European Parliament Library

Puts in the Shadow, Manmohan Singh

In the aftermath of the Lehman crisis, payouts (i.e., taxpayer bailouts) in various forms were provided by governments to a variety of financial institutions and markets that were outside the regulatory perimeter - the "shadow" banking system. Although recent regulatory proposals attempt to reduce these "puts", we provide examples from non-banking activities within a bank, money market funds, Triparty repo, OTC derivatives market, collateral with central banks, and issuance of floating rate notes etc., that these risks remain. We suggest that a regulatory environment where puts are not ambiguous will likely lower the cost of bail-outs after a crisis
Table Of Contents
Cover; Contents; I. Introduction; Figure; 1. Put-An Example From The Housing Market; II. Shadows within a bank and around a bank; 2. Deposit/Asset Ratio of SIFIs in U.S. and Europe; 3. Depository and Non Depository base of SIBs and the Shadow Banking Sector; III. MMFs, CCPs and Tri-party Repo-in the Shadows?; A. Money Market Funds; 4. The Nonbank/Bank Nexus-Key Institutions and Markets in the Shadows; B. Qualified Financial Contracts (QFCs); Table; 1. Under-collateralization in the OTC Derivatives Space; IV. Floating Rate Note "Puts"-Are they Forthcoming?
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (22 p.)
Specific Material Designation
Form Of Item

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