The bankruptcies of Tricolor Holdings and First Brands have resulted in significant financial losses and legal claims for regional banks and asset managers. Zions Bancorporation reported a $50 million charge-off, while JPMorgan Chase disclosed a $170 million loss related to Tricolor. Jefferies is also affected, with a fund owed $715 million due to First Brands' collapse.
The market responded negatively, with shares of Zions, Western Alliance, and Jefferies experiencing double-digit declines. Analysts caution that the reliance on non-bank lending, a key factor in U.S. loan growth for 2025, may heighten the risk of financial contagion.
Tricolor and First Brands Bankruptcies Hit Regional Banks with Losses
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