What is wrong with today’s banking system? The past few years have shown that risks in banking can impose significant costs on the economy. Many claim, however, that a safer banking system would require sacrificing lending and economic growth. The Bankers’ New Clothes examines this claim and the narratives used by bankers, politicians, and regulators to rationalize the lack of reform, exposing them as invalid. Anat Admati and Martin Hellwig argue we can have a safer and healthier banking system without sacrificing any of the benefits of the system, and at essentially no cost to society.
Learn more about it from Anat Admati’s interview from NPR’s Morning Edition:
http://n.pr/YwxWQK
Anat Admati argues that banks carry too much debt and have too little equity.
We invite you to read a book excerpt at npr.org at:
http://n.pr/16xGA8Q
The Bankers’ New Clothes:
What’s Wrong with Banking and What to Do about It
by Anat Admati & Martin Hellwig
“Crucial . . .”–Jim Surowiecki, NewYorker.com
“Ms. Admati and Mr. Hellwig, top-notch academic financial economists, do understand the complexities of banking, and they helpfully slice through the bankers’ self-serving nonsense. Demolishing these fallacies is the central point of The Bankers’ New Clothes.”–John Cochrane, Wall Street Journal
We also invite you to try your luck and enter for a chance to win a copy of The Bankers’ New Clothes: What’s Wrong with Banking & What to Do about It at Goodreads:
http://bit.ly/ZNAI66
my sometimes seems the work of miracles: three decades of economic growth, with GDP compounding at an annual rate of around 10%; the world’s highest levels of savings and investment; vast trade surpluses, which feed the largest foreign-exchange reserves in history. The financial system has played a key role in delivering these economic feats, and no single institution within it has been more important than China Development Bank. “Understand CDB,” Henry Sanderson and Michael Forsythe write in “China’s Superbank,” “and you understand the core of China’s state capitalism.”
John Padgett and Walter Powell, authors of 











![j9925[1]](http://blog.press.princeton.edu/wp-content/uploads/2013/04/j99251.gif)
![j9929[1]](http://blog.press.princeton.edu/wp-content/uploads/2013/01/j992911.gif)


![j10053[1]](http://press.princeton.edu/images/j10053.gif)




