Frank Partnoy on Derivatives
posted by Deven Desai
Lawrence has done some great work on helping us understand the wild world of corporate law and finance. Today, another law professor has some insights about what is going on. Frank Partnoy is featured on Fresh Air. You can listen to the talk at the site, and it has a good excerpt from the afterword to Frank’s book, FIASCO: Blood In The Water On Wall Street’ which has just been re-issued in paperback.
Here is a fun quote:
I thought Greenspan’s laissez-faire zealotry clouded his judgment, and I said so publicly (not that he cared, or even heard). He saw no reason for any legal rules to govern the markets. Greenspan even boasted that there was no need for rules prohibiting fraud, because the markets inevitably would discover it. According to Greenspan, market competition alone, without any regulation, was sufficient, because no one would do business with someone who had a reputation for engaging in fraud. To me, Greenspan sounded a lot like Morgan Stanley’s public relations department.
Frank also has a new book The Match King: Ivar Kreuger, The Financial Genius Behind a Century of Wall Street Scandals coming out on April 29.