How did the most famous shipwreck in history give rise to the first documented case of insider trading?
In finance, it is always hard to say who did what first, because the very idea of finance is rather vague. The verb finer appeared in 13th-century France (it later gave English to fine) and mostly meant paying to settle a transaction, before gradually coming to mean money matters around the 16th century. Still, you have to wait for the 18th century, and in particular the first real banks (one of which already had its own issue, as it happens (in French)), for finance to start looking like the thing we know today. With speculation. And with the crimes that come with it.
This story is often described as the first insider trading case in finance, but in reality some people have very probably always had information before others, and made money on it. What makes this one so gripping is the setting: the most famous shipwreck in history, a legendary company, grandees and government ministers, and some surprising ramifications.
A deep dive (pun intended) into one of the biggest financial scandals of the early 20th century.
Southampton, 10 April 1912.
A jubilant crowd cheers the 953 passengers and 889 crew boarding the vast liner, 269 metres long and 28 wide. The men all wear bowler hats, the women long dark dresses. As the four funnels glide towards the harbour mouth, handkerchiefs wave, just like in the films.
The Titanic sets off on her maiden voyage.
Note: this issue is a reissue of an earlier edition published 18 months ago (in French), revised, corrected and expanded, which at the time had been read fewer than 4,000 times.