Wall Street Banks Heed Fed’s Risky Loan Warnings
This article is for subscribers only.
U.S. banking regulators summoned Wall Street’s biggest lenders to New York’s Pierre hotel in November to hammer home a message that had gone largely unheeded for more than a year: Stop arranging risky corporate loans that were inflating another credit bubble, or potentially face fines or suspensions.
The warnings from the Federal Reserve and Office of the Comptroller of the Currency are starting to sink in.