Banks Gamble with $6.9T in Risky Loans

WASHINGTON – While Main Street struggles, the big banks are playing a dangerous game with a staggering $6.9 trillion in shared national credit (SNC). A newly released report from the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, and the Office of the Comptroller of the Currency reveals a portfolio ripe with potential for disaster, despite assurances of ‘moderate’ risk. The numbers, reflecting loans originated through June 30, 2025, paint a picture of reckless expansion into leveraged debt, a powder keg waiting for a spark.

The 2025 SNC report examined 6,857 borrowers, with aggregate loan commitments totaling $6.9 trillion – a 6 percent jump from the previous year. This isn’t responsible lending; it’s a desperate scramble for yield in a tightening economy. The agencies claim a slight decrease in “non-pass” loans (those requiring close management) to 8.6 percent of total commitments, down from 9.1 percent in 2024. But don’t be fooled. This marginal improvement isn’t due to borrowers getting healthier; it’s simply the result of a flood of new, equally risky commitments.

Dig deeper, and the rot becomes clear. Nearly half of all SNC commitments are tied to leveraged loans – the kind of debt piled onto companies already struggling to stay afloat. These leveraged loans account for a whopping 81 percent of all non-pass loans. That means the most vulnerable borrowers are overwhelmingly burdened with the most dangerous debt. U.S. banks currently hold 45 percent of all SNC commitments, but a surprisingly low 22 percent of the troubled loans. Are they shedding the bad debt, or simply shifting the risk elsewhere?

The report doesn’t explicitly call out specific companies teetering on the brink, but the sheer scale of the leveraged loan exposure is enough to raise serious alarms. While regulators attempt to downplay the threat, citing ‘moderate’ risk, the underlying trends suggest a growing vulnerability to economic shocks. Higher interest rates and a slowing economy will inevitably squeeze borrowers, and when those leveraged loans start to default, the fallout will be significant. The regulators claim they are watching closely, but history shows that oversight often lags far behind the reckless behavior of Wall Street.

This isn’t about protecting banks; it’s about protecting the entire financial system. The 2008 crisis taught us a painful lesson about the dangers of unchecked lending and complex financial instruments. While the details have changed, the underlying greed and recklessness remain the same. The Grimy Times will continue to dig into the details of these SNC loans, exposing the companies and banks that are putting our economy at risk. The public deserves to know who is gambling with their financial future.

The full 2025 Shared National Credit Program report, including detailed charts, is available for review. Contact information for the FDIC (Julianne Fisher Breitbeil, (202) 898-6895), the Federal Reserve Board (Karolina Kalset, (202) 452-2955), and the OCC (Monica McCoy, (202) 649-6870) is provided for further inquiries. This report was released at 3 p.m. EST on January 12, 2026. Last Updated: January 12, 2026.