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Bernie Sanders

NPR Politics: Risky Shadow Banks Become Campaign Fodder For Democrats

"Too-big-to-fail banks are generating plenty of anger from the public, but former Secretary of State Hillary Clinton says the real risks to the financial system lie in the vast, lightly regulated corners of the economy called shadow banks."


"Unlike commercial banks, the holdings in such entities aren't insured by the federal government, which means that in a crisis, they may be susceptible to runs. They also don't have access to a key source of liquidity for banks, the Federal Reserve's discount window, according to a report from the Federal Reserve Bank of New York.