Business

US Banks’ Exposure to Private Equity Surges—Experts Warn of Potential Contagion

According to Moody’s, the increasing interdependence between banks and private credit firms poses unique challenges.
US Banks’ Exposure to Private Equity Surges—Experts Warn of Potential Contagion
Wall Street in New York City on April 4, 2025. Samira Bouaou/The Epoch Times
Panos Mourdoukoutas
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Following the bankruptcies of subprime auto lender Tricolor and auto parts supplier First Brands Group, which rattled the credit markets, a Moody’s report has sounded the alarm over U.S. banks’ high exposure to private equity and private credit.

U.S. banks’ exposure to private equity has reached $300 billion, Moody’s Investors Service revealed in an Oct. 21 report.
Panos Mourdoukoutas
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”