Behind the Money A subprime auto lender collapsed. Wall Street has questions
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Sep 24, 2025 In this engaging discussion, Akila Quinio, the US banking correspondent for the Financial Times, delves into the collapse of Tricolor Holdings, a subprime auto lender targeting low-income Hispanic immigrants. Listeners learn about the impact of a federal fraud investigation, the rapid liquidation proceedings, and the unsettling ties between major banks and Tricolor. The conversation also raises questions about the broader implications for consumer credit and Wall Street investors, highlighting the precarious nature of subprime lending in America.
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Evacuated Refurbishing Center
- Amelia Pollard visits a seven-block-long car refurbishing center with about 100 cars and orange cones blocking entry.
- The site belonged to Tricolor, a subprime lender that collapsed suddenly this month.
Bank's Surprise Loss Triggered Scrutiny
- Fifth Third disclosed a potential loss of roughly $200m and alleged fraudulent activity by a corporate client at a banking conference.
- That disclosure alerted markets and sparked immediate scrutiny of the unnamed borrower.
Rapid Collapse And DOJ Probe
- Tricolor filed for Chapter 7 bankruptcy within hours of the banks' disclosure, and the DOJ opened a fraud investigation.
- The rapid collapse turned a small subprime lender into a major story for Wall Street and regulators.