New Books in Finance

Is the finance industry fair? In Hedged Out: Inequality and Insecurity on Wall Street (University of California Press, 2022) Megan Tobias Neely, an assistant professor in the Department of Organisation at Copenhagen Business School, explores this question by asking who is successful, and who is excluded, in hedge funds. Drawing on ethnography and interviews, the book sets out how elite, white, masculinity is the dominant demographic of the industry, along with the importance of patronage relationships in perpetuating inequalities. It also explores the narratives and justifications used to explain the persistence of exclusions, even in the context of an industry that is supposed to reward passion and talent. Closing with a powerful call to transform both the finance industry and the world, the book is essential reading across social science and business, as well as for anyone interested in understanding how inequality persists. Dave O'Brien is Professor of Cultural and Creative Industries, at the University of Sheffield. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/finance

This is an age of crisis. That much we can agree on. But a crisis of what? And how do we get out of it? Many on the right call for tax cuts and deregulation. Others on the left rage against the top 1 percent and demand wholesale economic change. Voices on both sides line up against globalization: restrict trade to protect jobs. In The Wolf at the Door: The Menace of Economic Insecurity and How to Fight It (Harvard UP, 2020), two leading political analysts argue that these views are badly mistaken.Michael Graetz and Ian Shapiro focus on what really worries people: not what the rich are making but rather their own insecurity and that of people close to them. Americans are concerned about losing what they have, whether jobs, status, or safe communities. They fear the wolf at the door. The solution is not protectionism or class warfare but a return to the hard work of building coalitions around realistic goals and pursuing them doggedly through the political system. This, Graetz and Shapiro explain, is how earlier reformers achieved meaningful changes, from the abolition of the slave trade to civil rights legislation. The authors make substantial recommendations for increasing jobs, improving wages, protecting families suffering from unemployment, and providing better health insurance and child care, and they guide us through the strategies needed to enact change.These are achievable reforms that would make Americans more secure. The Wolf at the Door is one of those rare books that not only diagnose our problems but also show us how we can address them.Tom Discenna is Professor of Communication at Oakland University whose work examines issues of academic labor and communicative labor more broadly. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/finance

Oligarchy is a threat to the American republic. When too much economic and political power is concentrated in too few hands, we risk losing the “republican form of government” the Constitution requires. Today, courts enforce the constitution as if it had almost nothing to say about this threat. The Anti-Oligarchy Constitution: Reconstructing the Economic Foundations of American Democracy (Harvard University Press, 2022) is a bold call to reclaim an American tradition that argues the constitution imposes a duty on government to fight oligarchy and ensure broadly shared wealth. In this revolutionary retelling of constitutional history, Dr. Joseph Fishkin and Dr. William Forbath show that a commitment to prevent oligarchy once stood at the center of a robust tradition in American political and constitutional thought.Dr. Fishkin and Dr. Forbath argue that “The constitutional order does rest and depend on a political-economic order. That political-economic order does not maintain itself. It requires action (as well as forbearance from action) from each part of the government. The content of what is required changes radically over time in a dynamic way in response to changes in the economy and in politics. But we believe the basic principles of the democracy-of-opportunity tradition remain affirmative constitutional obligations of government today: to prevent an oligarchy from emerging and amassing too much power; to preserve a broad and open middle class as a counterweight against oligarchy and a bulwark of democratic life; and to include everyone, not just those privileged by race or sex, in a democracy of op- portunity that is broad enough to unite us all.”Dr. Fishkin and Dr. Forbath demonstrate that reformers, legislators, and even judges working in this “democracy-of-opportunity” tradition understood that the Constitution imposes a duty on legislatures to thwart oligarchy and promote a broad distribution of wealth and political power. These ideas led Jacksonians to fight special economic privileges for the few, Populists to try to break up monopoly power, and Progressives to fight for the constitutional right to form a union. During Reconstruction, Radical Republicans argued in this tradition that racial equality required breaking up the oligarchy of the Slave Power and distributing wealth and opportunity to former slaves and their descendants. President Franklin Roosevelt and the New Dealers built their politics around this tradition, winning the fight against the “economic royalists” and “industrial despots.”The book argues that our current understanding of what counts as a constitutional argument is anachronistic and limiting. In fact, the authors argue that “advocates of the democracy-of-opportunity tradition and their opponents throughout the long period from the founding through the New Deal disagreed about many things, but they agreed that part of arguing about the Constitution is making claims about what it requires of our political economy. “This interview was conducted by Dr. Miranda Melcher whose doctoral work focused on post-conflict military integration, understanding treaty negotiation and implementation in civil war contexts, with qualitative analysis of the Angolan and Mozambican civil wars. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/finance

Although the dividing line between private life and public responsibilities can never be definite and clear, there is a moral threshold which is crossed both by those who assume power to change the lives of many men through public action and by those who undertake to represent in a public role the will and interests of many other men. A new responsibility, and even a new kind of responsibility, and new moral conflicts, present themselves.– Stuart Hampshire, foreword to Public and Private Morality (1978)Hampshire’s thoughts help articulate the inherent tensions underlying an institutionalized system of monopoly medicine that has commandeered the myth of free-market ideology in an ongoing and highly successful effort to profit from pharmaceutical patents generated by U.S. government-funded scientific research. This is the broader thesis of investigative journalist Alexander Zaitchik’s latest book, Owning the Sun: A People’s History of Monopoly Medicine from Aspirin to COVID-19 published by Counterpoint in March of 2022.Zaitchik highlights the politics and players from founding fathers to the FDA’s Francis Kelsey to Hayek and the Chicago School in an engaging and well-researched narrative laying bare the situational ethics across the professional domains of the pharmaceutical industry, publicly-funded university research, and medicine more broadly while highlighting the public-private tension baked into our ‘free market’ political economy and its reification of knowledge through patent and intellectual property law.Zaitchik’s narrative deftly outlines how generations of public health and science advocates have attempted to hold the line against pharmaceutical special interests and their allies in government while documenting privatized medicine’s evolution in the U.S. and its globalizing effects. From the controversial arrival of patent-seeking German chemical companies in the late nineteenth century to present-day coordination between industry and philanthropic organizations—including the influential Gates Foundation—that defeated efforts to loosen intellectual property restrictions for countries to produce vaccines against COVID-19. Relevant and smartly written with a disturbing message for everyone who cares about the cost and access of medicine.Listeners will find the book and Zaitchik’s observations in this interview engaging as well as his 2018 article in The New Republic that previews part of the book’s larger thesis:Complement and expand the topic focus with these recent NBN segments:1) Davos Man: How the Billionaires Devoured the World (2022) written by Peter S. Goodman andinterviewed by Caleb Zakarin.2) Disorder: A History of Reform, Reaction, and Money in American Medicine (2021) written by PeterS. Swanson and interviewed by Stephen Pimpare.Alexander Zaitchik is a freelance journalist and contributor to Atlantic magazine, The New Republic, The Nation and Foreign Policy among others, and has authored four books including this latest just published by Counterpoint Press in Berkeley.Keith Krueger lectures at the SILC Business School in Shanghai University. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/finance

In this podcast Owen Bennett-Jones discusses the future of rational decision making with Professor Olivier Sibony who after 25 years with McKinsey & Company in France, is now at HEC Paris and the Saïd Business School in Oxford University. In 2021 he co-wrote the book Noise: A Flaw in Human Judgment (Little, Brown Spark, 2021) with Cass R. Sunstein and Daniel Kahneman. For those trying to resist the illogicalities of the post truth world, the idea of rational decision-making is perhaps more important than ever. Yet the challenge to rationality comes not only from social media driven myths becoming accepted truths, but also bias and randomness in decision-making.Owen Bennett-Jones is a freelance journalist and writer. A former BBC correspondent and presenter he has been a resident foreign correspondent in Bucharest, Geneva, Islamabad, Hanoi and Beirut. He is recently wrote a history of the Bhutto dynasty which was published by Yale University Press. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/finance

In her book Disorder: Hard Times in the 21st Century (Oxford UP, 2022), Cambridge academic Helen Thompson gets beyond the ephemeral and analyses instead the role of more fundamental drivers of events – including the energy markets and the international monetary system. That’s one way in which her book is distinctive. It’s also a very broad book. While much of academic output has a very narrow focus, this book is unusual in attempting a sweeping overview of what’s happening in the world. What role has energy played in disrupting politics especially since the 1970s? How has the US dominance of the international financial system impacted international relations? And how has the EU influenced democratic development in Europe?Owen Bennett-Jones is a freelance journalist and writer. A former BBC correspondent and presenter he has been a resident foreign correspondent in Bucharest, Geneva, Islamabad, Hanoi and Beirut. He is recently wrote a history of the Bhutto dynasty which was published by Yale University Press. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/finance

From princes to peasants, musicians to masons, cement plant owners to casual labourers—the State Bank of India (SBI) has been the go-to bank for the people of India. Widely trusted and near-ubiquitous, the SBI has come to symbolise banking across the length and breadth of the Indian nation.This book traces the SBI’s deep connection to India’s economic progress, and the bank’s proactive approach to change and to reinventing itself to meet the evolving needs of a growing nation. In its journey from ‘banking for the classes’ to ‘banking for the masses’, it has continuously striven to blend business goals with social obligations.The SBI of today had its origins in the Presidency banks of the 1800s; the Bank of Bengal, the Bank of Madras and the Bank of Bombay, set up by the British to facilitate trade and the repatriation of remittances to England, were its forebears. In The SBI Story: Two Centuries of Banking (Westland, 2021), Vikrant Pande narrates the compelling circumstances that prompted the founding of the Presidency banks, how they fared back in the day and why they coalesced to emerge as the Imperial Bank in 1921, which in turn was nationalised to form the State Bank of India in 1955.Vikrant Pande spent two decades in the corporate sector, culminating in him being appointed as the provost of India’s first ever vocational education university (TeamLease Skills University) at Vadodara, Gujarat, India. He is now a full-time author and translator, and has published twelve English translations of Marathi bestsellers. His first book, 'In the Footsteps of Rama, Travels with the Ramayana' was released in April 2021.Utsav Saksena is a Research Fellow at the National Institute of Public Finance and Policy (NIPFP), an autonomous institute under the Ministry of Finance, Government of India. He can be reached at utsavsaksena@protonmail.com. Note: opinions expressed in this podcast are personal and do not reflect the official position of the NIPFP or the Ministry of Finance, Government of India. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/finance

Drawing on decades of experience covering the global economy, New York Times' journalist Peter S. Goodman profiles five representative Davos Men-members of the billionaire class-chronicling how their shocking exploitation of the global pandemic has hastened a fifty-year trend of wealth centralization. Alongside this reporting, Goodman delivers textured portraits of those caught in Davos Man's wake, including a former steelworker in the American Midwest, a Bangladeshi migrant in Qatar, a Seattle doctor on the front lines of the fight against COVID, blue-collar workers in the tenements of Buenos Aires, an African immigrant in Sweden, a textile manufacturer in Italy, an Amazon warehouse employee in New York City, and more in his book, Davos Man: How the Billionaires Devoured the World (Custom House, 2022).Peter S. Goodman is the global economic correspondent for The New York Times, based in New York.Caleb Zakarin is the Assistant Editor of the New Books Network (Twitter: @caleb_zakarin). Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/finance

Dark Finance: Illiquidity and Authoritarianism at the Margins of Europe (Stanford University Press, 2020) offers one of the first ethnographic accounts of financial expansion and its political impacts in Eastern Europe. Following workers, managers, and investors in the Macedonian construction sector, Fabio Mattioli shows how financialization can empower authoritarian regimes—not by making money accessible to everyone, but by allowing a small group of oligarchs to monopolize access to international credit and promote a cascade of exploitative domestic debt relations. The landscape of failed deals and unrealizable dreams that is captured in this book portrays finance not as a singular, technical process. Instead, Matttioli argues that finance is a set of political and economic relations that entangles citizens, Eurocrats, and workers in tense paradoxes. Mattioli traces the origins of illiquidity in the reorganization of the European project and the postsocialist perversion of socialist financial practices—a dangerous mix that hid the Macedonian regime's weakness behind a façade of urban renewal and, for a decade, made it seem omnipresent and invincible. Dark Finance chronicles how, one bad deal at a time, Macedonia's authoritarian regime rode a wave of financial expansion that deepened its reach into Macedonian society, only to discover that its domination, like all speculative bubbles, was teetering on the verge of collapse.Mathias Fuelling is a doctoral candidate in History at Temple University, working on a political history of Czechoslovakia in the immediate post-WWII years. He can be found on Twitter at https://twitter.com/bucephalus424 Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/finance

In The Revolution That Wasn't: GameStop, Reddit, and the Fleecing of Small Investors (Portfolio/Penguin, 2022), WSJ columnist Spencer Jakab weaves together personal narratives, the key market institutions, and social media to tell the fascinating tale of the GameStop short squeeze of early 2021. The surprising truth? What appeared to be a watershed moment—a revolution that stripped the ultra-powerful hedge funds of their market influence, placing power back in the hands of everyday investors—only tilted the odds further in the house’s favor. The Revolution That Wasn't is the definitive account of an event that has immediately joined the list of best and worst stock market moments. Daniel Peris is Senior Vice President at Federated Hermes in Pittsburgh. He can be reached at DanielxPeris@gmail.com or via Twitter @HistoryInvestor. His History and Investing blog and Keep Calm & Carry On Investing podcast are at https://strategicdividendinves... Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/finance