Properties Tied to Regional Banks’ Bad Loans Put in Receivership

Some of the commercial properties tied to troubled loans at Zions Bancorp NA and Western Alliance Bancorp were placed under court receivership, the latest step toward bringing order to a tangled web of lenders and investors accused of fraud that rattled the market in October.

A state judge in Orange County, California, appointed a receiver in a civil case that involves several properties backing loans from Zions, according to a filing dated Tuesday. It followed a similar order by a Los Angeles County state judge last week, as part of Western Alliance’s lawsuit against investors who took the loans.

Receivers, ...