Lending conditions risk re-run of 2008 crisis, says FDIC chair
Gruenberg says proliferation of non-banks is adding to financial stability risks
The chairman of the US Federal Deposit Insurance Corporation (FDIC) has said that the proliferation of non-bank financial institutions increases the risk of another financial crisis on the scale of 2008.
In a speech on January 14, Martin Gruenberg said the US Treasury’s Financial Stability Oversight Council had repeatedly pointed out the growing risks “outside the regulatory perimeter ranging from hedge funds to private credit lenders to non-bank mortgage-servicing companies”.
Gruenberg pointed to
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