‼️Wall Street's exposure to private credit is now impossible to ignore: 9 largest US banks collectively hold ~$180 billion in loans to private credit firms, led by JPMorgan at $50 billion, Wells Fargo at $36 billion, and Citigroup at $22 billion. Meanwhile, Investors attempted to withdraw ~$13 billion from private credit funds in Q1 2026, forcing many firms to restrict redemptions. Banks, including JPMorgan, Goldman Sachs, and Barclays, are now reducing the value of assets posted as collateral and raising the cost of borrowing for private credit funds. Higher borrowing costs are squeezing fund returns, forcing managers to replace weaker assets in their portfolios to avoid margin calls. If banks continue tightening terms, more investors may demand their money back, triggering asset sales and further pressure on valuations. Private credit industry problems are set to become even worse.