How Banking Undermines Democracy and the Rule of Law

Despite the policy failures that enabled and even encouraged the buildup of risk in the banking system and ultimately led to the global financial crisis of 2007-2009, “reformed” rules remain poorly designed, the system remains much too fragile and dangerous, and bailouts persist. In resisting beneficial reforms, bank lobbies make false, misleading, and self-serving arguments. The weak rules and poor enforcement reflect the symbiosis of bankers with politicians, the media, lawyers, and economists. They encourage and enable a culture of recklessness, rule infringements, and even criminal behavior, with impunity. The power of bankers to distort rules and political discourse threatens our democracies. This talk will be based on the new and expanded edition of Anat Admati's The Bankers' New Clothes: What is Wrong with Banking and What to Do About It (Princeton University Press, 2024, coauthored with Martin Hellwig), and other writings.

Host or Publisher ACLE