JPMorgan Chase CEO Jamie Dimon warned of potential credit issues in the U.S. auto market due to lax lending standards, following bankruptcies of First Brands and Tricolor Holdings. The failures have raised concerns about hidden risks for banks like JPMorgan, Jefferies, and Fifth Third. JPMorgan faced $170 million in charge-offs from Tricolor. Despite the challenges, JPMorgan’s credit metrics are stable, and the company is closely monitoring the labor market for signs of weakness. Jefferies and UBS are owed millions from companies involved with First Brands, while Fifth Third expects impairments from fraudulent activity by Tricolor.

Read more at CNBC: Auto bankruptcies reveal ‘early signs’ of lending excess