UBS chair Kelleher warns of the risks of ‘shadow’ banking, FT reports

UBS (UBS) chair Colm Kelleher has warned the next financial crisis will likely be in the “shadow” non-banking lender sector, adding the growth of lightly regulated private markets is a “real cause for concern,” Kaye Wiggins and Hudson Lockett of The Financial Times reports. In a conference in Hong Kong, Kelleher said a large share of financial assets globally “are now in the non-bank financial intermediaries, the shadow sector…I think the next crisis when it happens will be in that sector, it will be a fiduciary crisis.” Kelleher’s comments prompted a defense from Apollo Global (APO) CEO Marc Rowan and Goldman Sachs (GS) CEO David Solomon.