Chapter 19
Ten of the Biggest Debacles in Investment Banking History
In This Chapter
Seeing where investment bankers have suffered some big black eyes
Finding out how mistakes lead to blunders that hurt investors and the financial markets
Grasping how investment bankers can feed into manias that end badly
Recalling lessons learned from big investment banking mistakes
Investment bankers are supposed to be among the smartest people in the room. Many have trained at the top business schools, hired at high salaries, and live a life of great access to not only capital but knowledge.
But despite their collective brainpower, along with the talent and tools available to investment bankers, the industry has suffered some of the most egregious blunders ever witnessed in modern business. Because investment banking operations are so tightly woven with the financial system, even a minor misstep can have major ripple effects through the entire economy. A bad bet by an investment bank on an obscure financial instrument tied to home loans in Alabama can flow through the system and cause an investor ...
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