Introduction: The Siren Song of the Men Who Love to Win
ONEThe Bets That Made Banking Sexy
 Introduction to derivatives. Long-term actuarial approach versus the market approach to credit. Goldman Sachs sees opportunity in default swaps. The market approach vindicated by Enron’s bankruptcy.
TWOGoing to the Mattresses
 The advent of VAR and OTC derivatives. The collapse of Long-Term Capital Management (LTCM). A fatal flaw is exposed. The wrong lesson is learned.
THREEA Free Lunch . . . with Processed Food
 A new market for collaterized debt obligations (CDOs). Risky investments, diversification, and the role of the ratings agencies. Barclays finds investors for its CDOs, only to fall out with them.
FOURThe Broken Heart ...

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