The next shadow-banking problem comes from insurance companies, where nobody was looking for a bank run

Delaware Life Insurance Company's 2025 balance sheet took on a startling new shape when the insurer corrected its annual filing: roughly $17 billion of investments were classified as related-party holdings, about 39% of invested assets, versus roughly $1.4 billion and 3% in the earlier version.Clear Spring Life and Annuity Company made a separate correction of about $4.6 billion, taking the two revisions above $20 billion across companies connected to financier Mark Walter.Transactions with related entities are permitted under state insurance oversight, and the corrected labels say nothing conclusive about loan quality. They expose how a model built around private assets, affiliated managers and patient insurance money can become hard to read, even for people paid to read statutory accounts.This now has a federal audience, as Delaware Life's second-quarter filing says the company and Clear Spring received grand jury subpoenas from the US Attorney's Office for the Southern District of New York in February.The SEC opened a parallel inquiry into whether certain private-credit investments introduced by an affiliate should have carried related-party labels, and the filing says Delaware ...