Regulating the Shadow Banking System - The Money View

The transcript discusses the ongoing financial crisis, highlighting the limitations of the Dodd Frank legislation in addressing modern financial systems, particularly the shadow banking system. It emphasizes the need for new regulatory frameworks to adapt to the shift from traditional banking to capital markets. The discussion also covers the breakdown of securitization markets and their interaction with traditional banking, pointing out the lack of understanding of these interconnections. The conclusion stresses the importance of developing intellectual frameworks to ensure the stability and safety of modern financial systems.

In what ways did the securitization markets break down, and how did this affect the banking system?

What role does understanding the interconnection between securitization and banking play in preventing future financial crises?