House of Cards by William D Cohan
House of Cards by William D Cohan
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Friday, 05, Mar 2010 03:39
By Julia Ross
Penguin, out now.
In a nutshell.
The Credit Crunch; where it all started
What's it all about?
House of Cards was first published in March 2009 and catalogues events which took place a year earlier; namely the ten eventful days in March 2008, which culminated in the collapse of global investment bank Bear Stearns. Though dramatically overshadowed by the subsequent fall of Lehman Brothers and the sale Merryll Lynch, it was this precursive event, which ultimately shaped the entire credit crunch.
When studied as an isolated example, as Cohen tries to illustrate, the aggressive culture and reckless business practices employed within the bank also serve as a microcosm for the wider problems which have often been blamed as a major factor in the entire crisis.
Interviewing more than 120 people at the heart of the bank's collapse, Cohen sets out a detailed analysis of what exactly went wrong at Bear Stearns, within the context of the market as a whole; combining complex economic principles with engaging characters studies and a novelistic momentum as events unfold.
Who's it by?
William D Cohan is a former senior investment banker turned financial journalist. He won the 2007 Financial Times/Goldman Sachs Business Book of the Year Award for his first novel The Last Tycoons; the story of Lazard Freres, his former employer.
As an example.
"It was a team effort. We all f****d up. Government. Rating agencies. Wall Street. Commercial banks. Regulators. Investors. Everybody." - (A quotation taken directly from Alan Schwartz , Bear's former chief executive.)
Likelihood of Becoming the next Hollywood Blockbuster
House of Cards possesses major cross over appeal for those who would not generally read a non-fictional text about economics. The Credit Crunch and the bankers that caused it continues to capture the public imagination; compared as it often is to a modern day morality tale. Engaging as House of Cards is however, it is never going to be the text which brings the crisis onto the big screens; that would be something somewhere between Fahrenheit 9/11 and American Psycho.
What the others say
"House of Cards does not reach the very high standard set by Cohan in his
previous book, The Last Tycoons.. it was written at speed, in the midst of a very fast-moving situation, and some of the impact has drained away." - Ruth Sutherland, The Observer.
"A riveting, blow-by-blow account." - The Economist
So is it any good?
House of Cards is a considered and highly readable exploration of the early stages of a crisis which subsequently escalated to unforeseen proportions. The real strength of the narrative, is the way in Cohan brings out the human element in the crisis without dumbing down the economic and political analysis which brings everything together. His depiction of the aggressive, testosterone-filled environment homes in on the three 'Alpha males' behind Bear Stearns; Cy Lewis, Ace Greenberg and Jimmy Cayne in a way which is comparable to accounts of powerplay within the Third Reich. At the same time, it remains at all times relevant and balanced through Cohan's measured and thorough style of argument.
With a superior understanding of the subject matter heightened by his own personal insight, Cohan effectively ties the cultural factors into the business decisions made within the banking hierarchy. At the same time, he remains reasoned at all times, avoiding any danger of reductive or overly subjective approach.
Despite the haste of Cohen's initial account of the crisis however, it remains a strong and highly relevant text.
7/10