The Real Eisman Playbook Don't Get Fooled Again: Pulitzer Winner Warns of Wall Street's Dark Side
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Jul 7, 2025 Pulitzer Prize-winning journalist Gretchen Morgenson dives into her investigative work on Wall Street's dark side. She shares insights on the AIG scandal and the financial crisis, shedding light on how corporate fraud jeopardizes public trust. The conversation also explores the growing influence of private equity, particularly in healthcare, where profit-driven motives threaten care quality. Morgenson highlights the need for accountability in the financial sector, making a compelling case for transparency and ethical standards.
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Wall Street Analyst Conflicts
- Conflicts of interest among Wall Street analysts led to optimistic recommendations on poor-quality dot-com stocks.
- Analysts were incentivized by investment banking fees, misleading investors and inflating the bubble.
AIG's Accounting Gimmick
- AIG sold retro insurance to companies to mask losses temporarily.
- This accounting gimmick was part of an SEC probe that resulted in a minor fine, disappointing public expectations.
Mortgage Crisis Foundations
- The 2008 financial crisis had decades-long roots, including explosive growth in mortgage lending and use of derivatives.
- Incentives along the mortgage 'assembly line' encouraged risky lending, fueling the housing bubble.
