The $5 Trillion Dilemma Facing Banking Regulators

Last month, I wrote about bond-market illiquidity — the problem that it’s incredibly difficult to buy and sell bonds in any kind of volume, especially if they’re not Treasuries. That’s a big issue — but it turns out there’s an even bigger issue hiding in the same vicinity.

via The $5 trillion dilemma facing banking regulators | Felix Salmon.

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