Private credit funds are gating withdrawals, but their structure may make them less fragile than traditional banks.
After years of pouring money into private credit, high-profile defaults and AI jitters have investors running for the exits.
Limiting riskier, illiquid investment could make banks and the financial system more stable — but the Federal Reserve isn’t so sure.
Larger lenders and regulators step in for the good of the overall banking system. But confidence among depositors is key.
But it needs Congress’s blessing.
