Posts Tagged ‘SEC’

Monday Medley

What we read while turning our music down in Florida…

Monday Medley

What we read while voting for Richie Incognito…

The Great Read-cession, Part X

We’re done with the book reviews, but John S isn’t done breaking down the books of the financial crisis. We still have a few things left to cover, most importantly….

The Whole Truth...

The Whole Truth…

Rankings!

Obviously I wasn’t going to read 16 books and NOT rank them.

It was a little hard to determine the criteria. Some of the books were well-written, but not especially good at delving into the causes; others were thorough but boring; some were great but a little off-topic. If someone asked me to recommend one of these books, I wouldn’t answer until I got more information about what exactly she was looking for. If, however, she were somehow unable to clarify, I would recommend them in this order:

16) A Colossal Failure of Common Sense

15) Reckless Endangerment

14) The Quants

13) The Greatest Trade Ever

12) Crash of the Titans

11) On the Brink

10) Bailout Nation

9) Financial Crisis Inquiry Report

8) Confidence Men           

7) House of Cards

6) Griftopia

5) More Money Than God

4) Too Big To Fail

3) The Big Short

2) Bailout

1) All the Devils Are Here

Some Questions, Answered

 So, um, whose fault was it? 

Continue reading

The Great Read-cession, Part VIII

Crash of the TitansOn the eighth day, John S reviewed two more books of the financial crisis, including the final report of the Financial Crisis Inquiry Report.

Crash of the Titans: Greed, Hubris, The Fall of Merrill Lynch, and the Near-Collapse of Bank of America

by Greg Farrell 2010

 

Having read accounts of the failures of Bear Stearns and Lehman Brothers, it seemed appropriate to read a book about the third investment bank claimed by the financial crisis: Merrill Lynch. Of course, Merrill Lynch didn’t fail outright—it was sold to Bank of America, making the story slightly more complex. Greg Farrell’s book, Crash of the Titans, is really a soap opera about how two banks ended up in a reluctant and unhappy marriage.

The first step towards this malignant matrimony was the downfall of Merrill Lynch. Merrill Lynch occupied an odd position on Wall Street. On the one hand, it’s probably the investment bank normal people are the most familiar with, thanks to its “thundering herd” of brokers. On the other hand, it suffered from a clear inferiority complex for not being as profitable or as elite as Goldman Sachs or Morgan Stanley.

In its quest to catch Goldman Sachs, Merrill Lynch became one of the leaders in the CDO market, holding more CDO assets than any other bank. As the housing bubble inflated, this led a streak of immense profitability, but the lust for profits blinded many Merrill executives to the risks they were exposed to. Continue reading

The Great Read-cession, Part V

House of CardsThe Great Read-cession is back! Today John S looks at two books that focus on banks that are no longer with us. Pour one out for Bear Stearns and Lehman Brothers, then read this…

House of Cards: A Tale of Hubris and Wretched Excess on Wall Street

by William D. Cohan, 2010

 

William D. Cohan* is a banker-turned-writer who has by now written three histories of different Wall Street firms: His first book was about Lazard Freres, his former employer, and his latest is about Goldman Sachs. House of Cards, though, is the tale of Bear Stearns, the first investment bank that was taken down by the crisis.

*Duke alum!

Bears Stearns’s collapse occupies an odd place in the narrative of the 2008 crash, having occurred in March, six months before the fall of Lehman Brothers, the subsequent panic, and the passage of TARP. At that time, nobody quite knew the enormity of the problem facing Wall Street, and there was hope that Bear Stearns’s collapse would be the nadir of the problem. The firm was the smallest of the major Wall Street investment banks—if there was going to be a casualty, it would make sense for it to be Bear Stearns.

So how does a Wall Street bank go bankrupt? Well, the same way Mike Campbell did: Gradually, then suddenly. The seeds of Bear Stearns’s collapse go back several years—and possibly, Cohan implies, several decades—but the proximate cause was the sudden grip of panic that seized the firm in March of 2008.

Continue reading

The Great Read-cession, Part IV

On the BrinkWelcome to Part IV of our eleven-part breakdown of the books of the financial crisis. Having trouble keeping up? Then check out this page for all previous and future posts in the series.

On the Brink: Inside the Race to Stop the Collapse of the Global Financial System

by Henry Paulson 2010

 

The unifying element of the first four books was pessimism: Whether it was Ritholtz’s scorn for those in power, Morgenson’s search for someone to blame, Lewis’s tragic tale, or Sorkin’s narrative of disaster, all four books had decidedly bleak outlooks on the events. Since there is only so much despair one person can read about, I wanted to read the account of someone who would be sympathetic to the policy-makers and CEOs who everyone else blamed.

Henry Paulson was perfect. If the financial panic of 2008 has a face, it’s Paulson’s. As Treasury Secretary during the collapse, he was the one who told Congress of the dangers of Fannie and Freddie (in his infamous squirt gun analogy), who proposed TARP, and who ultimately dispensed the bailouts. And unlike the other figures prominently involved—Geithner, Bernanke—he faded from public view almost immediately after the disaster passed.

Reading Paulson’s book, though, it is hard to dislike him. His prose is straightforward and he comes across as an upstanding, diligent worker with integrity. He’s honest, but polite and gracious to a fault—despite presiding over what many would describe as a complete disaster, he has nothing but kind words for almost everyone involved.* He worked for Presidents Nixon and Bush—two of the least popular Presidents of the last 50 years, if not ever—but says nothing negative about either. He clashed with another prominent public figure, Jon Corzine, for the top spot at Goldman Sachs, but all he says about that is “frankly, the pairing was never right.” Continue reading

Monday Medley

What we read that wasn’t about Michelle Obama’s hair…

  • Michael Weinreb on Donald Westlake, whose novels serve as the source for the new movie, Parker.

Monday Medley

What we read while Newt Gingrich started quoting Dragon Ball Z…

Defending the BCS (Again)

LSU@Alabama: Vindicating the BCS

I don’t mean to rehash old debates (who am I kidding? Of course I do. This is a blog after all), but another college football season means another post where I attempt to defend the BCS. And, of course, this weekend’s LSU-Alabama game presents a great opportunity for such a defense. Saturday’s highly anticipated SEC showdown would not be nearly as important if the BCS were replaced with the playoff that so many, including my colleague Tim, desire: A game that will likely make one team’s season while breaking another would be effectively meaningless, since both teams would make any conceivable playoff even with one loss.

This type of game is unique: It’s exciting in a way that no other mid-season game, in any sport, is ever exciting. This is a GOOD thing. It’s asinine that fans of college football want to kill the best thing about the sport, but the collective fascination with the concept of a playoff makes people say crazy things. This is the only thing that could lead someone like Dan Wolken to use the Alabama-LSU game as a way to attack the BCS. Continue reading

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