I am a big fan of this book , it was written well before the financial crisis but was well clear enough to describe how the wall street operates. I love to re read some of the books from my shelf and Infectious greed is one of them. Well Infectious greed in a great book to read, the author of the book is Frank Partnoy who has also written FIASCO : Blood in the water on Wall Street.
Infectious greed consists of great literature on the financial engineering, financial innovation focused on structural finance and of course the misuse of the derivatives over the time by the street smart bankers. The Book insist on how the Financial market was polluted by the various exotic instruments, which were introduced with the hope of making market efficient. The concept of efficient market was also challenged in the 1990’s and even in the previous market disasters.
The Book is a great read focusing on the traders like Andy Krieger, legends like John Meriwether and Paul Mozer Krieger, high-profile collapses such as Barings bank (Nick Leeson) and LTCM Long term Capital Management . The book documents how each level of financial risk, loss of control and complexity obscured the sickness of companies in question and pushed individuals to ever more ingenious deceptions.
Mr Partony did offers a clear vision of how the financial market reached at epidemic stage and how the control could be regained before further damage is done. The book was published before the SUBPRIME MESS which has changed the whole scenario of the financial market and the risk management control of the financial institutions.