Crisis exposes flaws in US financial stability regime

Former Fed chair Yellen calls for reform after failure to curb corporate leverage ahead of Covid-19

Many US companies could default or file for bankruptcy protection in the coming months

The build-up of record corporate debt and leverage prior to the Covid-19 lockdown means many US companies saddled with additional lockdown-induced debt amid weakened earnings look set either to default or file for bankruptcy protection in the coming months. This expected wave of impaired corporate credit will place a major strain in the US banking and financial system, according to former central bank officials – making a ‘V-shaped’ recovery, predicted by many policymakers in March, far less

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here