Fool's Gold

Fool's Gold

How the Bold Dream of A Small Tribe at J.P. Morgan Was Corrupted by Wall Street Greed and Unleashed A Catastrophe

Book - 2009
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Baker & Taylor
Traces the relationship between a team of JP Morgan banking gurus and the current financial crisis, documenting their invention of a bold variety of allegedly risk-free investments that sparked a frenzy in the banking world and may have directly contributed to the market crash. By the author of Saving the Sun.

Baker
& Taylor

Traces the relationship between a team of JP Morgan banking gurus and the current financial crisis, documenting their invention of a bold variety of allegedly risk-free investments that sparked a frenzy in the banking world.

Simon and Schuster
From award-winning Financial Times journalist Gillian Tett, who enraged Wall Street leaders with her newsbreaking warnings of a crisis more than a year ahead of the curve, Fool's Gold tells the astonishing unknown story at the heart of the 2008 meltdown.

Drawing on exclusive access to J.P. Morgan CEO Jamie Dimon and a tightly bonded team of bankers known on Wall Street as the "Morgan Mafia," as well as in-depth interviews with dozens of other key players, including Treasury Secretary Timothy Geithner, Tett brings to life in gripping detail how the Morgan team's bold ideas for a whole new kind of financial alchemy helped to ignite a revolution in banking, and how that revolution escalated wildly out of control.

The deeply reported and lively narrative takes readers behind the scenes, to the inner sanctums of elite finance and to the secretive reaches of what came to be known as the "shadow banking" world. The story begins with the intense Morgan brainstorming session in 1994 beside a pool in Boca Raton, where the team cooked up a dazzling new idea for the exotic financial product known as credit derivatives. That idea would rip around the banking world, catapult Morgan to the top of the turbocharged derivatives trade, and fuel an extraordinary banking boom that seemed to have unleashed banks from ages-old constraints of risk.

But when the Morgan team's derivatives dream collided with the housing boom, and was perverted -- through hubris, delusion, and sheer greed -- by titans of banking that included Citigroup, UBS, Deutsche Bank, and the thundering herd at Merrill Lynch -- even as J.P. Morgan itself stayed well away from the risky concoctions others were peddling -- catastrophe followed. Tett's access to Dimon and the J.P. Morgan leaders who so skillfully steered their bank away from the wild excesses of others sheds invaluable light not only on the untold story of how they engineered their bank's escape from carnage but also on how possible it was for the larger banking world, regulators, and rating agencies to have spotted, and heeded, the terrible risks of a meltdown.

A tale of blistering brilliance and willfully blind ambition, Fool's Gold is both a rare journey deep inside the arcane and wildly competitive world of high finance and a vital contribution to understanding how the worst economic crisis since the Great Depression was perpetrated.

Publisher: New York ; Toronto : Free Press, c2009
Edition: 1st Free Press hardcover ed
ISBN: 9781416598572
Branch Call Number: 332.660973 Tet
Characteristics: x, 293 p. ; 24 cm

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fdb045
Jul 29, 2015

Excellent book explaining financial derivatives; their history and abuse.

rdelrosso2001 Dec 10, 2014

Very clear and concise explanation of how derivatives "got on steroids", and combined with a lack of regulation pushed the economy into Recession and almost another Great Depression.

I hope the Fed Chairwoman and others in power read this book.

s
StarGladiator
Jun 04, 2013

[Update 2014: From 2008 to this very week of November, 2014, JPMorgan Chase, or Chase, has been fined repeatedly for various types of financial fraud, completely invalidating everything in this book, showing Ms. Tett to be a complete farce and fraudster for ever writing such completely fictional nonsense. For the very latest on Chase and their massive, massive securities fraud, please see Matt Taibbi's latest article: http://www.rollingstone.com/politics/news/the-9-billion-witness-20141106 and, http://jpmadoff.com/ [Among the six or seven banks now found guilty of LIBOR rigging: JPMorgan Chase, of course!]

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