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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsShadow Banking Grows to $67 Trillion Industry, Regulators Say
The shadow banking industry has grown to about $67 trillion, $6 trillion bigger than previously thought, leading global regulators to seek more oversight of financial transactions that fall outside traditional oversight.
The size of the shadow banking system, which includes the activities of money market funds, monoline insurers and off- balance sheet investment vehicles, can create systemic risks and amplify market reactions when market liquidity is scarce, the Financial Stability Board said in a report, which utilized more data than last years probe into the sector.
Appropriate monitoring and regulatory frameworks for the shadow banking system needs to be in place to mitigate the build-up of risks, the FSB said in the report published on its website.
While watchdogs have reined in excessive risk-taking by banks in the wake of the collapse of Lehman Brothers Holdings Inc. in 2008, they are concerned that lenders might use shadow banking to evade the clampdown. Michel Barnier, the European Unions financial services chief, is planning to target money market funds in a first wave of rules for shadow banks next year.
The FSB, a global financial policy group comprised of regulators and central bankers, found that shadow banking grew by $41 trillion between 2002 and 2011. The share of activity based in the U.S. has declined from 44 percent in 2005 to 35 percent in 2011, moving to the U.K. and the rest of Europe.
http://www.bloomberg.com/news/2012-11-18/shadow-banking-grows-to-67-trillion-industry-regulators-say.html
Ruby the Liberal
(26,219 posts)Hate to think what the private derivatives market is up to now. What comes after a Trillion?
FarCenter
(19,429 posts)DaniDubois
(154 posts)nothing ever gets done about it. We're to busy pointing fingers and calling names at the "other" party that we fail to bring the real issues to the table. Both parties are doing this.
bluerum
(6,109 posts)as long as we don't hand it over to the militery.
Octafish
(55,745 posts)Backed by the US taxpayer, courtesy of the BFEE.
http://journals.democraticunderground.com/Octafish/157
flamingdem
(39,313 posts)and get a job or something?