- Banks left out of deal as they await new lending guidelines
- Morgan Stanley draws attention by snagging adviser role
For the select group of Wall Street bankers who specialize in doling out leveraged corporate loans, these are exciting, and anxious, times.
Exciting because they’ve been told by regulators in the Trump administration that they’re now freer to take on more risk. Anxious because they’re waiting for those instructions — which were communicated verbally at a conference last month — to be turned into official policy so they can have the confidence to start pursuing the kinds of deals that used to land them in trouble…
…“Regulators were never clear as to where the goal posts were,” said Mark Okada, co-chief investment officer of Highland Capital Management. They “applied the guidelines arbitrarily in an attempt to simply reduce leveraged lending in total.”
The guidance was issued by the Board of Governors of the Federal Reserve, the Federal Deposit Insurance Corporation and the U.S. Office of the Comptroller of the Currency. A representative for the Federal Reserve declined to comment…
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