Bankers’ New Clothes

Anat Admati is a professor at the Stanford Graduate School of Business. She has written for the New York Times and the Financial Times and has been included in Time’s 100 Most Influential People and Foreign Policy’s 100 Leading Global Thinkers. Martin Hellwig is director emeritus at the Max Planck Institute for Research on Collective Goods in Bonn and former chair of the German Monopolies Commission and the Advisory Scientific Committee of the European Systemic Risk Board.

"Indispensable."---Jesse Eisinger, New York Times

• Preface to the 2024 EditionPrefaceAcknowledgments1 The Emperors of Banking Have No ClothesPART I Borrowing, Banking, and Risk2 How Borrowing Magnifies Risk3 The Dark Side of Borrowing4 Is It Really “A Wonderful Life”?5 Banking DominosPART II The Case for More Bank Equity6 What Can Be Done?7 Is Equity Expensive?8 Paid to Gamble9 Sweet Subsidies10 Must Banks Borrow So Much?PART III Moving Forward11 If Not Now, When?12 The Politics of Banking13 Other People’s MoneyPART IV Undermining Democracy and the Rule of Law14 Too Fragile Still15 Bailouts and Central Banks16 Bailouts Forever17 Above the Law?NotesReferencesIndex