Could regional banks’ bad loans signal something bigger?

When you can’t repay a bank loan, that’s distressing — but probably not for the bank.

But when tens of thousands of people, who had good credit ratings, can’t, it raises concerns about the health of the economy.

And when it’s companies defaulting on very big loans, leading to charges — that is, money the bank writes off as a loss because it has given up on recovering it — and bankruptcies, it’s time for everyone to put on their detective hats.

Both First Brands, an auto parts manufacturer, and car dealership Tricolor Holdings filed for bankruptcy in September. Major banks such as Jefferies, UBS and JPMorgan had exposure to either of the two companies.

“Questions are now being asked about how the demise of a relatively unknown auto parts supplier has spread across the global banking and fund management industry, where potentially billions of dollars are entangled in the collapse,” wrote CNBC’s Hugh Leask.

The worries intensified Thursday stateside when two U.S. regional banks raised issues with their loans.

All of the above could be isolated incidents unrelated to each other.

But “when you see one cockroach, there are probably more,” JPMorgan CEO Jamie Dimon said on the bank’s earnings conference call earlier this week.

And rotten loans do not stay within the banking sector. The 2008 global financial crisis — which caused millions to be laid off and economies to sink into a recession — was in part triggered by the subprime mortgage crisis, in which, very simply put, people couldn’t pay for their mortgages.

Then, the cockroaches ran free.

China accuses U.S. of deliberately sparking ‘panic.’ The White House “seriously distorts and exaggerates” Beijing’s rare earth restrictions, China’s Ministry of Commerce’s spokesperson said Thursday, but added that it is open to talks with the U.S.

Fears of bad loans ripple through markets. Shares of regional banks and investment bank Jefferies slumped Thursday stateside as more signs of trouble in bank loans emerged. Concerns over the credit market started when two auto-related companies went bankrupt last month.

Europe will call for quicker action on Russian assets. According to documents seen by CNBC, the European Council will next week urge the EU’s executive arm for proposals “involving the possible use of the cash balances associated with the immobilized Russian assets.”

U.S. stocks dropped on credit concerns. Major U.S. indexes gave up gains early Thursday stateside to close in the red. Asia-Pacific markets mostly fell Friday. However, India’s Nifty 50 rose 0.7% in early trading.

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Trump’s latest China trade spat offers lessons for the copper market amid AI boom

Matt Chamberlain, CEO of the London Metal Exchange, told CNBC’s “Squawk Box Europe” that supply tightness had pushed spot prices in a number of metals markets — including copper — above the corresponding three-month futures.

Current price action is being driven predominantly by supply-side developments, including a number of disruptions, which Chamberlain said ultimately highlights the “fragility” of supply chains.

— Hugh Leask