PUP News of the World

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Welcome to the next edition of our brand new series, PUP News of the World! Every week we will be posting a round-up of all of our most exciting national and international PUP book coverage. Reviews, interviews, events, articles–this is the spot for coverage of all things “PUP books” that took place in the last week. Enjoy!


THE BEST OF THE BEST

As we near the end of 2013–where did the year go?–we’ve entered the season of “Best of” lists. Princeton University Press is excited to highlight just some of the most recent titles that have been featured as the best of the past year.

Anat Admati & Martin Hellwig start it off as THE BANKERS’ NEW CLOTHES is included in The WSJ Best Nonfiction of 2013″ roundup. What separates this title from the pack? “In a year of important books about the recent economic crisis, the most important one told us simply how to stop the next one,” says the WSJ. Interested in learning more? Check out chapter one.

Mike Tyson, whose new book was released earlier this fall, pointed to a PUP book as one of his favorites of 2013. THE QUOTABLE KIERKEGAARD, edited by Gordon Marino, is a “collection of awesome quotes from that great Danish philosopher,” Tyson says.

The English translation of THE PLUM IN THE GOLDEN VASE was finally completed when PUP released the fifth volume this fall. Tash Aw names David Tod Roy’s translation as one of his favorites of the year, saying that this last volume “completes the joyous rediscovery of a genuine masterpiece.” See the full entries for both Tyson and Aw here in the Wall Street Journal‘s “12 Months of Reading” article.

For the scientists in the bunch, EINSTEIN AND THE QUANTUM is another 2013 favorite. Science Friday’s Ira Flatow named the book as one of his favorites, and Jennifer Oullette picked it for her list on Cocktail Party Physics. Have that “Einstein curiosity” about this title? Hear more from author A. Douglas Stone on this Physics Central Podcast.

Maria Popova of Brain Pickings selects ITALO CALVINO: Letters as one of her “Best Books on Writing and Creativity 2013.” Popova called the book “an absolute treasure trove in its entirety — the most profound intersection of writing, philosophy, and literary voyeurism since Susan Sontag’s journals and the diary of Anaïs Nin.” PUP is releasing a paperback edition this spring.

To round out our bunch–or should we say batch–we turn to the beloved cookbook by Merry White, which was re-released in a 40th Anniversary Edition this fall. COOKING FOR CROWDS is named one of the Atlantic‘s “Best Food Books of 2013.” Illustrated by the New Yorker‘s Ed Koren, this charming book offers simple, step-by-step instructions for easy cooking and entertaining on a grand scale–from hors d’oeuvres to desserts. Corby Kummer says:

“Not just enormously charming but useful, full of sturdy recipes that can still seem mildly exotic no matter how much we flatter ourselves at the sophistication of our palates….This is more, that is, than an artifact of Brooklyn avant la lettre. It’s full of practical dishes and tricks you’ll call your own, like tossing fresh-roasted almonds in maple syrup to serve on ice cream.”

World News 12-18


THIS WEEK’S REVIEWS

Gurcharan Das discusses the state of India and the issues highlighted in AN UNCERTAIN GLORY in his recent Wall Street Journal review. Listen to this interview with Amartya Sen, who co-authored the book with Jean Dréze.

You can also hear an interview with Francisco Bethencourt, the author of RACISMS, as he spoke to The Forum this week. RACISMS is the first comprehensive history of racism, from the Crusades to the twentieth century.

Did you hear all of the buzz about US President Barack Obama’s selfie? PUP author Simon Blackburn says it could have been worse. Check out his explanation in the Financial Times. His book, MIRROR, MIRROR, will be released this spring.

 

Anat Admati & Martin Hellwig Are Shortlisted for 2013 German Business and Economics Book Award

Anat Admati & Martin HellwigThe Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It
Shortlisted for the 2013 Deutsche Wirtschaftsbuchpreis (German Business and Economics Book Award), sponsored by Handelsblatt, the Frankfurt Book Fair, and Goldman Sachs.
The Bankers' New ClothesWhat 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.

Admati and Hellwig seek to engage the broader public in the debate by cutting through the jargon of banking, clearing the fog of confusion, and presenting the issues in simple and accessible terms. The Bankers’ New Clothes calls for ambitious reform and outlines specific and highly beneficial steps that can be taken immediately.

Anat Admati is the George G. C. Parker Professor of Finance and Economics at Stanford’s Graduate School of Business. She serves on the FDIC Systemic Resolution Advisory Committee and has contributed to the Financial Times, Bloomberg News, and the New York Times. Martin Hellwig is director at the Max Planck Institute for Research on Collective Goods. He was the first chair of the Advisory Scientific Committee of the European Systemic Risk Board and the cowinner of the 2012 Max Planck Research Award for his work on financial regulation.

Special Excerpt from “The Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It”

The Bankers' New ClothesYesterday marked the fifth anniversary of the Lehman Brothers filing for bankruptcy in 2008, sending our economy into a tailspin. To note this occasion, we posted a list of some of our Top Banking Books to help people try to figure out what in the world is going on with our economy.
Along that same thread, today we have a special excerpt of The Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It by Anat Admati & Martin Hellwig posted below. In this excerpt (pages 11-12 to be exact), Admati and Hellwig address the Lehman Brothers fall and the ripple affect it had on America and even other countries abroad.
As a whole, the book addresses how risks in banking can impose significant costs on the economy. Many think that a safer banking system would require sacrificing lending and economic growth, but Admati and Hellwig  argue that 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.
Check out the excerpt below!

In the run-up to the financial crisis, the debts of many large banks financed 97 percent or more of their assets. Lehman Brothers in the United States, Hypo Real Estate in Germany, Dexia in Belgium and France, and UBS in Switzerland had many hundreds of billions of dollars, euros, or Swiss francs in debt. Lehman Brothers filed for bankruptcy in September 2008. The other three avoided bankruptcy only because they were bailed out by their governments.


The Lehman Brothers bankruptcy caused severe disruption and damage to the global financial system. Stock prices imploded, investors withdrew from money market funds, money market funds refused to renew their loans to banks, and banks stopped lending to each other. Banks furiously tried to sell assets, which further depressed prices. Within two weeks, many banks faced the prospect of default.


To prevent a complete meltdown of the system, governments and central banks all over the world provided financial institutions with funding and with guarantees for the institutions’ debts. These interventions stopped the decline, but the downturn in economic activity was still the sharpest since the Great Depression. Anton Valukas, the lawyer appointed by the bankruptcy court to investigate Lehman Brothers, put it succinctly: “Everybody got hurt. The entire economy has suffered from the fall of Lehman Brothers . . . the whole world.”


In the fall of 2008, many financial institutions besides Lehman Brothers were also vulnerable. Ben Bernanke, chairman of the Federal Reserve, told the Financial Crisis Inquiry Commission (FCIC) that “out of maybe . . . 13 of the most important financial institutions in the United States, 12 were at risk of failure within a period of a week or two.” Some or all of the major banks in Belgium, France, Germany, Iceland, Ireland, the Netherlands, Switzerland, and the United Kingdom failed or were at significant risk of failing had their governments not bailed them out.


Accounts of the crisis often focus on the various breakdowns of bank funding between August 2007 and October 2008. Much bank funding consisted of very short-term debt. Banks were therefore vulnerable to the risk that this debt would not be renewed. The deeper reason for the breakdowns, however, was that banks were highly indebted. When banks suffered losses, investors, including other financial institutions, lost confidence and cut off funding, fearing that the banks might become unable to repay their debts.


The Lehman Brothers bankruptcy itself heightened investors’ concerns by showing that even a large financial institution might not be bailed out, and therefore that default of such an institution was a real possibility.


The problem posed by some banks being regarded as too big to fail is greater today than it was in 2008. Since then, the largest U.S. banks have become much larger. On March 31, 2012, the debt of JPMorgan Chase was valued at $2.13 trillion and that of Bank of America at $1.95 trillion, more than three times the debt of Lehman Brothers. The debts of the five largest banks in the United States totaled around $8 trillion. These figures would have been even larger under the accounting rules used in Europe.


In Europe, the largest banks are of similar size. Because European economies are smaller than that of the United States, the problem is even more serious there. Relative to the overall economy, banks are significantly larger in Europe than in the United States, especially in some of the smaller countries. In Ireland and Iceland before the crisis, the banking systems had become so large that, when the banks failed, these countries’ economies collapsed.


The traumatic Lehman experience has scared most governments into believing that large global banks must not be allowed to fail. Should any of these large banks get into serious difficulties, however, we may discover that they are not only too big to fail but also too big to save. There will be no good options.


The consequences of letting a large bank fail are probably more severe today than in the case of Lehman Brothers in 2008, but saving them might cripple their countries. The experiences of Ireland and Spain provide a taste of what can happen if large banking systems have to be saved by their governments. In both countries, the governments were unable to deal with their banking problems on their own, so they had to ask for support from the International Monetary Fund and from the European Union.