JP Morgan issues bank failure warning... 'When you see one cockroach, there's probably more'

Spot on as usual.

When you start seeing fraud in lending risk management becomes impossible.

Ask the banks in 2008. pic.twitter.com/9Aaq2TtBiJ

— QE Infinity (@StealthQE4) October 15, 2025

Auto industry bankruptcies have led to broader concerns about the health of non-bank lending.
JPMorgan’s CEO Jamie Dimon voiced his concerns over the high-profile collapse.
The firm took a hit from one bankruptcy, but says some areas are riskier than others.

The recent collapse of subprime auto-lenders Tricolor Holdings and debt-heavy auto-parts company First Brands has raised questions about the health of the credit market. JPMorgan’s CEO Jamie Dimon voiced caution over the high-profile crack-ups, saying his “antenna” is up.

“When you see one cockroach, there’s probably more,” Dimon said on the bank’s third-quarter earnings call with analysts.

JPMorgan had no exposure to First Brands, but it’s taking a $170 million hit from the Tricolor bankruptcy. After many years of a “benign credit environment,” Dimon said that “hopefully” the credit cycle will unwind in a “fairly normal” way.

https://www.businessinsider.com/jamie-dimon-warns-of-more-cockroaches-following-auto-crackups-2025-10