Morgan Stanley CEO: Banks are expected to regain some market share in the private credit market.

Morgan Stanley CEO Ted Pick said that in the private credit space, "the tide may be turning". The industry's prosperity stems from regulations put in place in response to the global financial crisis in 2010, which shifted high-risk loan business from banks to emerging asset management firms. Now, financial regulators are taking action to relax some key capital requirements, which banks have called impediments. "The 15-year dam is cracking," and "reform is on the horizon," Pick told analysts on the bank's second-quarter earnings call. He said that market share at the top six U.S. banks has eroded partially due to "regulatory constraints," and now "is likely returning to normal". Pick said that the changes he anticipates do not mean taking market share back "dollar by dollar" from private lending firms, as the $1.7 trillion industry has already established its position. He added that global mega-banks "will be able to grab back" some of the market share.