{"id":2102,"date":"2025-10-14T14:07:11","date_gmt":"2025-10-14T14:07:11","guid":{"rendered":"https:\/\/www.finznest.com\/blog\/auto-bankruptcies-reveal-early-signs-of-lending-excess\/"},"modified":"2025-10-14T14:07:11","modified_gmt":"2025-10-14T14:07:11","slug":"auto-bankruptcies-reveal-early-signs-of-lending-excess","status":"publish","type":"post","link":"https:\/\/www.finznest.com\/blog\/auto-bankruptcies-reveal-early-signs-of-lending-excess\/","title":{"rendered":"Auto bankruptcies reveal &#8216;early signs&#8217; of lending excess"},"content":{"rendered":"<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108102282\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Jamie Dimon, CEO of JPMorgan Chase, leaves the U.S. Capitol after a meeting with Republican members of the Senate Banking, Housing and Urban Affairs Committee on the issue of de-banking on Feb. 13, 2025.<\/p>\n<p>Tom Williams | Cq-roll Call, Inc. | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p><span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\">JPMorgan Chase<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> CEO Jamie Dimon said Tuesday that bankruptcies in the U.S. auto market are a sign that lending standards grew too lax in the past decade-plus.<\/p>\n<p>Dimon, the longtime leader of the largest U.S. bank by assets, was speaking about the recent collapse of auto parts firm First Brands and subprime car lender Tricolor Holdings.<\/p>\n<p>&#8220;We&#8217;ve had a credit bull market now for the better part of what, since 2010 or 2012? That&#8217;s like 14 years,&#8221; Dimon told CNBC on a call with reporters.<\/p>\n<p>&#8220;These are early signs there might be some excess out there because of it,&#8221; Dimon said. &#8220;If we ever have a downturn, you&#8217;re going to see quite a bit more credit issues.&#8221;<\/p>\n<p>The pair of bankruptcies have sparked concerns about the hidden risks involved when banks like JPMorgan, <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-3\">Jefferies<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> and <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-4\">Fifth Third<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> provide financing for private companies. In a quarter where JPMorgan handily topped expectations, thanks to booming activity in institutional trading, questions from reporters and analysts around credit losses took center stage.<\/p>\n<p>JPMorgan managed to dodge losses from First Brands, but it did lend to Tricolor, causing $170 million in chargeoffs in the quarter, said CFO Jeremy Barnum. Chargeoffs happen when a bank recognizes it won&#8217;t get repaid for loans it made.<\/p>\n<p>&#8220;It is not our finest moment,&#8221; Dimon said of the Tricolor episode. &#8220;When something like that happens, you could assume that we scour every issue&#8230; You can never completely avoid these things, but the discipline is to look at it in cold light and go through every single little thing.&#8221;<\/p>\n<p><em>This story is developing. Please check back for updates.<\/em><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Jamie Dimon, CEO of JPMorgan Chase, leaves the U.S. Capitol after a meeting with Republican members of the Senate Banking, Housing and Urban Affairs Committee on the issue of de-banking on Feb. 13, 2025. Tom Williams | Cq-roll Call, Inc. | Getty Images JPMorgan Chase CEO Jamie Dimon said Tuesday that bankruptcies in the U.S. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2103,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1071,1072,989,1074,1073,703,990],"class_list":["post-2102","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-auto","tag-bankruptcies","tag-early","tag-excess","tag-lending","tag-reveal","tag-signs"],"_links":{"self":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/posts\/2102","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/comments?post=2102"}],"version-history":[{"count":0,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/posts\/2102\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/media\/2103"}],"wp:attachment":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/media?parent=2102"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/categories?post=2102"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/tags?post=2102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}