Reader Reviews

One of the Best Business Books of 2010 - McCombs Today

A Colossal Failure of Common Sense: The Inside Story of the Collapse of Lehman Brothers has
143 5-Star Reviews on Amazon.com

“The collapse of Lehman Brothers is seen as the pivotal event that led to the economic collapse of 2008 and much press has been devoted to the exact chronology of how Lehman came to fail. But it takes inside knowledge to really get into the corporate psychology, culture and the psyche of the employees and Larry McDonald is that person. A former Vice President at Lehman, McDonald has the knowledge and insight to know what led Lehman to take the actions that ultimately led to its demise and McDonald repeats quite convincingly here his central premise as to what led to the collapse; that it wasn’t a large number employees, but only eight, including CEO Richard Fuld. It was the investment strategy of this small coterie of employees that overextended Lehman’s holdings of credit default swaps, collateralized debt obligations and derivatives that ultimately led to Lehman’s desperate need to de-leverage and quickly seek an infusion of capital. McDonald paints a portrait of detached and distant senior executives who created an almost separate lair at Lehman’s headquarters that only served to increase their detachment. In turn these leaders inculcated a culture of relentless demand for results led employees to take greater risks and in turn fostered a culture of greed.”  - Todd Bartholomew

The book was exciting to read and would make a great movie. The story shows what happens when unbridled greed and ego meet. The result was disaster. We’re still paying for this failure of common sense.  -Pauly

“Thirty-four minutes into the June 30, 2010 Financial Crisis Inquiry Commission’s hearing on derivatives, Michael Greenberger says, “…most importantly read ‘A Colossal Failure of Common Sense’ by Lawrence McDonald, a trader, an officer within Lehman who blames credit default swaps for bringing Lehman down.” I’m happy I took Mr. Greenberger’s advice.”   -DryMailMan

“I learned a lot about financial transactions that I had never fully understood. The author explains these, ones frequently mentioned in the news, very simply and thoroughly. For the entertainment and educational values alone, the book is superb.”  -Alexandra Hopkins

The story takes you through the inside world of a simple company gone wrong. He [McDonald] shows through his own eyes the world of the traders and what they saw day by day, as the situation got to points of insanity… What sets it apart from other finance books is its readability. It can appeal to a much broader market because anyone will be able to pick it up and understand the story. Even the more complicated derivatives that Lehman was getting involved in are made easy to understand by the way that the story is written.”  -Finance Guy

“This melt-down was avoidable and the book explicitly details the critical mistakes, hubris, etc that led to the disaster.”  -Michael C. Morris

“One day after hearing Mr. McDonald discussing the Lehman collapse on TV, I picked the book up and found I couldn’t put it down. Surpisingly, the technical details never got in the way of an engaging story. This should be a mandatory read for business students and more importantly members of Congress!”  -Doug Conteras

McDonald’s gripping story of the firm’s death spiral is a modern-day thriller, studded with incredible, insider revelations no one else knows, or would dare reveal.

“It’s a tastefully written masterpiece about the life of Larry who’s a likable upbeat character, and it weaves in and teaches you about the world of high finance, without being dry or boring. Its a MUST read for anyone who wants to learn about Wall Street, who wants to learn about Corporate Culture in America, or any student of business or management. And most important, anyone who needs a GREAT and gripping book to read.”  -Ex-Lehman Veteran

“This is a fresh, entertaining and insightful perspective, shared with wit, humor and emotion, by an insider who was in a position to see and participate in what turns out to be a historic series of events. Though he [McDonald] often is referring to just-emerging, complex, sophisticated financial products and concepts – that are the bread and butter of the investment banking world – McDonald explains them in very `accessible’ ways that even those not familiar with them can grasp the essentials and appreciate not just what they are, but what they represent, and the massive potential (for risk, reward, etc.) they hold.”  -D. Heller

“Engaging, well written and fascinating.”  -Jaybey

“This book takes the reader into the belly of the beast as to what went wrong, why, and furthermore, why it just happened again with MF Global.”  -Miles Reese