Lawrence McDonald is a managing director of Pangea Capital Management and the cofounder of He was, until 2008, vice president of distressed debt and convertible securities trading at Lehman Brothers and wrote the bestselling A Colossal Failure of Common Sense.

Exactly two years after the bank failure that triggered the meltdown, former Lehman exec Lawrence McDonald shows how those events cost taxpayers $60 billion—and a new round of headaches today.