FROM THE AMERICAN BANKER:
[May 7, 2015] "Fed Chief Wary..."
The article highlights Fed Chairman Janet Yellin's perspectives on the level of "risky lending" and "reach for yield" among regulated banking institutions. Ms. Yellin summarizes her analysis with this observation: "My assessment... would be that the risks to financial stability are moderated, not elevated." That certainly sounds a very positive, hopeful note for the future! [And certainly contradicts NCUA's "current economic wisdom".]
Ms. Yellin did however surface a previously undisclosed threat to America's financial stability with this reported remark: "The financial crisis clearly revealed that even outside the regulated banking sector, [even greater risks exist] in ..."
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| "... the shadow baking sector." |
And a big part of that risk is the sector's alluring marketing pitch:
"Hold me, squeeze me, then take me home."
[Shouldn't this have been announced in the American Baker ?]
[Shouldn't this have been announced in the American Baker ?]
5 comments:
The shadow banking systems is no greater risk for attempting to provide financial services than the over regulated banking system which can no longer provide necessary financial services.
Yellin's greatest regret is that she can't constipate the shadow banking system just as effectively as she has done for the traditional banking system.
Jimski, could you at least post the "baker" with his pants on?
Wouldn't it be nice if NCUA had an economist "worth" the money they were paying him?
Hey, That's a white designer jumpsuit! It cost a lot of d... never mind !
Would suggest we take NCUA and roll 'em up, roll 'em up and throw them in the (take your pick).
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