Uncontrolled Risk: Lessons of Lehman Brothers and How Systemic Risk Can Still Bring Down the World Financial SystemWhy was Lehman ignored when everyone else was bailed out? A risk advisor for top financial institutions and top B-school professor, Mark Williams explains how uncontrolled risk toppled a 158-year-old institution, using this story as a microcosm to illuminate the interconnection of the global financial system, as well as broader policy implications. This story is told through the eyes of an experienced risk manager and educator in a detailed and engaging way and provides the reader with a complete summary of how a savvy company with sophisticated employees and systems could have gotten it so wrong. |
Contents
| 1 | |
| 9 | |
Chapter 3 From Private to Public | 23 |
Chapter 4 History of Investment Banking | 31 |
Chapter 5 How the Investment Banking Money Machine Works | 45 |
Chapter 6 The RollerCoaster 1980s | 57 |
Rebuilding Years | 67 |
Chapter 8 Lehmans NearDeath Experience | 77 |
Chapter 11 The Real Estate Bet and the Race to the Bottom | 117 |
Chapter 12 The Bear Mauling | 137 |
Chapter 13 Time Runs Out | 149 |
Chapter 14 The Death of Lehman Regulation and Investment Banking | 165 |
Chapter 15 The Enablers and the Deciders | 185 |
The PostLehman Financial Landscape | 211 |
Lehman Chronology 18452010 | 221 |
Notes | 231 |
Chapter 9 Innovation Imitation and Increased Risk | 91 |
Chapter 10 Lehmans Risk Management | 105 |
Index | 241 |
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Uncontrolled Risk: Lessons of Lehman Brothers and How Systemic Risk Can ... Mark Williams No preview available - 2010 |
Common terms and phrases
activities American Express assets bankers Bear Stearns Bear’s began bets billion borrowers buyers cash Cayne CMOs collateral commercial banks Committee corporate cotton created Credit Crisis credit rating agencies debt decade default Dick Fuld earnings economy employees equity Fannie Mae Fed’s Federal Reserve fees firm capital firm’s fixed-income Freddie Mac Fuld’s Geithner Glass-Steagall Act global Glucksman Goldman Sachs hedge funds House increased industry interest rates investment banks investors J.P. Morgan junk bonds largest Lehman bankruptcy Lehman Brothers Lehman stock lenders lending leverage ratio loans losses LTCM Mac and Fannie ment Merrill Lynch Moody’s Morgan Stanley mortgage-backed securities needed ofthe oversight partners Paulson percent Pettit profit regulation regulatory rescue residential revenue risk management risk taking risk-taking risky role rumors S&Ls Salomon Brothers securitization sell September shareholders Shearson Lehman short-selling sold strategy subprime systemic risk trading underwriting Wall Street