Faculty News

Professor Lawrence White weighs in on democratic presidential candidates' arguments regarding shadow banking

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Excerpt from NPR -- "'The money you put into a hedge fund is not guaranteed at all by anybody, and if you're worried that your hedge fund is going to start losing money, you may start pulling that money out,' White says. While hedge funds and money market funds are usually too small to cause systemic problems for the economy, large bank holding companies are another story: Many of them engage in shadow banking through their less-regulated subsidiaries."

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