Book Review: Separating Fools from Their Money: A History of American Financial Scandals

This book reviews the history of financial scandals in the U.S. from the dawn of the U.S. as a republic to the present, focusing on three periods – the Gilded Age of the late 19th century, the Roaring Twenties, and the closing days of the 20th century. Perhaps most importantly, the authors conclude that notwithstanding the stricter regulatory environment created by Eliot Spitzer, other state attorneys general and federal prosecutors, the Sarbanes-Oxley Act, and the USA PATRIOT Act, the next scandal is already lurking around the corner. In particular, the authors offer derivatives and hedge funds as two areas where financial innovation has outpaced the regulatory regime ... [more]