By freeing banks to make more of these loans, regulators allowed more money to be pumped into the economy. Long, in an interview, said banks were often attracted to making leveraged loans because of the huge fees they could earn. In a report the next year, regulators revealed “serious deficiencies” in the way that leveraged loans were offered by banks. In addition, the Federal Reserve warned Credit Suisse that it should be more cautious about making risky leveraged loans, according to media reports at the time. Crew, PetSmart, Neiman Marcus, Buffalo Wild Wings and Nine West have all been restructured with leveraged loans.

Source: Washington Post April 06, 2019 22:22 UTC