25 books like The Spider Network

As everyone knows at this point, anything Michael Lewis writes will be enormous fun to read, while being about something really important—something he’ll make you care about even if you didn’t when you started the book.

In this case, the subject is people who bet on the direction of mortgages (and thus, house prices), and how those who bet on a huge plunge were right. This book has an amazing cast of characters, all richly drawn: some are smart, some are not so smart; some are excellent schmoozers, some can barely tolerate human interaction; some care a lot about money, some care more about being right, especially if everyone else is wrong.

Each book I've recommended cries out to be made into a movie. This one actually was.

This is a beautifully written story about bankers who rise, and fall spectacularly – into crime, in this case insider trading, with the loss of money, status, and prestige that followed.

What’s particularly fascinating is the historical, ethnic, and sociological backdrop. The book begins with a scene in which Indian-born Rajat Gupta, having come to the US and ascended to the highest echelons of the US business world, was attending a White House dinner for India’s Prime Minister.

The book ends as some people who had been on top are dealing with the aftermath of trials that went very badly for them. The word “Shakespearean” has been used to describe this book, and aptly so.

No, this book is not by John Coates the corporate law professor. It's by another John Coates, who was a Wall Street trader and became a neuroscientist (!).

The descriptions of the physiology of risk-taking are not only fascinating in their own right but also deeply intuitive, and should be of enormous help to regulators trying to address banker misbehavior. They give the lie to the idea that simple stories—people are good or bad! It’s all about incentives!—can do a good job in explaining what happened.

This book makes clear that we have to understand the role of biology as well. People can’t just turn their risk-taking tendencies and reactions on and off at will. We’ve seen what happens when banks and regulators don’t take that into account.    

This book is a wry look at investment banking from the inside. The author, a banker and professor school professor, provides a rich and entertaining perspective on banks and bankers.  

The book captures an era when banks were changing dramatically, and, some might say, were getting less genteel. The author is really gifted at conjuring up and caricaturing some of banking’s pathologies.

I particularly loved the culminatory line in an account of junior analysts’ jobs in preparing “pitch books” – the analysts had to tout the bank’s “number one” status, and, scrambling to find something the bank was number one in, might fantasize about saying “We have 100% market share of all deals we did.”  

Out of all the investigative reporting that emerged from the 2008 financial meltdown, Henriques’ account of the scheme that out-Ponzied Ponzi is the book that stays with me.

The Madoff story is about brazen lies and insatiable greed, to be sure, but Henriques’ approach is nuanced, thorough, yet accessible, showing the complacency (one might say complicity) of investors and regulators, dazzled or cowed by Madoff’s magic.

How do you pull off a $65 billion scam? With a lot of help. 

The previous books I recommended are theory books written by prominent psychologists, laying out different views of the many psychological forces that can lead even the best-intentioned people to make moral mistakes. This book in many ways is a validation of those books’ theories.

Harvard Business School professor Eugene Soltes was curious about the key question: “Why do good people do bad things?” He developed relationships with many of the high-profile, white-collar criminals of the Enron-era scandals, such as Dennis Kozlowski of Tyco and Andy Fastow of Enron.

As I read these white-collar criminals’ explanations of why they had committed their crimes, I saw concrete examples of the behavioral ethics theories spelled out in the other books I’ve recommended. These were all good, successful people, family men (yes, they were virtually all men) who found themselves in jail. The explanations they give mirror many of those theories.

The book’s massive length is equivalent to about four modern novels, but it remains a fascinating read—even if I found few of the characters to be truly likable.

Like the Victorians themselves, Trollope’s writing style feels to me both old-fashioned and modern at the same time. To read this work today is to discover many similarities between their “now” (circa 1875) and ours.

Some things never change, including the chase for money and status, the societal traditions and prejudices that can be hard to overcome, and the ways lust and greed can upend just about any of our better human impulses.

I picked this novel for this list because it makes an interesting contrast to North and South, and not just because they deal with different levels of society (working class vs. “genteel”).

In Gaskell’s book, most of the characters are searching for moral high ground as they try to… show more.

A mysterious, melancholy narrative translated from French is rendered in stripped-down sentences, following a novelist, Mia, after a death in the family. The subsequent plot of subterfuge and corporate crime is so full and busy with knotty, overly complex occurrences that it begins to seem a deliberate distortion and exaggeration of the convention of plot itself. Through the character of Mia, the gifted Redonnet reports tragic and powerful occurrences in flat, clear prose that packs emotion just under the surface of the affectless sentences. The word “Candy” recurs hauntingly through the novel: as a song title, as the name of a character in a show, and as the name that Mia’s lovers call her. This slight novel leaves searing traces of emotional impact long after you read it.

Partnoy, a distinguished law professor at Berkeley, is a brilliant chronicler of the people and products in modern financial markets. One could read any of his books and say they were among the best ones on the market and corporate chicanery. But I love his first book, in which he tells the tale of his brief time trading derivatives—back in the very early days of those now world-famous products—among the unsavory characters of a Wall Street trading floor. The story has been told by others since (Wolf of Wall Street, Big Short, etc.) but Partnoy may have done it first. And seeing that world through his young, brilliant, and impressionistic eyes is wonderful. His firm tried to block him from publishing the book, but he did it and has gone on to a magnificent academic career in which he continues to tell it like it is, understanding the… show more.

Cohen offers a comprehensive sweep of the financial and non-financial consequences of criminal behavior, crime prevention, and society’s response to crime, public and private.  

Crime costs are far-reaching, including medical costs, lost wages, property damage, pain and suffering, and reduced quality of life for victims and the public at large, as well as public expenditures on police, courts, and prisons, and the costs borne by offenders and their families, who often suffer consequences apart from the punishments they receive for committing crime.