Zions, Western Alliance Disclose Bad Loans Tied to Alleged Fraud

Core Insights - Two regional US banks reported being victims of fraud related to loans for distressed commercial mortgages [1] Group 1: Company Impact - Zions Bancorp experienced a 12% decline in stock price after announcing a $50 million charge-off for a loan underwritten by its subsidiary, California Bank & Trust [1] - Western Alliance Bancorp's stock fell nearly 11% after revealing it had made loans to the same borrowers involved in the fraud [1] Group 2: Market Reaction - The disclosures from both banks led to significant stock price drops, indicating investor concern over the implications of the fraud on their financial health [1]