(Reuters) -Bank of America is among a consortium of lenders to bankrupt U.S. auto parts supplier First Brands, but the loans are backed by strong collateral, Chief Financial Officer Alastair Borthwick said on Wednesday.
“We’re in the syndicated loan for the First Brands deal,” Borthwick told reporters on a call. “That is an asset-backed loan. So when we think about prudent risk management, we’re thinking about the borrower, we’re thinking about the collateral, and here, we’re secured.”
The bankruptcies of First Brands and car dealership Tricolor have prompted soul searching on Wall Street, with JPMorgan Chase saying it re-examined its controls after finding itself exposed.
Bank of America does not have exposure to Tricolor.
(Reporting by Saeed Azhar in New York and Pritam Biswas in Bengaluru)
