As part of an ongoing series, we will be featuring the recent work of a number of our esteemed business faculty here at The Fletcher School. To kickoff the series, we begin with Laurent Jacque, Professor of International Finance & Banking, and the Academic Director of the Master of International Business program.
In 2015, Laurent Jacque published the 2nd edition of his 2010 book, “Global Derivative Debacles: From Theory to Malpractice: 2nd Edition,” a look at the derivatives debacles in the last 50 years. Jacque tells the stories of “institutions which played in the derivative market and lost big. For some of these unfortunate organizations it was daring but flawed financial engineering which brought them havoc. For others it was unbridled speculation perpetrated by rogue traders whose unchecked fraud brought their house down.”
What is new in the second edition? A new chapter on JP Morgan-Chase’s London Whale, an in-depth discussion of credit-default swaps, and an update of the revamped regulatory framework with Basel 2.5 and Basel III against the backdrop of the Euro crisis, along with a revised and expanded discussion of the AIG debacle.