Fraud in the Markets Why It Happens and How to Fight It

by Goldmann, Peter

• ISBN13: 9780470507896
• ISBN10: 0470507896
• Edition: 1st
• Format: Hardcover
• Copyright: 2010-03-22
• Publisher: Wiley

Summary

A dramatic look at fraud's role in our financial markets-and how you can protect yourselfFraud In the Markets reveals the critical role fraud played in the global financial crisis-even as many of the perpetrators continue to go unpunished. Shedding light on the reckless conduct of the former senior executives at major Wall Street firms such as Lehman Brothers, Bear Stearns, Merrill Lynch and others just before their collapse, this timely book shows how the culture of "anything goes" on Wall Street fueled the innovation of exotic but deadly asset-backed securities.A frank insider look at the most dramatic economic and business headlines in recent memory, you will find revealing discussion of The egregiously fraudulent lending practices that engulfed the entire US mortgage industry The brazenly deceptive marketing of asset-backed securities A road map to prevent similar disasters from recurringFraud in the Markets offers forward-looking advice, with practical guidelines for protecting yourself and your company from various forms of fraud that were found to have played a role in the current economic and financial crisis.

Author Biography

Peter D. Goldmann is founder and President of White-Collar Crime 101 LLC, the parent company of FraudAware and publisher of the monthly newsletter, White-Collar Crime Fighter. Peter has been the Publisher and Editor of White-Collar Crime Fighter for over twelve years and is recognized as a leading expert in the areas of fraud detection, prevention, investigation, and training. He has written numerous articles on practical approaches to fraud prevention and detection for, among others, Internal Auditor, Investor's Business Daily, the Fraud Examiner and Bottom Line/Personal. He speaks¿at events sponsored by the Association of Certified Fraud Examiners, the International Association of Financial Crimes Investigators, and numerous industry trade associations. He is also a member of the Editorial Advisory Board of the Association of Certified Fraud Examiners.

Table of Contents

Preface	p. xi
Acknowledgments	p. xv
Introduction: A Brief History of Fraud in Financial Markets	p. xvii
Banking Fraud in the Early Days	p. xvii
Market-Building by Morgan	p. xxi
Flim Flam Finance	p. xxii
Savings and Loan Fraud Follies	p. xxvi
Beginning of the End	p. xxvii
Off to the Races	p. xxx
The Fraud Culture	p. 1
I Wanna Be Rich	p. 2
The Spread of Ethical Erosion	p. 4
What It All Means	p. 6
How We Got Here	p. 9
The Evolving Shapes of Fraud	p. 10
Pressure, Opportunity, and Rationalization on Wall Street	p. 16
A Triangle or a Diamond?	p. 23
A Fraud Pentagon?	p. 24
The Politics of Banking Fraud	p. 27
Politics and Regulation	p. 27
Antebellum Banking	p. 28
Early Due Diligence	p. 31
Central Banking: The Drive Is Revived	p. 34
Enter the ABA	p. 35
The Warburg Factor	p. 36
Financial Regulation Today	p. 39
What If?	p. 41
Is Regulation Here to Stay?	p. 46
Modern Day Financial Services Fraud (1980-2010)	p. 51
The Fraud Culture and Today's Frauds	p. 52
The "Milken/Boesky" Era	p. 53
Fancy Financing Foments More Fraud	p. 56
The Ignominious Birth of "Pay for Performance"	p. 62
Risky...Riskier...	p. 65
A Deluge of Derivatives	p. 76
The Good Side of CDSs	p. 77
Shortening Memories	p. 80
Enron et al.	p. 84
Reform, Re-Regulation, and the Persistence of Fraud	p. 91
Better Antifraud Controls	p. 92
Beyond Financial Reporting Fraud	p. 95
Regulation and Legislation	p. 110
More Aggressive Action Needed	p. 111
The Real Estate Bubble and Bust: The Fraud Factor	p. 115
How Did It Get So Bad?	p. 117
Subprime Mortgages: Licenses to Steal	p. 123
Who Is Subprime?	p. 125
Going for Broke(r)	p. 130
The Makings of a Meltdown	p. 137
Other Fraud-for-Profit Schemes	p. 141
Greed Grows and Fraud Follows	p. 142
Fraud-for-Property Schemes	p. 146
The Role (or Not) of Predatory Lending	p. 147
Beginning of the End: Death by Derivatives	p. 161
Playing with Fire	p. 162
Chaos out of Order	p. 164
Anatomy of a Subprime Deal	p. 168
The Fine Art of Business Deception	p. 171
Bankers Go with the Flow-Into the Tank	p. 172
Hard Money	p. 183
And Then There is AIG	p. 190
How "Toxic" Securities Ended Up in So Many Investor Portfolios	p. 195
Rating Agency Deception Redux	p. 198
And So, The End Begins	p. 201
Can the Circle Be Bpoken?	p. 205
So What Now?	p. 207
Critical Reform Issues	p. 208
Policing, Policy, and Propriety	p. 220
About the Author	p. 223
Index	p. 225
Table of Contents provided by Ingram. All Rights Reserved.