Billionaire Marc Lasry Sees More Money Leaving Regional Banks
- Avenue CEO see outflows continuing without Fed guarantee
- Private credit will get a boost as lending gets tighter
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Marc Lasry, the billionaire co-founder of Avenue Capital Group, said there’s little benefit for small businesses and other depositors to keep their money with regional banks instead of Wall Street giants — unless the Federal Reserve steps in.
Lasry, who runs New York-based Avenue Capital, said that even if the risk of a regional bank failing is small, it still makes sense for depositors to move their money to large Wall Street banks in the absence of new deposit guarantees from the Fed.