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Jonathan Shapiro

Banks and shadow lenders have the balance sheet blues

A former Fed governor’s blueprint on the banking system helps explain the margin pressures on the banks and the growing strains in the property lending sector.

Jonathan ShapiroSenior reporter

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In December 2011, Barack Obama nominated two men to fill vacant positions on the Federal Reserve Board. One was dealmaker Jerome Powell, and the other a Harvard economist named Jeremy Stein.

While Powell eventually became Fed chairman, Stein lasted two years before he retreated into academia. But in that time he left his mark, and made several insightful speeches that helped policymakers and investors understand how the financial system hung together and where risks could emerge.

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Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney. Connect with Jonathan on Twitter. Email Jonathan at jonathan.shapiro@afr.com

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    Original URL: https://www.afr.com/link/follow-20180101-p5dq7t