Deals
Fed Fires Warning Shot at Wall Street's Riskier Loan Deals
- Regulator says banks may be lending without adequate controls
- Speech marks rare public cautioning amid Trump era debt boom
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In the Trump era, Wall Street banks have been testing the limits of what they can get away with in piling risky loans onto highly indebted companies. They may have finally crossed a line.
A top Federal Reserve official fired a rare public warning Wednesday, saying that banks appear to be chasing increasingly dangerous deals and forgoing protections against borrowers going bust.