09:35 AM EDT, 09/11/2025 (MT Newswires) -- JPMorgan Chase ( JPM ) and Barclays ( BCS ) restricted trading of subprime car lender Tricolor's asset-backed securities earlier this week after gaining knowledge of material non-public information about Tricolor, Bloomberg reported Thursday, citing people with knowledge of the matter.

Both banks have similar exposures as Fifth Third Bancorp ( FITB ) , which said in a regulatory filing Tuesday that it expects an impairment charge of $170 million to $200 million after discovering alleged fraudulent activity at a commercial borrower, which it didn't identify.

Tricolor filed for bankruptcy after reports of alleged fraud Tuesday. The company is under investigation by federal prosecutors, Bloomberg said. Tricolor used temporary credit lines known as warehouse facilities to finance its auto loans, before packaging these into asset-backed securities for sale to bond investors, Bloomberg added.

JP Morgan and Barclays ( BCS ) didn't immediately reply to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)