Importance
Many "shadow bank"-like institutions and vehicles have emerged in American and European markets, between the years 2000 and 2008, and have come to play an important role in providing credit across the global financial system.
In a June 2008 speech, Timothy Geithner, then President and CEO of the Federal Reserve Bank of New York, described the growing importance of what he called the "non-bank financial system": "In early 2007, asset-backed commercial paper conduits, in structured investment vehicles, in auction-rate preferred securities, tender option bonds and variable rate demand notes, had a combined asset size of roughly $2.2 trillion. Assets financed overnight in triparty repo grew to $2.5 trillion. Assets held in hedge funds grew to roughly $1.8 trillion. The combined balance sheets of the then five major investment banks totaled $4 trillion. In comparison, the total assets of the top five bank holding companies in the United States at that point were just over $6 trillion, and total assets of the entire banking system were about $10 trillion."
Read more about this topic: Shadow Banking System
Famous quotes containing the word importance:
“Society is the stage on which manners are shown; novels are the literature. Novels are the journal or record of manners; and the new importance of these books derives from the fact, that the novelist begins to penetrate the surface, and treat this part of life more worthily.”
—Ralph Waldo Emerson (1803–1882)
“What is done for science must also be done for art: accepting undesirable side effects for the sake of the main goal, and moreover diminishing their importance by making this main goal more magnificent. For one should reform forward, not backward: social illnesses, revolutions, are evolutions inhibited by a conserving stupidity.”
—Robert Musil (1880–1942)
“In the United States all business not transacted over the telephone is accomplished in conjunction with alcohol or food, often under conditions of advanced intoxication. This is a fact of the utmost importance for the visitor of limited funds ... for it means that the most expensive restaurants are, with rare exceptions, the worst.”
—John Kenneth Galbraith (b. 1908)