The Bankers' New Clothes

The Bankers' New Clothes

What's Wrong With Banking and What to Do About It

Book - 2013
Average Rating:
Rate this:
"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. Admati and 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. They show that banks are as fragile as they are not because they must be, but because they want to be--and they get away with it. Whereas this situation benefits bankers, it distorts the economy and exposes the public to unnecessary risks. Weak regulation and ineffective enforcement allowed the buildup of risks that ushered in the financial crisis of 2007-2009. Much can be done to create a better system and prevent crises. Yet the lessons from the crisis have not been learned. 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"--Provided by publisher.
Publisher: Princeton : Princeton University Press, [2013]
Copyright Date: ©2013
ISBN: 9780691156842
Branch Call Number: 332.1 ADMATI
Characteristics: xv, 398 pages : illustrations ; 24 cm
Additional Contributors: Hellwig, Martin F.


From the critics

Community Activity


Add a Comment
Mar 11, 2016

This is a good introduction for dedicated laypersons who want to understand the importance of capital structure on banks and how it influenced and deepened the financial crash of 2008. It is rather worrisome that the recommendations from these erudite scholars of banking have yet to materialize in the global financial system.

Jul 23, 2013

I find this book, overall, to be in support of the status quo, without really addressing the foundational, the fundamental, issues. A simple question: Do the authors discuss the "internalization business" and the underlying motives for it? Do the authors really "demystify" banking? No, not really....

May 10, 2013

An excellent counter-argument to banking and finance industry lobbying. My only complaint is that the authors repeat themselves constantly - they could have cut 1/3 of the book and lost nothing important.


Add Age Suitability

There are no ages for this title yet.


Add a Summary

There are no summaries for this title yet.


Add Notices

There are no notices for this title yet.


Add a Quote

There are no quotes for this title yet.

Explore Further

Browse by Call Number


Subject Headings


Find it at SCCLD

To Top