When Confederation Life went belly-up in 1994, it was the fourth largest insurance company in Canada, with a history stretching back to the late 1800s. The news rocked the financial-services sector and made headlines for weeks. Until recently, faith in the security of giant corporations was fundamental to our economic system. The failure cost over 4,000 jobs and left 250,000 policy holders in the lurch. It didn’t need to happen, according to Rod McQueen in his latest book, Who Killed Confederation Life? McQueen, a senior writer for the Financial Post and the author of Risky Business (1985), takes a dim view of the handling of this morass, and lays the blame on everyone from senior executives and auditors to politicians in Ottawa.

McQueen has written a readable book in a lively narrative style. His research is voluminous with over 100 interviews. As he traces the history of the company, its twists, intricacies, and characters, the story, like Alice’s, gets curiouser and curiouser.

In the end, the failure is not as earth-shattering as McQueen argues. Two years later, the topic seems passé; it’s just another leftover from the reckless eighties. The financial health of life-insurance companies has generally been delicate too; that’s the nature of their business. Today, with the growing tentacles of big banks all over the globe, they’re clearly on the run to improve earnings.

McQueen does make a good case, though, for greater consumer protection and a stronger watchdog. To this end, he outlines a list of proposals for reform. Who Killed Confederation Life? is not a diatribe, but presents a valid plea for tightening up the controls on bankruptcy in this country. In the end, bankruptcy costs us all, except the accountants and lawyers for whom it’s manna.