<
https://www.theguardian.com/business/2025/oct/21/bank-of-england-chief-warns-worrying-echoes-2008-financial-crisis-tricolor-first-brands>
"The governor of the Bank of England, Andrew Bailey, has warned recent events
in US private credit markets have worrying echoes of the sub-prime mortgage
crisis that kicked off the global financial crash of 2008.
Appearing before a House of Lords committee, the governor said it was important
to have the “drains up” and analyse the collapse of two leveraged US firms,
First Brands and Tricolor, in case they were not isolated events but “the
canary in the coalmine”.
“Are they telling us something more fundamental about the private finance,
private asset, private credit, private equity sector, or are they telling us
that in any of these worlds there will be idiosyncratic cases that go wrong?”
he asked.
“I think that is still a very open question; it’s an open question in the US.”
He added: “I don’t want to sound too foreboding, but the added reason this
question is important is if you go back to before the financial crisis when we
were having this debate about sub-prime mortgages in the US, people were
telling us: ‘No it’s too small to be systemic; it’s idiosyncratic.’ That was
the wrong call.”"
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
