U.s. Banks Missed Warning Signs on Tricolor. Now, Their Losses Are Adding Up

Posted3 months agoActive3 months ago

zerosizedweasle

18 points

7 comments

barrons.comOtherstory

skepticalnegative

Debate

20/100

BankingFinanceRisk Management

Key topics

Banking

Finance

Risk Management

US banks, including Fifth Third and JPMorgan, are facing significant losses due to their exposure to Tricolor, an auto dealer that filed for bankruptcy, with commenters questioning the banks' risk assessment and lending practices.

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01Story posted
Oct 6, 2025 at 4:46 PM EDT
3 months ago
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Oct 6, 2025 at 5:22 PM EDT
36m after posting
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3 comments in 0-1h
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Oct 6, 2025 at 10:54 PM EDT
3 months ago
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Discussion (7 comments)

Showing 7 comments

WarOnPrivacy

3 months ago

1 reply

    The timing couldn't be worse for American families. 
    Total household debt has hit a record $18.39 trillion,
    and Americans now spend about 11% of their income
    just on debt payments

In 2018 our household started to exit a decade of hard poverty. FF to now and we have some savings and no debt. The other natural outcome of saving-to-buy (now that we can afford to do that) was zero credit ratings for the 6 of us.

bdangubic

3 months ago

1 reply

0 debt and 10k now with my upvote :)

WarOnPrivacy

3 months ago

Sweet. Thanks.

more_corn

3 months ago

1 reply

Archive link doesn’t work for Barron’s.

For anyone not yet in the know apparently a subprime auto loan company suddenly went bankrupt early last month amid accusations of fraud

Alt link with related news: https://moneywise.com/loans/auto-loans/tricolor-subprime-aut...

fred_is_fred

3 months ago

And beyond that they made many loans to undocumented immigrants (as per article). Deported people tend to not pay their car note.

kristianp

3 months ago

> Bloomberg estimates the subprime auto market to be worth $80 billion to investors. (2)

It's not going to put the big banks out of business. Maybe it will hurt their profits somewhat.

nerdsniper

3 months ago

There's no way around this paywall, so posting TFA is against HN rules and should be flagged. Otherwise ~99% of comments will be discussing the title, not the article.

https://news.ycombinator.com/newsfaq.html

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ID: 45496130Type: storyLast synced: 11/20/2025, 4:26:23 PM

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