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:
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:
“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: