02:36 PM EDT, 10/08/2025 (MT Newswires) -- Western Alliance Bancorp ( WAL ) shares were down nearly 4% after Bloomberg reported Wednesday that the bank is potentially exposed to losses tied to the failure of autoparts supplier First Brands Group through a leveraged financing deal with a fund connected to Jefferies Financial Group ( JEF ) .

Jefferies Financial ( JEF ) said earlier Wednesday that First Brands Group filed for bankruptcy on Sept. 29, detailing its exposure to the bankrupt company through Point Bonita Capital and Apex Credit Partners.

Some of that exposure is pledged into a leveraged facility with Western Alliance, meaning the bank could be on the hook if those receivables go bad, the report said.

Western Alliance Bank told Bloomberg that it has various secured lending facilities with Jefferies' Leucadia Asset Management backed by a diverse set of receivables, not just First Brands, according to the report.

"Presently, we have no reason to believe the events from the First Brands bankruptcy create a material risk of loss in connection with the credit at this time," the company said in an email reply to Bloomberg.

Western Alliance Bancorp ( WAL ), First Brands, and Jefferies Financial Group ( JEF ) didn't immediately reply to MT Newswires' requests for comments.

(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.)

Price: 82.69, Change: -3.32, Percent Change: -3.85