OTTAWA—It’s time for the “shadow banking” system to come out of the closet and be regulated, just as the banks are, says a report released today by the Canadian Centre for Policy Alternatives (CCPA).
“The recent financial meltdown worldwide has been the result of a failure to recognize the basic instability of this new near-banking system,” says co-author Doug Peters, former Secretary of State (Finance) and former TD Bank Chief Economist. “The failure to properly regulate it has, in effect, resulted in a severe global recession.”