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Can We Create Banks We Love?

Feb 7, 2012

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Can we have a banking system that provides good services to people at reasonable rates? A banking system that doesn't bring down the global economy every few decades?

Anat Admati thinks we can. She's a finance professor at Stanford, but she never paid much attention to banks until the financial crisis. (This is not unusual in the superspecialized world of academia.)

After the crisis hit, Admati started reading up on banks. And, in a basic banking textbook, she came upon a single line that changed her career.

"I sat in my office and I thought, 'Something is really wrong in banking.' "

On today's show, Admati tells us what she thinks is wrong in banking — and how she thinks we can fix it.

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