According to Bloomberg, citing a TV interview, John Thain, CIT Group CEO, said, “The next financial crisis will probably originate from online lenders, hedge funds or other unregulated entities that are taking on some of the greatest credit risks.”

“Online lending platforms that make loans to less credit-worthy borrowers transfer that risk to other entities,” Bloomberg quotes Thain.

Bloomberg notes, according to Thain, unregulated firms like hedge funds and business development companies could experience losses and see asset prices drop when the credit cycle turns negative, similar to 2008, he said.

Access the full Bloomberg report here.