“The ultimate price of a bad system falls on the public,” says Anat Admati, the George G.C. Parker Professor of Finance and Economics at Stanford Graduate School of Business and author of The Bankers’ New Clothes. “The Constitution did a lot to constrain the government, but the government has failed to constrain institutions in the private sector.” Simply put, Admati says the real problem isn’t just profit-hungry corporations, it’s the systems that let bad actors get away with it. From the opioid crisis and Boeing’s deadly 737 MAX disasters to the 2008 financial crash, Admati identifies how U.S. institutions failed — and shares the “incredibly sobering” realization that shattered her faith in the rules and those who make them.  

This episode features Dominic Cruz and Maya Kesselman Cruz, who perform in the live circus show "Dear San Francisco” at Club Fugazi.

How do you think we can restore trust in business, government, and society? Email us at ifthenpod@stanford.edu. 

This conversation was recorded on August 20, 2024.

Related Links

• Anat Admati faculty profile
• The Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It
• No Rules, No Trust: How Accountability Shapes Communication
• Are Businesses Undermining Democracy?
• "Dear San Francisco" at Club Fugazi

If/Then is a podcast from Stanford Graduate School of Business that examines research findings that can help us navigate the complex issues we face in business, leadership, and society. Each episode features an interview with a Stanford GSB faculty member.

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