Sants blasts leveraged ETFs

Asked where he thought the next banking failure was likely to come from, Sants spoke about the dangers of risk being pushed out of the banking system. He went on to say: "If you can put leverage in an ETF, and then consumers themselves buy the product with the leverage, the risk is that the leverage moves out of the visibility of the regulator from the point of view of regulating the manufacturers of product, and into the consumers of product. "I don't think it's happening to a significant degree at the moment, but logically that is a potential area of risk we need to be very careful ...