Bank of England's Bailey says First Brands, Tricolor collapses may be warning of worse to come

Bank of England Governor Andrew Bailey warned that the collapses of U.S. car parts maker First Brands and auto dealership Tricolor could signal larger systemic risks in the financial system. He questioned whether these incidents are isolated or indicative of deeper issues. The House of Lords’ Financial Services Regulation Committee is examining the rise of private markets since 2008, as shares of some U.S. banks have declined due to their exposure to these bankruptcies. Bailey also expressed concerns over potential conflicts of interest involving private finance companies and life insurers.