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Tag Archives: shadow banks

So far the reformers of finance have neglected the shadow system

The parallel “shadow” banking system needs fixing: that should mean painful choices for money-market funds Mar 25th 2010 | From The Economist IF THEY were to film “It’s a Wonderful Life” today, the hero would probably not be a banker—and not just because of the optimistic title. The shape of finance has changed radically in the […]

Via the repo market, real banks came to resemble shadow banks

An excellent review of Yves Smith’s new book “ECONned: How Unenlightened Self Interest Undermined Democracy and Corrupted Capitalism” at Jesse’s Cafe Amercain… There is a very interesting bit about the shadow banking system and repos… of course no one in Washington is talking about this… “…And now we are ready for Chapter 9, where all […]

connections between firms and their funding sources

The Senate Banking Committee is writing new law that covers “bank entities”… but it’s the shadow financial system that collapsed in the credit crisis… and needs attention… here’s one explanation of some of the connections between firms and their funding sources … Reblog from Rortybomb ~~~ “… Trying to get a working definition and a coherent […]

Banks will avoid the new tax by doing more off balance sheet and derivatives transactions

Robert Eisenbeis, chief monetary economist at Cumberland Advisors Inc., talks with Bloomberg’s Betty Liu about efforts by regulators and lawmakers to prevent another financial crisis. Mr Eisenbeis… discusses “regulatory capture“… the proposed “bank tax“…  and the Financial Crisis Inquiry Commission“…

What about the guarantees?

The US Treasury needs to follow the lead of Her Majesty’s Treasury when they detailed the “toxic assets of Royal Bank of Scotland and make the assets of Citigroup which we have guaranteed public… especially if Citigroup “buys” it’s way out of TARP… Bloomberg reports… ~~~”Citigroup Inc. Chief Executive Officer Vikram Pandit is pressing the U.S. Treasury Department […]

Shadow banking – the dark side of too big to fail