Warren Statement on Turmoil in Private Credit Market

Washington, D.C. – Today, U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, issued a statement on the news that Blue Owl restricted withdrawals from one of its private credit funds:

“Do I hear a cockroach? A shadowy private credit firm is suddenly blocking investors from withdrawing their money.

“The Trump Administration needs to wake up. Stop pushing these risky investments into Americans’ retirement accounts. Increase banks’ capital requirements for private credit exposures. Compel transparent data from these firms. And run a stress test on the market now.”

This news follows Senator Warren’s call in December for banking regulators to take action on the banking industry’s exposure to private credit, and her call for the Financial Stability Oversight Council torun a stress test on the private credit market last July.

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