NEW YORK, Sept 10 (Reuters) - Auto lender Tricolor filed

for Chapter 7 bankruptcy in Texas court on Wednesday, moving to

liquidate its business a day after Fifth Third Bank

warned of alleged fraudulent activity at the company.

Tricolor, based in Irving, Texas, has more than $1 billion

in assets and over $1 billion in liabilities, with over 25,000

creditors, according to its bankruptcy petition.

Fifth Third Bank said late on Tuesday that it had discovered

alleged external fraudulent activity related to a $200 million

asset-backed loan that it extended to the company. Fifth Third

said that it was working with law enforcement and that it

expected to take a $170 million to $200 million impairment

charge for the loan.

Other banks could also face losses in the bankruptcy.

JPMorgan ( JPM ) has an exposure of nearly $200 million to

Tricolor, according to a source.

JPMorgan ( JPM ) and Fifth Third declined to comment on Wednesday.

An attorney for Tricolor did not immediately respond to a

request for comment.