The Devil's Casino: Friendship, Betrayal, and the High-Stakes Games Played Inside Lehman Brothers
Summary
Vicky Ward, a Vanity Fair contributor, wrote this account of Lehman Brothers focused on its internal culture and on the personal relationships among its senior executives, particularly Richard Fuld and Joseph Gregory.
The reporting covers the firm from the 1980s, including its period inside American Express, the 1994 spin-off, and the rebuilding under Fuld. Ward's central subject is the executive committee and the way Fuld's isolation and Gregory's management of internal politics affected decisions. She documents the promotion of loyalists over people with relevant experience, the removal of executives who raised concerns about the firm's real estate exposure, particularly Michael Gelband, and the compensation and spending culture among senior management.
The book was criticised on publication for its emphasis on the personal lives and social behaviour of executives and their spouses, which occupies substantial space and adds little to understanding the failure. Ward's sourcing is largely from people who had left the firm or been removed, which shapes the account. The material on how internal dissent was handled and on Gregory's role in personnel decisions is the useful part. Readers wanting the financial mechanics should go elsewhere, including to Oonagh McDonald or to the Valukas examiner's report.
Key takeaways 6
- Executives who raised concerns about Lehman's real estate exposure were removed rather than heard.
- Promotion at Lehman rewarded loyalty to the chief executive over relevant experience in the businesses being managed.
- Fuld's isolation from the trading floor meant he relied on Gregory's account of what the firm held.
- Gregory controlled personnel decisions and used them to manage internal politics rather than capability.
- Ward's sourcing is largely from departed executives, which shapes the account and should be weighed.
- The book's attention to executives' personal lives adds little to understanding the firm's failure.
Who should read it
Readers interested in how internal dissent was suppressed at a failing firm, treating the account's sourcing and emphasis with caution.
Where it sits in the reference 2
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