Region Focus

Third Quarter 2010

Out from the Shadows

The financial crisis shed light on the so-called “shadow” banking sector, the not clearly understood area in which much of the turmoil took place. Understanding the functions, purpose, and instabilities of the system will be key to successful reform.

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Related Links

Federal Reserve Bank of Minneapolis. The Region. “Interview with Raghuram Rajan.” December 2009.

Gorton, Gary and Andrew Metrick. "Securitized Banking and the Run on Repo." NBER Working Paper No. 15223, August 2009. 

Gorton, Gary, and Andrew Metrick. "Regulating the Shadow Banking System.” Brookings Papers on Economic Activity, Fall 2010.

Lacker, Jeffrey M., and John A. Weinberg. “Now How Large Is the Safety Net?” Federal Reserve Bank of Richmond Economic Brief no. 10-06, June 2010.

Pozsar, Zoltan, Tobias Adrian, Adam Ashcraft, and Hayley Boesky. “Shadow Banking.” Federal Reserve Bank of New York Staff Report no. 458, July 2010.

Rajan, Raghuram. “The Greenspan Era: Lessons for the Future.” Speech to symposium sponsored by the Federal Reserve Bank of Kansas City in Jackson Hole, Wyoming, Aug. 27, 2005.

Ricks, Morgan. “Shadow Banking and Financial Regulation.” Columbia University Law and Economics Working Paper no. 370, August 2010.
Ricks’ posting on the topic at the Harvard Law School Forum on Corporate Governance and Financial Regulation.

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Aaron Steelman
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