:38,931
Well, what else can I do
in this situation?
1403
01:25:39,014 --> 01:25:43,185
Mm-hmm.
See, you find out how life really works,
1404
01:25:44,269 --> 01:25:45,646
can't do nothing but laugh.
1405
01:25:49,566 --> 01:25:51,944
You sure you don't want
a coffee or anything?
1406
01:25:52,027 --> 01:25:53,028
No, thank you.
1407
01:25:53,111 --> 01:25:54,655
A cold water maybe?
1408
01:25:54,738 --> 01:25:56,615
As of close of business Friday,
1409
01:25:56,698 --> 01:26:00,285
the total number of loans delinquent
beyond 60 days was under 5%?
1410
01:26:01,703 --> 01:26:02,704
Yes.
1411
01:26:02,788 --> 01:26:04,206
What was the exact percentage?
1412
01:26:07,125 --> 01:26:08,418
3%.
1413
01:26:17,886 --> 01:26:21,473
We are discussing
confidential information.
1414
01:26:21,932 --> 01:26:23,851
I'm sure the janitor
wouldn't understand it.
1415
01:26:23,934 --> 01:26:25,102
Someone else might.
1416
01:26:29,481 --> 01:26:31,066
Take me through this transaction.
1417
01:26:31,775 --> 01:26:35,362
That's a package of loans we bought
to increase our loan-to-capital ratio.
1418
01:26:37,865 --> 01:26:38,866
He's in trouble.
1419
01:26:41,702 --> 01:26:43,537
I can read the description myself.
1420
01:26:43,620 --> 01:26:45,914
I'm curious about this related charge.
1421
01:26:45,998 --> 01:26:52,129
$189,186.04
to Valley National Mortgage Company.
1422
01:26:52,713 --> 01:26:54,381
There's no description for that.
1423
01:26:54,882 --> 01:26:56,175
It's a broker's fee.
1424
01:26:58,010 --> 01:27:04,433
$189,000 as a finder's fee
for a $971,000 package of loans
1425
01:27:05,017 --> 01:27:06,935
sitting in an aggregator's office
in Houston?
1426
01:27:07,603 --> 01:27:09,146
That's a pretty hefty finder's fee.
1427
01:27:09,771 --> 01:27:14,234
No, 19.5%, but that includes payment
for future consultation.
1428
01:27:14,776 --> 01:27:16,612
Well, that's a strange arrangement.
1429
01:27:16,695 --> 01:27:18,113
Mr. Garrett and Mr. Morris?
1430
01:27:18,197 --> 01:27:20,449
Is that something that should concern you?
1431
01:27:20,532 --> 01:27:22,618
Aren't you here
to make sure my bank is sound?
1432
01:27:23,869 --> 01:27:25,913
Okay, let's turn to the loans themselves.
1433
01:27:26,997 --> 01:27:30,834
You paid $971,213 for these loans.
1434
01:27:30,918 --> 01:27:33,128
You have them valued as such
on your books.
1435
01:27:33,212 --> 01:27:34,546
Yes, of course.
1436
01:27:34,630 --> 01:27:37,966
Show me the methodology you used
to justify that book value.
1437
01:27:39,635 --> 01:27:41,011
I have an expert to do that.
1438
01:27:41,094 --> 01:27:42,179
Bring him in, please.
1439
01:27:44,389 --> 01:27:45,432
He's not in today.
1440
01:27:50,479 --> 01:27:53,273
But I can, uh, check his files.
1441
01:27:53,774 --> 01:27:54,900
Please.
1442
01:28:08,872 --> 01:28:12,668
He wants to know the exact methodology
we used to value the loans in the package.
1443
01:28:12,751 --> 01:28:13,752
Okay.
1444
01:28:14,545 --> 01:28:15,546
Pay attention.
1445
01:28:16,588 --> 01:28:18,549
It's a standard present value equation.
1446
01:28:19,550 --> 01:28:22,636
This is an individual loan's
monthly payment schedule.
1447
01:28:22,719 --> 01:28:25,347
Now, adjust that
with the risk factor for default.
1448
01:28:25,430 --> 01:28:27,516
Standard 5% in Texas.
1449
01:28:27,975 --> 01:28:28,976
That's what I used.
1450
01:28:30,018 --> 01:28:31,144
Tear that out for me.
1451
01:28:31,228 --> 01:28:33,122
You can't go in the room
with that piece of paper.
1452
01:28:33,146 --> 01:28:34,773
It's got Bernard's handwriting on it.
1453
01:28:34,857 --> 01:28:35,875
- Memorize it.
- No, I can't.
1454
01:28:35,899 --> 01:28:38,110
Sure you can. You got a great memory.
1455
01:28:38,193 --> 01:28:39,069
No, I'm too nervous.
1456
01:28:39,152 --> 01:28:40,279
Hey, listen.
1457
01:28:40,362 --> 01:28:43,282
You fail this test
and he's gonna write down those loans
1458
01:28:43,365 --> 01:28:45,125
and it'll threaten
the stability of the bank.
1459
01:28:45,158 --> 01:28:46,158
Your bank.
1460
01:28:46,618 --> 01:28:47,703
This is your bank, Matt.
1461
01:28:47,786 --> 01:28:50,205
Now, pull it together
and go out there and save it.
1462
01:28:52,082 --> 01:28:53,709
Okay, let me see that one more time.
1463
01:28:59,256 --> 01:29:02,426
Okay, I have the methodology.
1464
01:29:02,509 --> 01:29:03,594
Put a pin in that.
1465
01:29:03,677 --> 01:29:06,305
I found problems with individual loans
while you were gone.
1466
01:29:06,972 --> 01:29:09,099
I valued those loans conservatively.
1467
01:29:09,516 --> 01:29:10,809
We didn't do anything wrong.
1468
01:29:10,893 --> 01:29:14,354
They wanna shut us down,
they got plenty ways they can do that.
1469
01:29:14,771 --> 01:29:16,773
"5% default rate?
1470
01:29:17,649 --> 01:29:20,152
Hell. What if there's a drought?
1471
01:29:20,235 --> 01:29:22,571
You niggers need to value them loans
1472
01:29:22,654 --> 01:29:26,575
assuming there's gonna be
a once-in-a-generation drought.
1473
01:29:27,075 --> 01:29:29,661
25% default rate for y'all."
1474
01:29:31,705 --> 01:29:34,208
This loan's gonna have to be
sold off immediately.
1475
01:29:35,375 --> 01:29:36,710
And this one.
1476
01:29:37,127 --> 01:29:39,087
And this one.
1477
01:29:39,171 --> 01:29:41,215
Why? Why? What's wrong with them?
1478
01:29:41,298 --> 01:29:43,175
Well, that loan is for $21,000.
1479
01:29:43,258 --> 01:29:45,844
Your capital account is $200,000.
1480
01:29:45,928 --> 01:29:46,929
Okay.
1481
01:29:49,139 --> 01:29:51,391
You don't understand why that's a problem,
do you?
1482
01:29:52,935 --> 01:29:57,439
The National Banking Act specifies that no
bank shall have a single loan on the books
1483
01:29:57,523 --> 01:29:59,858
that exceeds 10% of equity capital.
1484
01:29:59,942 --> 01:30:02,069
Or $20,000 in this case.
1485
01:30:02,986 --> 01:30:03,986
Right.
1486
01:30:07,574 --> 01:30:09,284
Okay, but this one's only 4,000.
1487
01:30:09,368 --> 01:30:11,578
It's for a 25-year term.
Same with this one.
1488
01:30:13,080 --> 01:30:15,582
A bank of this size
is limited to 20-year terms.
1489
01:30:16,750 --> 01:30:20,879
And this loan is legal on its face,
but it's three months delinquent.
1490
01:30:21,797 --> 01:30:24,716
I'm not gonna require you to sell it,
but I'm gonna classify it.
1491
01:30:24,800 --> 01:30:27,135
Take its value down on your books by 40%
1492
01:30:27,219 --> 01:30:29,137
to account for the elevated risk
of default.
1493
01:30:35,394 --> 01:30:38,146
Hold on. I'll be right back.
1494
01:30:43,569 --> 01:30:45,612
How the hell
did these loans get in the package?
1495
01:30:45,696 --> 01:30:47,573
- I don't know.
- Unacceptable.
1496
01:30:47,656 --> 01:30:49,658
I looked over every individual loan, Matt.
1497
01:30:49,741 --> 01:30:52,578
There was nothing over $20,000.
Nothing over 20 years.
1498
01:30:52,661 --> 01:30:54,913
Did you look at the loans
when you picked them up?
1499
01:30:55,581 --> 01:30:57,666
Did you look at the goddamn loans?
1500
01:30:57,749 --> 01:30:59,909
Yes, I looked through them.
Maybe not carefully enough.
1501
01:30:59,960 --> 01:31:00,961
I read the top sheet...
1502
01:31:01,044 --> 01:31:02,171
Unbelievable.
1503
01:31:02,713 --> 01:31:04,381
Well, they can't lie on the top sheet.
1504
01:31:04,464 --> 01:31:07,926
- Matt, there aren't any limiters.
- What?
1505
01:31:08,010 --> 01:31:10,929
There isn't anything on this top sheet
about individual loan limits,
1506
01:31:11,013 --> 01:31:12,598
dollar amounts or durations.
1507
01:31:12,681 --> 01:31:13,932
They're all averages.
1508
01:31:15,142 --> 01:31:16,268
They didn't lie.
1509
01:31:16,351 --> 01:31:18,270
They just hid the shit in the averages.
1510
01:31:18,353 --> 01:31:20,689
How the hell did our lawyer miss that?
1511
01:31:21,315 --> 01:31:23,400
- I couldn't use O'Keefe.
- What?
1512
01:31:23,483 --> 01:31:26,163
Bernard checked the properties so fast
I moved up the purchase date.
1513
01:31:26,236 --> 01:31:28,047
O'Keefe couldn't make it,
so I hired someone else.
1514
01:31:28,071 --> 01:31:29,671
- How did you find him?
- I asked around.
1515
01:31:29,698 --> 01:31:32,075
You asked... He asked around.
What the hell's that mean?
1516
01:31:32,159 --> 01:31:34,912
We told you you weren't ready
to run your own bank. We told you.
1517
01:31:34,995 --> 01:31:36,830
You forced our hand. Now here we are.
1518
01:31:36,914 --> 01:31:37,915
Whoa, whoa, whoa.
1519
01:31:38,624 --> 01:31:43,295
Who exactly did you ask
to find this lawyer?
1520
01:31:45,672 --> 01:31:46,673
Who, Matt?
1521
01:31:47,508 --> 01:31:48,509
Florance.
1522
01:31:49,593 --> 01:31:50,719
Florance?
1523
01:31:51,303 --> 01:31:52,888
You asked Florance?
1524
01:31:54,264 --> 01:31:56,558
He switched the goddamn mortgages.
1525
01:31:56,642 --> 01:31:57,809
Why? Why would he do that?
1526
01:31:57,893 --> 01:31:59,228
To kill Marlin.
1527
01:31:59,311 --> 01:32:03,023
And the worst part is I have to learn
about it here, in this ridiculous outfit,
1528
01:32:03,106 --> 01:32:04,274
that you helped him do it!
1529
01:32:04,358 --> 01:32:05,901
No, that's gotta be illegal, right?
1530
01:32:06,902 --> 01:32:08,487
What does he get from that, anyway?
1531
01:32:08,570 --> 01:32:09,988
Leverage.
1532
01:32:10,072 --> 01:32:12,282
Against us at Mainland.
1533
01:32:13,075 --> 01:32:14,868
Or maybe just to watch us fail.
1534
01:32:24,127 --> 01:32:29,883
We have to sell 27 bad loans in a week
and cover all the markdowns ourselves.
1535
01:32:31,176 --> 01:32:33,053
We're gonna lose $300,000,
1536
01:32:33,136 --> 01:32:38,308
unless Matt Steiner can make Marlin
the most successful bank in Texas history.
1537
01:32:41,854 --> 01:32:43,647
Or you could let it close.
1538
01:32:45,899 --> 01:32:47,359
Matt got you here, you didn't.
1539
01:32:47,442 --> 01:32:49,570
No, I did.
1540
01:32:50,404 --> 01:32:54,074
Soon as I thought I was clever enough
to come down here and take on all of this.
1541
01:32:54,867 --> 01:32:55,909
Joe warned me.
1542
01:32:57,035 --> 01:32:58,036
You warned me.
1543
01:33:00,497 --> 01:33:02,499
My daddy warned me when I was 13.
1544
01:33:07,004 --> 01:33:10,465
If this was easy, somebody else
would have done it a long time ago.
1545
01:33:16,263 --> 01:33:18,098
So, you're just gonna walk away from it?
1546
01:33:18,640 --> 01:33:20,184
It's the only rational thing to do.
1547
01:33:20,267 --> 01:33:21,727
No, we could sue the bastards.
1548
01:33:21,810 --> 01:33:25,147
You signed a document saying
you knew exactly what you were buying.
1549
01:33:25,230 --> 01:33:27,065
But the lawyer lied to me. We can sue him.
1550
01:33:27,149 --> 01:33:29,318
Maybe you can, Matt, but we can't.
1551
01:33:29,943 --> 01:33:32,654
Me and Bernard can't win that case,
not in Texas.
1552
01:33:33,197 --> 01:33:36,241
Plus, Marlin will be gone by then anyway.
1553
01:33:36,325 --> 01:33:39,036
I'm not gonna lose Marlin.
There's gotta be something I can do.
1554
01:33:39,119 --> 01:33:40,120
Look, I'm sorry, Matt.
1555
01:33:40,204 --> 01:33:43,081
I know it was your baby,
but I need you to focus on Mainland now.
1556
01:33:45,459 --> 01:33:46,460
Well, how?
1557
01:33:46,543 --> 01:33:47,961
Keep an eye on Florance.
1558
01:33:48,045 --> 01:33:50,172
And make sure when white folks
come in that bank,
1559
01:33:50,255 --> 01:33:52,591
they see a white man
in the president's office
1560
01:33:52,674 --> 01:33:54,468
so they won't pull their deposits.
1561
01:33:57,554 --> 01:33:58,805
[door closes]
1562
01:34:09,650 --> 01:34:11,443
[phone rings]
1563
01:34:15,322 --> 01:34:16,532
Garrett residence.
1564
01:34:17,074 --> 01:34:19,201
Yes, he's here. Just a moment.
1565
01:34:19,701 --> 01:34:21,161
Joe, it's for you.
1566
01:34:23,330 --> 01:34:24,498
Yeah, this is Joe.
1567
01:34:24,581 --> 01:34:25,642
You didn't hear this from me,
1568
01:34:25,666 --> 01:34:29,044
but I got a friend at the Comptroller's
office who kind of looks out for me.
1569
01:34:29,753 --> 01:34:30,921
Called me yesterday to say
1570
01:34:31,004 --> 01:34:34,091
Matt Steiner managed to get all
"must sell" loans off Marlin's books.
1571
01:34:34,591 --> 01:34:35,425
That don't matter,
1572
01:34:35,509 --> 01:34:38,071
'cause we decided we ain't gonna
put no more money in there anyhow.
1573
01:34:38,095 --> 01:34:39,805
At face value. No discount.
1574
01:34:39,888 --> 01:34:42,516
Which means Marlin's in the black again,
fully solvent...
1575
01:34:43,725 --> 01:34:45,018
without capital from you.
1576
01:34:46,019 --> 01:34:49,273
Who the hell would pay face value
for those piece of shit loans?
1577
01:34:49,898 --> 01:34:51,817
Mainland bank in Willis, Texas.
1578
01:34:51,900 --> 01:34:53,026
Say what?
1579
01:34:53,569 --> 01:34:55,404
Son of a bitch!
1580
01:35:18,927 --> 01:35:20,220
What the hell are you doing?
1581
01:35:20,304 --> 01:35:21,889
You had Mainland pay face value
1582
01:35:21,972 --> 01:35:24,558
for the loans the feds
already had you mark down at Marlin?
1583
01:35:24,641 --> 01:35:25,809
It's just temporary.
1584
01:35:25,893 --> 01:35:28,145
- It's fraud.
- No, if we classify them differently...
1585
01:35:28,228 --> 01:35:31,064
If you keep this up,
you're gonna sink both banks, Matt.
1586
01:35:31,815 --> 01:35:32,941
Get the books.
1587
01:35:33,609 --> 01:35:35,944
- Shouldn't we wait until...
- Get the goddamn books now.
1588
01:35:54,922 --> 01:35:57,090
All I did was transfer the...
1589
01:35:57,174 --> 01:35:59,551
Matthew Steiner,
president of Mainland Bank?
1590
01:36:00,761 --> 01:36:01,762
- Yes.
- I'm Norman Dunn,
1591
01:36:01,845 --> 01:36:04,765
Deputy Comptroller of the Currency
for the Southern District.
1592
01:36:04,848 --> 01:36:08,101
The Treasury Department has revoked
Mainland's license to do banking.
1593
01:36:08,185 --> 01:36:11,897
Your bank is being placed in FDIC
receivership per the National Banking Act.
1594
01:36:11,980 --> 01:36:13,899
This is Mr. Amos of the FDIC.
1595
01:36:14,316 --> 01:36:16,610
Mr. Steiner, you're fired.
1596
01:36:16,693 --> 01:36:18,546
I'm going to need to escort you
from the building now.
1597
01:36:18,570 --> 01:36:20,531
Please leave the ledgers where they are.
1598
01:36:22,950 --> 01:36:24,159
Ladies and gentlemen,
1599
01:36:24,243 --> 01:36:28,288
the United States Treasury Department
has closed this bank until further notice.
1600
01:36:28,372 --> 01:36:32,459
All deposits up to $10,000
are insured by the federal government.
1601
01:36:32,543 --> 01:36:36,380
Upon FDIC review of the bank's books,
your money will be returned to you.
1602
01:36:36,880 --> 01:36:38,799
The building is now closed to the public.
1603
01:36:38,882 --> 01:36:40,968
We must ask that you leave.
1604
01:36:50,644 --> 01:36:53,188
I'm so sorry.
I thought that I could save both...
1605
01:36:53,272 --> 01:36:54,314
Get out of my face.
1606
01:36:55,065 --> 01:36:57,192
- Bernard Garrett and Joseph Morris?
- Yes.
1607
01:36:57,276 --> 01:36:59,111
- FBI. You're under arrest.
- For what?
1608
01:36:59,194 --> 01:37:00,338
Turn around and face the wall.
1609
01:37:00,362 --> 01:37:02,757
No. What are we under arrest for?
What did we do that's illegal?
1610
01:37:02,781 --> 01:37:04,008
- The judge will tell you that.
- No, screw the judge.
1611
01:37:04,032 --> 01:37:05,885
- You tell me what we did that's illegal.
- Bernard.
1612
01:37:05,909 --> 01:37:07,220
- What's he complaining about?
- I get it.
1613
01:37:07,244 --> 01:37:10,098
A black man makes some money and it's okay
as long as he keeps to himself.
1614
01:37:10,122 --> 01:37:12,433
But if he try to bring other brothers up,
that's intolerable.
1615
01:37:12,457 --> 01:37:14,126
This is happening, Mr. Garrett.
1616
01:37:14,209 --> 01:37:17,379
The only question to ask yourself
is do you want to get hurt fighting it?
1617
01:37:18,255 --> 01:37:20,257
- Hey, get off of him!
- Bernard, no! No!
1618
01:37:21,383 --> 01:37:22,676
[groaning]
1619
01:37:23,927 --> 01:37:26,263
- [handcuffs clicking]
- Come on.
1620
01:37:36,899 --> 01:37:40,068
[man] The state banking charges
have all been dropped.
1621
01:37:40,152 --> 01:37:43,822
The federal charges,
however, are all still in place.
1622
01:37:44,656 --> 01:37:48,410
Now, it's my feeling
that we're in a political space here.
1623
01:37:48,785 --> 01:37:50,454
So if we play our cards right,
1624
01:37:50,954 --> 01:37:53,332
we'll be able to get
those charges dropped as well.
1625
01:37:53,415 --> 01:37:54,499
Political how?
1626
01:37:55,334 --> 01:37:57,503
Well, Senator John McClellan of Arkansas
1627
01:37:57,586 --> 01:38:01,632
is holding a set of hearings
on federally funded banks.
1628
01:38:01,715 --> 01:38:07,221
The goal seems to be to shit all over
the so-called "lax oversight"
1629
01:38:07,304 --> 01:38:09,139
that our Treasury provides,
1630
01:38:09,723 --> 01:38:13,685
so as to justify his committee
expanding its jurisdiction.
1631
01:38:13,769 --> 01:38:18,106
Thereby ensuring a steady stream
of campaign donations
1632
01:38:18,190 --> 01:38:20,734
and favors from the banking industry.
1633
01:38:20,817 --> 01:38:22,819
So, what does that have to do with me?
1634
01:38:22,903 --> 01:38:24,988
You want the stated
or the unstated version?
1635
01:38:26,365 --> 01:38:27,366
Unstated.
1636
01:38:27,449 --> 01:38:30,619
"We need to change these laws.
And I mean quick!
1637
01:38:30,702 --> 01:38:35,290
Or niggers like these can own banks
and loan money to other niggers."
1638
01:38:35,374 --> 01:38:36,375
That.
1639
01:38:37,376 --> 01:38:39,044
[Joe] On the bright side, Bernard,
1640
01:38:39,127 --> 01:38:42,881
'cause we fit so neatly
into McClellan's power grab,
1641
01:38:43,382 --> 01:38:47,845
the whole country's talkin' about
how two Negroes managed to buy two banks
1642
01:38:47,928 --> 01:38:52,057
full of white folks' money in Texas
and loan it to other Negroes.
1643
01:38:52,432 --> 01:38:55,769
I thought McClellan was one of the first
people to stand up to McCarthyism.
1644
01:38:55,853 --> 01:38:58,856
- He was.
- So he must be a decent man, right?
1645
01:38:58,939 --> 01:38:59,939
[chuckles]
1646
01:39:02,109 --> 01:39:06,196
You know, Bernard, I don't have
the ability to look into a man's soul.
1647
01:39:07,406 --> 01:39:09,032
But I will tell you this...
1648
01:39:09,616 --> 01:39:11,994
he means to make a point
with these hearings.
1649
01:39:12,077 --> 01:39:14,162
And if you want
to help him make that point,
1650
01:39:14,746 --> 01:39:19,710
I highly doubt that you're gonna have any
problem with any kind of criminal charges.
1651
01:39:21,837 --> 01:39:23,547
So, where's Matt in all this?
1652
01:39:23,630 --> 01:39:26,341
Now, that is a good question.
1653
01:39:35,475 --> 01:39:37,019
My lawyer doesn't want me here.
1654
01:39:38,020 --> 01:39:40,900
[man 2] Then your lawyer doesn't have
your best interests at heart, Matt.
1655
01:39:41,315 --> 01:39:44,026
Because we can make a deal here
that could save your life.
1656
01:39:44,109 --> 01:39:45,319
How does that work exactly?
1657
01:39:46,570 --> 01:39:47,571
You're gonna...
1658
01:39:48,155 --> 01:39:50,574
give me back my money? My house?
1659
01:39:51,658 --> 01:39:52,868
Hardly.
1660
01:39:52,951 --> 01:39:55,037
But I can give you immunity.
1661
01:39:55,495 --> 01:39:57,623
And you might avoid
being called to account
1662
01:39:58,248 --> 01:40:01,001
for lying to the public
on 23 separate occasions
1663
01:40:01,084 --> 01:40:04,171
about the true ownership
of the Mainland and Marlin banks.
1664
01:40:05,172 --> 01:40:08,091
Fraudulently valuing loans in these banks.
1665
01:40:09,134 --> 01:40:13,263
Illegally transferring said loans
between the banks in question.
1666
01:40:16,850 --> 01:40:18,101
It's an easy story to tell,
1667
01:40:18,894 --> 01:40:22,105
how these two men manipulated you,
1668
01:40:23,190 --> 01:40:27,402
used you to make money by duping everyday
citizens into thinking you were the boss,
1669
01:40:27,486 --> 01:40:30,948
when really it was
two Negroes pulling the strings.
1670
01:40:32,908 --> 01:40:35,327
But they didn't force me
to do the things I did.
1671
01:40:36,286 --> 01:40:37,955
They were careful to follow the law.
1672
01:40:38,038 --> 01:40:40,499
You won't find any evidence
that they committed a crime.
1673
01:40:40,874 --> 01:40:42,793
See, that's the thing about banking crime,
1674
01:40:43,794 --> 01:40:46,129
there's always a subjective element to it.
1675
01:40:46,797 --> 01:40:47,840
Now,
1676
01:40:48,465 --> 01:40:51,134
these two Negroes earned...
1677
01:40:52,886 --> 01:40:55,681
189,000 between the two of them,
1678
01:40:56,682 --> 01:41:02,521
off a $971,000 purchase of mortgages
that in fact were worth 663,000.
1679
01:41:02,604 --> 01:41:06,483
See, that is a misuse of bank funds
in my book.
1680
01:41:07,484 --> 01:41:09,152
And a misuse of bank funds is a crime.
1681
01:41:09,236 --> 01:41:10,737
It's more complicated than that.
1682
01:41:10,821 --> 01:41:12,406
I don't think it is, Mr. Steiner.
1683
01:41:13,907 --> 01:41:17,703
Unless you're telling me they didn't force
you to buy these dog-shit mortgages...
1684
01:41:19,705 --> 01:41:23,083
so they could bilk the bank
of $189,000 of commission.
1685
01:41:25,794 --> 01:41:27,212
Then maybe they are innocent
1686
01:41:28,964 --> 01:41:31,049
and maybe
someone else needs to go to prison.
1687
01:41:39,057 --> 01:41:42,561
- I'm really sorry I ever brought him in.
- You didn't force me to hire him.
1688
01:41:43,061 --> 01:41:45,189
Joe warned me a dozen times as well.
1689
01:41:47,733 --> 01:41:49,526
Just wanted to believe in him, I guess.
1690
01:41:49,943 --> 01:41:51,195
Hmm.
1691
01:41:52,112 --> 01:41:55,490
I hope whoever owns this place is taking
good care of you for the renovation.
1692
01:41:58,493 --> 01:41:59,494
He is...
1693
01:42:01,205 --> 01:42:02,206
'cause it's me.
1694
01:42:05,626 --> 01:42:06,627
Yeah.
1695
01:42:07,503 --> 01:42:09,046
Yeah.
1696
01:42:28,690 --> 01:42:31,777
[man 2] So, it's your testimony that
you've always been under the direction
1697
01:42:31,860 --> 01:42:33,570
of Bernard Garrett and Joe Morris.
1698
01:42:33,654 --> 01:42:34,780
Is that correct?
1699
01:42:38,450 --> 01:42:39,701
It is. Yes.
1700
01:42:40,619 --> 01:42:42,829
You ever refuse an order
from Garrett or Morris?
1701
01:42:44,581 --> 01:42:48,752
For example, the initial purchase
of mortgages by the Marlin bank,
1702
01:42:49,545 --> 01:42:54,132
for which Garrett and Morris
were compensated $189,000,
1703
01:42:55,008 --> 01:42:58,887
or Mainland Bank's subsequent purchase
at grossly inflated prices
1704
01:42:59,805 --> 01:43:01,640
of problem mortgages from Marlin?
1705
01:43:04,768 --> 01:43:07,646
They were my employers.
I carried out their wishes to the letter.
1706
01:43:51,607 --> 01:43:53,847
[man 2] I'm surprised
you requested this meeting, Melvin.
1707
01:43:54,651 --> 01:43:57,779
{\an8}It seemed my offer required
a simple answer, yes or no.
1708
01:43:58,572 --> 01:44:00,908
{\an8}Especially given
how solid Steiner was today.
1709
01:44:01,742 --> 01:44:03,869
Well, John, Bernard's not the kind of man
1710
01:44:03,952 --> 01:44:06,705
to make a deal
without checking all the details.
1711
01:44:06,788 --> 01:44:08,540
[chuckles]
1712
01:44:08,624 --> 01:44:11,251
It seems to me
that a large part of his purported defense
1713
01:44:11,335 --> 01:44:12,461
is that he did just that.
1714
01:44:14,463 --> 01:44:17,424
You want me to put the banking rules
on trial in my testimony.
1715
01:44:17,841 --> 01:44:19,259
I want you to tell the truth.
1716
01:44:20,093 --> 01:44:21,720
Which should have that result, yes.
1717
01:44:23,472 --> 01:44:26,934
The rules allowed you
to hide your identity from the public
1718
01:44:27,017 --> 01:44:32,397
and take the successive actions that led
to two national banks becoming insolvent,
1719
01:44:33,982 --> 01:44:37,778
risking the savings
of thousands of innocent depositors.
1720
01:44:39,029 --> 01:44:40,906
You and I see the truth very differently.
1721
01:44:42,741 --> 01:44:44,034
Son, I'm from Arkansas.
1722
01:44:44,660 --> 01:44:48,121
You don't have to tell me that Negroes
sometimes get the short end of the stick.
1723
01:44:48,580 --> 01:44:49,706
"Sometimes."
1724
01:44:52,709 --> 01:44:54,169
We're not gonna change that here.
1725
01:44:56,380 --> 01:44:59,633
The truth is, whatever obstacles
they put in your way,
1726
01:44:59,716 --> 01:45:02,219
you kept your head down,
did your business,
1727
01:45:02,594 --> 01:45:06,265
became one of the richest Negroes
in the country.
1728
01:45:10,352 --> 01:45:12,187
You were living the American dream
1729
01:45:14,398 --> 01:45:19,444
before you decided to go mucking around
with the social order in Texas.
1730
01:45:21,572 --> 01:45:22,948
Might be a lesson there.
1731
01:45:23,657 --> 01:45:24,741
You have a choice now.
1732
01:45:26,827 --> 01:45:28,704
Take the immunity deal.
1733
01:45:28,787 --> 01:45:32,457
Go in there and confirm
what Steiner just told us,
1734
01:45:32,541 --> 01:45:37,880
that you took advantage of lax rules
in order to enrich yourself.
1735
01:45:38,839 --> 01:45:42,092
And let Congress fix those rules,
and you'll be a free man.
1736
01:45:43,177 --> 01:45:45,762
Or you can refuse the deal...
1737
01:45:46,847 --> 01:45:48,015
and say whatever you want.
1738
01:45:50,184 --> 01:45:51,185
But just know,
1739
01:45:52,728 --> 01:45:58,400
after you're done saying your piece
about racism and the plight of the Negro,
1740
01:45:58,483 --> 01:46:01,195
we're gonna compare your testimony
point for point
1741
01:46:01,278 --> 01:46:03,322
with what we heard
from Steiner and Florance,
1742
01:46:03,405 --> 01:46:05,157
and a whole bunch of other white people.
1743
01:46:05,240 --> 01:46:08,994
Well, thank God the Constitution
doesn't make those types of distinctions.
1744
01:46:10,120 --> 01:46:11,914
Well, at the end of all that,
1745
01:46:11,997 --> 01:46:14,124
a determination will be made
by a court of law
1746
01:46:14,208 --> 01:46:15,876
to decide who's telling the truth...
1747
01:46:16,919 --> 01:46:17,920
and who's lying.
1748
01:46:19,505 --> 01:46:21,006
And the liars are going to prison.
1749
01:46:25,761 --> 01:46:27,763
[Eunice] Sure is pretty from the outside.
1750
01:46:31,767 --> 01:46:33,007
[Bernard] Guess you were right.
1751
01:46:33,685 --> 01:46:36,813
It was too early
for two Negroes to own a bank in Texas.
1752
01:46:38,398 --> 01:46:39,399
Maybe.
1753
01:46:39,983 --> 01:46:41,985
Or maybe you were right to do it now.
1754
01:46:44,238 --> 01:46:45,322
Why?
1755
01:46:47,783 --> 01:46:48,992
Look where you ended up.
1756
01:46:51,620 --> 01:46:54,331
White people get to buy homes
and build businesses
1757
01:46:54,414 --> 01:46:56,083
because banks will loan them money.
1758
01:46:57,376 --> 01:46:58,669
Black people don't.
1759
01:46:58,752 --> 01:47:01,755
And maybe it is time that someone
shine a bright light on that now,
1760
01:47:02,339 --> 01:47:04,007
in order for things to change.
1761
01:47:05,259 --> 01:47:09,012
Well, if I shine the light too bright,
McClellan will get rid of my immunity.
1762
01:47:12,099 --> 01:47:13,809
What do you think I should do in there?
1763
01:47:15,853 --> 01:47:18,021
Everyone thought I was crazy to marry you.
1764
01:47:20,232 --> 01:47:22,776
You always thought differently
from everyone else.
1765
01:47:24,403 --> 01:47:26,738
But that's why
I fell in love with you, Bernard.
1766
01:47:27,906 --> 01:47:31,702
And whatever you decide to do
in there today is not gonna change that.
1767
01:47:45,132 --> 01:47:46,842
Would you mind giving me a minute?
1768
01:47:50,554 --> 01:47:52,806
Should I be jealous
you get to testify first?
1769
01:47:52,890 --> 01:47:53,974
No, man.
1770
01:47:54,808 --> 01:47:57,895
I'm just a warm-up act
for the criminal mastermind to follow.
1771
01:47:59,146 --> 01:48:00,898
Well, they gonna be disappointed as hell
1772
01:48:00,981 --> 01:48:02,983
because I plan to
blame all this shit on you.
1773
01:48:03,066 --> 01:48:05,152
Damn. That was my plan too.
1774
01:48:07,529 --> 01:48:09,406
You know, when I first laid eyes on you,
1775
01:48:09,489 --> 01:48:12,951
I thought you were this uptight,
square-ass Negro
1776
01:48:13,035 --> 01:48:15,329
who wouldn't know
whitey's hand was 'round his neck
1777
01:48:15,412 --> 01:48:17,039
if he was staring at it in a mirror.
1778
01:48:18,332 --> 01:48:20,292
Glad I made such a good first impression.
1779
01:48:21,835 --> 01:48:22,836
Turns out,
1780
01:48:23,754 --> 01:48:25,589
you a goddamn revolutionary.
1781
01:48:27,049 --> 01:48:28,634
You know, when I first met you,
1782
01:48:29,426 --> 01:48:32,012
I thought you were
an entitled playboy clown.
1783
01:48:34,056 --> 01:48:35,098
Man,
1784
01:48:36,558 --> 01:48:40,145
you saw things years before I did.
1785
01:48:41,647 --> 01:48:42,731
Even about myself,
1786
01:48:45,692 --> 01:48:47,110
five minutes after meeting me.
1787
01:49:11,969 --> 01:49:13,720
[gavel raps]
1788
01:49:16,056 --> 01:49:18,517
[McClellan] Committee calls
Bernard S. Garrett to testify.
1789
01:49:22,771 --> 01:49:25,107
Do you have his glasses?
He doesn't have his glasses.
1790
01:49:25,190 --> 01:49:26,358
He doesn't need 'em.
1791
01:49:26,859 --> 01:49:28,569
He's got to read his opening statement.
1792
01:49:29,069 --> 01:49:31,864
He doesn't need his glasses. He never has.
1793
01:49:34,449 --> 01:49:37,494
Mr. Garrett,
I think you understand the stakes.
1794
01:49:41,915 --> 01:49:43,250
We'll take your statement now.
1795
01:49:44,835 --> 01:49:45,919
Mr. Chairman.
1796
01:49:46,795 --> 01:49:51,675
Our nation's founding documents declare
that "all men are created equal"
1797
01:49:52,301 --> 01:49:54,052
and endeavor to create a society
1798
01:49:54,136 --> 01:49:57,264
where citizens receive
the equal protection of our laws.
1799
01:49:57,931 --> 01:49:59,057
It's a noble goal.
1800
01:50:00,058 --> 01:50:03,604
But we all know,
for many citizens it's a lie.
1801
01:50:03,687 --> 01:50:05,731
[chattering]
1802
01:50:05,814 --> 01:50:07,232
This hearing is supposed to be
1803
01:50:07,316 --> 01:50:12,863
about uncovering and reforming
unsafe banking practices.
1804
01:50:13,697 --> 01:50:14,907
But I think it's really about
1805
01:50:14,990 --> 01:50:19,912
how on Earth did two black men
pull off owning a bank in Texas.
1806
01:50:19,995 --> 01:50:23,457
Mr. Garrett, I think you
should tread carefully now.
1807
01:50:25,083 --> 01:50:27,044
Well, I can talk at length about that.
1808
01:50:27,669 --> 01:50:30,839
Or I can sum it up with this.
1809
01:50:33,800 --> 01:50:34,800
The dress code.
1810
01:50:35,344 --> 01:50:37,137
Mr. Garrett, you are out of order, sir.
1811
01:50:37,221 --> 01:50:38,639
- I'm not finished.
- Out of order.
1812
01:50:38,722 --> 01:50:41,558
If you can't get a loan,
you can't own a home.
1813
01:50:41,642 --> 01:50:42,722
You can't start a business.
1814
01:50:42,768 --> 01:50:44,269
Mr. Garrett, you have been warned.
1815
01:50:44,353 --> 01:50:46,980
- Which means you can't build wealth.
- Mr. Garrett!
1816
01:50:47,064 --> 01:50:48,982
And you're excluded
from the American dream.
1817
01:50:49,066 --> 01:50:50,692
Sergeant-at-arms, remove the witness.
1818
01:50:50,776 --> 01:50:55,030
Why is it so important to you
to exclude an entire race of people
1819
01:50:55,113 --> 01:50:56,657
from the American dream?
1820
01:50:57,908 --> 01:50:59,535
[gavel rapping]
1821
01:51:55,507 --> 01:51:57,926
- [buzzer sounds]
- [bell rings]
1822
01:52:15,777 --> 01:52:17,654
Figures they'd let you out before me.
1823
01:52:17,738 --> 01:52:19,948
Man, they couldn't wait
to get rid of my ass.
1824
01:52:21,575 --> 01:52:23,577
- [Eunice chuckles, squeals]
- [Bernard] Oh.
1825
01:52:25,412 --> 01:52:26,622
Let's go home.
1826
01:52:28,457 --> 01:52:30,876
- They took 'em all, remember?
- Well, let's go somewhere.
1827
01:52:30,959 --> 01:52:32,920
- [car door closes]
- [chuckles]
1828
01:52:34,630 --> 01:52:36,048
What are you two laughing about?
1829
01:52:36,131 --> 01:52:37,382
They didn't take all of 'em.
1830
01:52:37,466 --> 01:52:40,219
They didn't know about the two
we bought next door to each other
1831
01:52:40,302 --> 01:52:41,303
in the Bahamas.
1832
01:52:41,386 --> 01:52:42,386
What?
1833
01:52:43,514 --> 01:52:44,973
Bernard, how did you do that?
1834
01:52:47,601 --> 01:52:49,978
[Bernard] Matt called me
the night before he testified.
1835
01:52:51,313 --> 01:52:52,606
He was pretty broken up.
1836
01:52:59,196 --> 01:53:00,739
[line ringing]
1837
01:53:01,740 --> 01:53:02,741
Hello?
1838
01:53:03,367 --> 01:53:04,368
It's Matt.
1839
01:53:06,620 --> 01:53:07,621
Can we talk?
1840
01:53:08,872 --> 01:53:11,416
[Bernard] He told me
he was facing 50 years in prison
1841
01:53:11,500 --> 01:53:13,710
if he didn't say
what they wanted him to say.
1842
01:53:15,295 --> 01:53:17,297
I told him to do what he had to do,
1843
01:53:18,841 --> 01:53:21,552
but since the government
hadn't taken all of our money yet,
1844
01:53:25,639 --> 01:53:27,140
I asked him to do me a favor.
1845
01:53:30,269 --> 01:53:32,354
- [coos]
- [car engine starts]
1846
01:53:42,698 --> 01:53:45,200
["A Place in the Sun"
by Stevie Wonder playing]
1847
01:54:22,696 --> 01:54:24,198
[song continues]
1848
01:56:13,473 --> 01:56:16,226
[song fades]

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