'Rethel and Sinclair's book is far more than an excellent primer on banks and the recent financial crisis. It outlines a practical vision of what steps would be needed for an alternative banking system and how the state would play a crucial role in forging such a system.'
Robert O'Brien, Professor and Chair, Political Science, McMaster University
'Sinclair and Rethel's thesis is simple but compelling. The banking industry's business model is unstable. Banks do not only intermediate between savers and borrowers as we are told by our textbooks, they also intermediate between the short-term lending horizons of savers and longer-term needs of borrowers. The problem with banks is that they never succeeded in resolving these contradictory demands, hence, the financial system is inherently unstable.'
Ronen Palan, Professor in International Political Economy, University of Birmingham
'If the global financial crisis has taught us one thing it is that we need to fundamentally change the position that banks have in the organization of our economies. Rethel and Sinclair provide us with ideas to do just that. Their aims are modest but radical: focusing on the role of banks in the broader context of the global economic crisis, they demonstrate clearly and convincingly that proposals for new regulation in the banking sector now going around will not work because they do not address the fundamental character of banks. Although the problem with banks may never be fully solved, implementation of the authors' proposals will make the banking world radically more stable than it is today.'
Henk Overbeek, Professor of International Relations, VU University Amsterdam
'Sinclair and Rethel demystify the banking crisis threatening much of the global economy. With a minimum of technical jargon, they explain how banking systems work, their key vulnerabilities and susceptibility to crisis, how their institutional development has been intertwined with that of modern states and profoundly shaped by public policy, and why our contemporary banking systems are increasingly focused on short-term profit at the expense of long-term productive investment. Its clear and accessible prose will make this a fine teaching text for courses in political economy, as well as an excellent introduction for readers concerned with the future of our economic systems.'
Mark Rupert, Professor of Political Science, Syracuse University
'This book does more than its title suggests. It proposes provocative yet realistic, refined but accessible ideas about how to solve "The Problem with Banks". It is a timely contribution to anyone grappling with the financial crisis and its consequences.'
Anna Leander, Professor, Department of Business and Politics, Copenhagen Business School
'A timely reminder of why we need to have a responsible political debate about banks and what they do. Rethel and Sinclair explain how the role of banks has changed beyond recognition over the past several decades, and help us to decipher these changes in a clear and accessible style. I highly recommend it as a tonic for anyone who wants to understand and participate in the debate about the future of banks.'
Randall Germain, Professor and Chair, Department of Political Science, Carleton University