"Recent worldwide banking crises have forced governments to bail out and subsidize large banks because of what Admati (economics, Stanford Graduate Sch. of Business) characterizes as an ill-informed public perception that the institutions were too big to fail. Other misconceptions about the banking industry are addressed here as well, especially the false assumption that there is a tradeoff between banks' capital requirements and growth and profit. This book takes readers inside the global banking industry, examines the intricacies of banking operations, and addresses the major problems, including the banking system's overall "fragility." Macro solutions are offered that, the author maintains, will make the infrastructure more stable. Especially interesting is the discussion of how the current system rewards rather than penalizes risky decision making by individual bankers. VERDICT This title is a must read for management and human resource professionals within the banking industry as well as government policymakers. With its clear explanations, many examples, and analogies, the book is accessible to readers who do not have business backgrounds and who want to better understand banking." (Library Journal)
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