. >> host: professor anat admati you write that bank is 95% plus of the banks assets. is that too much? >> guest: that's way too much. we don't see companies fund that way and there's a reason for it. it's very unhealthy. someone who borrow so much and the corporation borrows so much, in fact any private borrower or government borrowers and there's a difference. they have other ways may be to try to fund their payment but of course were not going to go into that in this discussion. any borrower that gets so highly indebted starts being constrained in what they do or just distorted in the way they make decisions about what they do with the risk they take in about distorted decisions. some of the downside of the decision is worn by the creditor and if there've are aware of the corporation can walk away from those deaths were may have deposit insurance payer the government pay or the central bank gets central bank gives him support or whatever than the creditors are nicer to them than they would have been two other borrowers and that's how the banks get to borrow as much

it's a really perverse system. >> anat admati teaches finance and economics at the graduate school of business here at stanford university. professor admati, what role in your view did the banks played in the 2008 crisis? >> a major view. and they are other financial institutions, so it's not just what you might call a bank, but whatever, investment bank, holding companies, even insurance companies like aig, they were all connected to one another. another. i explained in the book how to set of dominoes are very for interconnected. got themselves to take risk in all of these various different ways to fool the regulators about what was actually going on, and the meanwhile, do very well for themselves and put the rest of us at great risk. the regulators, and the politicians, they like the good days when it lasted and allowed the risk to build up in the way that really was harmful, ended up being very harmful. the reason we wrote this book is because they get doing this, because the crisis didn't resolve in appropriate lessons and regulations. so we are still in danger. so we wrote this b

. >> host: we have been talking with anat admati who is a professor of finance and economics at stanford university and the co-author of this new book, "the bankers' new clothes" what's wrong with thinking and what to do about it. you are walking -- watching booktv on c-span. .. >> 9:00 p.m. eastern and c-span radio. >> what we are doing is for the best. c-span does a great longform great longform conversation. you and charlie rose and read books away that i do. to be able to talk to the authors seriously. and it is tremendously revealing that none opper has these books read. many know what they are talking about. and it is rewarding to them. and i get a great deal of satisfaction and that's the best interview i've had on the spoke to her. i just got it from charles krauthammer and loved his interview on the things that matter. his new collection. and so that makes my day. i like radio. and i can do so many things. reporter:. >> more at 8:00 p.m. on sunday night on "q&a." >> if you are a middle or high school student, the studentcam video competition wants to know what is the most import