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Policymakers must regulate according to the kind of activity undertaken, not the charter a firm holds, argues Karen Shaw Petrou, the managing director of Federal Financial Analytics.

Financial Stability Risks Rise as Activities Shift to 'Shadow' Firms

Nearly four years since the passage of regulatory reform legislation, policymakers have largely failed to curb risks outside the banking system, increasing the chance for another crisis in the future, according to a new paper by Federal Financial Analytics.

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