Background: “Shadow Banking” refers to the activities performed by private investment institutions, such as hedge funds and private equity firms, that operate outside of the standard rules and regulations that publicly traded financial institutions such as Goldman Sachs and JP Morgan are subjected to. The value of this industry that exists has grown exponentially to an estimated $80 Trillion as of 2015. Considering many would attribute the 2008 financial crisis and the insolvency of major American banks to a lack of regulatory control, the growth of the shadow banking industry poses a potentially serious threat to economic stability.
Flash-forward a bit: In the early stages of the 2016 primary season, Hillary Clinton began pontificating on shadow banking, in an obvious attempt to “outflank”, as The Atlantic put it, her uber-progressive opponent, Bernie Sanders.
Flash-forward to present-day: Guess which presidential candidate received TWO HUNDRED FIFTY FIVE THOUSAND PERCENT (255263%) more campaign donations from hedge funds than his or her opponent? You guessed it, Hillary Clinton. According to the WSJ, the Clinton Campaign has raked in over $48 Million in funding from the hedge fund industry, while Donald Trump has received a measly 19 Thousand. That means Donald Trump has received less than 0.04% the donations from operators in the shadow banking sector that Hillary Clinton received.
Hmmmm….. so much for reeling in the shadow banking industry, huh?
Then again, this shouldn’t come as a surprise. Hillary likely zeroed in on “shadow banking” months ago in order to match Bernie Sanders’ Wall Street reformism, while simultaneously protecting her monetary relationships with the big banks.
Looks like the gasbags over at Bloomberg TV agree with our sentiments: