Bloomberg's Joe Weisenthal and Tracy Alloway analyze the weird patterns, the complex issues and the newest market crazes. Join the conversation every Monday and Thursday for interviews with the most interesting minds in finance, economics and markets.
22: The Unbearable Brightness of Being a Shadow Bank
A high-flying hedge fund manager lost everything back in 2007 after an accounting scandal prompted investors to pull money from his $12 billion fund. Almost a decade later, Dan Zwirn has been cleared of all wrongdoing by U.S. securities regulators and is busy rebuilding his investment empire, specializing in lending to companies that don't usually have access to traditional bank financing. Zwirn's new fund, Arena Investors LP, is one of a crop of so-called shadow banks seeking to plug a financing gap exacerbated by the financial crisis and new regulation. Max Abelson of Bloomberg News co-hosts this week's episode, in which we talk the pros and cons of non-bank financial intermediation.
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