Boom Bust Season 1 Episode 59 Anat Admati On Banks' Need for More Capital, Better Regulation

In season 1 episode 59 of Boom Bust, host Brent Jabbour is joined by Anat Admati, co-author of the bestselling book The Bankers' New Clothes, to discuss the need for banks to have more capital and better regulation. Admati explains that in the aftermath of the 2008 financial crisis, there was a consensus among economists and policymakers that banks needed more capital to prevent future financial crises. However, she notes that many banks have still not taken the necessary steps to increase their capital levels, and argues that better regulation is needed to ensure that they do so.

Admati also discusses the role of the Federal Reserve in regulating banks, and argues that the central bank has not done enough to protect the financial system from future crises. She notes that the Fed has allowed banks to pay out large dividends and buy back stock, despite concerns about their capital levels, and argues that this has created a false sense of security among investors and the wider public.

Throughout the episode, Jabbour and Admati discuss a range of other topics related to banking regulation and the financial system, including the role of risk management, the need for transparency, and the potential for new technologies to disrupt the traditional banking industry. They also discuss the challenges of implementing effective regulation, and the political and economic factors that can influence the regulatory landscape.

Overall, Boom Bust season 1 episode 59 provides a detailed and informative discussion of the challenges and opportunities facing the banking industry and those responsible for regulating it. Admati's insights and expertise make this episode a must-watch for anyone interested in the intersection of finance, economics, and public policy, as well as anyone who wants to better understand the ongoing debates about the role of banks in the wider economy.