Podcast notes: The Spider Network, about the LIBOR scandal and Tom Hayes

On the title:

• The longest subtitle in the business book list
• A product of some rare moments of vivid dreams between the editor and David Enrich
• Cover is like a children's book cover, actually portrays the story
• It's a complex story - but a challenge to get through

The story in a nutshell: 

• It's a story about a scandal, and also a story of the people behind it
• People know about scandals in general but not too much about any specific one in detail
• People just know the common theme, so the author tries to bring the details rather than repeat what's seen in the newspapers
• It's also about Tom Hayes, and his accomplices 
• There's a lot more subtleties and nuances than previously thought 
• People who get caught in scandals are more of a product of a system that is designed for bad behavior. Some small bad apples are punished, but most get away
• There's a very small number of people who were convicted, many still remain employed after the scandal
• LIBOR is the worlds most important #, because it determines the interest rate on so many things that impact our daily lives (in the US or otherwise)
• The scandal erupted because LIBOR is a # pulled out of thin air, and banks determine it together; It's just an estimate
• Bankers recognized that they could nudge it up and down by some collaboration 
• One thing that comes across clearly is that everyone passes the blame down to one person from top to down

On sympathy for the characters:

• The investigation was not a black and white issue
• Bad bankers manipulating the LIBOR and harming normal people; most of the media views it this way
• Hayes came from middle class beginnings, his mom was working for Gordon Brown
• Hayes was relate-able for the author as he was a striver and eager to find a job and put his skills to use
• People behave badly because they are incentivized by institutions
• A closed system existed - it was clear that these bankers were out to out-earn each other and everyone else in society
• Banks were designed to lubricate the economy in the past. Now banks, especially pre crisis, were casinos, and were malicious
• Dumb money clients, that's basic what bankers called ordinary investors. Brokers would use these clients as baits as they were easy to rip off. Victims is the money of all the individual investors. It was also a violation of what is a banks purpose

On business books: 

• Michal Lewis, When genius failed, Barbarias at the gate
• Is this book going to change anything? Will it prevent anything? As a journalist - the author is cynical
• The author wants to help normal human beings to get into this, and get a basic understanding of whats going on. The finance industry is designing itself to not to be understood. 
• People who design this stuff are smart but human
• Impact and progress is incremental - but that's OK
• Prosecuters were basically focussed on Tom Hayes. Yes, Tom was guilty, but was justice served? No
• Hayes was not the only one; the bosses were doing exactly doing what he does. He's serving 11 years, alone, so that's unfair
• What does Tom think about your book? he hasn't read it. His wife recommended that he not read it as Tom is in bad mental health

What other books does the author admire: 

• Huge fan of this genre
• David read all of Toms favorite
• Lewis entire library; Blindside is favorite
• Den of Theives - Milken is also a favorite
• In the course of reporting on this, he was given a hard drive, the prosecutors hard drive
• It was not easily structured, but it was not grouped at all. David ran through it all - not efficiently

Podcast link: https://www.ft.com/content/1b7f43cb-0062-429d-b3f9-9cb9cdf579a3