Turner warns on dangers of 'shadow banking'

Writing in the Daily Telegraph, Turner said the response to the 2008 crisis by regulators and central banks, led by the Financial Stability Board (FSB), has made progress but is unfinished. He said the original crisis was not a traditional banking cries, but linked to a "new phenomenon - shadow banking". Turner explained the early signs of stress arose in hedge funds, then banks' off-balance sheet vehicles 'structured invested vehicles'. He said Bear Stearns and Lehman Brothers were "not banks, but broker-dealers" and AIG was an insurance company. Turner told the paper: "In summe...