Bad loans reported by Zions Bancorp NA and Western Alliance Bancorp this week can be traced back to the bankruptcy of a commercial real estate investment firm in Southern California earlier this year.
In a lawsuit filed Wednesday, Zions listed 16 addresses of properties pledged as collateral to more than $60 million loaned to an investor group. When Newport Beach, California-based real estate firm MOM CA Investco LLC filed for bankruptcy in February, six of those properties were listed as investments.