New from Princeton University Press: Private Finance, Public Power: A History of Bank Supervision in America (2025), by Peter Conti-Brown (Wharton School at the University of Pennsylvania) and Sean H. Vanatta (University of Glasgow). A description from the Press:
Banks in America are private institutions with private shareholders, boards of directors, profit motives, customers, and competitors. And yet the public plays a key role in deciding what risks are taken as well as how, when, and to what end. Public-private negotiations over financial governance has evolved into an essential ecosystem of banking risk management. In Private Finance, Public Power, Peter Conti-Brown and Sean Vanatta offer a new history of finance and public policy in the United States by examining the idiosyncratic way the nation manages financial risk across the public-private divide. Covering two centuries, from the founding of the Republic to the early 1980s, Conti-Brown and Vanatta describe the often-contested, sometimes chaotic, engagement of bankers, politicians, bureaucrats, and others in the overlapping spaces of the public-private system of bank supervision.Conti-Brown and Vanatta trace the different supervisory frameworks that evolved over time, from the imposition of private liability on bank shareholders to the development of the central bank to the creation of federal deposit insurance. Negotiations took place at federal and state levels, but, over time, the federal government assumed most of the responsibility for managing financial risk. Moreover, federal supervisory officials began to undertake more varied tasks, including monitoring racial discrimination and managing financial concentration. Conti-Brown and Vanatta introduce a diverse cast of characters—bankers, politicians, bureaucrats, and others—and show how they navigated two hundred years of financial panics, scandals, and crises to build the system that structures modern America’s banking system.
A sampling of advance praise:
“Conti-Brown and Vanatta have written a brilliant history of the murky realm of banking supervision. Recovering over two centuries of intense conflict and negotiations over risk within America’s banking system, the authors explain how the federal government readily absorbed the vital responsibility of managing financial risk. This sweeping history is a must-read for anyone interested in understanding the origins of our modern financial system.”—Julian Zelizer“Supervision is the backbone of bank oversight in the United States and around the world. In their landmark book, Private Finance, Public Power, Conti-Brown and Vanatta pull away the curtain of opacity that has long shielded bank supervision from public view. They reveal supervision to be a constantly evolving set of relationships and practices that shape private risk-taking and public administration. In the process, they provide important new insights into a host of contemporary debates on matters ranging from how best to promote the health of the financial system to the dangers and benefits of regulatory discretion. It is required reading for everyone who wants to understand how best to promote financial stability, state capacity and the way public and private actors have cocreated today’s financial system.”—Kathryn Judge
On June 10, the Brookings Institution in Washington, D.C., hosted a book launch conference, "The History of Bank Supervision in America and the Road Ahead," featuring legal historians Naomi Lamoreaux and Ed Balleisen, as well as legal academics, financial industry lawyers, journalists, and former supervisors. A video recording of the conference is available here.
-- Karen Tani
