The Match King: Ivar Kreuger, The Financial Genius Behind a Century of Wall Street Scandals

Given these facts - and they were facts - Berning was reluctant to accuse such a reputable man of anything. He told himself Garanta wasn’t important. It couldn’t be.

Occasionally Ivar would ask a question about IT&T and one of the men from the other side would leave the room for an hour to get an answer. But when someone from IT&T asked a question, Ivar always stayed put and answered from memory.

Before 1922, Ivar had raised most of his capital in Europe, particularly from Swedish banks. As Ivar watched the Americans enter a period of buying mania, he saw a new source of funds. Ivar had studied financial history and was aware of infamous periods of mania and later panic, such as the South Sea Bubble of 1720 and the infamous rise and collaps

Ivar devised a more elegant solution to this problem. It was an ingenious piece of financial engineering that would survive the test of time. Ivar decided to introduce a new type of security, which he called a “B Share.” Ivar began with Swedish Match. He divided its common shares into two classes. Each class would have the same claim to dividends a

Ivar had always been a charming guest, and he put on an urbane show for the Marcossons. But anyone who knew him well would have seen a new person. One of Ivar’s most consistent traits since childhood had been that he rarely laughed. Yet now he was suddenly a comedian, relaying humorous anecdotes throughout the day and cackling after the punch lines

The monopoly-for-loan idea certainly was ingenious.

Although Ivar had staff, he didn’t like being waited on. He still carried his own luggage, answered the telephone, greeted visitors, and opened his copious letters and cables. Ivar preferred to spend most of his time in Stockholm by himself, in silence. He had not lost the extraordinary memory skills he had as a child, and he spent much of his time

While Jack Morgan was ensuring that he would have a direct bedroom-to-deck path on his new yacht, Ivar had tiptoed into the deal of the century.

While the factories of Europe worked overnight to produce war materials, Ivar quietly purchased match factories throughout Sweden.13 He was a pioneer of vertical integration, buying timber tracts and chemical factories to secure the raw materials needed to make matches. Finally, he merged the leading Swedish competitors to form Swedish Match, a sin