Bloomberg: Shadow Banking System Needs Stick, Not Carrot

Bloomberg commentator David Reilly quotes R&R’s Ann Rutledge on the next target for regulators in mending the financial crisis: the “shadow banking system” of non-bank lending markets.

Rutledge calls for “an exchange-like setting to provide the sort of standardization and rules that help trading of stocks and options,” and operational revamps to produce more accurate and dynamic ratings that reflect the changing performance of securitized loans.

Read the full article: “Shadow-Banking System Next Up for De-Stressing,” David Reilly, Bloomberg, May 8, 2009.