Shadow Banking Quotes

The subprime disaster was a result of financial bombs - derivatives - exploding in financial institutions such as AIG and Lehman Brothers, as well as banks and financial institutions throughout the world.

The reality is that what we did in 2010 with the Dodd-Frank wasn't enough.

An unregulated derivatives market essentially gives Wall Street a way to place hidden taxes on everything in the world.

Investment banking has, in recent years, resembled a casino, and the massive scale of gambling losses has dragged down traditional business and retail lending activities as banks try to rebuild their balance sheets. This was one aspect of modern financial liberalisation that had dire consequences.

The financial crisis revealed important weaknesses in many areas of our financial system.

We need to increase the transparency of shadow banking markets so that authorities can monitor for signs of excessive leverage and unstable maturity transformation outside regulated banks.

Proprietary trading does not belong in banks with FDIC insurance.

One of the big problems we had during the financial crisis was the intermingling of banks and holding companies and complex securities.

One would be forgiven for concluding that the assumed benefits of financial innovation are not all they were cracked up to be.

Today, even small entities that trade complex instruments or are granted sufficient leverage can threaten the global financial system.

I would drastically revise much of the Dodd-Frank financial-reform legislation, which I call the 'Bureaucrat Full Employment Act.'

If nobody can sell mortgage-backed securities based on trillions of dollars of unpayable instruments, there's a lot less risk in the overall system.

The 2008 financial crisis is usually attributed to vampire squid greed. There was certainly a lot of that. But it was also just as likely to have been caused by the chaos of process created by those big, sexy bank mergers when, in the name of 'economies of scale,' critical members of the trust and responsibility chain were cavalierly eliminated.

We have institutions that have been allowed to become too big to fail because we had all kinds of flaws in our financial infrastructure, in the whole way over-the-counter derivatives work.

What people don't realize is that China papered over its last two credit bubbles, those in 1999 and 2004. The banks were never bailed out - they just exchanged their bad loans for questionable bonds from quasi-state organizations.

Legislative reforms in the 1990s and the public/private structure led managements to expand the GSEs' balance sheets to enormous size, underpinned by wafer-thin slivers of capital, driving high shareholder returns and very high compensation for management.

There are elements of Dodd-Frank that clearly need to be curtailed.

For my own part, I did not see and did not appreciate what the risks were with securitization, the credit ratings agencies, the shadow banking system, the S.I.V.’s — I didn’t see any of that coming until it happened.

At least Bank of America got its name right. The ultimate Too Big to Fail bank really is America, a hypergluttonous ward of the state whose limitless fraud and criminal conspiracies we'll all be paying for until the end of time.

We should ban banks from risk-taking because society is going to pay the price.

I think Dodd-Frank has contributed to a concentration of banking assets in the hands of a small number of banks.

Only institutions that go about the old-fashioned business of taking in deposits from customer A and lending them out to customer B should be called banks. The rest should call themselves what they are. 'Parlors' would be appropriate, or 'dens' - words more suitable to venerable betting pursuits.

Everyone failed to appreciate that our sophisticated, hypermodern, highly hedged, derivative-based financial system—how ultimately fragile it really was.

In the financial system we have today, with less risk concentrated in banks, the probability of systemic financial crises may be lower than in traditional bank-centered financial systems.

For too long, Americans have fallen victim to financial abuses at the hands of predatory lenders that operate in the shadows.