Overview

• Zions Bancorporation said it will record a $50 million third‑quarter loss on two California C&I loans and has filed a lawsuit in California to recover the loans.
• Western Alliance disclosed a lawsuit alleging fraud by Cantor Group V and said total criticized assets were lower than on June 30.
• Regional lenders fell sharply, with Zions and Western Alliance leading declines, while the broader market weakened and major banks saw smaller moves.
• Jefferies reported $715 million owed to hedge funds it runs by companies tied to First Brands, and UBS said it has about $500 million in exposure.
• Analysts disagreed on whether recent cases are isolated or signal wider credit stress, as the Justice Department investigates the First Brands bankruptcy.