The Globe and Mail reports in its Wednesday edition that during the Great Financial Crisis of 2008-09, society paid a heavy price for having allowed financial institutions to become "too big to fail." The Globe's guest columnist Evan Siddal writes that now that the issue has been addressed through reforms, a new one has emerged: In the face of fears about the rise of "shadow banks," regulatory sabres are being rattled among global financial regulators about non-bank financial institutions, or NBFIs. Fears about increases in lending by NBFIs are overblown and regulatory backlash therefore risks undoing one of the intended consequences of recent regulatory reforms: slowing the growth of big banks. These big banks, which are subject to heavier regulations, call lending by NBFIs "regulatory arbitrage," as nefarious a term as "shadow banking." JPMorgan chief executive officer Jamie Dimon has bemoaned the declining market share of banks in the financial system. He decried NBFI's regulatory arbitrage and accused them of "dancing in the streets" because of it. That is rich, since the implicit government guarantee of banks that the reforms have ended was likely the greatest regulatory arbitrage in history.