You know the saying: There's no time like the present...unless you're looking for a distraction from the current moment. He manages to interest me in a varied cast of characters and deal with some weighty subjects with a light touch, with no pretension. I'm struggling to remember which book this was linked to as a recommendation, but the idea of an old-school bank being on the verge of collapse seemed appealing. He’s no longer current. However, this has not been very productive as it is still being discussed at G8 and G20 meetings.

I liked it, but didn't love it.

Kay's big theme is that the banking/financial sector has lost sight of its purpose in actually providing something valuable to the real economy; in its modern manifestation, it instead mostly serves to shift around assets for its own enrichment. Spam Free: Your email is never shared with anyone; opt out any time. Have too much to read?

John Kay, economist and Financial Times columnist, asks in his book Other People’s Money why financial services are so profitable: “Common sense suggests that if a closed circle of people continuously exchange bits of paper with each other, the total value of these bits of paper will not change much, if at all. It’s hard to see what else would happen when banks are run by corporations, because the executives of those corporations won’t be as careful with their decisions. We’ve scoured the Internet for the very best videos on Other People’s Money, from high-quality videos summaries to interviews or commentary by John Kay. There’s also a disconnect between some parts of the financial industry and other sectors within it. Regulators lifted restrictions on banks in the mid-1980s, which led to the repeal of Glass-Steagall in 1999. Who might you ask is Spears? I don't think I picked up much that I didn't already know. Then came the 2007 sub-prime crisis, the Lehman Brothers collapse of 2008 and the 2009 recession.

Shortform has the world’s best summaries of nonfiction books and articles. We’d love your help. The book is a deep reflection on the role of finance in the economy and society at large – what it is meant to be, what it has become, and how we can bridge the gap between the two.

The financial talk is in no way over-the-top, the reader can follow the details without much background knowledge. I have also found out via Google that this book has just won the Novel of the Year in the Spear's 3rd Annual Book Awards. The book attacked the use of investment funds to promote the consolidation of various industries under the control of a small number of corporations, which Brandeis alleged were working in concert to prevent competition.

Regulators should not try to prevent these failures but instead contain the damage from them by limiting the risk taken by banks and other financial institutions. Other People’s Money details the decline of one of England’s oldest banks. In that case, we can't... To see what your friends thought of this book. The company's hedge fund now owns innumerable toxic assets, and Julian fears what will happen when their real value is discovered. But more sophisticated quantitative methods have since proved profitable for some since the 1970s’ creation of derivative markets and the related mathematics.

In order to prevent another financial crisis, we should protect people’s savings deposits and keep them off-limits from banks. John Kay is plainly an angry man.

I’ve been a fan of Justin Cartwright for some years. Another word that’s used a lot is “regulations.” People often say there weren’t any regulations, but in fact, there were many. Reader Reviews. Be the first to ask a question about Other People's Money.

They require the production of large quantities of data on how the market functions for traders rather than how it delivers benefits to customers and the broader economy. It also makes insurance possible, giving people a chance to protect themselves from disasters or emergencies, as well as allowing them to organize their personal assets so that they can pass them along. And, of course, that is, itself, part of the problem - those close to, courted by or reporting on The City can often be seduced by the glamour and money of those vested interests. In most cases, the reviews are necessarily limited to those that were available to us ahead of publication. September 22nd 2015 In Other People’s Money, Sharon Ann Murphy explains how banking and money worked before the federal government, spurred by the chaos of the Civil War, created the national system of US paper currency.

Well worth a read.

Furthermore, risk management specialists are not respected by traders because they’re seen as an obstacle to profit. (The most memorable was the "parable of the ox" right upfront in the prologue). Search String: Summary | The introductory chapter of my latest book "Other People's Money: Masters of the Universe or Servants of the People?"

They will take more risks and they won’t have any personal attachment to the money they’re using. As the company's longtime leader, Sir Harry Tubal, slips into senility, his son Julian takes over the reins - and not all is well. This means changing the financial sector so that professionals are not tempted to act in their own self-interest over clients’. The notion that one might understand society better through the ap.

It's other people's money when they screw up, but they are quick to shout "mine!" This would keep people’s life savings safe in the event of another major collapse, and it would also help reduce the likelihood that greedy traders at a bank will take on high-risk transactions.
I'll send you notes on entrepreneurship and summaries of the best books I'm reading. Artair Macleod, an actor manager whose ex-wife, Fleur, was all but stolen by Sir Harry, discovers that his company's monthly grant has not been paid by Tubal. The complexity of institutions—not just their size—made them weak.

Kay's big theme is that the banking/financial sector has lost sight of its purpose in actually providing something valuable to the real economy; in its modern manifestation, it instead mostly serves to shift around assets for its own enrichment. Shifting points of view tell three intersecting stories: that of a venerable London bank, family owned and scrambling to cover up a hedge fund debacle, a delusional Cornish actor and theater company owner who depends on a yearly grant set up by the bank's patriarchal head, and a young reporter in the same Cornwall town, who receives an anonymous tip that could cause a national financial scandal. For example, Lehman Brothers wasn’t that important by itself, but its 200-plus subsidiaries and nearly one million outstanding transactions with other firms made it a hazard for the whole sector. His fury is directed at the financial profession, and its greed, manipulation, dishonesty and numerous other sins that Mr Kay believes have led to bringing capitalism close to collapse. Conflicts of interest and a fiduciary responsibility would end the present investment banking business model.

Also because individuals rarely if ever see legal consequences or punishment. The notion that one might understand society better through the application of rigorous and logical analysis excited me – and it still does. I went to the University of Edinburgh to study mathematics.