FT.com / Markets / Insight - Road map that opens up shadow banking
A very interesting link to the network of banking and the extent of what they call 'Shadow Banking'
FRB of New York Staff Report no 458; www.ny.frb.org/research/staff_reports/sr458.pdf. See Chart One, on page 2 and subsequent graphics, July 2010
Tett writes of how scary it is that "the poster is dominated by two sections called the “cash” and “synthetic” shadow banking systems, or those “financial intermediaries that conduct maturity, credit and liquid transformation without access to central bank liquidity or public sector credit guarantees”, as the associated NY Fed working paper says. These flows are so extraordinarily complex that hundreds of boxes create a diagram comparable to the circuit board of a high-tech gadget. Even as poster size, it is difficult to decode."
A very interesting link to the network of banking and the extent of what they call 'Shadow Banking'
FRB of New York Staff Report no 458; www.ny.frb.org/research/staff_reports/sr458.pdf. See Chart One, on page 2 and subsequent graphics, July 2010
Tett writes of how scary it is that "the poster is dominated by two sections called the “cash” and “synthetic” shadow banking systems, or those “financial intermediaries that conduct maturity, credit and liquid transformation without access to central bank liquidity or public sector credit guarantees”, as the associated NY Fed working paper says. These flows are so extraordinarily complex that hundreds of boxes create a diagram comparable to the circuit board of a high-tech gadget. Even as poster size, it is difficult to decode."
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