Codes of Finance: Engineering Derivatives in a Global Bank by Vincent Antonin LépinayCodes of Finance: Engineering Derivatives in a Global Bank by Vincent Antonin Lépinay

Codes of Finance: Engineering Derivatives in a Global Bank

byVincent Antonin Lépinay

Paperback | December 7, 2014

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The financial industry's invention of complex products such as credit default swaps and other derivatives has been widely blamed for triggering the global financial crisis of 2008. In Codes of Finance, Vincent Antonin Lépinay, a former employee of one of the world's leading investment banks, takes readers behind the scenes of the equity derivatives business at the bank before the crisis, providing a detailed firsthand account of the creation, marketing, selling, accounting, and management of these financial instruments-and of how they ultimately created havoc inside and outside the bank.

Vincent Antonin Lépinay is associate professor in the sociology department at Sciences Po in Paris. He is also head of the Center for Science and Technology Studies at the European University at St. Petersburg. He is the coauthor (with Bruno Latour) of The Science of Passionate Interests.
Title:Codes of Finance: Engineering Derivatives in a Global BankFormat:PaperbackDimensions:304 pagesPublished:December 7, 2014Publisher:Princeton University PressLanguage:English

The following ISBNs are associated with this title:

ISBN - 10:0691163952

ISBN - 13:9780691163956


Table of Contents

Acknowledgments vii
Preface Financial Innovation from within the Bank ix
Prologue A Day in a Trader's Life 1
Introduction Questioning Finance 6

Part I From Models to Books 23
Chapter 1: Thinking Financially and Exploring the Code 29
Chapter 2: Hedging and Speculating with Portfolios 55

Part II: Topography of a Secret Experiment 87
Chapter 3: The Trading Room as a Market 91
Chapter 4: The Memory of Banking 119

Part III: Porous Banking: Clients and Investors in Search of Accounts 153
Chapter 5: Selling Finance and the Promise of Contingency 157
Chapter 6: The Costs of Price 182
Chapter 7: Reverse Finance 204
Conclusion What Good Are Derivatives? 222

Appendix A: Capital Guarantee Product: The Full Prospectus 233
Notes 235
Bibliography 265
Index 277

Editorial Reviews

"We are the masters of what we create-that is the myth. The reality is that we often do not even understand what we create. As Lépinay shows, this is the case with today's engineered financial products. This book is an important step toward solving the mystery of the lack of mastery in the world of finance."-Bruno Latour, coauthor of Laboratory Life