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How shadow banking led to the 2008 financial crisis

Tuesday, April 6, 2010 at 11:30AM

This is something for those of you interested in economics, financial sector reform or even wanting to beef up your knowledge on the financial sector. Mike Konczal has unearthed a really good (I mean it, it's very good) presentation on the "shadow banking" sector and how it caused the 2008 financial crisis.

The presentation, produced by Raj Date of the Cambridge Winter Center for Financial Institutions Policy. also covers why the Volcker Rule is too narrowly targeted and misses the problems posed by firms such as Lehman Brothers, Merrill Lynch, Freddic Mac and Fannie Mae.

The presentation is awesome, both for its prose and presentation of data, and if you're even remotely interested in the financial markets, is worth every minute of your time.

Callan Tham |

References (3)

References allow you to track sources for this article, as well as articles that were written in response to this article.

Source: The Volcker rule

by Clive Crook at The Atlantic on January 21, 2010

The best thing about Obama's proposal for new restrictions on banks' activities is the branding: you cannot do better than the "Volcker rule". But how the rule would work, if it were ever adopted, is very unclear.
Source: A Roadmap of the Shadow Banks, plus targeting the Volcker Rule

by Mike Konczal at Rortybomb on February 5, 2010

I think the Volcker Rule is a good first step that I am excited about as it starts to get at the problem of shadow banks, but I am incredibly unhappy with the both the follow-through on it, and how it isn’t getting at the actual problems with overlapping business models creating ’shadow banks’ subject to bank runs.
Source: Through the Looking Glass (Steagall): Banks, Broker Dealers, and the Volcker Rule

by Raj Date on January 27, 2010

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