ECB Should Fix Leveraged Loans Probe If Flawed, Official Says
The ECB’s review comes after higher interest rates put an abrupt end to an era of cheap credit that had fueled a surge in leveraged buyouts.
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A top regulator said the European Central Bank should “correct” its large-scale investigation into risky lending if criticism from banks that the watchdog’s approach was too blunt proves justified.
The ECB is set to delay the findings of the probe in response to an unusual level of criticism from banks, Bloomberg reported last week. The decision means lenders will have to wait until at least September for the final results and is a tacit admission that regulators see some merit in the complaints, according to people familiar with the matter.