Why am I passionate about this?
There’s something clinical and yet human about big financial crises, especially those that involve some kind of trickery or fraud. I’ve always been fascinated by this dark side of the world of money, and have been fortunate enough in my career to have had ring-side seats at a few such events in rich and poor countries. Fraud is not at the heart of the “social contrivance of money” but the monetary system is built on an edifice of trust that can all too easily be abused by scammers. From these episodes, we can learn a lot about people, credit, and society’s ways of protecting itself.
Patrick's book list on big financial scams
Why did Patrick love this book?
From my reading of Frank Partnoy’s book, I get the impression that Swedish celebrity financier Ivar Kreuger did really start out as a skillful and legitimate businessman, negotiating exclusive rights to sell matches in a range of central and Eastern European countries in the 1920s and early 1930s.
But, as so often happens, when business became more difficult in the 1930s, his elaborate financial activities gradually morphed into recklessness and fraud.
1 author picked The Match King as one of their favorite books, and they share why you should read it.
At the height of the roaring '20s, Swedish emigre Ivar Kreuger made a fortune raising money in America and loaning it to Europe in exchange for matchstick monopolies. His enterprise was a rare success story throughout the Great Depression. Yet after his suicide in 1932, it became clear that Kreuger was not all he seemed: evidence surfaced of fudged accounting figures, off-balance-sheet accounting, even forgery. He created a raft of innovative financial products, many of them precursors to instruments wreaking havoc in today's markets. In this gripping financial biography, Frank Partnoy recasts the life story of a remarkable yet forgotten…