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Leveraged loans: banks losing to the shadow banks

Regulation in one area may simply move undesirable activity to another place

New York

IN its effort to limit leveraged loans, the government is finding once again that regulating the financial industry is like a game of Whac-a-Mole, with new unregulated players popping up to fill the risky gaps.

Leveraged lending is associated most commonly with buyouts by

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