Morgan Stanley CEO Sees Banks Clawing Back Private Credit Gains

Morgan Stanley Chief Executive Officer Ted Pick said “the tide may begin to shift” in the ocean of private credit.

The industry’s boom has its roots in 2010, when lawmakers responded to the global financial crisis with rules that pushed risky lending outside banks — and into the arms of upstart asset managers. Now, financial regulators are moving to relax some key capital rules that banks say have held them back.

CEO of Morgan Stanley Ted Pick

Photographer: Paul Yeung/Bloomberg

“The 15-year dam is breaking” and “reform is in the offing,” Pick told analysts on a call to discuss the bank’s second-quarter earnings. The six biggest US banks ...