Shadow banking is the concept used by the Financial Stability Board (FSB) and the European Commission to propose a new bout of regulatory reforms. The problem is less in the concept's negative bias than in its marginalization of the problem. Shadow banking is reflective of major players exploiting existing rules often in collusion with authorities. This should prompt a deeper discussion about the influence of legal institutions in market structures, and the perils of artificial distinctions between 'banking/money markets' and 'capital markets'. Drawing the appropriate lessons is particularly important now that momentous reforms, such as the Banking Union and Capital Markets Union, seem to go back to traditional (and unrealistic) dividing lines.