Browsing: Leveraged lending

Compliance and Risk

While financial regulators flagged an increase in leveraged lending prior to the outbreak of COVID-19, a new report from the Government Accountability Office today found that as of September, “they had not found that leveraged lending activities had contributed significantly to widespread financial instability.”

Policy

In the wake of the Federal Reserve’s biennial financial stability report released yesterday, which flagged leveraged loans as a risk factor, Fed Vice Chairman for Supervision Randal Quarles suggested that media reports overplayed the scale of the risk, especially to banks.

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