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Fiasco: The Inside Story of a Wall Street Trader
FIASCO is the shocking story of one man's education in the jungles of Wall Street. As a young derivatives salesman at Morgan Stanley, Frank Partnoy learned to buy and sell billions of dollars worth of securities that were so complex many traders themselves didn't understand them. In his behind-the-scenes look at the trading floor and the offices of one of the world's top investment firms, Partnoy recounts the macho attitudes and fiercely competitive ploys of his office mates. And he takes us to the annual drunken skeet-shooting competition, FIASCO, where he and his colleagues sharpen the killer instincts they are encouraged to use against their competitiors, their clients, and each other. FIASCO is the first book to take on the derivatves trading industry, the most highly charged and risky sector of the stock market. More importantly, it is a blistering indictment of the largely unregulated market in derivatives and serves as a warning to unwary investors about real fiascos, which have cost billions of dollars.
288 pages, Paperback
First published January 1, 1997
About the author
Frank Partnoy
18 books64 followersFrank Partnoy is the author of F.I.A.S.C.O., Infectious Greed, and The Match King. Formerly an investment banker at Morgan Stanley and a practicing corporate lawyer, he is one of the world’s leading experts on market regulation and is a frequent commentator for the Financial Times, the New York Times, NPR, and CBS’s 60 Minutes. Partnoy is a graduate of Yale Law School and is the George E. Barrett Professor of Law and Finance and the founding director of the Center for Corporate and Securities Law at the University of San Diego.
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Displaying 1 - 30 of 88 reviews
December 10, 2011
I gave this book five stars, not because it's a brilliant piece of literature, but because everyone should read it. This slim tome was just what I needed in seeking behind-the-scenes info on stock trading.
Besides explaining halfway comprehensibly what derivatives bloody well ARE, Frank Partnoy shows exactly how junk bonds are designed (you take some bad-risk instrument and give it a cool-sounding name), given AAA ratings (you pay the ratings agencies), and sold (call your most unsavvy clients and talk meaningless jargon really, really fast). Most illuminating, though, is the insight he offers into the world view that pervades the industry: pure hostility toward you and me.
If that last statement sounds harsh or paranoid, consider the conversation Partnoy recounts with another trader in his early days with Morgan Stanley (once the industry's bastion of integrity). The guy described how he did exactly the above with a corporate client who "obviously didn't understand" that he had bought $85 million worth of an extremely high-risk bond, instead of the safe, government agency bond the agent had implied. When the bond became nearly worthless within a few weeks and the client called in a panic, the agent cooly told him he had simply "made a big foreign exchange bet, and you lost." As head of an insurance company, which isn't even allowed to invest in foreign exchange (something the agent undoubtedly knew), the client was dumbfounded.
The agent, who of course had made a huge commission on the deal, howled with laughter as he related this story to Partnoy. Then he introduced Partnoy to an expression traders commonly used when describing how they conned uninformed clients this way.
"Frank," he said, "I ripped his face off."
It would seem we are not, in fact, in good hands with Allstate -- or with pension funds, unions, municipalities, state or even national governments (can you say Greece?), and certainly not with the investment banks who "help" these entities to invest their funds judiciously. But, according to Partnoy, we can't point the finger solely at institutional sleaze. When the first edition of this book came out in 1997, Partnoy discovered that betting on public reaction was riskier than any derivative.
"Derivatives outsiders howled they were sick, sick, sick," he writes, "not about the excesses of the derivatives market -- but about not joining up sooner."
The fictitional Larsen E. Whipsnade said that you can't cheat an honest man. I don't put the blame for the 2008 financial meltdown on consumers, as so many mortage companies, pundits, and politicians rushed to do. But I don't absolve "Joe Sixpack," either. Wall Street is guilty of extreme fraud and thievery, and it's been going on for 30 years, but I seriously doubt it could have reached this level if not for the larceny that resides, cherished and safe, in every person's heart.
Bottom line lesson from this book: Do NOT expect good faith efforts of financial reform from decision-makers -- demand them. Then do your part: Stop expecting your conservative investments to yield too-good-to-be-true returns.
Besides explaining halfway comprehensibly what derivatives bloody well ARE, Frank Partnoy shows exactly how junk bonds are designed (you take some bad-risk instrument and give it a cool-sounding name), given AAA ratings (you pay the ratings agencies), and sold (call your most unsavvy clients and talk meaningless jargon really, really fast). Most illuminating, though, is the insight he offers into the world view that pervades the industry: pure hostility toward you and me.
If that last statement sounds harsh or paranoid, consider the conversation Partnoy recounts with another trader in his early days with Morgan Stanley (once the industry's bastion of integrity). The guy described how he did exactly the above with a corporate client who "obviously didn't understand" that he had bought $85 million worth of an extremely high-risk bond, instead of the safe, government agency bond the agent had implied. When the bond became nearly worthless within a few weeks and the client called in a panic, the agent cooly told him he had simply "made a big foreign exchange bet, and you lost." As head of an insurance company, which isn't even allowed to invest in foreign exchange (something the agent undoubtedly knew), the client was dumbfounded.
The agent, who of course had made a huge commission on the deal, howled with laughter as he related this story to Partnoy. Then he introduced Partnoy to an expression traders commonly used when describing how they conned uninformed clients this way.
"Frank," he said, "I ripped his face off."
It would seem we are not, in fact, in good hands with Allstate -- or with pension funds, unions, municipalities, state or even national governments (can you say Greece?), and certainly not with the investment banks who "help" these entities to invest their funds judiciously. But, according to Partnoy, we can't point the finger solely at institutional sleaze. When the first edition of this book came out in 1997, Partnoy discovered that betting on public reaction was riskier than any derivative.
"Derivatives outsiders howled they were sick, sick, sick," he writes, "not about the excesses of the derivatives market -- but about not joining up sooner."
The fictitional Larsen E. Whipsnade said that you can't cheat an honest man. I don't put the blame for the 2008 financial meltdown on consumers, as so many mortage companies, pundits, and politicians rushed to do. But I don't absolve "Joe Sixpack," either. Wall Street is guilty of extreme fraud and thievery, and it's been going on for 30 years, but I seriously doubt it could have reached this level if not for the larceny that resides, cherished and safe, in every person's heart.
Bottom line lesson from this book: Do NOT expect good faith efforts of financial reform from decision-makers -- demand them. Then do your part: Stop expecting your conservative investments to yield too-good-to-be-true returns.
September 8, 2021
This book provides a first hand account of 90's corporate culture on an investment bank derivates desk. Well written, entertaining, educational and scary. Partnoy does a great job of describing complex and exotic financial products, but the main issue are the moral considerations.
This book raises some complex moral issues:
- If an investment bank creates and sells an obviously unsuitable instrument to a client and things go bad, then who is to blame?
- What if the client couldn't even understand the instrument?
If you think the answer is obvious - buyer beware - then consider this:
- What if the client invests other people's money rather than his own? (Fund/pension managers.)
- What if the beneficiaries of the funds can't even withdraw their money? (Orange county taxpayers.)
- What if he is compensated with when taking on inappropriate risk but pays nothing when the investment "blows up" later? (Performance based bonus.)
- What if the investment was intentionally structured in such a way as to not reveal its internal riskiness until it "blows up"? (It might change its payback conditions at a discrete future date.)
- What if the investment was intentionally structured so as to allow the buyer to ignore regulations? (Local currency denominated bond giving leveraged foreign currency exposure sold to a insurance company otherwise banned from investing in foreign currencies.)
This book is clearly opinionated but still does a great job of presenting counter-arguments and different perspectives. It is well worth a read if you want to learn more about finance.
This book raises some complex moral issues:
- If an investment bank creates and sells an obviously unsuitable instrument to a client and things go bad, then who is to blame?
- What if the client couldn't even understand the instrument?
If you think the answer is obvious - buyer beware - then consider this:
- What if the client invests other people's money rather than his own? (Fund/pension managers.)
- What if the beneficiaries of the funds can't even withdraw their money? (Orange county taxpayers.)
- What if he is compensated with when taking on inappropriate risk but pays nothing when the investment "blows up" later? (Performance based bonus.)
- What if the investment was intentionally structured in such a way as to not reveal its internal riskiness until it "blows up"? (It might change its payback conditions at a discrete future date.)
- What if the investment was intentionally structured so as to allow the buyer to ignore regulations? (Local currency denominated bond giving leveraged foreign currency exposure sold to a insurance company otherwise banned from investing in foreign currencies.)
This book is clearly opinionated but still does a great job of presenting counter-arguments and different perspectives. It is well worth a read if you want to learn more about finance.
April 6, 2021
One of the best accounts of what really goes on inside Wall Street investment banks. Too many "tell-all" tales from whistleblowers emanate from unhappy ex-employees, neophytes and part-timers. This book gets down and dirty. Partnoy meticulously explains complex derivative structures, highlighting how they were developed and designed to deceive the dupes. This book takes off from where Greg Smith's "Why I Left Goldman Sachs" ends. That book was too brief and seethed with rancour. Partnoy worked for many years at First Boston and Morgan Stanley. He was well paid. He had a defining moment after he was assigned to the Tokyo office and decided to leave investment banking His former employers must not be very happy with this book. Did anyone sign a Non-Disclosure Agreement?
There are many excellent books on our financial system and the crash of 2008-9 but this one stands out as an individual testimonial.
Full disclosure: During my 40 year career in the oil business, I had frequent dealings with Morgan Stanley. Compared to other banks, I consider them one of the good guys. I also continue to hold an investment account at Morgan Stanley and will not change this as a result of reading this book.
There are many excellent books on our financial system and the crash of 2008-9 but this one stands out as an individual testimonial.
Full disclosure: During my 40 year career in the oil business, I had frequent dealings with Morgan Stanley. Compared to other banks, I consider them one of the good guys. I also continue to hold an investment account at Morgan Stanley and will not change this as a result of reading this book.
October 24, 2011
As a young salesman at Morgan Stanley in 1994, Frank Partnoy had a ringside seat to some big derivatives deals, but not the ones that made the news for being such disasters: not the bankruptcy of Orange County, California, helped along by Merrill Lynch, nor Gibson Greetings, suckered by Bankers Trust, or Procter & Gamble, also Bankers Trust, or Barings Bank, brought down by rogue trader Nick Leeson. He discusses those, as well as the ones Morgan Stanley worked on. His tone is cocky and snarky and while I have no doubt that many traders and salesmen were disgusting, reprehensible assholes, engaging in locker room antics, as he says, the book also seems rife with caricatures and exaggerations, somewhat like Liar's Poker. The cocky tone also struck me as odd given the rest of his resume; deciding the life of an asshole was not for him, he left Wall Street after quite a brief stint and founded the Center on Corporate and Securities Law at the University of San Diego.
His discussions of derivatives deals are actually fairly detailed and complex. I wouldn't recommend this to someone looking for a light read. The 2009 edition has an afterward which does a good job of explaining collateralized debt obligations and credit default swaps and how they acted as financial WMDs in 2007-08.
His discussions of derivatives deals are actually fairly detailed and complex. I wouldn't recommend this to someone looking for a light read. The 2009 edition has an afterward which does a good job of explaining collateralized debt obligations and credit default swaps and how they acted as financial WMDs in 2007-08.
September 9, 2012
Think Wall St. is messed up now? Guess what: It’s been that way for a long time.
This is an insider’s account of a man who worked for Morgan Stanley from ‘92-’94 selling credit default swaps. Fear not, anyone can read this book, thanks to Frank’s perfect “layman” analogies... And you should, because it will change you and the way you think about your finances.
Don’t blame Wall Street for losing all of your money until you can do better. What you should realize after reading this book is: YOU CAN DO BETTER!
This is an insider’s account of a man who worked for Morgan Stanley from ‘92-’94 selling credit default swaps. Fear not, anyone can read this book, thanks to Frank’s perfect “layman” analogies... And you should, because it will change you and the way you think about your finances.
Don’t blame Wall Street for losing all of your money until you can do better. What you should realize after reading this book is: YOU CAN DO BETTER!
September 30, 2016
While, I can't say it's high literature, I do have to give the book some pretty high marks for a fairly accurate account of what happens. The writer expertly describes the instruments that are used in a manner that is easy for the reader to comprehend, both from the standpoint of why there is demand and why they are dangerous.
I can see why there are many that have criticized this book, given it's fairly aggressive criticism of people in the industry. That said, I do think it's a piece that should be read for those interested in finance.
I can see why there are many that have criticized this book, given it's fairly aggressive criticism of people in the industry. That said, I do think it's a piece that should be read for those interested in finance.
April 15, 2014
A must-read for everyone, especially before considering buying any of structured products offered by banks.
The author shows the ugliest side of derivatives sale business, Wild West days of the industry. (It became more mature by now, one notices).
The book provides a fair insight into the "kitchen" of derivatives-bundling and is an open warning about the "rip their faces off"-culture of investment banking with all involved perils for client itself. A word "muppet" comes to mind - heard not so long time ago ;)
The author shows the ugliest side of derivatives sale business, Wild West days of the industry. (It became more mature by now, one notices).
The book provides a fair insight into the "kitchen" of derivatives-bundling and is an open warning about the "rip their faces off"-culture of investment banking with all involved perils for client itself. A word "muppet" comes to mind - heard not so long time ago ;)
February 28, 2009
MUST READ. Excellent, scarily truthy, book -- real eye-opener. Perhaps a bit conspiracy theorist-friendly ... but I suspect, as an epilogue to the book notes, that it really barely scrapes the surface of the frightening truths about our financial markets, Wall Street and those who work in that sector.
November 18, 2015
It's a great book showing dark side of wall street and how investment banks suck blood out of clients. As an insider, his perspective of how investment banks work is such a fun to read! It's among 20 favourite books of Charlie Munger and deservedly so. If you like Michael Lewis's books, it will enthrall you. Go grab your copy of FIASCO.
September 6, 2020
This book was a gift from a friend 7 years ago. I picked it up because i want to read something easy, and I recall munger said this book will make you sick so I’m intrigued. I totally expected this to be pretty rubbish detailing outrageous behaviors by traders and I wouldn’t find anything I don’t know, but I was wrong. It is a surprisingly interesting read.
It was published in 1997, I would say most of the crazy behaviors on the trading floor had long gone. But I can still relay to some of them, for example this : “by the time bonus are paid......no matter what amount the firm actually pays them, they automatically think they have been screwed. Could a salesman who received several millions dollars really be irate?” It’s pretty funny when you have seen it so many times.
Structure product was a big engine on profit for most investment banks from the 90s to 2010s, I had a glimpse of that when I first started my career, but it died down gradually then suddenly after the financial crisis. Most people I know got fired and those who remained are much less relevant nowadays.
I would guess most of the depiction in the derivatives packaging and selling were pretty accurate. I do believe that it is often more outrageous than it seems if you do not have a deep understanding of the industry while reading an insider book. I assume it’s similar to how I felt compared to people in adtech when I read “ chaos monkey”.
However while most SP on the institution level went extinct, there are still some outrageous products in the retail space: i.e mum and pop have no business buying a curve steepener etn , or those leveraged etf, i.e a 3x tesla return etf etc. Those retail investors wouldnt open a margin account for a reason. And I can assume most don’t have a clue what it means by negative carry on futures roll. The blow up (termination event) happens again and again. In my opinion these are equally if not more criminal than most of these institution derivatives deals. I can’t believe they are still allowed to exist.
It was published in 1997, I would say most of the crazy behaviors on the trading floor had long gone. But I can still relay to some of them, for example this : “by the time bonus are paid......no matter what amount the firm actually pays them, they automatically think they have been screwed. Could a salesman who received several millions dollars really be irate?” It’s pretty funny when you have seen it so many times.
Structure product was a big engine on profit for most investment banks from the 90s to 2010s, I had a glimpse of that when I first started my career, but it died down gradually then suddenly after the financial crisis. Most people I know got fired and those who remained are much less relevant nowadays.
I would guess most of the depiction in the derivatives packaging and selling were pretty accurate. I do believe that it is often more outrageous than it seems if you do not have a deep understanding of the industry while reading an insider book. I assume it’s similar to how I felt compared to people in adtech when I read “ chaos monkey”.
However while most SP on the institution level went extinct, there are still some outrageous products in the retail space: i.e mum and pop have no business buying a curve steepener etn , or those leveraged etf, i.e a 3x tesla return etf etc. Those retail investors wouldnt open a margin account for a reason. And I can assume most don’t have a clue what it means by negative carry on futures roll. The blow up (termination event) happens again and again. In my opinion these are equally if not more criminal than most of these institution derivatives deals. I can’t believe they are still allowed to exist.
January 27, 2022
Enlightening
This really shines a light on how derivatives work. I was always mystified by the terms and how it worked day to day (who did you call? Why would someone want a derivative? How did they pay out?) I could read the definition of credit swaps and CDOs and understood the idea, but just couldn’t anchor the idea into a realistic picture of how they fit into the world of people.
I understood the risk hedging and the gambling reasons for getting derivatives but still couldn’t grasp why they were so popular. Turns out everyone was taking wild risks! Also, they served as a big work around for some financial regulations. Until this book, I really under appreciated the role of sales teams in investment banks.
If you want a day to day view into derivatives and the culture around them in the 90s, this is great. I’m pretty sure it was the same culture in the 2000s I just don’t have a book telling me so.
This really shines a light on how derivatives work. I was always mystified by the terms and how it worked day to day (who did you call? Why would someone want a derivative? How did they pay out?) I could read the definition of credit swaps and CDOs and understood the idea, but just couldn’t anchor the idea into a realistic picture of how they fit into the world of people.
I understood the risk hedging and the gambling reasons for getting derivatives but still couldn’t grasp why they were so popular. Turns out everyone was taking wild risks! Also, they served as a big work around for some financial regulations. Until this book, I really under appreciated the role of sales teams in investment banks.
If you want a day to day view into derivatives and the culture around them in the 90s, this is great. I’m pretty sure it was the same culture in the 2000s I just don’t have a book telling me so.
January 15, 2024
Not wonder this is recommended by Warren Buffet and Charles Munger. Incredibly shocking insider sneak peak of malpractices of the Wall Street firm and corruption at the federal and state government, including the senate. I’m surprised this book isn’t highly famous.
Overview: this book focuses on derivatives malpractices at Morgan Stanley in 1992-1994 by author who was a derivate trader himself. I still don’t understand complex financial terms such as derivatives, equity swap, currency swap but these are all unregulated shams and gamble at Wall Street.
Surprising fact is that how many state counties invested in this gamble officially and lost billions of dollars of tax payers money. Example: Orange County 1.5 Billion, San Diego Country 3.2 Billion.
Additionally, the book covers non-ethics trading, bad organization policies, racial discrimination, and specialization of women in the 1990s. A tough book to read and understand reality.
Overview: this book focuses on derivatives malpractices at Morgan Stanley in 1992-1994 by author who was a derivate trader himself. I still don’t understand complex financial terms such as derivatives, equity swap, currency swap but these are all unregulated shams and gamble at Wall Street.
Surprising fact is that how many state counties invested in this gamble officially and lost billions of dollars of tax payers money. Example: Orange County 1.5 Billion, San Diego Country 3.2 Billion.
Additionally, the book covers non-ethics trading, bad organization policies, racial discrimination, and specialization of women in the 1990s. A tough book to read and understand reality.
June 24, 2019
Эту книгу я нашел в рекомендациях Чарли Манжера, правой руки и мозга Баффета, относительно объяснения, почему инвестировать надо вдолгую и в акции, а не в короткую и в спекулятивные операции. По силе и яркости написания Фрэнк Партной практически повторил «Покер Лжецов» Льюиса. Книга про инвест-банки начала девяностых годов. Резкая, яркая, местами весьма едкая и откровенная.
Про что? Книга про то, как устроен рынок внебиржевых деривативов изнутри. Начинается с простой аксиомы, что раз дериватив является двусторонней сделкой, то одна сторона по нему проиграет, а другая сторона по нему выиграет. Поэтому, если инвестбанк продает деривативное решение, то он на этом зарабатывал, зарабатывает и будет зарабатывать, а другая сторона оплатит.
https://maxlapin.com/2019/06/07/b210/
Про что? Книга про то, как устроен рынок внебиржевых деривативов изнутри. Начинается с простой аксиомы, что раз дериватив является двусторонней сделкой, то одна сторона по нему проиграет, а другая сторона по нему выиграет. Поэтому, если инвестбанк продает деривативное решение, то он на этом зарабатывал, зарабатывает и будет зарабатывать, а другая сторона оплатит.
https://maxlapin.com/2019/06/07/b210/
February 16, 2020
Background:
- Insider account of derivatives product group at Morgan Stanley. Really well written. Great narrative. Not too technical.
- Picked it up as it was recommended by Charlie Munger.
Thoughts:
- The best book I've read on understanding derivatives on Wall Street. Many alarm bells sounded in this book eventually lead to the 2008 subprime crisis.
- Written in a really entertaining manner. Made it feel very personal.
- Story about Japanese MX trade blew my mind. Corruption is so rampant in so many banks. Regulators should really be monitoring derivatives more closely.
Fav Quote:
- "The best piece of advice I ever received was from one manager who suggested I could become an expert in emerging markets simply by telling everyone I was an expert in emerging markets"
- Insider account of derivatives product group at Morgan Stanley. Really well written. Great narrative. Not too technical.
- Picked it up as it was recommended by Charlie Munger.
Thoughts:
- The best book I've read on understanding derivatives on Wall Street. Many alarm bells sounded in this book eventually lead to the 2008 subprime crisis.
- Written in a really entertaining manner. Made it feel very personal.
- Story about Japanese MX trade blew my mind. Corruption is so rampant in so many banks. Regulators should really be monitoring derivatives more closely.
Fav Quote:
- "The best piece of advice I ever received was from one manager who suggested I could become an expert in emerging markets simply by telling everyone I was an expert in emerging markets"
July 20, 2017
Fiasco is captivating in its honest portrayel of derivatives and other packages positioned to earn the most commission for the broker. The story was as entertaining as it was informative. The approach of the author was almost as though he himself were a bystander, without any ability to decide whether he was capable of stopping the giant snowball careening down the mountain. Without giving anything away, I would like to sum up by saying I will personally not use much of the information gleaned in my day to day life, but I am much more aware of the possibility not everything shown to the client in an investment situation actually fully benefits the client.
December 28, 2017
The author strikes me as wise.
I like his summary of the history of finance: “Wall Street bilks Main Street.”
Wall Street seems to attract people for whom wealth accumulation trumps all other goals. What does that look like, specifically? The books does a good job bringing that to life.
A background in basic finance helps a great deal. The majority of content is not the sordid stories of unbridled “fun”. Rather the book details specific financial structures and how they make money or give the client the paper profit they seek, especially the Japanese clients of the mid 90’s.
I like his summary of the history of finance: “Wall Street bilks Main Street.”
Wall Street seems to attract people for whom wealth accumulation trumps all other goals. What does that look like, specifically? The books does a good job bringing that to life.
A background in basic finance helps a great deal. The majority of content is not the sordid stories of unbridled “fun”. Rather the book details specific financial structures and how they make money or give the client the paper profit they seek, especially the Japanese clients of the mid 90’s.
December 9, 2019
A pretty heavy read but worth it
I started reading this at the recommendation of a friend and it didn't disappoint. The book answered a lot of my questions about what is what in derivatives and how they led to the 2008 housing market collapse.
The book can get pretty heavy with the jargon and how things works, largely due to my lack of financial background but it's still a really good read. Totally worth a read just to get an idea of how not taking something for granted in finance can make it easier for others to "rip off your face".
I started reading this at the recommendation of a friend and it didn't disappoint. The book answered a lot of my questions about what is what in derivatives and how they led to the 2008 housing market collapse.
The book can get pretty heavy with the jargon and how things works, largely due to my lack of financial background but it's still a really good read. Totally worth a read just to get an idea of how not taking something for granted in finance can make it easier for others to "rip off your face".
September 7, 2017
I worked in an equity derivatives group in Wall Street for 25 years. I bought this book in 1999 or so, and am just getting around to reading it now. It accurately captures the tone and atmosphere of being on a derivatives trading floor. The products described are all familiar and authentic. If you want a sliver of what it is like to work in such an environment, read this book. The only thing that has changed in the last 20 years is the level of government regulation.
March 18, 2021
A deep dive into the shady casino that wall st really is. This book could be the prequel to "The Big Short."
Back in the 90s the author notes that the dertivatives market was 55 Trillion (in 1996), which was 10X the national debt at the time.
Now in 2021 the debt is 27 Trillion, and derivatives market is 100x that!
The majority of derivates don't add any real value to society, only system risk of collapse.
The global financial markets are just a big casino for wall st speculators.
Back in the 90s the author notes that the dertivatives market was 55 Trillion (in 1996), which was 10X the national debt at the time.
Now in 2021 the debt is 27 Trillion, and derivatives market is 100x that!
The majority of derivates don't add any real value to society, only system risk of collapse.
The global financial markets are just a big casino for wall st speculators.
January 23, 2022
A book that is interesting to read and well written. Consist of Stories what goes inside wall-street and dark under belly converting junk toxic stuff to AAA rated products required pensions funds and other customers.
An interesting read would recommend. Also one of the book recommended by Charlie Munger.
Post this it makes sense why derivatives are called weapon of mass destruction by buffet.
An interesting read would recommend. Also one of the book recommended by Charlie Munger.
Post this it makes sense why derivatives are called weapon of mass destruction by buffet.
October 8, 2018
Really good read to know how big players manipulated everything to fill their pockets. Quite detailed information on different events and culture of wall Street. It becomes repetitive after some chapters though.
December 11, 2019
I've read several of his other books - he's a professor of law and economics but writes in a less technical level in this book than his scholarly papers. And actually, his scholarly papers are quite readable for scholarly papers.
December 27, 2019
Former wall st banker outlines all the issues and moral qualms he experienced during his time selling derivatives at Morgan Stanley. Gives breakdowns about how investment banking works and who stands to lose the most money.
May 26, 2020
Fantastic read uncovering the origins of derivatives trading on Wall Street. Frank has a unique since of humor that pulls the book along and keeps you laughing. If you enjoyed Wolf of Wallstreet, you’ll devour this.
March 23, 2021
A fascinating look at MS & Wall Street during the 1990s. And Partnoy is pretty gifted at explaining the more advanced concepts in a simple manner. So crazy that this was written 13 years before the 08 crisis!
August 19, 2023
A perpetual truth
Slightly hyperbolic, but a compelling and quick reading view into the (im)morality of Wall Street. A predecessor to The Big Shot and the Michael Lewis genre as a whole. Oddly accurate to the present day issues with the global financial structure.
Slightly hyperbolic, but a compelling and quick reading view into the (im)morality of Wall Street. A predecessor to The Big Shot and the Michael Lewis genre as a whole. Oddly accurate to the present day issues with the global financial structure.
October 14, 2017
Easy read. Another book highlighting the greed of investment banks, the misuse of derivatives and the power of vested interests to ensure no adequate regulation is imposed.
January 15, 2018
Interesting, yet very much of its time. Plus, I remain thoroughly ignorant of how many of the deals worked, despite concentrating extremely hard.
December 28, 2018
It's not the first book I read on the subject. What Frank Partnoy does differently is explaining into the details how certain deals were made. A lot of things sounded very familiar to me.
April 15, 2019
An amazing insider look into how finance sales teams work. This book makes clear that derivatives are nuclear time bombs and should be treated as such - although few investors do.
Displaying 1 - 30 of 88 reviews