The shadow banking system needs more transparency – not re-regulation – to help prevent future financial turmoil, says a study published today by the C.D. Howe Institute. In “Lifting the Veil: Regulation and Shadow Banking,” authors Christian Calmès and Raymond Théoret conclude that the best way to reform the shadow banking system, where the recent subprime mortgage crisis began, is to lift the veil on risk and leverage taken on within banks.
