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Wall Street Said to Face Renewed Pressure on Risky Lending

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Wall Street banks are facing renewed pressure from federal regulators on their lending standards for risky corporate loans just as credit markets roar back, according to people with knowledge of the matter.

Bankers who generally retreated from the riskiest corner of the leveraged lending market since new guidelines were issued three years ago are now being queried on their plans for loans that just sneak in as acceptable under the measures, the people said. Regulators are questioning how such loans would perform under adverse conditions, one of the people said, asking not to be identified as the information isn’t public.