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Jan 17, 2023 12:10 am
Interesting article about the financial system and where it may fracture in the shadow banks
https://www.finextra.com/blogposting/23565/fault-lines-in-the-modern-financial-system
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Jan 17, 2023 1:00 pm
It is. Tighter restrictions on banks post-2008 just pushed much of the risk into the unregulated shadow banking system, the value of which cannot even be quantified, as the article points out, and where even the participants may be "fighting blind".
After our pensions market nearly blew up here in the UK, the Bank of England issued this warning: "Firms continue to unintentionally accrue large and concentrated exposures to single counterparties, without fully understanding the risks that could arise."
