Core Insights - Santander's exposure to First Brands Group, founded by Patrick James, has increased to $300 million due to loan defaults [1][2] - First Brands filed for voluntary Chapter 11 bankruptcy, with expectations of continued global operations during the proceedings [3] - Allegations surfaced regarding the company's financial practices, including the sale of receivables more than once, leading to scrutiny of its financing methods [3][4] Financial Implications - First Brands reportedly borrowed approximately $11 billion in loans and invoice financing prior to its bankruptcy, leading to anticipated heavy losses for banks and financial firms [6] - A creditor of First Brands alleged that stakeholders lost track of $2.3 billion in complex financing vehicles, raising concerns about the company's financial transparency [4] Industry Response - Following the bankruptcies of First Brands and Tricolor Holdings, banks are tightening lending practices, increasing due diligence, and requiring more extensive financial histories from borrowers [5]