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Anat Admati on Banking Regulations and Techlash

Masters in Business

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Bankruptcy and the Housing Crisis

We saw something very similar in the financial crisis, where banks who were bad lenders were baled out. The borrowers didn't see, there was some relieas, not a lot, yes? So, so there was clearly a huge bias towards bailing out the tanks, you know, forming the runway, all of that. Or that rigt now to had a cly money if they were a little airline in particular,. bankruptcy has traditionally worked great ratt you don't ground the planes. You want them. Everything is flyiand jestee negotiate some contracts. We had plenty time to do that during therices. Why are we bailing out investors that just got a huge reward

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