State Street CEO Says Surging Private Credit Demands US Scrutiny
- O’Hanley says credit from places besides banks has jumped
- Regulators need broader vetting for systemic risks, he says
Ron O'Hanley
Photographer: Patrick T. Fallon/Bloomberg
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The head of one of the world’s largest asset managers called on financial regulators to step up scrutiny of private credit, which has surged amid the tightening oversight of the banking system.
“What the regulators are going to have to get their arms around is, yes, we’ve taken care of the banks -- we’ve distributed the risk,” State Street Corp. Chief Executive Officer Ron O’Hanley said in an interview Tuesday. “But is it being re-aggregated elsewhere where it’s going to cause, yet again, a systemic problem?”