Bloomberg Podcasts
@bloombergpodcasts·503K subscribers·32.4K videos
Banks’ Trio of Alleged Frauds Sparks Fear of Broader Issues
Posted
October 17, 2025
Views
32,753
Likes
557
Comments
73
Engagement
October 17, 2025
32,753
557
73
1.92%
Every word spoken in this episode is indexed. Type any phrase to jump straight to the moment it was said.
Type any word or phrase that may have been spoken. Click a result to seek the player to that exact moment.
Try a name, a topic, or a quoted line
See what was published immediately before and after this episode.
5:09Now PlayingRelative to the collapse of First Brands Group and Tricolor Holdings, the hits disclosed by regional lenders Zions Bancorp and Western Alliance Bancorp seemed small — a figure in the tens of millions, not billions
Still, the back-to-back reveal of loan fraud renewed the simmering debate on Wall Street about whether the era of freewheeling capital is about to cause a comeuppance for banks and non-banks alike.
In the case of Zions and Western Alliance, the alleged culprits were the same: investment funds tied to Andrew Stupin and Gerald Marcil, among other parties, borrowed the funds to finance their purchase of distressed commercial mortgage loans.
A lawsuit from Zions revealed its wholly-owned subsidiary, California Bank & Trust, provided $60 million to the borrowers, and that an investigation found many of the notes and underlying properties were transferred to other entities — allegations that Stupin and Marcil’s attorney said they “vehemently deny.”
The disclosures add to other recent loan blowups, including subprime auto lender Tricolor Holdings, which filed for bankruptcy last month and triggered a near-total wipeout on some debt. That was followed by the collapse of auto-parts supplier First Brands Group, which owed more than $10 billion to some of the biggest names on Wall Street.
--------
Watch Bloomberg Radio LIVE on YouTube
Weekdays 7am-6pm ET
Follow us on X
Subscribe to our Podcasts:
Bloomberg Daybreak
Bloomberg Surveillance
Bloomberg Intelligence
Balance of Power
Bloomberg Businessweek
Listen on Apple CarPlay and Android Auto with the Bloomberg Business app:
Apple CarPlay
Android Auto
Visit our YouTube channels:
Bloomberg Podcasts
Bloomberg Television
Bloomberg Originals
Sentinel Indexing in Progress
Metadata and chapters are available. Claim extraction for this episode is pending.
All video content is delivered via YouTube embedded players in accordance with the YouTube Terms of Service. Sentinel provides research tools that promote discovery and accountability across political media.
