17 Oct 2025 | 5 Mins Read
Salt Lake City banks disclose alleged fraud-linked bad loans
Flipitmoney
Zions Bancorp's shares dropped 12% and Western Alliance Bancorp fell 11% after disclosing $50 million and $98.6 million losses due to loan fraud to funds investing in distressed commercial mortgages. Zions claims the borrowers have defaulted on a loan, while Western Alliance alleged the borrower omitted senior liens and drained funds from collateral accounts.