Category Archives: Shadow banking

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Yelling “Fire!” but no one moves

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Risk is rising in the land of shadow banking. Regulators don’t know how to track it, they don’t know what to do about it and it’s not going to end well. Those are the implications of recent reports whose authors … Continue reading

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At mid-year, repo is like an ancient fable

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Today’s repurchase market is like the ancient fable of the six blind men and the elephant, where the blind men offer very different descriptions of what each saw when they touched an elephant in a different spot. The only thing … Continue reading

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2016 news round-up: So little has changed

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The biggest news about the repurchase market in 2016 was how little has changed since 2008. A year ago, the future looked brighter. 2015 was a hopeful year for people who want to see a solution to the risks that … Continue reading

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Unfinished business: Banking in the shadows

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Paul Volcker gets it. Will anyone listen? Here’s what he wants Americans to know: The main danger in the financial markets is not banks getting too big. The main danger in the financial markets is non-banks borrowing short to lend … Continue reading

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The 2008 crisis: Was it traditional banks or shadow banks?

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Still think the financial crisis happened at banks? Think the extensive regulation of banks that Congress and regulators have undertaken since 2008 has solved the problem? Take a look at this chart from “Shadow Banking Reemerges, Posing Challenges to Banks … Continue reading

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Repos make the news

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The big news about the repurchase market in 2015 was that it made the news. After decades when the largest financial market in the world rarely appeared in public, in 2015 repos finally hit the big time. At least 140 … Continue reading

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Lenders drove the boom and the bust

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In the years leading up to the 2008 financial crisis, trillions of new dollars flooded into housing.  Why? Was it coaxed into the housing market by borrowers who convinced bankers they could pay back the loans? No. It gushed into … Continue reading