Shadow Banking Grows to $67 Trillion Industry, Regulators Say

Shadow Banking Grows to $67 Trillion Industry, Regulators Say

www.bloomberg.com

The shadow banking industry has grown to about $67 trillion, $6 trillion bigger than previously thought, leading global regulators to seek more oversight of financial transactions that fall outside traditional oversight.

The size of the shadow banking system, which includes the activities of money market funds, monoline insurers and off- balance sheet investment vehicles, “can create systemic risks” and “amplify market reactions when market liquidity is scarce,” the Financial Stability Board s

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Supervisors consider shadow banking activities to be those that allow banks to carry out business off balance sheets, as well as those which allow investors to bypass lenders and the functions they traditionally fulfill on the markets.

Well this isn't really surprising and it is actually probably much larger than stated. The US needs to re-install the Glass Stegall act and truly nationalize the Fed. Especially since we know 16 trillion dollars of Fed money is part of this shadow banking system "lent" to their banking corporate cronies.


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Fed’s $16 Trillion Dollar Secret Slush Fund

“As a result of this audit,we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world. This is a clear case of socialism for the rich and rugged,you’re-on-your-own individualism for everyone else.”

Read more: www.businessinsider.com...

www.bloomberg.com
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reply to post by Trustfund

The US needs to re-install the Glass Stegall act and truly nationalize the Fed. Especially since we know 16 trillion dollars of Fed money is part of this shadow banking system "lent" to their banking corporate cronies.

Indeed, now the pieces are starting to fall into place as to why The Federal Reserve private cartel has recently been granted its own police force

When will this madness end?

I know, it will end when the entire planet is in unrecoverable debt and we are required to be chipped to survive in the New World Order - aka "The Agenda"

S&F

Good post.

The reality is that most of the systemic problems that led to 2008 have not been addressed by our allegedly "Marxist" president or anyone else. The big players are even bigger and there remains the possibility of the same thing happening again.

I consider the general layman's definition of "Shadow banking"

The shadow banking system is the collection of non-bank financial intermediaries that provide services similar to traditional commercial banks. It includes entities such as hedge funds, money market funds and structured investment vehicles (SIV). Investment banks may conduct much of their business in the shadow banking system (SBS), but most are not generally classed as SBS institutions themselves

It amazes me that despite all the talking heads, all the 'econo-priests' out there, and of course our own morally-gifted "public servants" .... most of us have NO idea of how hopelessly subjected to the economic royalty we are.

To call it "Shadow Banking" implies that it exists as an institution to which any normal society would have redress....This many-tentacled monster is larger than any country... and is beholden only to the cartel.

For those of us who dabble in top-level conspiracy theory.... we're talking about a tier much closer to the "source" than any political contrivance. Ask any high-level politician to speak about it - and watch them become suddenly demure and shy.

now i know why america is broke.

the federal reserve "coincidently" has a reserve fund of $16 trillion it can lend out that is equal to america's national debt.

it's troubling that an institution that the u.s. government created has enough cash flow to wipe out the national debt and more cash than the entity that created it.

if the federal reserve was an official government agency, then that $16 trillion would belong to the american people.

the federal reserve put the u.s. in this hole. thru interest rates and economic policy that enriches them at the expense of the u.s. government i.e. you.

Current functions of the Federal Reserve System include:[12][25]
To address the problem of banking panics To serve as the central bank for the United States

To strike a balance between private interests of banks and the centralized responsibility of government

To supervise and regulate banking institutions

To protect the credit rights of consumers

To manage the nation's money supply through monetary policy to achieve the sometimes-conflicting goals of maximum employment stable prices, including prevention of either inflation or deflation[26] moderate long-term interest rates

To maintain the stability of the financial system and contain systemic risk in financial markets

To provide financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation's payments system

To facilitate the exchange of payments among regions

To respond to local liquidity needs To strengthen U.S. standing in the world economy

it seems to me the financial mess the u.s. is in is solely on the shoulders of the federal reserve, but for some inexplicable reason, the president is willingly taking the slack instead of going up against the federal reserve.

the federal reserves is sucking all the wealth from the people and leaving debt. the fact that every president doesn't stop it means the are a party to it or refuse to acknowledge it.

reply to post by Trustfund


I first noticed shadow banking when word came out the Federal Reserve gave away trillions of dollar in secret bail outs to US AND foreign banks/corporations, but no ones seems to notice, no one seems to care. What's really sad is I believe our deficit is around 16 trillions dollars but clearly it's higher than that and the reason we don't know about it is because of shadow banking. There's a reason the Federal Reserve is fighting tooth and nail to never ever be audited. Amazing isn't it, the Fed has been around since the early 20th century and it's first, small audit, came last year thanks to RON MUTHA EFFIN' PAUL!

And don't think shadow banking is exclusive to only banking. There is a shadow Gov't ruling each and every single Gov't on this planet and these Gov't are subjects to the Banksters!

There is so much paperwork and it is so complex that no one will be able to decipher how far in debt our government is. The act of hiding deceit is very complex, especially when so much money is unaccounted for.

Originally posted by DelMarvel
Good post.

The reality is that most of the systemic problems that led to 2008 have not been addressed by our allegedly "Marxist" president or anyone else. The big players are even bigger and there remains the possibility of the same thing happening again.

Spot on with this post ...couldn't agree more with these sentiments. All that's happened is that the big fish ate the little fish and the big fish just got bigger.

These Piranhas who are at the top of this shadow banking system have no morals, are completely un-empathetic to the point of being psychotic and really don't care if they bring the whole global financial system tumbling down - as long as they get this years multi million pound bonus they couldn't give a fig!

Brooksley Bourne warned Congress of the threat these derivative trades posed to the American people's savings and pensions in the 90s when the industry was about £27Million. These days it dwarfs the entire global economy. Or As Warren Buffet famously referred them to "Financial Weapons of Mass Destruction" - It's just an absolute disgrace and what's more, history will hold these politicians and regulators to account for allowing this banking Mafia to carry on unchecked.

Here in the UK - London has THE most de-regulated financial sector anywhere - All of the big guns from Wall St conduct most of these shadow trades through London and all the other "illegal" activities that go one while the toothless UK Regulator - the FSA - spends a good deal of it's budget on wining and dining the banksters while picking on the small fry the humble IFAs.

Governments around the world are powerless to do anything, simply because the same "advisers" are in place, working away in the background to make sure the de-regulated status quo remains, despite all the table thumping in the past by Obama, David Cameron, Vince Cable etc etc

They don't call them "Government Sachs" for nothing!

PS Off to Watch The Keiser Report on RT.com - Max Keiser the guy who turned out not to be the La La conspiracy theorist they all called him afterall!

reply to post by rickymouse


I don't see how the quasi-private federal reserve giving out trillions in loans equals to that of our governments debt. It should be their debt.

The Federal reserve get your income taxes.......
The Bank of international Settlements is even more corrupt......
There is NO other way than to hang damn near EVERY one of these people......Their crimes are beyond human ken.....
It is they who fund the wars and the dictators, the banks and the bankers need to be stripped of ALL their assets, and their rights to do business....we only really need ONE bank......let the bank be an arm of goverment......then the people will reap the profits......

The mathematics of information theory are against the statist criminal elites. The more nodes in the network, the more information is shared. People are awake and aware and they are trading stories. Most of the world understands occult colonialism.