November 15, 2018

CNBC: Elizabeth Warren says the Fed is making the same mistakes as before the crisis: 'Deeply worrisome'

Sen. Elizabeth Warren charged Thursday that a buildup in leveraged loans is threatening the economy in the way subprime loans did leading up to the financial crisis.

Ahead of the financial crisis, a buildup of leverage on bank balance sheets that went largely undetected by regulators helped cause the worst downturn since the Great Depression. Sen. Elizabeth Warrenis afraid the same thing is happening again a decade later.
The Massachusetts Democrat said Thursday that she thinks the Federal Reserve and its fellow watchdogs of the financial system are overlooking a dangerous buildup of loans going to companies that are already deeply in debt. The so-called leveraged loans helped undermine the financial system before and are building up again, now totaling $1.1 trillion.
Read the full story on CNBC's website here.

By:  Jeff Cox
Source: CNBC