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Thain Says Unregulated Lenders to Probably Cause Next Crisis

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The next financial crisis will probably originate from online lenders, hedge funds or other unregulated entities that are taking on some of the greatest credit risks, CIT Group Inc. Chief Executive Officer John Thain said.

“If you wanted to worry about the next crisis, you would worry about that space because that’s where the more leveraged, the more risky pieces are going,” Thain said Thursday in a televised interview. “They are not going into banks.”