Ivar Kreuger

History's Financial Scandals

Known as the grandfather of all Ponzi and Madoff schemes, Ivar Kreuger (1880-1932) made his fortune in the 1920s by raising money from American investors to lend to European governments in exchange for match monopolies. However, Kreuger was creating more than matches; he created "the forerunners of today's derivatives" and techniques that are still used by hedge funds and investment banks. Shortly after his suicide in 1932, his schemes unraveled. The "Kreuger crash" bankrupted millions and led to the securities laws of 1933 and 1934, according to a recent Publishers Weekly review of the book, "The Match King" by Frank Partnoy.

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Ivar Kreuger Known as the grandfather of all Ponzi and Madoff schemes, Ivar Kreuger (1880-1932) made his fortune in the 1920s by raising money from American investors to lend to European governments in exchange for match monopolies. However, Kreuger was creating more than matches; he created "the forerunners of today's derivatives" and techniques that are still used by hedge funds and investment banks. Shortly after his suicide in 1932, his schemes unraveled. The "Kreuger crash" bankrupted millions and led to the securities laws of 1933 and 1934, according to a recent Publishers Weekly review of the book, "The Match King" by Frank Partnoy.
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