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Zions, Western Alliance Disclose Bad Loans Tied to Alleged Fraud - Bloomberg Businessweek
Oct 16, 2025
Two regional US banks said they were the victims of fraud on loans to funds that invest in distressed commercial mortgages. Zions Bancorp sank 12% after it disclosed a $50 million charge-off for a loan underwritten by its wholly-owned subsidiary, California Bank & Trust. While Western Alliance Bancorp tumbled almost 11% after it said it made loans to the same borrowers. Bloomberg's Sally Bakewell joined Carol Massar and David Gura on 'Bloomberg Businessweek Daily' to break it down.
Two regional US banks said they were the victims of fraud on loans to funds that invest in distressed commercial mortgages. Zions Bancorp sank 12% after it disclosed a $50 million charge-off for a loan underwritten by its wholly-owned subsidiary, California Bank & Trust. While Western Alliance Bancorp tumbled almost 11% after it said it made loans to the same borrowers. Bloomberg's Sally Bakewell joined Carol Massar and David Gura on 'Bloomberg Businessweek Daily' to break it down.