Uncontrolled Risk: Lessons of Lehman Brothers and How Systemic Risk Can Still Bring Down the World Financial System April 8, 2010

Uncontrolled Risk:
Lessons of Lehman Brothers and How Systemic Risk Can Still Bring Down the World Financial System

Author: Williams, Mark
ISBN-13: 978-0-07-163829-6
ISBN-10: 0071638296
©2010 | 1st Edition | 256 pages , Hardcover
Pub Date: March 2010
Price: US$ 27.95
Author’s Website | Author’s Interview | Sample Chapter | Learn More

The risk taking behind Wall Street’s largest bankruptcy . . .

In this dramatic and compelling account of Lehman Brothers’ spectacular rise and fall, author Mark T. Williams explains how uncontrolled risk toppled a 158-year-old institution—and what it says about Wall Street, Washington, D.C., and the world financial system. A former trading floor executive and Fed bank examiner, Williams sees Lehman’s 2008 collapse as a microcosm of the industry—a worst-case scenario of smart decisions, stupid mistakes, ignored warnings, and important lessons in money, power, and policy that affect us all. This book reveals:

• The Congressional inquisition of disgraced CEO Dick Fuld: Did he really deserve it?
• How the investment-banking money machine broke down: Can it be fixed?
• The key drivers that caused the financial meltdown: Can lessons be learned from them?
• The wild risk taking denounced by President Obama: Is Washington to blame, too?
• The ongoing debate on reform and regulation: Can meaningful reform avert another financial catastrophe?

This fascinating account traces Lehman’s history from its humble beginnings in 1850 to its collapse in 2008. Lehman’s story exemplifies the everchanging trends in finance—from investment vehicles to federal policies—and exposes the danger and infectious nature of uncontrolled risk.

Drawing upon first-person interviews with risk management experts and former Lehman employees, Williams provides more than just a frontline report: it’s a call to action for Wall Street bankers, Washington policymakers, and U.S. citizens—a living lesson in risk management on which to build a stronger fi nancial future. Williams provides a tenpoint plan to implement today—so another Lehman doesn’t collapse tomorrow.

Includes a ten-point plan to ensure a strong financial future for both Wall Street and Main Street

About the Author

Mark T. Williams is a nationally recognized risk management expert in the field of banking. Since 2002, Mark has been on the Finance and Economics faculty at Boston University where he teaches courses in risk management, economic activity and capital markets. He holds the academic rank of Executive-in-Residence/Master Lecturer. He also consults with major banking institutions.

Prior to Boston University, Mark held positions in banking, as a Federal Reserve Bank examiner and as a senior executive for a major trading company. Frequently he is asked by media to provide thought leadership on financial risk management related matters.

Since 1997, Mark has resided with his wife and two daughters in Newton, Massachusetts. He is an avid bike rider, and commutes to Boston University from his home year round.

Mark T. Williams introduces his latest book, about the financial market debacle and Lehman Brothers.

Table of Contents

1. The Inquisition
2. Lehman: From Humble Roots to Wall Street Contender
3. From Private to Public
4. History of Investment Banking
5. How the Investment Banking Money Machine Works
6. The Roller-Coaster 1980s
7. The 1990s: Rebuilding Years
8. Lehman’s Near Death Experience
9. Innovation, Imitation and Increased Risk: Mortgage-Backed Securities
10. Lehman’s Risk Management
11. The Real Estate Bet and the Race to the Bottom
12. The Bear Mauling
13. Time Runs Out
14. The Death of Lehman, Regulation, and Investment Banking
15. The Eneablers and the Deciders

Epilogue: The Post-Lehman Financial Landscape

Appendix: Lehman Brothers Chronology of Key Events