Review: Liar’s Poker by Michael Lewis

By posted at 8:45 pm on March 30, 2005 0

coverMichael Lewis launched his successful career as an author with his book Liar’s Poker: Rising Through the Wreckage on Wall Street, which is both a youthful memoir and a journalistic look at the inner workings of Salomon Brothers, a Wall Street firm that grew fat trading bonds and then crashed and burned. The book takes place, roughly, between the years 1984 and 1987, and so I wasn’t surprised that the book reminded me of the movie Wall Street – just replace Gordon Gecko with Salomon’s head John Gutfreund. At the beginning of the book, Lewis has just been hired, quite unexpectedly, by Salomon, and he takes us through his trajectory at the company, from the cut-throat training process to his days as a bond trader in London. From this vantage point, Lewis was able to watch the company, emboldened by spectacular success in the 1980s, become a symbol of corporate gluttony. Along the way, Lewis profiles many of the company’s outsized personalities. He also delves into the intricacies of the bond market in such a way that the arcane becomes pretty readable. The book is also filled with anecdotes about the conspicuous consumption of those times and the raucous, inelegant trading floor, filled with foul-mouthed traders who threw phones and insults and reveled in their gluttony. Lewis’ revelation was that the company (and its competitors) made profits at the expense of its customers, and, while the period that Lewis chronicles is interesting in its own right, its impact is somewhat diminished by the many corporate scandals and Wall Street improprieties that have occurred since the book was first published. Against this backdrop, Liar’s Poker is no longer an exceptional story that defined an era, it is merely another moment in the cycle of Wall Street corruption and ensuing retribution that continues today.

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