A dispute between Blue Owl Capital and JPMorgan Chase has sparked debate over the health of the U.S. credit markets. Blue Owl’s co-CEO dismissed concerns of a systemic issue following the collapse of an auto-parts supplier as “fear-mongering.” Meanwhile, economist Mohamed El-Erian supports Dimon’s warnings of credit risks due to loose lending standards.
The bankruptcies of First Brands and Tricolor Holdings have heightened fears of credit deterioration, impacting regional bank stocks. Zions Bancorporation and Western Alliance Bancorp reported significant charges due to bad loans and fraudulent activity. The SPDR S&P Regional Banking ETF recorded its worst single-day performance since April 4.
Market indices ended lower on Thursday, with futures continuing to trade downwards on Friday. The S&P 500, Nasdaq 100, and Dow Jones indices all saw declines.
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Read more at Yahoo Finance: ‘Might Be A Lot More Cockroaches At JPMorgan’
