Introduction The financial crisis of 2008 affected different sectors of the global economy. Most of the initiatives undertaken by the Treasury Department and the Federal Reserve did not deliver meaningful outcomes. In 2007, banks began to panic since they were forced to absorb most of the losses recorded in different countries or economies. Within the next twelve months, the levels of dishonesty and mistrust increased significantly, thereby increasing interbank borrowing expenses. Using the documentary “Inside Job”, the paper presented below asserts that the malpractices of different banking experts, the ethical dilemma revolving around ratings agencies’ actions, and the Gramm-Leach-Bliley and the Glass-Steagall Acts influenced the nature of the 2008 banking crisis and its aftermath. Inside Job Secularization Food Chain The documentary “Inside Job” uses the phrase “securitization food chain” to describe how different banks purchased and packaged illiquid debts before securitizing and selling them to unsuspecting investors. The idea of securitization entails the application of financial engineering to transform illiquid assets into securities. According to the film, the first step is the application of mortgages by property owners. Banks then decide to originate the loans. They can sell mortgage notes if borrowers fail to repay. The second stage of the chain occurs when mortgages are combined or bundled to form something called a mortgage pool (Ferguson, 2010). This can be held as mortgage-backed securities (MBSs). There are specific aggregators who can issue MBSs. The final outcome is that the process creates a new security. The created MBS can also be broken down into a number of tranches (also known as parts). The nature of the emerging large market provided liquidity to the tranches, thereby making them less illiquid. Finally, pension funds decide to invest in MBSs that have high-credit ratings. Bayar (2014) indicates that hedge funds will focus on increased returns by purchasing MBSs with reduced credit ratings (Bayar, 2014). This means that the investors’ return on investment (RoI) is usually obtained from the proportionate mortgage payments. Key Figures Several individuals were engaged in different activities and initiatives throughout the 2008 financial crisis. One of these key figures is Henry Paulson. Paulson was Goldman Sachs’ Chief Executive Officer (CEO) and chairman from the year 1998. According to the documentary, he managed to write a report that proposed a number of initiatives to overhaul America’s financial regulatory system. He believed that globalization had resulted in new changes and innovations in financial engineering. This development could have been considered to design newer or superior models for managing finances and preventing future market disruptions. This means that Paulson supported a new financial regulatory system that would support investors and consumers. Paulson could have engaged in unethical practices as the CEO of Goldman Sachs (Ferguson, 2010). This was the case since the corporation could have benefited from the implemented securitization plan. Although he had no direct financial expectations or interests, some analysts believe that Paulson’s decision to sell his shares at the company was something questionable in accordance