Poor Kate. The value of her house sinks, and she defaults on her mortgage. It happens again. And again. Her business fails a few times, too. But Kate makes the best of her bad luck; she borrows other peoples’ money and tries not to put too much of her own at risk. She borrows cheaply, too, thanks to her rich aunt Claire.
Poor Kate is spoiled, rationally selfish, and carelessly destructive. She also doesn’t exist. Anat Admati and Martin Hellwig invented her for the pages of The Bankers’ New Clothes, not to preach about the importance of personal responsibility but to serve as a stand-in for a banker. The authors frequently return to Kate’s plight throughout the book. And they frequently mention two bankers in particular: Jamie Dimon, the chief executive of JPMorgan Chase, and Bob Diamond, the former CEO of Barclay’s. The portrait does not flatter.