Guess Who Said, "Outlaw the Shadow Banking System!"

Obama and Prime Minister Gordon Brown have met to talk about the economic crisis at hand that has happened and that the cause of this economic crisis is the shadow banking system. By the way Shadow Banking is a really bad way of banking, for example Shadow banking institutions are typically intermediaries between investors and borrowers. For example, "an institutional investor like a pension fund may be willing to lend money, while a corporation may be searching for funds to borrow. The shadow banking institution will channel funds from the investors to the corporation, profiting either from fees or from the difference in interest rates between what it pays the investors and what it receives from the borrower.By definition, shadow institutions do not accept deposits like a depository bank and therefore are not subject to the same regulations. Familiar examples of shadow institutions included Bear Stearns and Lehman Brothers. Other complex legal entities comprising the system include hedge funds, SIVs, conduits, money funds, monolines, investment banks, and other non-bank financial institutions". I really hope that our country and the rest of the world can balance their check books.

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