Wall Street is on high alert due to recent lending failures, prompting concerns about a broader credit market meltdown. Jamie Dimon, JPMorgan Chase’s CEO, warned that seeing one “cockroach” (a failed lender) might indicate more problems are lurking. The auto lender Tricolor and car-parts-maker First Brands’ collapses have raised eyebrows, and investors are now scrutinizing the entire credit market for potential vulnerabilities.
The US government’s new sanctions on Russian oil may also be a factor, as some experts believe they could lead to increased tensions and disrupt global markets. Meanwhile, lenders and investors alike are seeking ways to mitigate risk and avoid future blow-ups in the lending sector.
Source: https://www.economist.com/finance-and-economics/2025/10/19/why-wall-street-is-fearful-of-more-lending-blow-ups