Review of Behind the Swap

[Sam Ibeh]

[Following is an official OnlineBookClub.org review of "Behind the Swap" by Andrew DeJoy.]

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4 out of 4 stars

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In Behind the Swap, Andrew DeJoy asserted that the financial systems in the United States are intrinsically faulty. The book dwelled on the concept of operational risks in post-trade processing and the inherent problems in the system that contribute to those risks. The book used the case study of Citibank to illustrate this. In 2020, Citibank made an erroneous payment to third-party creditors that ultimately incurred losses for the bank. The question that plagued the author was how such a big bank could make such an error. This added to the discovery that the 2020 error was not the first for the bank. Behind the Swap examined the existing system, its contributions to increased operational risks, and possible ways of correcting these systemic defects.

The book was divided into two simple parts, the first part was tagged 'The Problem,' and the second part was tagged 'A Better Approach.' These two delineations proved very significant as they gave the book a simplicity that made it easy to read. In addition, it made the analysis easy to follow and understand and gave it insightful clarity. Every chapter started with a brief explanation of the discussion in the chapter, and the chapters ended with a conclusion and insight into the next chapter. The book was purposeful in its writing to precisely address specific parts of the financial system and address the players in the industry. The author was clear when he pointed out the defects in the regulatory apparatus for legislators and dealt with the oversight of the leadership of the financial industry. In this way, the author also clearly identified the beneficiaries of this book, which would make it easy for the target audience to be reached.

The book was not judgemental in identifying the systemic problems that plagued the financial industry but was sympathetic to the inevitability of some of these errors. The book's exciting revelation was the simple fact that the causative factors behind operational and processing risks in post-trade processing had always been a part of the system and could never be wholly eradicated. The author's analysis regarding the part that human error plays in post-trade operations risk could inform a sympathetic attitude by these institutions towards those who make these errors.

The author's analysis was enlightening and insightful concerning the problems he identified. The research involved was extensive, and the author's discourse on the subject was logical and objective. Indeed, the book would serve as a guideline for all players in the financial industry to better manage the incidences of operational risks. The book was not one of doom but of hope. The author identified the problems with the system and suggested solutions to the problems. Behind the Swap could be considered a technical piece because, despite the author's straightforward language, certain analytical aspects demanded some basic knowledge of the workings of the financial industry.

Behind the Swap was a highly informative exposition on the dynamics of operational and processing risks in post-trade processing, and a lot could be learned from it. Overall, the book was a good read. As already identified by the author, much benefit could be gotten from this book by the leadership and staff of financial institutions and the authorities that control the financial industry. There was nothing I didn't like. I found some errors, but they were not enough to make me deduct anything from the rating. Therefore, I'd rate it four out of four stars.

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Behind the Swap
View: on Bookshelves | on Amazon

[Precious Amarachi Nzeakor]

Maybe this book will come in handy for financial experts and strategists, but not for someone like me. Regardless, great review.

[Elenimo Chembe]

This is a good book to learn about financial systems in the US. Good for everyone interested in field of finance.

[Sumto Nii]

I don't think I will find this book interesting at all. I am not a fan of the financial sector or the financial market. All the same, good review.

[Odala J Phiri]

It's risky to have errors in the financial system of a crucial institution like a bank. That was the worse that the bank could do. This book may be alarming to more big financial institutions to revisit their systems. Thanks for the detailed review.

[Austin Debby]

It's not just about seeing a problem, providing possible solutions is a more better and sensible approach and that is what the author did. Great review.