The Bankers' New Clothes: Whats Wrong with Banking and What to Do about It

Equity. Readers looking for a primer on the issues involving banking in recent years will find a very readable account in The Bankers' New Clothes: What's Wrong with Banking and What to Do about It by Anat Admati and Martin Hellwig. The authors provide extensive notes and references for those readers who want to dig more deeply into the topic. Admati and Hellwig distill their proposal for reform to beefing up requirements for banks to hold more capital. There’s no doubt that a strong capital cushion would reduce the risk of another banking crisis, but the authors never seem to explore the reality that low returns on excess capital will dissuade investors from this sector. Readers who like a clear and definitive point of view will find one in this book. Rating: Three-star (It’s ok) Click here to purchase The Bankers’ New Clothes from amazon.com.