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First Brands

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First Brands founder indicted for fraud as auto-parts giant collapses on lenders
business27 days ago

First Brands founder indicted for fraud as auto-parts giant collapses on lenders

The founder and former CEO Patrick James and his brother Edward James of auto-parts maker First Brands were indicted on nine counts, including running a continuing financial crimes enterprise, bank fraud, wire fraud and money laundering conspiracy, amid allegations they fabricated growth and double‑pledged collateral, contributing to billions in liabilities and the company’s Chapter 11 bankruptcy. A former executive pleaded guilty, while Ford and GM are providing short-term financing to keep operations going as lenders face losses.

via Reuters|
#bankruptcy#business#first-brands
Ex-Founders Charged in Decade-Long Fraud at First Brands
business27 days ago

Ex-Founders Charged in Decade-Long Fraud at First Brands

Federal prosecutors indicted Patrick James and his brother Edward for an elaborate fraud scheme at the bankrupt auto-parts company First Brands, including concealing debt and using round-trip financing to mislead lenders, involving billions in fake accounts dating back to 2018; the case follows the company’s bankruptcy and James’s ouster over alleged fund siphoning.

via The New York Times|
#bankruptcy#business#first-brands
Banks and Investors Caution as First Brands Collapse Sparks Credit Concerns
finance4 months ago

Banks and Investors Caution as First Brands Collapse Sparks Credit Concerns

Banks and financial stocks are showing signs of recovery after a recent selloff triggered by the bankruptcy of auto parts company First Brands and concerns over hidden bad loans in the banking sector. The market experienced heightened volatility, but some banks like Jefferies and Zions Bancorp are rebounding, suggesting the selloff may be overdone. The crisis fears stem from First Brands' off-balance-sheet debt and exposure of regional banks to fraudulent loans, raising worries about broader financial instability.

via Investor's Business Daily|
#banking#bankruptcy#finance
Auto Industry Failures and Wall Street Risks Raise Alarm
business4 months ago

Auto Industry Failures and Wall Street Risks Raise Alarm

First Brands, a midsize auto parts company, filed for bankruptcy with over $10 billion in debt, leading to concerns about the stability of private credit markets, which are less regulated and involve complex, opaque lending practices. The company's collapse has exposed significant risks in the private credit sector, with major lenders like Jefferies, UBS, and BlackRock facing substantial losses, and federal investigations underway into its accounting practices.

via Morning Brew|
#auto-supplier#bankruptcy#business
Market Turmoil: Major Losses and Crashes Shake Wall Street and Beyond
business4 months ago

Market Turmoil: Major Losses and Crashes Shake Wall Street and Beyond

Jefferies defends its involvement with the troubled car-parts supplier First Brands, claiming the market overreacted to its collapse and emphasizing the company's strong financial position, despite its share price dropping significantly. Meanwhile, a Goldman Sachs employee was fired for controversial comments about President Trump. The article also covers various financial industry updates and scandals.

via eFinancialCareers|
#banking-controversy#business#first-brands