US EditionRegional Banks Face Scrutiny over Risky Loans as Western Alliance, Zions Stocks Tumble
Regional banks reported $50 million in loan losses and filed fraud lawsuits amid rising credit concerns after bankruptcies of First Brands and Tricolor Holdings, causing stocks to fall up to 13%.
- On October 14, 2025, U.S. regional bank stocks plunged as investors fled amid renewed concerns about credit quality, with the SPDR S&P Regional Banking ETF down 7% and the broader regional banking index falling nearly 4 per cent.
- The bankruptcies of First Brands, auto parts maker, and Tricolor Holdings, subprime auto lender, recently exposed gaps in lenders' oversight and raised credit-market transparency concerns.
- Zions Bancorp disclosed a $50 million third-quarter charge-off, dropping shares 13% to $46.85, while Western Alliance Bancorp sued Cantor Group V, LLC for alleged fraud and fell 11% to $69.87.
- The bank said it expects to recognize charges in the third quarter, with Zions Bancorporation filing a California lawsuit while some lenders cited lower criticized assets than on June 30.
- The episode highlighted opaque private-credit risks as KBW analysts said investors are on high alert, while Raymond James analysts raised concerns about underwriting standards after a fraudulent loan.
39 Articles
39 Articles
Rattled Wall Street on alert after trillion-dollar risk runup
After two months of market bliss, Wall Street is stirring from its slumber. First the collapse of First Brands Group and Tricolor Holdings revived long-dormant fears about hidden credit losses. Then, fraud-linked writedowns at Zions Bancorp and Western Alliance — erasing more than $100 billion in US bank share value in a day — stoked concern that the lending stress is more pervasive. Until recently, investors have shrugged off everything from th…
San Diego Union Tribune
Regional banks’ bad loans spark concerns on Wall Street
By KEN SWEET, Associated Press Business Writer NEW YORK (AP) — Wall Street is concerned about the health of the nation’s regional banks, after a few of them wrote off bad loans to commercial customers in the last two weeks and caused investors to wonder if there might be more bad news to come. Zions Bank, Western Alliance Bank and the investment bank Jefferies surprised investors by disclosing various bad investments on their books, sending thei…
Regional bank stocks are dropping amid concerns about credit quality
Traders work on the floor of the New York Stock Exchange during afternoon trading on October 14, 2025.Michael M. Santiago/Getty ImagesRegional bank stocks plunged late in the day on Thursday amid concerns about credit quality. Zions Bancorp and Western Alliance Bancorp sank after updates on their lending businesses. The drop comes as commentators raise concerns about credit quality amid recent high-profile bankruptcies. Regional bank shares were…
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