Actually pre-2008 they pretended shadow banking didn’t exist didn’t understand it and therefore didn’t actually regulate it enough.
Post-2008 it is different story, FED and numerous government agencies understand it wery well and do have tools to fix it. But they are not doing it and keep conveniently labeling it “shadow banking” and later they will wash their hands and tell it is not their fault.
So it is defenitely a cover-up
