---
title: "Concerns over the U.S. credit crisis intensify, with bank stocks losing more than $100 billion in market value"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/261510745.md"
description: "Compared to the bankruptcies of First Brands Group and Tricolor Holdings, the losses disclosed by regional lenders Zions Bank and Western Alliance Bank appear relatively small, amounting to tens of millions of dollars rather than tens of billions. However, the successive exposure of loan fraud cases has reignited debates on Wall Street: will the era of capital laissez-faire lead to consequences for both banks and non-bank institutions? In the cases of Zions Bank and Western Alliance Bank, the alleged perpetrators are the same: investment funds associated with Andrew Stupin and Gerald Marcil borrowed funds to purchase distressed commercial mortgages. These disclosures add to recent other loan defaults, including the bankruptcy filing of subprime auto lender Tricolor Holdings last month, which rendered a significant portion of its debt nearly worthless. Subsequently, auto parts supplier First Brands Group also declared bankruptcy, owing over $10 billion to some of Wall Street's largest financial institutions. The stock market reacted strongly: on Thursday, the market value of the 74 largest banks in the U.S. evaporated by more than $100 billion"
datetime: "2025-10-16T21:41:04.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/261510745.md)
  - [en](https://longbridge.com/en/news/261510745.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/261510745.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/261510745.md) | [繁體中文](https://longbridge.com/zh-HK/news/261510745.md)


# Concerns over the U.S. credit crisis intensify, with bank stocks losing more than $100 billion in market value

On October 17th, Jin Shi Data reported that compared to the bankruptcies of First Brands Group and Tricolor Holdings, the losses disclosed by regional lenders Zions Bank and Western Alliance Bank appear relatively small, amounting to tens of millions of dollars rather than tens of billions. However, the successive exposure of loan fraud cases has reignited debates on Wall Street: will the era of capital laissez-faire lead to consequences for both banks and non-bank institutions? In the cases of Zions Bank and Western Alliance Bank, the alleged perpetrators are the same: investment funds associated with Andrew Stupin and Gerald Marcil borrowed funds to purchase distressed commercial mortgages. These disclosures add to other recent loan defaults, including the bankruptcy filing of subprime auto lender Tricolor Holdings last month, which rendered a significant portion of its debt nearly worthless. Subsequently, auto parts supplier First Brands Group also declared bankruptcy, owing over $10 billion to some of Wall Street's largest financial institutions. The stock market reacted strongly: on Thursday, the market value of the 74 largest banks in the U.S. evaporated by more than $100 billion

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