Fed’s Powell Says Leveraged Lending Doesn’t Pose Systemic Risk to Banks

If the banks have restructured such that debt risk has been placed in the hands of (debt) holders rather then the banks why are the banks involved at all? This is almost identical to the attitude that yielded the 2007 collapse. Facilitate debt but avoid all responsibility. Profit and security are maximized only when the issuer holds the note until repayment.

 

AC

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