A Wall Street plate is seen on a street vendor stall outside the New York Stock Exchange (NYSE) in New York City, U.S., July 11, 2025. (Reuters/Jeenah Moon)
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Wall Street’s credit concerns deepened this week after JPMorgan Chase CEO Jamie Dimon warned of “cockroaches” in the U.S. economy, sending regional bank stocks tumbling, Yahoo Finance reports.
Zions Bancorporation plunged 13% Thursday and Western Alliance fell nearly 10% after both disclosed loan troubles tied to legal actions against borrowers. Zions wrote off $50 million in two business loans, while Western Alliance said it’s suing a borrower over alleged fraud.
The developments follow recent bankruptcies of auto lender Tricolor and auto parts supplier First Brands, which have rippled through major financial firms, including Jefferies Financial Group. Jefferies executives downplayed the impact of its $43 million exposure, calling investor reaction “overdone,” but the firm’s stock still fell more than 10%.
JPMorgan took a $170 million charge-off from Tricolor’s collapse, prompting Dimon’s warning. Analysts say banks are under scrutiny as non-bank lending — their fastest loan growth sector — faces rising risks.
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