Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Private credit is now so intertwined with big banks and insurers that it could become a “locus of contagion” in the next financial crisis, a group of economists, bankers and US officials has warned.
Researchers from Moody’s Analytics, the Securities and Exchange Commission and a former top adviser to the Treasury Department found private credit funds have become enmeshed with the banking system, creating “new linkages [that] introduce new modes of systemic stress”.
“Their opaqueness and role in making the financial network more densely interconnected mean they could disproportionately amplify a future [financial] crisis,” the group said on Tuesday in a study published by Moody’s Analytics.
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Private credit has boomed in recent years as regulations put in place following the 2008 financial crisis prompted banks to tighten their lending standards. Funds, which generally lend to riskier companies with significant debt loads, are subject to looser oversight than banks — something that has prompted concern as the sector has grown.
The report, written by Mark Zandi at Moody’s Analytics, Samim Ghamami of the SEC, and former Treasury adviser Antonio Weiss, is one of the most comprehensive analyses to date on how private credit would affect the broader financial system during a period of market upheaval.
The researchers relied on financial reporting and the stock prices of publicly listed middle-market corporate lenders, known as business development companies, as their proxy for the otherwise opaque private credit industry. They found that during recent moments of market stress, business development companies had become more tightly correlated with the turmoil in other sectors than they were previously.
“Today’s network of interconnections in the financial system is more distributed, with a denser web of connections than it had pre-crisis, when the system operated more like a ‘hub and spoke’ model with banks at the centre of the network,” the report said, noting that private credit firms, other speciality financial groups and insurers have taken a greater role in lending.
Private credit firms maintain they are better at lending than banks because they rely on capital from institutional investors with longer time horizons and not subject to “runs” such as bank deposits, which can lead to broader contagion in moments of panic.
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“Banks are increasingly involved in private credit and other non-bank financial institutions through partnerships, fund financing and structured risk transfers that allow them to maintain economic exposure to credit markets while shifting assets off balance sheet,” the Moody’s Analytics study said.
The Boston Federal Reserve last month had similarly warned that banks were exposing themselves to new channels of risk by lending to private credit funds and other similar groups.
Fitch Ratings this week said that private credit’s “evolving products and asset classes requires close monitoring, with many untested through market cycles”.
The Moody’s Analytics report said the private credit sector should be required to share more public data on its lending, and for financial regulators to emphasise private credit in their overall “systemic risk monitoring”.
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“The objective is not to stifle the beneficial innovation that private credit provides but to shine a light on its risks and linkages so that a rapidly growing part of corporate finance, and potentially other sectors, does not become a blind spot.”
The Poole College of Management is launching a Financial Literacy Program for adults. The program is free and open to the public, regardless of your connection to NC State University.
Srini Krishnamurthy, program co-founder and associate professor of financeat Poole, says the goal of the program is “to equip participants with the knowledge and confidence to address financial decisions they face in everyday life, such as understanding interest rates and inflation, performing loan and mortgage calculations, budgeting, saving, investing through mutual funds, and planning for retirement.”
The curriculum is based on the most up-to-date financial research available, translated by professors into easy-to-understand practices and tools for use by anyone.
Real Research Impact
The idea for the Financial Literacy Program took root in 2022 during Krishnamurthy’s participation in an NC State faculty initiative called Strengthening the Impact of Research (STIR). “The program’s goal was to help faculty translate their research expertise into meaningful benefits for the broader community,” he says. “As part of the program, each participant was required to develop and present an idea with real-world impact.”
Around this time, college affordability was a hot topic. It was an issue that hit home for Krishnamurthy — several years earlier, when his daughter was applying to colleges, the two discussed what offers cost in practical terms.
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“I built a spreadsheet that incorporated tuition, scholarships, and long-term implications, and walked her through the numbers. Equipped with this information, she confidently chose to attend NC State for computer science and graduated with very little college debt. That experience made clear to me how transformative basic financial knowledge can be, and how rarely it is accessible in a clear, practical form.”
Financial Literacy for All
Knowing that not every family had the knowledge or skillset to evaluate finance – after all, not every college-bound high school student is lucky enough to have parents with terminal degrees in finance – Krishnamurthy teamed up with another faculty member in the STIR program to address that.
They developed a successful financial literacy program for college students and delivered it through the Wake County Library systems and a Wake County Public School System high school. When the opportunity arose to start a similar program at Poole aimed at adults, Krishnamurthy said he was “eager to expand this effort.”
Classes are taught by current Poole professors, including Krishnamurthy, Umut Dur and Denis Pelletier. Topics include (but are not limited to) budgeting, investing basics, time value, loans, credit and retirement planning. Data from participants shows that comfort with major financial decisions increased by 45% by the end of the program, and objective understanding of investments and fees increased by 20%
The first set of classes are on Jan. 26th and 28th. Register using this Google Form.
Wetin we call dis foto, Di immigration judge order members of di public wey join di virtual hearing to leave as lawyers for di ex-minister request private hearing
Read am in 7 mins
One US judge for di Annadale immigration court for Virginia adjourn hearing of di immigration case against ex-Ghana finance minister Ken Ofori-Atta, who dey face corrupting charges back home.
Di judge David Gardey move di hearing to 27 April.
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Dis be in connection wit immigration wahala afta US Immigration and Customs Enforcement (ICE) arrest and detain di ex-finance minister for Virginia since 6 January 2025, sake of e overstay im visa.
Tori be say US authorities revoke di ex-minister visa for November 2025 wey he refuse to comot di kontri.
During di first appearance bifor di court on 20 January, lawyers for di ex-finance minister ask di court for private hearing.
By dis time many pipo join di virtual hearing sake of Ghanaians dey interested in di mata.
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Two cases dey bifor di court – one of dem be bond application; wey mean say lawyers for di minister apply for di release of dia client from ICE custody wey di oda one be di immigration case proper.
How di minister appear for di court hearing
Dis be di first time since January 2025 wey di ex-minister dey appear for public afta e comot Ghana to di US for “medical attention.”
Di ex-Ghana minster appear for di Caroline detention centre as e dey wear one grey jacket, wey he wear black detention coverall.
He also dey wear blue face mask – di common one wey pipo wear during di covid 19 pandemic.
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As e waka enter di isolated room, e comot di jacket, leaving im dark detention outfit.
E carry di jacket hang for chair behind a table for di centre of di empty room, wey e sidon.
Di minister also wear one armband for his wrist.
Few minutes later, Ken Ofori-Atta comot di chair wey e comot di lonely detention room briefly, bifor e return when di judge call im case.
As e return, e move im glasses wey e hang am on top his head wey e sidon for di chair dey face di camera.
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As di judge call di case, lawyers for di minister, Christopher Chaisson and Kwao Amagashie tok say dem wan make di judge hear di case for private.
Wia dis foto come from, SCREENGRAB
Wetin we call dis foto, ICE arrest di ex-finance minister on 6 Janaury 2026 wey dem keep am for di Caroline Detention centre until his first court appearance
Wetin happun during di virtual hearing as judge ‘ban’ di public
Judge David Gardey: Dis be di bond determination hearing for di mata wey involve Kenneth Ofori-Atta. Dem detain am for di Caroline detention centre wey he dey appear by Webex (virtual conference). Make di lawyers wey dey represent am enta dia appearance.
Lawyers: I be Christopher Chaisson, I dey on behalf of Enayat Qasimi and Kwao Amagashie on behalf of di respondent.
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Judge David Gardey: Sake of di nature of di issues wey we discuss for di bond hearing, you pipo want di bond hearing to be private, as in make e dey closed to di public?
Christopher Chaisson: Yes, your honour. I make happy say you raise dis mata serf. I wan raise am bifor.
Judge David Gardey: Okay. I hear am.
Christopher Chaisson: For di record, your honour. Di oda issue also dey – di master calendar hearing. Wit di way di mata dey, some of di issues we go raise for di hearing be sensitive.
Judge David Gardey: You dey ask say di master calendar hearing also go dey private; closed to di public?
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Christopher Chaisson: Yes. We wan clarify sometin small. We go like say make di two hearings all dey closed to di public.
However, for di bond hearing case, we go ask di court say make dem try anytin dem fit do for dia power, to finish di case [today]. I go wait for di court decision.
Judge David Gardey: I understand. So all di pipo wey join us for di Webex (online video conference), we go hear di mata in private under di US immigration law. Di law say if any party for di immigration case say make di hearing dey private and closed to di public, under di circumstances, di court go close di hearing.
If anyone dey for di Webex (online video platform) wey dey here to view dis hearing; either di bond hearing or di master calendar hearing, make everyone comot now sake of we neva go continue if pipo still dey on di online link. Only di parties for di case dey allowed to be present during di hearing.
Dat be how dem comot hundreds of Ghanaians wey join di virtual link to follow di proceedings for di hearing to continue.
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Wetin go happun now
Afta dem arrest Ken Ofori-Atta for di US, his Ghana lawyers tok say “Oga Ofori-Atta get pending petition for adjustment of status wey go allow pesin to stay for di US legally past di period of validity of dia visa,” di statement by Justice Kusi-Minkah Premo explain.
“Oga Ken Ofori-Atta be law-abiding pesin wey he dey fully cooperate wit ICE to deal wit dis mata,” di statement from his lawyers add.
Now as di Annadale immigration court judge adjourn di case to 27 April, di ex-finance minister go likely remain in detention until di next hearing (for three months).
Sabi pipo explain say if di ex-minister lawyers succeed wit di bond application, den dia client go dey out of di ICE custody wey he go dey attend di substantive immigration hearing.
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If dem no succeed or di judge no gree wit dia argument, di detainee go dey inside ICE custody until dia deportation case dey finalized.
Di judge gat di discretion to determine weda pesin be flight risk or di pesin be danger for di community
If pesin dey inside custody during di hearing, di case go fit move fast fast.
For all dis, di detainee get option to appeal if di judge deny dem di bond.
Dem fit appeal to di board of immigration appeals (BIA); but dis process neva dey easy.
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Wia dis foto come from, ARISE GHANA
Wetin we call dis foto, Pressure group Arise Ghana gather for di US embassy for Accra to protest to demand cooperation of US authorities make dem extradite di ex-finance minister to face accountability
Why Ghana dey pursue di ex-finance minister
Attorney general for Ghana Dr Dominic Ayine, file extradition request to US authorities for di ex-finance minister.
Dem wan make US authorities carry di minister and his chief of staff wen e be minister, to Ghana make dem face accountability for di time as minister for seven years from 2017 to 2024.
“At dis point, na di US authorities especially di judicial authorities wey go determine whether sufficient evidence dey wey go demand say make di two accused pipo, dey extradited to Ghana to stand trial,” id attorney general explain.
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Di kontris special prosecutor’s office already slap di ex-minister and odas wit 78 counts of corruption and related offenses.
According to di special prosecutor Kissi Agyebeng, di ex-minister and oda accused pipo allegedly conspire to set up “criminal enterprise wey directly and indirectly influence di kontri procurement process to win contracts for di company (SML).”
“Di SML company carry unfair advantage to get transaction audit services, external price verification services, measurement audit for downstream petroleum products and odas form di Ghana govment through di finance ministry and di Ghana revenue authority.”
Kissi Agyebeng di special prosecutor tok say “dem begin di criminal enterprise for 2017 by di ex-finance minister Ken Ofori-Atta, Emmanuel Kofi Nti (ex-GRA commissioner) and Evans Adusei togeda wit di SML company itself.”
Di prosecutor say dem neva ensure value for money for di contracts dem carry give di SML company wey dem cause financial loss of Ghc 1.4bn ($128m).
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Dis be some of di reasons why di kontri dey pursue di ex-minister; oda investigative agencies also dey find di minister to help dem investigate oda cases wey im allegedly dey involved.
Ken Ofori-Atta comot Ghana after his govment lose di 2024 elections wey he say he dey go for medical check-up and surgery – since dat time, he neva return.
Many pipo and political watches say di ex-minister dey run away from accountability and trial – but his lawyers say di minister gat nothing to hide.
Di govment thru di Attorney general and odas say dem go work to ensure say US authorities extradite di ex-minister to Ghana to face di law.
But dem also say dem go welcome any move wey go make di minister return to Ghana faster than di extradition – if ICE fit deport am, dem go happy say he go at least return to Ghana and face accountability like anybody else.
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Pipo wey dey close to di ex-minister say tins no go be easy sake of di Ken Ofori-Atta apart from di US visa, also get Canada and UK visa, wia he fit go, but time no tell.
For now di ex-minster dey remain for custody for di Caroline Detention centre for Virginia, until sometin happun.
At di time di immigration hearing dey happun, one pressure group for Ghana and oda Ghanaians gada for di US embassy for Accra to protest.
Dem carry placards wey dem wear red shirts and armbands wey dem demand say make di embassy authorities work to bring di ex-finance minister back to di kontri to face trial.
BOK Financial (NASDAQ:BOKF) reported fourth-quarter earnings of $177.3 million, or $2.89 per diluted share, and full-year 2025 earnings of $578 million, or $9.17 per diluted share, which management said marked record earnings per share for both the quarter and the year. Executives emphasized broad-b
