Jamie Dimon says private credit defaults are not threat to major banks

"Dimon emphasized that the private credit market's downturn would not threaten financial stability, stating, 'You have to have very large losses in private credit before at least it looks like banks get hit.'"

"Concerns over the private credit industry have intensified, particularly after the collapse of two auto companies, with Dimon warning that 'more cockroaches are likely to emerge' following these events."

JP Morgan's CEO stated that a downturn in the $3 trillion private credit market does not pose a systemic risk to financial stability. He noted that while there are weaknesses, significant losses would be necessary for major banks to feel the impact. Concerns have arisen over risky loans from private credit firms, leading to increased withdrawals from funds. The industry, which grew after stricter bank lending rules, faced scrutiny following the collapse of two auto companies linked to private credit, raising questions about lending practices.

Read at www.theguardian.com