JPMorgan warning

Pole Dancing Robot

JPMorgan is concerned about loans that finance some leveraged buyouts, and is scaling back from what is a booming area, even as its overall loan portfolio grows, a top executive said in an interview.

Reuters reports that loans that fund smaller leveraged buyouts, where companies often do not have the size or financial resources to weather a business downturn, look particularly hazardous, Doug Petno, chief executive of commercial banking at JPMorgan, told Reuters.

Seven years after the financial crisis, lenders are relatively sanguine about credit risk. Outstanding loans grew 1.63% in the first quarter for all U.S. banks from the fourth quarter, according to the Federal Reserve, a solid pace by historical measures.

To access the complete Reuters article hit the link below:

JPMorgan says banks may be making 'bad loans' as LBOs boom

OECD says BOJ has done enough, warns of QQE risks

JefferiesAnd the Best Place to Work in the global financial markets 2016 is...

Register for Financial Markets News Alerts