Blankfein Fears ‘Reckoning’ as Private Credit Chases Main Street

Lloyd Blankfein, who led Goldman Sachs Group Inc. through the 2008 financial crisis, is now ringing alarm bells as Wall Street steers cash from US savers into its latest lending binge: private credit.

The financial system appears to be inching toward another potential catastrophe with everyday Americans exposed to some of the losses, Goldman’s former longtime chief executive officer said in an interview with David Gura for the Bloomberg News Big Take podcast. The assets at issue can be hard to analyze, may feature hidden leverage and can become tough to sell.

“One has to worry about opaque assets ...