Wednesday, April 11, 2012

Are We Finally Ready to Do Something Meaningful About Shadow Banking?

I've been heartened by a growing number of news stories that pose the question: "What to do about shadow banking?". Here's the latest, from the New York Times, to pop up on my screen (though this piece isn't very substantive).

Barry Ritholtz shows us with this graphic from the Wall Street Journal that shadow banking never went away after the big financial crisis; the Fed and Treasury just stepped in to pick up the slack.

Finally: Be very, very wary of people peddling solutions that make the world's central banks the shadow bankers of last resort.