Originally published on CNBC.com on Feb. 15, 2011
“It’s the side of Wall Street Wall Street doesn’t want you to see,” one high-level banker warned me before I ventured down the rabbit hole that would become my seven-year sojourn to the heart of the oil market.
I will be honest: I expected the drugs, the corruption, the fistfights and the territorial death matches over money. It wasn’t surprising that the traders who ruled over the New York Mercantile Exchange, the world’s most powerful oil market, imbibed illegal substances and brought guns, strippers and pornographic material into the trading pits.
As many of the market’s inhabitants had come from nothing, their riches effectively overwhelmed them, leaving them with a feeling of omnipotence, a sense that real-world consequences did not apply to them. Much of the oral history of the men and women who built the global oil market, as related in “The Asylum,” invariably touches on their struggle with these things.
What I could not get over, however, was that most of the bad behavior appeared to be well-known to the nation’s top market regulators, the New York Police Department and some of the highest-ranking officials of the U.S. government. Yet as oil prices streaked to nearly $150 a barrel in 2008, no one did anything about it. To the contrary, there was mass denial and the desertion of many key “regulators” from their posts. Continue reading ‘The Asylum:’ New Book Uncovers the Dark Side of the New York Merc