US agencies clamp down on leveraged lending
The Federal Reserve, Federal Deposit Insurance Corporation (FDIC) and Office of the Comptroller of the Currency (OCC) have issued new guidelines on best practices for leveraged lending amid concerns of a decline in standards in recent years.
The last time guidelines were issued was back in 2001. Standards declined markedly in the run up to the financial crisis after which volumes fell and risk appetite faded. However, the agencies noted yesterday that subsequently a number of concerning trends
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