{"id":115112,"date":"2025-11-01T01:18:07","date_gmt":"2025-11-01T01:18:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/115112\/"},"modified":"2025-11-01T01:18:07","modified_gmt":"2025-11-01T01:18:07","slug":"is-a-private-credit-crisis-brewing-tricolor-first-brands-shake-wall-street","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/115112\/","title":{"rendered":"Is a Private Credit Crisis Brewing? Tricolor, First Brands Shake Wall Street"},"content":{"rendered":"

The business model of Tricolor Holdings didn\u2019t sound especially stable to begin with. The auto lender, based in Irving, Texas, specialized in subprime car loans\u2014that is, lending to people who are relatively unlikely to pay the loan back. \u201cDo you have bad credit? Don\u2019t worry,\u201d the Tricolor website still reads, more than a month after its public implosion. The company marketed itself to undocumented immigrants\u2014even as President Donald Trump promised to carry out \u201cthe largest deportation operation in American history.\u201d If you needed one more sign of messiness under the hood, a 2022 expos\u00e9<\/a> found that the lender was selling defective vehicles and charging above-market rates, leaving its core customers feeling angry and ripped off.<\/p>\n

Given that shaky business strategy, you\u2019d think Tricolor\u2019s September collapse into bankruptcy wouldn\u2019t have registered more than a passing glance from Wall Street. It turned out, though, that some of the biggest names in finance, including JPMorgan Chase & Co.<\/a> and Barclays Plc<\/a>, had together lent hundreds of millions of dollars<\/a> to the company. And after evidence emerged that Tricolor had used the same cars as collateral<\/a> for multiple loans\u2014a practice known as \u201cdouble-pledging\u201d\u2014it was unclear whether the big lenders would get their money back.<\/p>\n","protected":false},"excerpt":{"rendered":"The business model of Tricolor Holdings didn\u2019t sound especially stable to begin with. The auto lender, based in…\n","protected":false},"author":2,"featured_media":115113,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[39907,72,24300,11507,113,9108,9817,61,15706,5232,60,9207,1674,123,21324,9904,3056],"class_list":{"0":"post-115112","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-bull-market","9":"tag-business","10":"tag-businessweek","11":"tag-donald-john-trump","12":"tag-economy","13":"tag-goldman-sachs-group-inc","14":"tag-houston","15":"tag-ie","16":"tag-industries","17":"tag-interest-rates","18":"tag-ireland","19":"tag-jamie-dimon","20":"tag-jpmorgan-chase-co","21":"tag-markets","22":"tag-private-credit","23":"tag-texas","24":"tag-wall-street"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/115112","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=115112"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/115112\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/115113"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=115112"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=115112"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=115112"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}