Leveraged loans

Fresh data from the Fed, FDIC and Bank of England shows that, directly or indirectly, banks are taking on more leveraged loans. But whether this puts their loan and securities portfolios at risk remains open for debate.

The Democratic presidential candidate argued in a blog post that the U.S. could avoid a recession by canceling most student debt and authorizing regulators to more aggressively monitor leveraged lending.

The U.S. lacks mechanisms authorized in other countries to flag nonbank risks, Eric Rosengren says.

Citi’s chief lending officer to take over HSBC’s U.S. business; Pittsburgh banks brace for incursion of industry heavyweights; borrowing by nonbank leveraged lenders is growing (maybe too much); and more from this week’s most-read stories.

Banks may be exposed to a shakeout in the $1.3 trillion leveraged-loan market even though they mostly own the safest portions of debt, according to the Bank for International Settlements.

Lending to companies with heavy debt loads is a growing business — one that many fear could lead to the next financial crisis.

Google explored the OCC's fintech charter, then walked away; the biggest changes in digital banking could be just ahead; 'Truist' rebrand prompts lawsuit by N.C. credit union; and more from this week's most-read stories.

As Facebook's Libra takes shape, Federal Reserve Chairman Jerome Powell says he is "not too concerned" about the impact on central banks.

Federal Reserve Chairman Jerome Powell says the agency is closely monitoring leveraged lending risks, but suggests further regulations on banks aren’t warranted.

Readers weigh potential risks in the leveraged loans market, debate Herb Sandler's legacy, consider the role the Fed should play in real-time payments and more.

Options include legislation to study the risk of leveraged loans, more aggressive action by the Financial Stability Oversight Council and additional capital buffers. Policymakers may also choose to do nothing.

The U.S. economy is on solid footing except for one potential trouble spot, according to Bank of America's Chief Executive Brian Moynihan: leveraged loans — a business the bank has dominated for a decade.

Lawmakers waded into a growing debate about the threat posed by corporate credit risk.

The JPMorgan chief executive said he couldn't understand why Wells Fargo could have CEO Tim Sloan step down without a successor ready to go.

Although higher corporate debt could hurt the economy, Federal Reserve Chair Jerome Powell argued changes made since the last crisis will guard against a meltdown.

The ranking Democrat on the Senate Banking Committee says he wants answers from the Financial Stability Oversight Council on efforts to address corporate debt risks.

The central bank said that while financial markets' desire for higher yields raises the potential for losses, capital and liquidity safeguards temper any concerns about a looming crash.

Eileen Murray has talked about leaving Bridgewater; A deal with Roger Ng could lead to charges against Goldman and its employees.

The administration’s move seems aimed at cutting down on regulation. But broader reviews by the White House under the Congressional Review Act could hinder rules the industry supports.

Clayton is the latest to raise concerns about bank loans to highly indebted companies; Wells Fargo’s performance took a hit with its reputation.