Multiple banks in the U.S. disclose loan losses, and Jefferies admits to having risk exposure in the now-defunct First Brands

According to foreign media reports, several banks in the United States disclosed credit losses that triggered a sharp decline in stock prices, with regional banks Zions (ZION.US) and Western Alliance (WAL.US) falling 13.1% and 10.8%, respectively, while investment bank Jefferies (JEF.US) dropped 10.6%.

Zions disclosed that its California branch set aside $50 million for provisions on two commercial industrial loans in the third quarter and has filed a lawsuit in California to seek compensation. Western Alliance disclosed that the company has filed a lawsuit against Cantor Group V for violating commercial loan and guarantee agreements, alleging that the latter forged title insurance policies in mortgage applications.

Jefferies revealed that the company has risk exposure to bankrupt auto parts supplier First Brands, with Morgan Stanley analysts stating that Jefferies did not clarify what exactly happened with First Brands on Investor Day and whether Jefferies took any measures in advance to mitigate risks