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

1 Faculty News February 24, 2016 ![NPR logo](/sites/default/files/styles/246w/public/assets/images/con_030855.jpg?itok=Ti1_93MD)>

Excerpt from [NPR](http://www.npr.org/2016/02/24/467822640/risky-shadow-banks-become-campaign-fodder-for-democrats) -- "'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](http://www.stern.nyu.edu/faculty/bio/lawrence-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."

[Read more](http://www.npr.org/2016/02/24/467822640/risky-shadow-banks-become-campaign-fodder-for-democrats)