Financial stocks were declining premarket Thursday, with the State Street Financial Select Sector SPDR ETF (XLF) falling by 1.3%.

The Direxion Daily Financial Bull 3X Shares (FAS) was 3.5% lower and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was up 3.8%.

Deutsche Bank (DB) shares were down nearly 6% after the company said in its annual report that it has about 26 billion euros ($30 billion) in exposure to private credit, an asset class facing rising scrutiny as investors pull back and concerns grow about loan quality.

UBS (UBS) is nearing a deal to settle with whistleblower Trevor Murray, a former bond analyst who alleged that the bank fired him in 2012 for refusing to publish misleading research, Reuters reported, citing a court filing. UBS stock was down more than 2% pre-bell.

Blue Owl's (OWL) private credit funds are facing scrutiny after Glendon Capital Management warned investors of hidden losses and misrepresented valuations, the Financial Times reported. Blue Owl Capital shares were down more than 3% premarket.