Chagrined to see that another aspect of my ‘novel’ THE FUND has surfaced in the news — the Doomsday Scenario. Here are a few sentences from my book about a fictional “Too Large To Fail” bank called W.R. Shipley & Co. which as the center of the story. The chairman of this bank, a woman named Hannah Merton, who rose through the trading side, reviewed a report while on the phone with the U.S. Treasury Secretary, Damion James:
“Her trusted lieutenants, the ‘brain trust’ had already modeled this scenario for her. They called it the ‘Doomsday Scenario’, one that could never happen because it required too many independent variables to converge.”
Unfortunately for Hannah, in my book all those independent variables DID converge, causing insurmountable derivative trading losses, that not only bring the bank down but freezes up the entire financial system. Sounds familiar, huh? By the way, in case you’re wondering, I finished the first draft of THE FUND in March 2008, and it was published by Macmillan last summer — well ahead of Bear & Lehman and now JPMC. Here is the link to the original FT article–> JPMorgan doomsday scenario revealed
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I wrote an op-ed for Business Insider on the continued dangers of an unbridled derivatives market. Here’s the link:
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A new novel on financial terrorism’s getting attention. Great reviews, Times feature, James Hoge‘s Park Avenue party. Title: “The Fund: Money Is the Weapon.” Author H.T. Narea‘s a world investment banker, J.P. Morgan principal, global economy specialist, teacher of international finance at George Washington. OK? We’re not talking piggy banks here. Before Lehman crashed, he predicted “a financial meltdown.”
Said Mr. Narea: “Danger will come from economic warfare. All the banks can go down. Men in dark suits whom we don’t know are into financial derivatives. Good guys doing bad things. A gun to the head of one with hedge fund information can make him explode and do damage to our institutions.”
Mrs. Sharon Hoge, a money management specialist: “It’s apocalyptic and dark. A walk down Wall Street and what can definitely absolutely happen to us.”
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