Wednesday, April 28, 2010

If the Goldman Sachs hearings were fiction...


Watching the Congressional hearings into Goldman Sachs made me appreciate the prescience of Adam Haslett's brilliant novel, Union Atlantic.

Written in the year before the economic collapse of 2009, Haslett's novel features a young gun investment banker, Doug Fanning, whom we first meet in 1988 when he is stationed on a US naval ship that is escorting Kuwaiti tankers through the Straits of Hormuz. Fanning sees an unidentified plane on his radar, and alerts his commander. A decision is made to fire upon the plane and 290 people lost their lives as their Iranian Airbus passenger jet was shot down by the Americans.

The incident gets covered up, as well as the fact that Fanning failed to tell his commander that the jet was ascending, not descending as the commander was told. This incident and its aftermath leads Fanning to become the kind of man who later sets in motion a financial disaster that threatens the U.S. banking system.

Fanning becomes a big success as an investment banker at Union Atlantic. He takes risks there as well, and as long as he produces big profits for the bank and in turn himself, he can cut all the corners he likes. His boss is willfully ignorant of Fanning's schemes.

When Fanning builds a huge McMansion next to property owned by Charlotte Graves, he underestimates her. The land was owned by her grandfather, and Charlotte believes his house is obscene. Charlotte, a retired teacher, is eccentric, slipping into insanity. She believes that her two dogs are the incarnated Malcolm X and Cotton Mather, and they frequently share their conflicting advice with Charlotte.

Charlotte ends up tutoring Nate, a teenage boy whose father recently committed suicide. Nate and his mother are barely existing together. He breaks into Fanning's home, and ends up in a dangerous sexual relationship with Fanning. Fanning wants Nate to help get Charlotte off his back, and he is willing to use Nate's vulnerability to get what he wants.

When a colleague working for Fanning runs a scheme that unravels, Charlotte brother Henry Graves, the president of the New York Federal Reserve, becomes involved in trying to keep this from ruining the entire entangled U. S. economy. (Hank Paulson, anyone?)

How Haslett weaves these stories together is a wonder. He doesn't write this novel, he crafts it. It took me along time to read this book because I frequently reread passages, they were that beautiful. Of Nate realizing that Charlotte needed him, he writes
These last many months the intuition of others' needs had become Nate's second nature, as if his father's going had cut him a pair of new, lidless eyes that couldn't help but see into a person such as this: marooned and specter-driven.

His characters are vivid and complex. Nate is flailing about, wanting to be loved and willing to debase himself to do it. Charlotte is a genius, bordering on insane, and Fanning is amoral, sinking further into the morass.

It is astonishing that a fiction writer created this dialogue in 2008, when Henry the NY Fed Chair says to the CEO of Union Atlantic
"Let me start by saying that if you or your board is under the impression that Union Atlantic is too big to fail, you're mistaken. There's no question here of a bailout. If you go under, the markets will take a hit, but with enough liquidity in the system we can cut you loose. I hope you understand that." This, of course, was a bluff. Henry has already begun receiving calls from the Treasury Department.

This novel is one of the best books I have read this decade. The story is relevant and the characters are powerful. Haslett is a true craftsmen. If you like good fiction, this is a book you must read.

Rating 5 of 5 stars

Thanks to Doubleday for providing a copy of this book for review.

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