Posted on 04/06/2023 3:55:40 AM PDT by EBH
Nearly 50% of all global assets are now held in shadow banks, according to the IMF. These institutions, also called non-bank financial intermediaries (NBFIs), include pension funds, insurers, hedge funds, private equity funds, structured investment vehicles (SIVs), limited-purpose finance companies (LPFCs), and numerous other entities—each with their own acronym.
Shadow banks are often the under-regulated middle men of the financial system, and they’re growing in number. For nearly a decade now, Federal Reserve officials have repeatedly warned about the hidden dangers present in these shadow banks. And it’s not just U.S. regulators that have expressed concern—from Ireland to China, the risks inherent in the shadow banking system are well known.
Even JPMorgan Chase CEO Jamie Dimon argued in his 2019 annual shareholder letter that shadow banks need to be “assiduously monitored.” But the IMF says these institutions still have “little regulatory or supervisory oversight” and commonly have “virtually no loss-absorbing capital.”
“NBFI vulnerabilities appear to have increased in the past decade,” the fund’s researchers wrote in a Tuesday article. “Policymakers need appropriate tools to tackle turmoil in the NBFI sector that may adversely affect financial stability.”
The researchers highlighted key risks in the shadow banking system, including elevated leverage and the potential for a liquidity mismatch caused by rising rates. Due to their high levels of “interconnectedness” with the traditional banking system, they added, shadow banks present a risk to financial stability.
(Excerpt) Read more at msn.com ...
In other words they hate the idea of anyone having money out of their direct control.
Federal Reserve officials have repeatedly warned about the hidden dangers
Janet Yellen? Political hack. She repeatedly makes idiotic statements which indicate she does not have a clue. Only does what she is told to do.
I had to restart that video 4 times before I could watch it all. Something was hanging the video.
Now. Here is the same video on Rumble, suspect it does not skip.
Tucker Carlson: This will lead to poverty all over the US (Apr 5, 2023)
https://rumble.com/v2gi008-tucker-carlson-this-will-lead-to-poverty-all-over-the-us.html
Now a comment from me.
That is NOT Slo Joe in the video. It is one of the Not Joe’s. I have seen this ever since his #ComDem Party Acceptance speech. (Joe has Doubles)
Yes. I am serious.
Yes. Tucker is absolutely correct about this and a lot more.
You mean side bets, casinos and illegal crap games - with our money?
What could go wrong?
Funny how they keep raising rates but my bank account still gets super low returns...
that’s because your bank is insolvent...they have to shore up their balance sheet first
When CDs like these are guaranteeing 5%, should you even be in stocks right now?
https://www.marketwatch.com/picks/when-cds-like-these-are-guaranteeing-5-should-you-even-be-in-stocks-right-now-8e0194a6
This is starting to look like a contest between the government and the financial elites to see who will end up with my retirement savings…
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