Joining us now is Tom Lee. He's Funst Strat's head of research and a CNBC contributor. It's good to see you joining us from the nation's capital today.So, what's your take on everything that we are talking about now daily. Uh, well, I I heard the earlier segment, Scott, and I I do think I'm kind of more in the Jamie Diamond camp, you know, that uh the in Steve Leeman's point that there's opacity in private credit. And that's the problem that investors are going to grapple with for some time. And I think tha ...

Traders work on the floor of the New York Stock Exchange during afternoon trading on October 14, 2025.Michael M. Santiago/Getty Images Regional bank stocks plunged late in the day on Thursday amid concerns about credit quality. Zions Bancorp and Western Alliance Bancorp sank after updates on their lending businesses. The drop comes as commentators raise concerns about credit quality amid recent high-profile bankruptcies. Regional bank shares were slammed on Thursday as investors fled the sector af ...

Group 1: Private Credit Market Concerns - The head of the IMF, Kristalina Georgieva, expressed concern over the growth of private credit lenders, which now account for more than half of financing [1][48] - Recent collapses of heavily indebted firms, such as subprime auto lender Tricolor and auto parts maker First Brands, have raised alarms about lending standards in the $3 trillion private credit sector [2][3] - Jamie Dimon, CEO of JP Morgan, highlighted the presence of "cockroaches" in the debt markets, indicating underlying issues within the private credit industry [5][49] Group 2: Economic Indicators and Banking Sector Performance - Zions Bancorporation announced a write-off of $50 million on two loans, while Western Alliance is pursuing legal action over a $100 million bad loan, contributing to fears of hidden credit stress [4] - US banking stocks have seen significant declines, with Zions shares falling over 10% and Western Alliance dropping more than 9% [3] - The SPDR S&P Regional Banking ETF, which tracks regional banking shares, decreased by more than 4% amid these concerns [3] Group 3: Broader Economic Context - The UK's GDP grew by only 0.1% in August, indicating a mild recovery from a previous contraction, but overall growth remains sluggish [7][18] - The US budget deficit narrowed slightly to $1.8 trillion, despite increased spending on health and public debt interest [8][9] - Wall Street's main indexes experienced declines, particularly in financial stocks, as concerns over the banking sector weighed on investor sentiment [10][11]

I I think everybody's antennas went up when we heard Jamie Diamond say there could be some other ones out there. I really want to kind of dig into this. So, one of the issues here, at least when it came to First Brands, it seems to be offbalance sheet financing.In this case, selling receivables. How common is that. And does that have the potential for contagion.>> A good question. It's it's relatively common practice. Um we we think about complex and opaque when we think the situation here with first brands ...

Markets tried to stage a comeback today as investors try to digest the latest tariff headlines, but could concerns also spill over into private capital markets. Joining us now is Suna Hala. She is the global head of private capital advisory at Raymond James.Great to have you also here on set. So, some other stuff. Is this a canary in the coal mine.>> Well, it certainly could be. I think um canary or not, we have to admit that private credit has been a huge inflow into the credit markets. It's now a mainstay ...

So, who better to have on than Mark Fields, former CEO of Ford, CNBC contributor. Uh, Mark, kind of a rapid fire here. We're going to ask you about some some couple different stories and kind of go bang bang bang.First off, these these bankruptcies and some other stuff, but I want to start with General Motors because you and I have talked for a couple years uh about EVs. It's really hard. Tesla's got a big head start. GM taking a$ 1.6% billion charge related to EVs. Uh, I think they're doing okay.Hey, anecd ...

Core Viewpoint - The banking sector is expected to report strong earnings driven by a rebound in investment banking, with specific banks like Goldman Sachs and Citigroup showing promising results [19][3]. Group 1: Bank Performance and Expectations - Analysts are optimistic about the upcoming earnings reports from major banks, with expectations for revenue and earnings beats [3][19]. - Goldman Sachs is highlighted as a strong buy due to its leading position in equity underwriting and durable fee income from asset and wealth management [11][10]. - Citigroup is seen as attractive on valuation, with recent restructuring efforts and a focus on corporate treasury services [13][12]. - Bank of America is viewed as a hold due to its lagging performance compared to peers, despite recent stock price increases [15][14]. - Morgan Stanley is expected to perform well, particularly in wealth management, alongside Goldman Sachs [17][16]. - JP Morgan Chase is considered a top contender in the financial sector, with a strong executive team and diverse business operations [18][17]. Group 2: Regulatory and Economic Environment - The regulatory landscape under the current administration is seen as fostering economic growth, allowing banks to increase lending and return capital to shareholders [6][5]. - Credit quality remains stable, with banks maintaining normalized loan loss provisions and reserves [8][7]. Group 3: Market Trends and Challenges - The banking industry is facing competitive pressures, leading to reduced rates to attract lending volumes, which may impact margins [21][24]. - There is a growing concern about concentration risk due to increased loans to non-bank financial companies [26][27]. - The private credit sector is under scrutiny, with potential risks emerging from aggressive lending practices and lack of investor protections [30][31]. Group 4: M&A Activity and Industry Consolidation - The trend of consolidation in the banking sector is expected to continue, with banks seeking growth through acquisitions, although this may lead to challenges related to goodwill and operational efficiency [38][39]. - Recent M&A activity, such as Fifth Third's acquisition of Comica, raises questions about the strategic rationale and potential operational challenges [36][37].

Core Insights - The discussion highlights the importance of understanding the underlying companies and their management when investing, emphasizing that wealth creation is often tied to diligent research and analysis [3][9][10]. Group 1: Wealth Creation and Investment Strategies - The narrative illustrates how individuals can create significant wealth through strategic investments, particularly in growth stocks like Nvidia, which has been a focal point for many investors [2][4]. - The emphasis is placed on the necessity of doing thorough homework on companies rather than relying solely on market trends or advice from others [3][9]. - The conversation also critiques the notion that wealthy individuals should only invest in private markets, arguing that there are still substantial opportunities in public equities [16][19]. Group 2: Wall Street and Investment Advice - The dialogue reveals skepticism towards Wall Street's tendency to recommend index funds over individual stock picking, suggesting that this approach may not serve the best interests of wealthy investors who are capable of making informed decisions [9][10]. - There is a strong critique of the financial industry's cynicism, where products are often created to extract money from investors rather than genuinely serve their financial interests [10][11]. - The discussion also touches on the perception that private equity and alternative investments are superior, countering that quality growth stocks can yield significant returns [12][16]. Group 3: Personal Experiences and Insights - Personal anecdotes illustrate the journey of understanding wealth management, including lessons learned from experiences at Goldman Sachs and interactions with wealthy clients [5][27]. - The narrative emphasizes the importance of maintaining a disciplined investment approach, such as focusing on a limited number of quality stocks rather than engaging in excessive trading [9][10]. - The conversation concludes with a call for accountability among billionaires and the financial industry, advocating for a more transparent and responsible approach to wealth management [27][28].

Legendary short-seller Jim Chanos is warning the private debt boom could unravel after First Brands' collapse. He tells the Financial Times more companies could fall when the cycle turns. One of the firms now backing First Brands is Beach Point. Portfolio Manager Sinjin Bowron joins "Bloomberg Open Interest" to talk about the fallout and the vulnerabilities in private credit. ...

Core Insights - Lower interest rates have led to an increase in corporate bond sales, indicating a favorable environment for bond issuance [1] - However, the rise in bankruptcies suggests underlying issues within the private credit sector, particularly concerning bank loans and closed-end funds [1] Group 1 - The sales of corporate bonds have been spurred by lower interest rates, reflecting a positive trend in the bond market [1] - The increase in bankruptcies serves as a warning sign, highlighting potential risks in the private credit market [1]