CONNECTING PEOPLE TO IDEAS AND TO EACH OTHER
CONNECTING PEOPLE TO IDEAS AND TO EACH OTHER

Sorry, Our Banks Are Still Broken

Anat Admati Diagnoses Our Rickety Financial Institutions and How To Tame Them

In the wake of our most recent financial crisis, Stanford University economist Anat Admati, coauthor of The Bankers’ New Clothes: What’s Wrong with Banking and What to Do About It, listened carefully to the debates and arguments and discussions about what had gone wrong and what should be done. “Everybody seemed to have a story they liked to tell about what went on and what to do, and they had it all figured out,” she told a standing-room-only crowd at the Goethe-Institut Los Angeles. At the same time, there was very little inclination on the part of the policymakers or banking executives to actually engage in discussion. “The narrative worked—for them,” she said. The people at the top wanted the rest of the country to think that banking’s complicated—that we should leave it to the experts. “It’s not that hard,” …