Wall Street is divided over the rise of private credit

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The debate on Wall Street about the rise of private credit is getting louder. On one side is the boss of the largest US bank, Jamie Dimon, who argues that increased lending by private equity firms, money managers, and hedge funds creates more opportunities to let risks outside the regulated banking system go unmonitored. "I do expect there to be problems," the JPMorgan Chase (JPM) CEO said at a Bernstein industry conference at the end of May, adding that "there could be hell to pay" if retail investors in such funds experience deep losses. JPMorgan Chase CEO Jamie Dimon. (REUTERS/Evelyn...