My latest Macro Musing podcast is with Anat Admati. Anat is a professor of finance and economics at Stanford University. Since the crisis in 2008, she has also been a fervent advocate of banks using more equity and less debt to fund their investments. As part of this effort, Anat coauthored the book "Bankers' New Clothes: What's Wrong with Banking and What to Do About it". She joined me to talk about these and other issues related to the stability of the U.S. banking system.
It was a fun and interesting conversation throughout. We covered everything from the distortions created by the Basel bank regulations to the still inordinate amount of bank leverage to the prospects for a safer financial system. One of the more sobering implications of our discussion is that the U.S. banking system is not much safer today than it was in 2008. This is a point also made by Larry Summers in a recent Brookings Paper.
You can listen to the podcast on Soundcloud, iTunes, or your favorite podcast app. You can also listen via the embedded player above. And remember to subscribe since more episodes are coming.
Anat Admati Homepage
Anat Admati Twitter Account
Paper - It Takes a Village to Maintain a Dangerous Financial System
Paper - Contingent Liability, Capital Requirements, and Financial Reform