What do Blood and Bank have in common? “Quite a strange question” one would say – but not in 2018. This year, investigative journalists John Carreyrou and Dirk Laabs wrote books that became bestsellers even before they were published. Pre-sales on Amazon and other platforms spiked when both “Bad Blood” and “Bad Bank” were launched. The authors tell two different stories about two different cases in the fascinating world of business, finance, entrepreneurship and medicine.

In “Bad Blood – Secrets and lies of a Silicon Valey startup”, Carreyrou is dealing with a startup that was the hope and the proud of the entire Valey – Theranos. The book was nominated for the “Best business book of 2018” award.

Laabs describes the German perspective on the financial crisis of 2008, Libor manipulation and Wall Street in his book “Bad Bank – the rise and the fall of Deutsche Bank”. Both authors offer a personal perspective on business morale, ethics, values. They are full of insightful details, characters who were once public idols and unanswered questions that offer some food for thought.

Thesanos has been an exemplary startup and Elizabeth Holmes a role model for so many young women is science. 99% of all people on Earth either fear or hate needles and blood tests. Who could think of a better target audience? Everybody wanted to believe in a fairytale and the Santa Claus called Holmes. It was just too perfect to be true.

The story of Deutsche Bank is not black or white. Laabs perfectly explains financial concepts and instruments, guides the reader through the modern financial history providing fascinating details about banking and key players of the industry.

Innovation pressure and “overpromising”

The books gives sometimes an impression that Elizabeth and her close ones have been an “evil” in the “saint” world of entrepreneurship. She is probably one of the most ambitious ones who not only crossed the borderline but went far beyond it. But it feels like the borderline is moving constantly. Overpromising seems to be not only “ok” but is kind of a new “best practice” in many fields of the fast-moving IT industry. Innovation and “coolness” have become more important than ever.

2008 and 2018 – is Entrepreneurship the Investment Banking of 2018?

In 2008 it has suddenly become generally excepted that there are some “bad banks” that misused their clients’ trust, over engineered some products and did not adhere to the values they had in their mission statements. Today is 2018. Did the banks change? Yes, they did, because they had to. Compliance has become a crucial corporate function, every banker undergoes a rigorous risk management training. Every bad joke could be interpreted as an attempt to manipulate markets. Bankers have learnt to ask their lawyers first…

But what about other industries? Has Silicon Valley become the Wall Street after 2008? Many economists think so. Zero interest rate policy forced investors to search for alternative investment opportunities. On the other hand, some entrepreneurs have quickly understood the game theory of the financing rounds. The bubble is growing…

 

Bad Blood on Amazon (in English) –  https://amzn.to/2IZubn6

Bad Bank on Amazon (in German) –  https://amzn.to/2OrMuap

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