Archive for the ‘True Crime’ Category

Why I Left Goldman Sachs

Sunday, January 4th, 2015

The Book of the Week is “Why I Left Goldman Sachs” by Greg Smith, published in 2012.

This career memoir details how the author experienced the change for the worse in corporate culture of stock brokerage Goldman Sachs (GS) over the course of a little more than a decade, from 2000 to early 2012. The company lost its way in terms of its mission and values, which embodied fiduciary duty and integrity.

In 2000, the author completed the selective, elitist, highly coveted summer internship program at the brokerage. He saw how principled the money managers were in recommending truly suitable transactions to their clients; not necessarily the most profitable ones.

When he began working there as a full-fledged staff member the following year, he took to the work, possessing the right combination of talents, skills and abilities to focus for long hours on conferring with clients and doing what was financially best for them. The goal was to build trust in order to foster a long-term relationship. It stands to reason that that is a more profitable course of action than seeking to rake in maximum money in the short term– which would provoke disloyalty from the client, when the client realizes he’s been taken advantage of.

Smith writes that a gradual change was occurring at his workplace around the start of 2005. At the time, he admittedly was “drinking the Kool Aid” like everyone else. The megabucks were multiplying because conflicts of interest were increasing betwen the brokerage and the government and other entities with which the brokerage was associated in various ways. The CEO and COO of GS were all for it. Their yearly letter to shareholders reasoned that such conflicts were inevitable, and were a sign that business was good. A telling example: GS netted approximately $100 million when it helped its client, the New York Stock Exchange merge with publicly traded, electronic exchange Archipelago in a $9 billion deal.

In the early 2000′s, one trend in the securities industry that would contribute to huge financial losses for the big firms including GS, was automated trading via software. The autotraders of the different firms were programmed to engage in largely the same behavior. They sought to trade in obscure, off-the-beaten path investments in markets in which it was difficult to find a buyer when it came time to sell. And they were all trying to sell at the same time. That was not a condition the autotrader creators had anticipated.

Another aspect of the big picture was that the people selling the financial products– more specifically, derivatives– did not themselves, understand what they were selling. It might be recalled that a derivatives debacle plagued the securities industry in 1994. Apparently, in 2007-2009, the greedy people involved in this rerun of a financial catastrophe failed to read their history, or had short memories. And governments of entire countries like Libya, were suffering losses of billions of dollars, thanks to GS, in 2007.

Read the book to learn much more about the outrageous occurrences borne of avarice witnessed by the author and the world during what became for him, an ordeal, characterized by the saying, “The fish rots from the head down.”

House of Versace

Sunday, December 28th, 2014

The Book of the Week is “House of Versace” by Deborah Ball, published in 2010. This is the story of how a family and its business recovered from a tragedy.

The two brothers, Santo and Gianni, and a sister, Donatella, started running a high-end clothing design business in the 1970′s. Gianni became the indispensable partner. His talent lay in creating trend-setting clothing and changing the culture of the fashion industry. Donatella recruited celebrities to wear the Versace brand by sending them free products and inviting them to lavish parties.

Around 1990, Versace began to woo female models whose faces appeared on the covers of fashion magazines, rather than women whose whole bodies– supermodels– appeared in photos. The former had to learn how to strut down the runway, however, and convince Versace to pay them big bucks. Appearances in the tabloids, rather than appearances in fashion shows, had previously been their major publicity vehicle. Donatella spared no expense in recruiting them, treating them to luxury travel and clothes. Versace’s competitors had to follow suit.

Read the book to learn how, by 2004, the company had become nearly bankrupt. There were a number of causes; the major one, however, was the aforementioned tragedy.

Bonus Post

Monday, December 22nd, 2014

This blogger skimmed the repetitive ebook, “Struck by Genius” by Jason Padgett and Maureen Seaberg, published in 2014.

This ebook tells the story of how Padgett, the victim of a mugging, suffered a traumatic brain injury, and not only lived to tell about it, but also experienced improved cerebral processes (along with some negative side effects) due to it.

Padgett developed the conditions of savantism and synesthesia. The former causes his vision to form geometric patterns in everything he sees; he also acquired a natural, conscious talent for mathematics and physics which he had not previously had. Synesthesia means he sees a specific color when he sees a specific number or letter.

Read the book to learn of the psychological problems that have plagued the author since he was violently struck on the head, and the two with which he still grapples; how he finally became sufficiently functional to learn more about his conditions, and to find and contact other people with the same symptoms.

The Snakehead

Sunday, December 14th, 2014

The Book of the Week is “The Snakehead” by Patrick Radden Keefe, published in 2009. This ebook recounts the details of a pivotal human-smuggling incident involving people of Chinese descent.

In early June 1993, a boat hit a sandbar in Breezy Point in the borough of Queens (New York City) in New York State. Most of its occupants were illegal immigrants originally from China. They were “smuggled” rather than “trafficked” in that they had willingly bribed a “snakehead” to help them move to the United States without identification documents, knowing the risks of their journey full well. Trafficked individuals also have the desire for a better life, but are usually unaware that they will be sold as property.

Organized crime in Chinatown in New York City in the 1980′s was rampant, consisting of not just arrangements to further illegal immigration, but of extortion, gang warfare, conspiracy, hostage-taking and money laundering. “But there was only so much money in shakedowns, burglaries and kidnappings.” The heroin trade carried heavy prison sentences. On the other hand, there was big money (approximately $30,000 for the snakehead per person) in human smuggling and it carried light prison sentences.

At the start of the 1990′s, two major reasons that immigration laws were lenient for political asylum seekers from China were: 1) The 1989 Tiananmen Square massacre had reminded the world of oppression in China, and 2) The country had a draconian population-limiting political system, allowing women to bear only one child and thereafter be forced to have an abortion or the men, to have forced sterilization. Another factor that contributed to the arrival of an excessive number of illegals on U.S. shores around 1990 was the fact the the Immigration and Naturalization Service was a poorly treated, underfunded and understaffed agency, that competed with the customs department– whose contraband confiscations made it a political darling.

Read the book to learn: why, around 1990, there was also a shift in the transportation method, routes and entry points for illegal smuggling; which perpetrators got caught and their fates; and the valid arguments on both sides of the debate over the legal and ethical issues on people’s entering a nation without the legal means to do so.

All or Nothing

Sunday, December 7th, 2014

The Book of the Week is “All or Nothing” by Jesse Schenker, published in 2014. This suspenseful, eloquently written ebook tells the exceptional life story of a member of America’s “Generation Y” who has beaten the odds for survival, considering his situation.

“I had two jobs and no place to stay, but I literally cared more about having drugs than even a roof over my head… at night I slept outside, swathed in a blanket of newspaper… ”

The author describes in vivid detail his ordeal in connection with substance abuse– of his own making– and how he got through it. He wrote that in Fort Lauderdale, sellers of illicit drugs diluted their wares with “… laxatives, Benadryl, sugar, starch, talc, brick dust, or even f–g Ajax” and how all junkies commit thievery against each other.

Schenker also recounts his experiences in the restaurant industry, where he encountered other addicts in the kitchen. The culture is also one of an abusive hierarchy; the justification for this is that everything must be perfect. On more than one occasion, when the author’s food preparation was less than perfect, he was loudly berated and had a tray with his creations violently thrown at his chest.

Read the book to learn how Schenker transferred his skills at manipulating other people, from getting high to getting his career in gear. Malcolm Gladwell would categorize him as an “outlier.”

Keeping Hope Alive

Sunday, October 26th, 2014

The Book of the Week is “Keeping Hope Alive” by Dr. Hawa Abdi, with Sarah J. Robbins, published in 2013.  This ebook is the personal account of a driven, fiercely independent Somalian doctor.

Around 1970, Abdi did seven years of medical training in the former Soviet Union. She then returned to her homeland of Somalia to practice obstetrics and gynecology. Through the years, she married, had two daughters and a son, and in August 1983, built a clinic.

By mid-1992, Abdi had made available a farm and campus on which poor people and war refugees could reside, and receive medical treatment. In addition, she was a law school graduate. She also took in her sister’s large family when they were destitute. She risked her life many times during hostilities between and among Ethiopians and Somalian clans ruled by warlords and sheikhs.

Abdi gathered quite a following because she was so generous to her community. Her dream was that the Somalian people would unite as one country, instead of killing each other in tribal infighting. “People who are fighting will never be able to build.” By the early 2000′s, “… after fifteen years of civil war, the women and youth ran everything, while most of the grown men had either been killed or were away– out fighting or somewhere abroad, trying to make business deals.”

Read the book to learn the details of: Abdi’s trials and tribulations in protecting her property and family, how she was betrayed by her husband; how in some ways, she refused to comply with Somalian/Islamic culture; the cities to which she evacuated her children, and of her interactions with relief organizations, soldiers and journalists.

Bonus Post

Tuesday, October 21st, 2014

This blogger skimmed the ebook, “The Law of the Jungle” by Paul M. Barrett, published in 2014.  This is the story of a decades-long court case involving oil contamination in the Amazonian rain forest of northeastern Ecuador, to which a number of cliches apply:

Pox on the houses of both the plaintiff and the defendant;

A man is known by the company he keeps; and

When you lie down with dogs, you get fleas.

Starting in 1993, the plaintiff, represented by a greedy, egotistical, loudmouthed, yet shrewd attorney– Steven Donziger– claimed that defendant, Texaco, and then successor Chevron oil company, had caused illness, deaths, and damage to the quality of life of thousands of farmers and tribesmen in Ecuador. The Amazonians were allegedly poisoned by the oil-contaminated streams where they fished, bathed and gathered drinking water. The oil company had established a presence in their villages since 1964, when it forged an agreement with the Ecuadorian government to drill on 3.5 million and later, 4 million acres in the Oriente region.

The author tells a suspenseful, controversial story that reveals valid arguments on both sides. There was evidence of serious disruption of villagers’ lives. This included cancer clusters and other health issues that plagued the Ecuadorians, pollution of the place where they lived, the unintended consequence of violent fighting for jobs and over income inequality between Indians and homesteaders, etc. directly attributable to the activities of, and inept cleanup of, oil that allowed spreading of toxic chemicals by, the petroleum companies. On the other hand, over the years, the economy of the country of Ecuador made great strides due to the companies’ building of, and heavy investment in, transportation infrastructure and the side effects of job creation and good political relations that would not have occurred but for the corporate presence in Ecuador.

According to the author, the plaintiff’s attorney went after “big oil” rather than “… a struggling national government responsible for letting down its people” because big oil had more sex appeal. It could also be that big oil had deeper pockets.

In sum, “The oil pollution suit was not unique. Ecuador’s judiciary had a well-earned reputation for corruption and chaos.”

Read the book to learn of the various sleazy tactics employed by both sides in the dispute, and to get a concise, eloquent summary of the whole story– read the “Conclusions” section of this ebook.

The Courage of Strangers

Sunday, August 24th, 2014

The Book of the Week is “The Courage of Strangers” by Jeri Laber, published in 2002. This autobiography describes the making of a passionate human rights activist.

The author grew up in privileged surroundings in New York City, in the Sunnyside section of Queens, and Jamaica Estates when the wealthy suburban enclave was in its infancy. This was because her Russian father was a multi-skilled home builder with his own business. On the family’s newly-constructed home: “Back in 1936, it was a technological wonder, with central air-conditioning, a built-in room-to-room intercom system, garage doors that opened automatically, and, buried under the steep cobblestone driveway, wires that heated up to melt the snow.”

In the early 1950′s, Laber wanted to study Russian in graduate school, but her father objected partly because it was the McCarthy Era, and because he felt over-education would hurt her chances for marriage. She defied him. In 1954, she got the opportunity to visit Moscow with three other students. Their tour guides tightly restricted their activities, allowing them to visit only tourist sites, and Moscow State University. She recorded her impressions of the people she met, including, “They have replaced God with Lenin and Stalin…These people are healthy and happy, as long as they conform.”

Excuse the cliche, but “The more things change, the more they stay the same.” At that time, there was the “Military-Industrial Complex.” Now there is the “Military-Corporate Complex.” However, world annihilation via nuclear war was the biggest fear in the 1950′s. The continuing increase in global oppression via telecommunications and other underhanded means is the biggest fear in the early 2000′s.

The author was an eyewitness to the different speeds at which different countries threw off their communist yoke, as she visited various countries behind the Iron Curtain in turn. She writes that people in the former Soviet Union had lived under communism for decades longer than their Eastern bloc counterparts. The older ones residing in the latter had known a better quality of life prior to Soviet takeover. “They looked around them and saw corrupt, repressive governments, failing economies, contaminated water, polluted air, alcoholism, and apathy.” The more things change, the more they stay the same.

Read the book to learn of Laber’s career adventures in Eastern Europe, her checkered love life, the difference she made at meetings with top Soviet leaders and others by speaking out against injustice, and Eastern Europe’s radical political and social changes in the 1990′s.