The dog in the night time

Revision as of 13:43, 28 January 2019 by Amwelladmin (talk | contribs)

Podcast idea - look at unusual anomalies in the markets and ask why they persist

Categories

Fraudsters

what are the red-flags that an out and out fraud, pyramid, ponzi scheme is going on? are there some consistent themes?

Theories:

  • Over-reliance on regulators: we imagine regulators/rating agencies are better resourced, more powerful and more talented than they are. - assumed the SEC was doing its job
  • Credibility: Connection to well-regarded community pillars - If George Schultz is on the board the company must be legit, right? We imagine community pillars have done their due diligence on our behalf?
  • Interconnectedness of red-flags
  • Belief in paradigm shift as part of the story: We’ve banished risk. The internet has changed economics forever
  • Micromanager: Single person unusually able to influence/control the narrative
  • Cult of personality: single svengali
  • Secrecy: Insistence on confidentiality not just of unannounced plans but of entire operation. Black box operations.
  • High turnover: Especially when combined with confidentiality. Workplace bullying etc.
  • Hostility: combative/aggressive demeanour to criticism
  • No errors: no screw ups, no bad launches: everything is fine. Real companies have setbacks. Especially if defended with hostility - e.g., you threaten to ruin EVERYTHING with your questions.

With all the checks and balances in financial regulation, how did:

  • Bernie Madoff get away with it? - Author Harry Markopoulous
  • Nick Leeson
  • Theranos
  • Enron
  • Dot com bust
  • CDOs
  • Libor - Anthony Browne

Does regulation work? - Netting - Diversity