Shadow banks

The U.S. economy needs a revival of the securitization market. That implies something of a revival of the Shadow Banking System

A lot of companies and individuals need credit but rather than do it through banks hamstrung by regulation, they can provide it far more profitably and flexibly through non-banks.

It seems that Dodd-Frank pushes some loans out of regulated banks, while at the same time upping capital requirements to make sure banks are less reliant on shadow bank financing themselves

Read more: http://curiouscapitalist.blogs.time.com/2011/06/27/is-dodd-frank-reviving-the-shadow-banks/#ixzz1QlMRI2uQ