From Wondery, I'm Lindsay Graham, and this is American Scandal. In the fall of 2008, the collapse of

the collapse of Lehman Brothers sent shockwaves through the global economy.

Within only days, markets crashed and millions of people watched their jobs, homes, and savings vanished.

It was the worst financial disaster since the Great Depression, and regular people bore the brunt of the pain.

But the banks that caused the disaster were rescued,

and the executives at the helm escaped without meaningful consequences and their wealth intact.

In the years since, the financial sector has only grown larger, more complex and more powerful.

Corporate influence has expanded, while the gap between the wealthy and everyone else has widened

dramatically.

For many Americans, the sense of economic security that vanished in 2008 has never truly returned. My guest today is Anadmati. She's a professor at Stanford University and one of the most

outspoken critics of the banking industry. Her work focuses on financial regulation, corporate governance,

and the dangers of an economy increasingly shaped by debt, opacity, and unchecked corporate

power. Our conversation is next. You're listening to the first episode of this American Scandal season.

With Wondery Plus, you can binge the remaining episodes, listen to new episodes early,

and explore more exclusive seasons completely ad-free.

Start your free trial of Wondry Plus in the Wondry app, Apple Podcasts, or Spotify today.

Anadmati, welcome to American Scandal.

Thank you for having me.

Your book about the banking system is called The Banker's New Clothes.

The title, of course, is a play on the folktale of Banker's New Clothes. The title, of course,

is a play on the folk tale, The Emperor's New Clothes. But what does the analogy mean to you?

So there are different types of bankers' new clothes, different types of flawed claims, what we call. So that's what this refers to. And what it means is what they say has no substance, is flawed in some way, is wrong.

...