Finance world heads to Washington as politics and markets erupt – POLITICO
Private credit concerns
One of those possible shocks relates to private credit. Investors have been fleeing private markets where they can profit off loans to risky companies made by financial firms that aren’t banks. Panic has spread as some of those loans have soured, catching the attention of regulators.
Federal Reserve Chair Jerome Powell has said that while some people will lose money, for now the problem doesn’t seem like it will feed out and threaten the stability of the financial system. But he added that the central bank continues to monitor the situation closely.
On the other side of the Atlantic, the tone is a bit more worried. Bailey has highlighted the need to probe banks’ potential exposure to these markets closely, harkening back to the 2008 financial crisis when su...










