JPMorgan Chase & Co., Fifth Third Bancorp and Barclays Plc are among banks bracing for potentially hundreds of millions of dollars in combined losses from loans tied to subprime auto lender Tricolor Holdings, according to people with knowledge of the matter.
Fifth Third said in a regulatory filing Tuesday that it faced an impairment charge of as much as $200 million after discovering alleged fraudulent activity at a commercial borrower, which it didn’t identify. The bank said it was working with law-enforcement authorities.
The lenders are looking into whether collateral for warehouse lines was double-pledged, said some of ...
