In 2014 Admati, a professor of economics at Stanford University, produced The Bankers’ New Clothes, a wake-up call for the financial industry all over the world. Her thesis is that banks take unwarranted risks because they are gambling with other people’s money and not their own. She argues that reform of the banking system is desperately needed. “Is this complicated, risky system the best we can have?” she asks.
When She Talks, Banks Shudder
Binyamin Appelbaum profiles Admati’s troubled relationship with banks.