The need for nonbank regulation is a consensus issue for the Fed
By Kyle Campbell
A consensus is emerging within the Federal Reserve about the need to address the risks nonbanks pose to the financial sector, with champions on opposite ends of the Board of Governors’ ideological spectrum….Karen Petrou, managing partner at Federal Financial Analytics, said there are elements of truth to both perspectives and they must be squared with one another to properly address the issue of nonbank systemic risk. “Both Barr and Bowman are right,” Petrou said. “Banks need to be regulated because they are systemically special, but to the extent you do that, it’s not just the activities that migrate but also the systemic risk. And it is the signal failure of financial policy since 2008, not to have done much but talk about that.”…
https://www.americanbanker.com/news/the-need-for-nonbank-regulation-is-a-consensus-issue-for-the-fed