Source: Racket News
by Eric Salzman
“Perhaps the quote that will define the next Great Financial Crisis will be this one from an executive at a former lender to the $10 billion fraud known as First Brands. ‘You’re not paid to do due diligence in this market.’ There have been three high-profile Private Credit (PC) blowups in the past month. All were due to fraud, and all had telltale signs of problems ahead if anyone bothered to look under the hood. … The same was true leading up to the 2008 subprime mortgage crisis. No one was looking under the hood of either the borrowers or the lenders. The game plan was to make your money, move on to the next deal, feign ignorance when it all blows up, get a bailout, and let others pay the price.” (11/17/25)