All the Devils Are Here - All the Devils Are Here The...

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All the Devils Are Here: The Hidden History of the Financial Crisis Cameron Tanner Money and Banking ECO 3311 – 12:30 All the Devils Are Here by Bethany Mclean and Joe Nocera is a book that brings the complexity of the financial crisis we have recently faced down to a more manageable state. Not only does Mclean and Nocera make the financial crisis easier to understand, they also make it a more personable event by bringing in and showing the different personalities and how they
interact with each other and fit into the recent ‘Great Recession’ and the events leading up to it. In this book report I will show these personalities and much of the info that has been placed into the book. To start the book the authors tells us about the three individuals that created the first mortgage-backed security. These men were Lewis Ranieri, a bond trader for Salomon Brothers, Larry Fink, a bond trader for First Boston, and David Maxwell the chief executive of the Federal National Mortgage Association or Fannie Mae. When these individuals created these types of securities, they made them because they knew that there would be some money to be made, but unfortunately they did not see the possibility of the crisis we face today. In fact Ranieri later told Fortune magazine that “I wasn’t out to invent the biggest floating craps game of all time, but that’s what happened.” The authors continue by talking about the mortgage originators who although they competed with banks for market share of mortgage customers were practically unregulated.

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