The Complete Guide to Capital Markets for Quantitative Professionals by Alex Kuznetsov is what I generally recommend developers entering investment banking to read.

(despite "Quantitative Professionals" being in the title it's not math heavy, although you need to be able to think technically - should be fine if your developer)

well the whole Madoff thing is quite interesting and informative. You should start with Harry Markopolos "No One Would Listen: A True Financial Thriller", here's the article quoted in this post (which quotes the book itself) : http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a9Aa_...