A recent collapse of auto-parts supplier First Brands highlights the dangers of unregulated private financing. Several warning signs were ignored by investors and regulators before the company imploded late last month. These included a lack of transparency on loans, frequent late payments to suppliers, and whispers of illicit off-the-books financing arrangements. The incident shows how easily even those with access to some information can be misled in the complex world of private finance.
Source: https://www.bloomberg.com/news/articles/2025-10-09/first-brands-how-jefferies-ubs-ended-up-exposed-to-its-collapse