Tue, 21 Oct 2025

Tue, 21 Oct 2025 Bank chief says US firm collapses ring 'alarm bells'

The Bank of England governor says the collapse of two US firms could be a sign of wider problems in the financial sector.

* Bank of England Governor Andrew Bailey warns that the collapse of two US companies could be a sign of wider problems in the financial system.
* Bailey draws parallels with the 2008 financial crisis and says it's unclear whether the failures of First Brands and Tricolor are one-off issues or a more fundamental problem.
* The bankruptcies have raised questions about the quality of deals in the private credit market, where companies arrange loans from non-bank lenders.
* The Bank of England is planning to run a "stress test" of private equity and credit firms.
* Bailey says there's a need to take seriously the possibility that these failures could be indicative of broader problems in the financial system.
* Jamie Dimon, CEO of JPMorgan Chase, has warned that the failure of the two US firms could be a sign of more to come.
* The Bank of England will examine the private finance sector and is concerned about parallels with the 2008 global financial crisis.
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