S8 E2: Bank Nerd Corner: What Are Shadow Banks?

Fintech Takes

What is shadow banking? It sounds nefarious… right? But what does it really mean?

Alex is joined by Kiah Haslett and special guest, Todd Phillips, the assistant professor at the Robinson College of Business at George State University, to break down the topic of shadow banking and to discuss the challenges it poses for bank supervisors, regulators, and consumers alike.

They unpack the inherent risks of shadow banking and explore the role shadow banking played in the downfall of Synapse. What weight does the term “FDIC insured” actually hold? And is there a way to prioritize consumer safety when it comes to shadow banking?

Then, Alex, Kiah, and Todd also chat about the push-pull dynamics of regulator/bank relationships and postulate on the correct balance between regulation and innovation. And later, Kiah has a bone to pick with the CFPB, and she’s determined to figure out a better way to organize their chore chart.

00:03:10 Who is Christy Goldsmith Romero?

00:08:00 Stabilizing Shadow Banks

00:26:37 Synapse Bankruptcy

00:38:41 Breaking Down Bank Supervision

01:04:59 Go Off, Kiah!

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Follow Todd:

LinkedIn: https://www.linkedin.com/in/todd-phillips-b1570110/

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LinkedIn: https://www.linkedin.com/in/khaslett/

Twitter: https://twitter.com/khaslett

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