10 Wall Street Movies That Expose Financial Fraud

Finance and Wall Street movies have always captivated audiences with thrilling plots, high-stakes drama, and intriguing characters. Whether you’re a finance enthusiast or enjoy a good movie, these films offer a unique insight into the finance world and Wall Street’s machinations. You will also find out what movies have examples of financial fraud in them. Here are the 10 best finance and Wall Street movies that are a must-watch for any movie buff:

#10. The Big Short: Betting Against the Housing Bubble

The Big Short (2015) follows several investors who bet against the big banks in the mid-2000s and predicted the collapse of the housing market. Based on Michael Lewis’ book, the film focuses on eccentric hedge fund managers who uncovered the fragility and corruption in the US housing and credit bubble.

Steve Carell plays Mark Baum, the manager of FrontPoint Partners hedge fund. Baum and his team discover the impending housing crisis by investigating subprime mortgages and mortgage-backed securities. They bet against Wall Street by shorting the housing market and earned massive profits when it crashed.

Ryan Gosling plays Jared Vennett, a Deutsche Bank salesman who profits by betting against the big banks. He helps the FrontPoint team understand the complex world of collateralized debt obligations, credit default swaps, and predatory lending practices that fueled the housing bubble.

The film is a sobering look into how greed, willful ignorance, and systemic corruption on Wall Street led to the financial crisis that caused millions of people to lose their homes and life savings. Nominated for five Academy Awards, including Best Picture, The Big Short is a must-watch for anyone interested in finance and the causes of economic meltdowns.

#9. Inside Job: Who Is to Blame for the 2008 Financial Crisis

The 2010 documentary Inside Job investigates the causes of the 2008 financial crisis. If you’re looking to assign blame, there are many targets:

Regulatory Failure

Regulators failed to oversee the financial system properly and missed numerous red flags. The SEC and Federal Reserve ignored risks posed by subprime mortgages and complex derivatives. They also failed to regulate credit rating agencies that gave risky mortgage-backed securities top ratings.

Bank Greed

Major banks aggressively pursued profits while ignoring risks. They pushed subprime mortgages, bundled risky loans into securities, and sold them to investors. They also took on too much risk, with too much leverage, in derivatives markets.

Wall Street Excess

While bankers made millions, they encouraged a culture of greed and short-term thinking. Traders and executives focused on bonuses and profits rather than long-term stability.

Mortgage Lenders

Unscrupulous lenders issued too many mortgages to borrowers who couldn’t afford to repay them. They didn’t verify incomes or approve applicants for mortgages they had no chance of paying back.

In the end, there is more than enough blame to go around for the crisis that caused so much economic damage. Lack of regulation, corporate greed, excess risk-taking, predatory lending, and outright fraud combined to create the perfect financial storm. By understanding the many causes, we have a better chance of avoiding similar mistakes in the future.

#8. Too Big to Fail: Big Players on the Market

Too Big to Fail (2011) examines the financial crisis of 2008 and the resulting bailout of major Wall Street investment banks. The film focuses on Treasury Secretary Henry Paulson and Chairman of the Federal Reserve Ben Bernanke, who must formulate a plan to prevent the collapse of the global financial system.

The “Too Big to Fail” Dilemma

The film’s title refers to the notion that certain financial institutions are so large and interconnected that their failure would be disastrous to the greater economy. Paulson and Bernanke wrestle with the unenviable position of determining which troubled banks are truly “too big to fail” and require government intervention to avoid catastrophe. They grapple with difficult questions about moral hazard and rewarding poor decision-making.

Though dry and heavy on financial jargon, the film provides insight into the personalities and events behind the crisis. William Hurt is compelling as Paulson, a former Goldman Sachs CEO now tasked with stabilizing the economy. The film suggests his previous Wall Street ties both help and hinder his efforts. Viewers gain an appreciation for the immense pressures and imperfect solutions policymakers faced during the crisis.

Too Big to Fail is a sobering look at the fragility of the global financial system. Though the crisis originated in the U.S., its effects reverberated worldwide. The film is a cautionary tale of greed, poor regulation, and the far-reaching consequences of Wall Street’s excesses. For those interested in finance or economic policy, it provides a glimpse into a pivotal moment that reshaped banking in America.

#7. Trading Places: A Satirical Take on the Finance Industry

Released in 1983, Trading Places is a comedy film starring Dan Aykroyd and Eddie Murphy that satirizes the finance industry. The plot revolves around a bet between two commodities traders, the Duke brothers, who scheme to ruin a man’s life to settle a wager.

They choose a street hustler by the name of Billy Ray Valentine, played by Eddie Murphy, and a successful broker, Louis Winthorpe III, played by Dan Aykroyd, to swap lives. Valentine is given Winthorpe’s job, home, and fiancée, while Winthorpe is framed, fired, and forced out onto the streets. However, Valentine and Winthorpe join forces to get revenge on the Dukes by foiling their attempt to corner the orange juice market.

Trading Places is a critique of the callousness and greed that were beginning to characterize Wall Street in the 1980s. The film suggests that success depends more on luck and circumstance than skill or hard work. It’s a timeless story of the little guys outsmarting the villains in an unjust system. Widely considered one of the best comedies of the 1980s, Trading Places continues to garner praise for its clever send-up of the excesses of Wall Street.

#6. Rogue Trader: When Greed Goes Wrong

The 1999 film Rogue Trader depicts the story of Nick Leeson, a derivatives broker whose disastrous unauthorized trading caused the collapse of Barings Bank.

As a rising star trader in Barings’ Singapore office, Leeson took increasingly risky positions to generate large profits, hiding losses in a secret account. His unauthorized trades ultimately resulted in losses of over £800 million, twice the bank’s available capital.

The movie illustrates how Leeson’s ambition and the bank’s lax oversight led to poor risk management and a lack of controls. As Leeson generates huge profits, Barings executives fail to scrutinize his risky methods. They ignore warning signs like Leeson controlling both front-office trading and back-office settlement functions.

The film highlights the dangers of excessive risk-taking and greed in finance. Leeson’s disastrous trades show how a single rogue trader can bring down an entire institution when controls are weak and oversight is lacking. His story is a cautionary tale for investment banks on the importance of risk management, compliance, and internal controls.

Rogue Trader provides a sobering look at the human weaknesses and institutional failures behind one of the most notorious cases of financial fraud in history. Leeson’s tragedy reminds us that unmitigated greed and a desire to beat the system can have devastating consequences. The film is a stark warning for financiers about the perils of unchecked ambition and the system’s fragility.

#5. Enron: The Smartest Guys in the Room

Enron: The Smartest Guys in the Room exposes one of the biggest financial fraud scandals in history. The 2005 documentary film examines the 2001 collapse of the Enron Corporation. Once the seventh largest company in the U.S., Enron executives employed shady accounting practices and exploited deregulations to hide billions of dollars in debt from shareholders.

Complex Web of Fraud

Enron used off-the-books partnerships and shell companies to hide losses and debts, falsely inflating the stock price. Executives also used aggressive accounting tricks, including mark-to-market accounting, to hide the truth. The company’s complex web of fraudulent shell companies and fictitious revenue streams ultimately unraveled, leading to the company’s bankruptcy.

Thousands of employees and investors lost their retirement accounts and life savings due to the greed and corruption of Enron’s executives. The film serves as a sobering reminder of how a lack of transparency and ethical leadership can have devastating consequences. Enron highlights the importance of honesty, integrity, and accountability in business.

#4. Moneyball: How to Build a Winning Team on a Limited Budget

The story of the Oakland A’s baseball team in the early 2000s demonstrates how to succeed despite significant financial constraints. General Manager Billy Beane had to craft a competitive roster with a small budget. He did so by focusing on undervalued player stats, allowing him to get high-performing players for a lower cost.

Beane realized that metrics like stolen bases and batting average were overvalued, while stats like on-base and slugging percentages were better indicators of a player’s worth but undervalued. He was able to sign players with strong numbers in these key stats for a lower price, assembling a team that could compete with big-budget franchises. Some players he acquired were perceived as flawed or past their prime but still had a lot of value, according to Beane’s metrics.

The key takeaway from Moneyball (2011) is that you can achieve significant results even when you lack significant resources. You need to determine what really drives success in your field and find undervalued assets that can help you achieve it. Don’t get distracted by conventional wisdom or flashy attributes that don’t really impact outcomes. With research, critical thinking, and creativity, you can build a winning team or strategy on a budget.

Moneyball demonstrates how important it is not just to work hard with what you have but to work smart. By questioning assumptions and looking at problems in new ways, you can find solutions that others may have missed. With determination and an open, analytical mindset, you can accomplish more than others thought possible with limited means.

#3. Boiler Room: High-Pressure Sales Tactics

The 2000 film Boiler Room highlights the unethical business practices of a brokerage firm. New brokers are trained in aggressive sales tactics to push worthless penny stocks onto unsuspecting buyers. The protagonist, Seth Davis, joins J.T. Marlin to prove his worth to his father, a federal judge. He soon realizes the firm’s illegal activities and high-pressure sales tactics.

Brokers mislead clients with false information and empty promises of huge returns. They are taught to be manipulative and controlling towards buyers, exploiting their greed and trust. The firm prioritizes making sales over ethics. Brokers receive lavish rewards and perks for hitting sales targets, fueling their motivation to do whatever it takes to close deals.

The film is a disturbing depiction of the dark side of Wall Street, where profits are placed over integrity. It serves as a warning for investors to be wary of unscrupulous brokerages employing predatory practices. The movie illustrates how greed and ambition can lead people to abandon moral values for personal gain.

Overall, Boiler Room provides an eye-opening look into the corrupt and fraudulent activities that can occur in finance. It highlights the need for ethical standards and regulations to protect investors from exploitation. The film is a sobering reminder that if something sounds too good to be true, it probably is. Vigilance and skepticism are prudent when trusting others with your money.

#2. The Wolf of Wall Street: Exposing Greed and Excess

The 2013 film The Wolf of Wall Street, directed by Martin Scorsese, is based on the true story of Jordan Belfort, a New York stockbroker who founded Stratton Oakmont, a brokerage house engaged in massive securities fraud and corruption. The film chronicles Belfort’s excessive lifestyle in the late 1980s and early 1990s that was fueled by illegal practices, including securities fraud and money laundering.

Leonardo DiCaprio delivers an energetic performance as Belfort, who quickly discovers he can earn large commissions by selling penny stocks to prosperous clients. Belfort and his associates build a predatory brokerage firm, cheating countless individuals out of their money through pump-and-dump schemes and other fraudulent tactics. They generate profits through illicit means, including money laundering, bribing FBI agents, and other illegal acts.

The Wolf of Wall Street is a cautionary tale of unbridled greed, ambition, and the dark side of chasing prosperity and success at any cost. The film provides insight into the unscrupulous practices that contributed to the rise and fall of brokerage firms like Stratton Oakmont. Belfort’s outrageous lifestyle of lavish parties, mansions, and yachts was made possible through the exploitation of others and complete disregard for ethical behavior. The film serves as a sobering reminder of the damage that can be wrought when the pursuit of money and power is left unchecked.

#1. Wall Street: The Original That Started It All

Wall Street (1987) is the original movie that exposed the greed and corruption within the finance industry. This Oliver Stone film, starring Michael Douglas and Charlie Sheen, centers around young stockbroker Bud Fox, who is lured into the illegal insider trading world of his idol Gordon Gekko. Fox becomes embroiled in Gekko’s web of dirty deals and cutthroat tactics to accumulate prosperity and power.

The movie is a disturbing portrayal of the lack of ethics within Wall Street during the 1980s. Gekko’s infamous “greed is good” speech symbolizes the era’s selfish materialism and excess. Although the film is fictional, it was influenced by real Wall Street insider trading scandals during that time period, like with Dennis Levine and Ivan Boesky.

Wall Street serves as a cautionary tale of how the allure of money and status can lead down a path of moral corruption. It highlights the win-at-all-costs mentality that still persists in finance today. The fast-talking, fast-dealing Gekko represents the worst of Wall Street: valuing profits over people and relationships.

This thought-provoking film is a must-see for anyone interested in business ethics or considering a career on Wall Street. It provides an eye-opening look into the high-stakes world of finance and what can happen when greed goes unchecked in pursuit of the almighty dollar. Wall Street has enduring power in its exposure of the street’s dark side and its warning about losing one’s soul and humanity for money and glory.

Conclusion

As you’ll notice from this list of the best financial movies, many of them provide an inside look at the complex world of high finance. These movies expose the greed, corruption, and fraud that can emerge when money, power, and a lack of ethics collide. By showing the personal stories of ambition and its consequences, these films serve as a cautionary tale for those entering the field and a sobering reminder for those already in the system. While the finance industry continues to grow in global influence, these movies highlight the importance of integrity and illuminate the human impact of corporate decision-making gone awry. The next time you need a gripping drama, consider revisiting one of these films for a dose of reality behind the Wall Street facade.