Bank of England chief warns of ‘worrying echoes’ of 2008 financial crisis

Andrew Bailey says a close look is needed at the private credit market after collapse of two big US firms

The governor of the Bank of England, Andrew Bailey, has warned recent events in US private credit markets have worrying echoes of the sub-prime mortgage crisis that kicked off the global financial crash of 2008.

Appearing before a House of Lords committee, the governor said it was important to have the drains up" and analyse the collapse of two leveraged US firms, First Brands and Tricolor, in case they were not isolated events but the canary in the coalmine".