Founder connections
- Marc AndreessenRecommendation in preserved reading threadThe preserved July 5, 2018 @pmarca thread names The Spider Network among books Andreessen says he recently read and recommends. His comment identifies its account of financial-market manipulation. The original X endpoint was not checked in this pass.Source
Summary
Enrich reports the manipulation of Libor, a benchmark used to set interest rates on loans and other financial contracts. The account centers on trader Tom Hayes and a network of bankers and brokers who tried to influence the daily rate-setting process for their own gain. It follows how the scheme developed and unraveled, while examining the financial system around it.
Why read it Our view
Useful for examining the incentives behind a number that many people trust. Follow who can influence Libor, who benefits from a change and who carries its cost. The reporting prompts questions about how a company checks a critical measure and how it detects conduct that can make that measure unreliable.