Michael Bradfield & Gaurav Vasisht | Unfinished Business: Banking in the Shadows

Eight years have passed since the "Great Financial Crisis." The efforts of legislators and regulators have gone a long way toward protecting the safety and soundness of our large banks. Yet the system remains vulnerable. Highly leveraged and interconnected financial firms continue to rely on panic-prone funding structures, posing a clear risk of contagious "runs." Today, it is not the heavily regulated commercial banks that are the main source of concern. Rather, it is the lightly regulated non-bank financial institutions that are deeply reliant on uninsured short-term debt that pose significant risk. The Volcker Alliance's Michael Bradfield and Gaurav Vasisht discuss the Alliance's recent report (http://www.volckeralliance.org/publications/unfinished-business-banking-...) that identifies areas of vulnerability, and lays out multiple options to enhance the stability of the financial system.

Sponsored by Global Financial Markets Center.

Recorded on February 28, 2017