Overview
Steven Haywood, corporate lawyer at McDermott’s London office said:
“Mr. Foulger has fair cause to raise the alarm here – since the GFC, credit and direct lending funds have been hugely important in the UK economy following credit market dislocation and clearing bank withdrawal. With UK being a primary financial centre, it and its borrower base are closely tied to these lending vehicles, which in the main are unregulated and domiciled in jurisdictions such as Luxembourg and the Channel Islands. HM Treasury has even itself been an investor in these vehicles in the past through the Business Finance Partnership. Understanding the extent and importance of these funds to the UK economy may assist the BoE in better understanding the wider impact of losses to the mid-market, and indeed the wider UK economy.”
