By Jonathan StempelNEW YORK, Feb 27 (Reuters) - JPMorgan Chase, Barclays and Fifth Third have been sued by investors who suffered losses on securities issued by now-bankrupt subprime auto lender Tricolor, and accused the banks of missing "giant red flags" when fraudulently marketing the debt. JPMorgan, Barclays and Cincinnati-based Fifth Third declined to comment. Among the 30 plaintiffs are funds run by Janus Henderson, Ellington Capital Management and One William Street Capital Management. In December, Tricolor Chief Executive Daniel Chu and former Tricolor Chief Operating Officer David Goodgame were indicted in Manhattan for allegedly systematically defrauding creditors and lenders, including by falsifying loan data and double-pledging collateral. JPMorgan, Barclays and Fifth Third have reported nine-figure losses from Tricolor, and JPMorgan Chief Executive Jamie Dimon labeled his bank's exposure "not our finest moment."

Source: The Guardian February 28, 2026 05:04 UTC