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