Concerns over fraud hit Zion and Western Alliance

8 days ago

Carmen Rinicki

"Yes, exactly. We got a little bit of like 2023 deja vu, which was horrifying. Um, so shares of Zion, which is ticker Zio N and Western Alliance, ticker W, they both fell Thursday after they said they were victims of fraud on loans to fund that invest specifically in distressed commercial mortgages. Um, so today most of these stocks rebounded. Um, the sector was looking a lot more stable. There were a couple of earnings reports from other companies that sort of abated fears of credit stress sort of spreading across the group."

The discussion addresses the drop in shares for Zion (Zio N) and Western Alliance (W) after fraud allegations related to distressed commercial mortgages. Although there was a partial rebound, the earlier event and the mention of past crises contribute to a cautious outlook for these stocks.

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