Rattled Wall Street on Alert After Trillion-Dollar Risk Runup

view original post

After two months of market bliss, Wall Street is stirring from its slumber.

First the collapse of First Brands Group and Tricolor Holdings revived long-dormant fears about hidden credit losses. Then, fraud-linked writedowns at Zions Bancorp and Western Alliance — erasing more than $100 billion in US bank share value in a day — stoked concern that the lending stress is more pervasive.