Bank Turmoil Is Paving the Way for Even Bigger 'Shadow Banks' - The New York Times

TL;DR

Send any friend a storyWhipsaw trading in shares of regional banks this week made it clear the fallout from three federal bank seizures was far from over. “I don’t know that they pose the same kind of risks that the big wipeout of a lot of regional banks would pose,” Ron Klain, the former White House chief of staff, said about shadow banks in an interview in April. ”“They will say, ‘we have a good control on our risk,’ but you generate these returns somehow — these higher returns,” said Andrew Park, a senior policy analyst at the advocacy group Americans for Financial Reform

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