Shadow Banking Gets Bad Rap, So Treasury Wants to Erase the Term
- Report says global regulators should rethink use of label
- Treasury argues big investment firms don’t operate in shadows
A man walks along Wall Street near the New York Stock Exchange (NYSE) in New York, U.S., on Friday, Sept. 2, 2016. The long-awaited American jobs report did nothing to break the tedium of U.S. markets.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Firms such as Blackstone Group LP, Apollo Global Management LLC and Fortress Investment Group LLC are often slapped with the vaguely sinister label, shadow bank, because they provide financing but aren’t regulated like traditional lenders.
President Donald Trump’s Treasury Department now says that’s downright unfair and wants global regulators to stop using the term when describing investment giants.