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Oct 23 (Reuters) - A spate of credit issues in recent weeks has drawn investor attention to the multi-trillion-dollar global credit market, with risks spanning several high-profile financial firms, including major Wall Street banks and regional lenders. The bankruptcies of auto parts maker First Brands and subprime lender Tricolor have put the market on high alert. Sign up here. Bank of England Governor Andrew Bailey also said the bankruptcies may be a warning of much bigger financial problems to come. Below is a list of all the recent flashpoints in credit markets: FIRST BRANDS: The U.S. auto parts maker filed for bankruptcy protection late last month after disclosing liabilities exceeding $10 billion, marking the collapse of a company whose rapidly deteriorating finances have shocked debt investors. Jefferies CEO had said earlier in October the bank believes it was defrauded. The bank's Leucadia Asset Management fund holds about $715 million in receivables linked to First Brands. First Brands has previously denied wrongdoing. A joint venture between Norinchukin Bank and Mitsui & Co faces $1.75 billion of exposure, Bloomberg News had reported. TRICOLOR: The subprime lender and dealership filed for Chapter 7 bankruptcy in a Texas court. The company listed more than $1 billion in assets and over $1 billion in liabilities, with more than 25,000 creditors, according to its bankruptcy petition. An attorney who helped Tricolor file for bankruptcy had previously declined to comment on the fraud allegations. Earlier this month, the bank recorded a $178 million loss from the bankruptcy. JPMorgan Chase also took a $170 million loss related to the situation. CEO Dimon described the bank's exposure as "not our finest moment," and said it is reviewing risk controls. Brazilian waste management company Ambipar filed for bankruptcy protection earlier this week, citing signs of irregular activity involving a former senior executive. Its U.S.-listed subsidiary - Ambipar Emergency Response - filed for Chapter 11 protection in Texas and listed estimated assets between $1 billion and $10 billion, with liabilities between $100 million and $500 million. ALLEGATIONS OF FRAUD AGAINST CANTOR GROUP: Both suits make similar allegations -- investment funds tied to the little-known California-based Cantor Group misrepresented the collateral they pledged against real estate loans, exposing the banks to losses. The properties in the cases largely involve California commercial real estate, such as store-fronts and office buildings. "The allegations circulating in the media are false. Cantor Group upheld contractual obligations and provided transparency at the relevant banking institutions," a spokesperson for Cantor said in an emailed statement. "Additionally, there have been multiple audits and independent reviews of these loans at the banks going back years." Andrew Stupin, a long-time California real estate investor, is listed as a guarantor on the loans and is one of the defendants in those cases. An attorney for Stupin previously told Reuters Western Alliance's claims against his client were unfounded and misrepresented the facts. Stupin did not respond to requests for comment regarding the other suits. Reporting by Manya Saini in Bengaluru; editing by Michelle Price and Krishna Chandra Eluri Our Standards: The Thomson Reuters Trust Principles., opens new tab Manya reports on prominent publicly listed U.S. financial firms, including Wall Street’s biggest banks, card companies, asset managers, and fintechs. She also covers late-stage venture capital funding, initial public offerings on U.S. exchanges, and regulatory developments in the cryptocurrency industry. Her work appears in the finance, markets, business, and future of money sections of the Reuters website. A passionate reader, she loves books across genres, from classics to contemporary fiction. She holds an undergraduate degree in Political Science from the University of Delhi and a master’s in journalism from the Symbiosis Institute of Media and Communication.
