The tension between Wall Street and Main Street was on display this week as the country’s top banks reported blowout earnings, while regional lenders spooked investors about risks lurking in their loan books.
In a regulatory filing on Thursday, Zions Bancorporation disclosed that it believes there were misrepresentations by certain borrowers who did business with its California Bank & Trust unit. As a result, the lender recorded a $60 million loss provision and a $50 million charge-off in third-quarter results.
