[1][2] Susan Webber, the principal of Aurora Advisors Incorporated, a management-consulting firm based in New York City, launched the site in late 2006, using the pen name Yves Smith.

[3] She focused on finance and economic news and analysis, with an emphasis on legal and ethical issues of the banking industry and the mortgage foreclosure process, the worldwide effects of the 2007–2008 financial crisis, the Great Recession, and its aftermath.

[2][13] In addition to Webber herself, current and former contributors include: Naked Capitalism became widely read during the 2007–2008 financial crisis as people were trying to come to grips with what was happening.

"[29] In 2011, CNBC listed the site as one of the "20 Most Influential Finance Blogs", describing Smith as "a harsh critic of Wall Street who believes that fraud was at the center of the financial crisis.

"[30] In 2013, Wired included the blog among its "favorite sources of news covering the world of business and finance", saying Smith offered a "piercing look at the ethical and legal missteps of the global financial industry.

[38] In 2018, a Naked Capitalism article highlighting discrepancies in the work résumé of the Chief Financial Officer of the $410 billion[39] California Public Employees' Retirement System (CalPERS) was followed by the executive's departure.