Shadow banking needs more light, Goldman Sachs CEO tells Congress

11 April 2019 9:03am
Goldman Sachs Chief Executive David Solomon told lawmakers today that short-term, wholesale funding among non-banks deserves more attention from regulators.

“At the moment I don’t think it’s systemic, but it is growing. It’s obscured, and I think it’s something over time, if the cycle continued, we’d want to have a closer look at,” Solomon told the House Financial Services Committee.

This less-regulated “shadow banking” sector includes leveraged lending, or high-yield loans by private equity firms, hedge funds and pension funds to heavily indebted corporations.