Monday, June 23, 2008

Brokers threatened by run on shadow bank system

Regulators eye $10 trillion market that boomed outside traditional banking
By Alistair Barr, MarketWatch
(Excerpts)

"Such vulnerability helped transform what may have been an uncomfortable correction in credit markets into the worst global credit crunch in more than a decade as monetary policy-makers and regulators struggled to contain the damage.

Unless radical changes are made to bring this shadow network under an updated regulatory umbrella, the current crisis may be just a gust compared to the storm that would follow a collapse of the global financial system, experts warn."

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