What did the investment bankers at Bear Stearns ever do to earn their millions of dollars in bonuses? Where were the regulators when traders at Bear and other Wall Street firms peddled trillions of dollars in mortgage-backed bonds and derivatives, only to realize, too late, that no one had a clue what they were worth? The author keeps the you-are-there factor high much like a Shakespeare play, complete with three acts and characters dialoguing their way on and off stage. Words: 689
March 1st, 2010 | Posted in Economy | Read More »
Readers are introduced to a host of little-known Lehmanites, many of whom vilify the company’s top management, among others. Lehman “was headed directly for the biggest subprime iceberg ever seen,” but unlike the captain of the RMS Titanic, McDonald writes, CEO Dick Fuld and his No. 2, Joe Gregory, didn’t try to swerve. Words: 560
March 1st, 2010 | Posted in Economy | Read More »
Wessel has put together a defining and vivid look at policymakers’ unprecedented response to the crisis. Wessel’s disconcerting conclusion: Out of necessity Bernanke is playing most of this by ear, loosely interpreting and appropriating arcane laws and creating new powers just to keep the system on its hinges. In Fed We Trust is persuasively told and richly reported. It is an absorbing read and will win awards and inspire copycats. Words: 665
January 8th, 2010 | Posted in Economy | Read More »