Financial Origami by Brendan Moynihan

Financial Origami by Brendan Moynihan

Origami is the Japanese art of folding paper into intricate and aesthetically attractive shapes. As such, it is the perfect metaphor for the Wall Street financial engineering model, which ultimately proved to be the underlying cause of the 2008 financial crisis.

In Financial Origami, Brendan Moynihan describes how the Wall Street business model evolved from a method to transfer risk into a method for manufacturing risk. Along the way, this timely book skillfully dissects financial engineering and addresses how it's often a mechanism to evade regulatory constraints, provide institutional investors with customized products, and, of course, generate revenue for financial engineers.

• Reveals how Wall Street's financial engineering business model morphed into something destructive
• Highlights how the origami model worked well in the comparatively stable years of the early 2000s, when there was less risk to transfer
• Discusses how Wall Street began manufacturing risk by creating products that multiplied risk exposures and encouraged subprime lending

With the collapse of Lehman Brother the Wall Street business model effectively broke. But there are many lessons to be learned from what has transpired, and Financial Origami will show you what they are.

Brendan Moynihan is an editor-at-large for Bloomberg News, where he writes on the economy and Wall Street and maintains the popular series Chart of the Day. He has been with the company since 2006, after working as a trader and risk manager on Wall Street for more than two decades. Moynihan is the coauthor of What I Learned Losing a Million Dollars and the author of Trading on Expectations (Wiley). He and his wife and two sons live in Barrington Hills, Illinois, and he is now working on an English grammar book.