Wednesday, May 7, 2014
I am generating my summer reading list--both business and pleasure. At the top of my list is Other People's Houses, by Jennifer Taub (Vermont Law School), which will be available from Yale Press on May 27th. The official website for the book describes the project as:
Drawing on wide-ranging experience as a corporate lawyer, investment firm counsel, and scholar of business law and financial market regulation, Taub chronicles how government officials helped bankers inflate the toxic-mortgage-backed housing bubble, then after the bubble burst ignored the plight of millions of homeowners suddenly facing foreclosure.
Focusing new light on the similarities between the savings and loan debacle of the 1980s and the financial crisis in 2008, Taub reveals that in both cases the same reckless banks, operating under different names, received government bailouts, while the same lax regulators overlooked fraud and abuse. Furthermore, in 2013 the situation is essentially unchanged. The author asserts that the 2008 crisis was not just similar to the S&L scandal, it was a severe relapse of the same underlying disease. And despite modest regulatory reforms, the disease remains uncured: top banks remain too big to manage, too big to regulate, and too big to fail.
The following are a few excepts of the book review just posted on Kirkus:
Taub's narrative recounts a couple who "innocently" purchased a Dallas-area condo and were deemed “too small to save.” "Meanwhile, all the decision-makers who, in a dizzying series of transactions, fueled the Nobelman mortgage received government support, and very few suffered negative consequences." With "5 million homes lost to foreclosure and another 10 million still left underwater," Taub "blisters the 'legal enablers' who, by their acts or omissions, failed to corral predatory practices and wild speculation." The review concludes that Other People's Houses is "[m]eticulously argued and guaranteed to raise the blood pressure of the average American taxpayer."
That last line is the hook--guaranteed to raise my blood pressure? Sign me up.
Leave a comment if you have a book, business or pleasure, that is topping your list. I would love to start a BLPB summer reading list...