Tag Archives | Shadow Banking

“Financial Stability Monitoring” by the Fed keeps looking for that line between the gold standard of risk management and the desire to let the economy grow

A recently revised staff research report from the Federal Reserve, “Financial Stability Monitoring,” by Tobias Adrian, Daniel Covitz, and Nellie Liang, looks at how risk should be tracked across financial markets. We review both the revised report and a new blog article by the authors.

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Thursday news roundup: defining liquidity, Moody’s, seclending CCPs, non-bank financial credit providers

Interesting news and articles from the last week that we haven’t gotten a chance to talk about elsewhere, including MiFID and liquidity, a suggestion that Moody’s has preferenced ratings of bonds held by its corporate owners, and securities lending CCPs. Read on.

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Sheila Blair on RRP: Not a fan

Sheila Blair, former head of the FDIC and now head of the private, nonpartisan Systemic Risk Council wrote an article in the July 24th Wall Street Journal “The Federal Reserve’s Risky Reverse Repurchase Scheme”. She has joined a group of regulators and former regulators who have some hesitation about the Fed’s RRP program.

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Shadow Banking: recent articles and speeches

We’ve seen several recent news articles and commentary on Shadow Banking, from The Economist’s special report to news on China’s CITIC. Below are the most interesting articles we’ve seen lately.

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“The roots of shadow banking” by Enrico Perotti: placing the blame for market collapse on repo’s safe harbor provisions.

An article published in December 2013 by the Centre for Economic Policy Research “The roots of shadow banking” by Enrico Perotti of the University of Amsterdam, ECB and CEPR grabbed our attention. The author blames repo for the bad lending in the mortgage markets during the financial crisis.

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Things we learned and said at IMN last week (Finadium subscribers only)

IMN held its 20th beneficial owners in securities lending last week in Austin, TX. Finadium chaired the conference and was represented in both individual talks and a panel. Here’s a synopsis of what we heard and what we said.

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Five ways to use or misuse the term “Shadow Banking” (Finadium subscribers only)

Reading the news this morning we were struck by how far Shadow Banking has spread into the popular financial lexicon. We point out five recent observations from the spot-on to the dubious.

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Regulatory pendulum starting to favor liquidity instead of Shadow Banking restrictions

Following the initial reactions of regulators to protect market stability and dial down risk, we are seeing several points suggesting that the tide is turning: maintaining market liquidity is being looked at more kindly than in the last few years. In particular, we note European suggestions that securitization is really alright and that even Shadow […]

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The Fed’s Tarullo: ideas for making SFTs safer

The Federal Reserve’s Daniel Tarullo give a speech last Friday called “Shadow Banking and Risk Regulation,” in which he laid out a few new ideas for regulating securities finance transactions (SFTs) including repo and securities lending. Most of the speech was old news for those of us who follow shadow banking but some of the […]

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Our analysis of the FSB’s securities lending and repo policy framework

It’s not the big bang, but there are a number of important points in the new FSB publication, “Strengthening Oversight and Regulation of Shadow Banking: Policy Framework for Addressing Shadow Banking Risks in Securities Lending and Repos,” that market practitioners should note.

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