Though this is tangential to the story, I would like to second the recommendation of this paper. On the way to arguing for his thesis, the author explains the f

Though this is tangential to the story, I would like to second the recommendation of this paper. On the way to arguing for his thesis, the author explains the function of the modern banking system and the "shadow" banking system in clear and cogent terms. He relates contemporary banking practices to older ones and explains shows how they are similar in the event of a banking panic. Very good (but long) article.