In the Market: How regulators are using banks to illuminate shadow banks

- The Federal Reserve has proposed new rules that would allow it to gather granular details about banks' exposure to shadow banks, a move that shows how regulators are trying to understand the risks there and the limits of that approach.

One banker said regulators had been asking his firm, a major Wall Street bank, for detail on its overall exposure to individual firms that have sprawling shadow banking operations, like the big private equity firms. They even want to know if the bank is lending to a portfolio company of such funds, said the banker, who requested anonymity to speak candidly.

The issue is not lost on regulators. The chairman of Europe's banking watchdog told my colleagues last week that regulators face information "black holes" that can only be fixed by mandatory disclosure, pointing to a process that could take years. The proposal seeks to fix that by seeking more "granular information" on lending to shadow banks in a form that collects detailed, loan-level data for stress tests. The confidential forms, called FR Y-14s, are also used broadly across the Fed for supervision and assessing financial stability risks.

Andrew Metrick, a Yale finance professor and director of the university’s program on financial stability, said he did not see a better alternative. Investors are buying individual stocks at a record pace as market-beating bets dwindle to lowest ever

México Últimas Noticias, México Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

Market tech concentration may persist for years: Market trendsMarket concentration continues to narrow in on Big Tech. With no large catalysts, the market can maintain this pattern for some time, data suggests. Still...
Fuente: YahooFinanceCA - 🏆 47. / 63 Leer más »

Amazon's $2T market cap, jobless claims: Market trendsYahoo Finance's Josh Schafer joins Asking for a Trend to break down his biggest takeaways from the trading day. Amazon has reached a $2 trillion market...
Fuente: YahooFinanceCA - 🏆 47. / 63 Leer más »

Market leadership in flux, bitcoin in trouble: Market takeawaysYahoo Finance's Jared Blikre joins Asking for a Trend to break down his key takeaways from the trading day. Blikre explains that stock market leadership is...
Fuente: YahooFinanceCA - 🏆 47. / 63 Leer más »

Nvidia tops Microsoft's market cap, weather risks' impact on housing: Market DominationOn today's episode of Market Domination, co-hosts Josh Lipton and Julie Hyman explore Nvidia's (NVDA) market cap dominance, trending tickers, and the impact ...
Fuente: YahooFinanceCA - 🏆 47. / 63 Leer más »

Stocks rebound, housing market tips: Market Domination OvertimeIn today's episode of Market Domination Overtime, hosts Josh Lipton and Julie Hyman dive into the most prominent dynamics leading stocks and the US housing...
Fuente: YahooFinanceCA - 🏆 47. / 63 Leer más »

Market outlook, Despicable Me 4: Market Domination OvertimeUS stocks (^DJI, ^IXIC, ^GSPC) close out Monday mixed, but it's not all bad as the S&P 500 and Nasdaq Composite post new record highs and the Dow Jones...
Fuente: YahooFinanceCA - 🏆 47. / 63 Leer más »