JP Morgan issues bank failure warning… ‘When you see one cockroach, there’s probably more’

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  • 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