Posted on 23 October 2014 by Carter-Ruck
The term describes borrowing and lending that goes on outside the regulated banking centre. The man who coined it is American economist Paul McCulley. In a 2007 speech at the annual financial symposium hosted by the Kansas City Federal Reserve Bank in Jackson Hole, Wyoming, McCulley explained the operation of banks that look like banks, and do what banks do, but aren’t, well, really banks. They are, as this helpful summary reveals, entities that are “in the shadows” and they include investment banks, money market mutual funds, hedge funds and mortgage lenders.
Posted on 09 October 2014 by Carter-Ruck
The news of the first guilty plea by a banker for fraud offences relating to the rigging of the Libor lending rate is good news for the beleaguered Serious Fraud Office. At last, having been criticised for mismanagement in a number of high-profile cases, it has something to shout about. The SFO’s investigation into the manipulation of Libor continues; there might even be more smiles among its staff in due course.