Staff
From the ruins of the recent banking crisis emerges a book that shows why banking is more dangerous than most think.
Reviewed by the chief economics commentator at the Financial Times, Martin Wolf, the book, The Bankers’ New Clothes: What’s Wrong with Banking and What to Do About It, dispels a host of myths about the industry, calling the current banking model “intellectually bankrupt.”
One of the arguments the book makes is that the proportion of the balance sheets of banks that’s funded by equity should be, contrary to what’s practiced, high enough to absorb losses caused by economic turmoil.
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