JPMorgan, Fifth Third Among Banks Facing Losses Tied to Tricolor

(Bloomberg) – JPMorgan Chase & Co., Fifth Third Bancorp and Barclays PLC, according to people with knowledge of the issue, among the banks prepared for unified losses caused by loans connected to the subprime car lending.

The fifth third, in a regulatory file on Tuesday, said that he was accused of a low value of value up to 200 million dollars after allegedly claiming fraudulent activities in a commercial debtor he did not define. The bank said he was working with law enforcement officers.

Loans investigate whether the collateral is doubled for the warehouse lines, some people who want the authorities not to be defined by an investigation potential.

Tricolor focuses on lending to borrowers in Southwest, USA typically weak or loan points. At least in part, a bid, which is managed by JPMorgan and Barclays, finances its loans to asset -supported securities to sell to bond investors selling $ 217 million bonds in early June.

According to the subject, JPMorgan, Barclays and the fifth third three -color warehouse lenders.

Daniel Chu, CEO of Tricolor, and other executives in the company did not respond to more than one comment. The fifth third representatives Jpmorgan and Barclays avoided commenting.

According to the file, there is an extraordinary balance of approximately $ 200 million in the fifth third asset -backed financial loan. The fifth third, in the third quarter, expects a non -cash fee of $ 170 million to $ 200 million in relation to this loan.

Such loans are typically supported by cash flows connected to the contract connected to a contract connected to a pool of assets defined as a mortgage or mortgage.

Tricolor’s asset -backed securities, Spanish Language News Outlet Univision’ın reported that most of the company’s staff has shown a lower traded this week.

The fifth third share fell to $ 44.30 in New York, decreasing 2.5% in late transactions at 17:47.

-With the help of Yizhu Wang.

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