Five years ago this month, global markets were stunned when financial services firm Lehman Brothers collapsed. The bankruptcy filing remains the largest in U.S. history, with Lehman holding over $600 billion in assets at the time.
Half a decade later, we have Dodd-Frank, the most significant change to financial regulation in the United States since the Great Depression. But has enough been done to guard against another global financial crisis?
Anat Admati is the author of “The Bankers’ New Clothes” and a professor of finance and economics at Stanford’s graduate school of business.
She joins The Takeaway to discuss the climate that led to Lehman’s collapse, the resulting financial spiral, and the security of the financial system today nearly five years after the collapse that triggered a global financial crisis.
The World is an independent newsroom. We’re not funded by billionaires; instead, we rely on readers and listeners like you. As a listener, you’re a crucial part of our team and our global community. Your support is vital to running our nonprofit newsroom, and we can’t do this work without you. Will you support The World with a gift today? Donations made between now and Dec. 31 will be matched 1:1. Thanks for investing in our work!