Shadow banking? Fuggedaboutit! Fidelity Investments recently sent a letter to the European Commission on its Green Paper on Shadow Banking detailing the Commission’s use of the term as “confusing” and “misleading”.

Specifically, Fidelity, which said it “has a deep understanding of a number of the activities that the Green Paper classifies as part of the shadow banking system,” said the term “shadow banking” should be discontinued in favor of terminology focusing on specific activities such as such as banks transacting with their non-bank counterparties, liquidity and maturity transformation and the provision of credit or transfer of credit risk, and securities lending and funding in the repo markets.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.