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The next two speeches considered shadow banking. The first, titled Shadow Banking: Thoughts for a Possible Policy Agenda, was delivered by Paul Tucker, a Deputy Governor at the Bank of England: see here (pdf). Mr Tucker argued, amongst other things, for greater transparency and recommended that shadow banking vehicles or funds sponsored or operated by banks should be consolidated on bank balance sheets. The final speech was delivered by Lord (Adair) Turner, the Chairman of the Financial Services Authority, and was titled Securitisation, Shadow Banking and the Value of Financial Innovation,: see here (pdf). Lord Turner sought to identify how financial innovation should be valued and how it differed from innovation in other sectors of the economy. Amongst other things he cautioned against the belief that increased size in the financial sector was a desirable end per se. (It's also worth noting that Lord Turner's book, Economics After the Crisis: Objectives and Means was published last month - further information here).
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