Here are a few illustrative stocks / sectors that might embody the kind of “cockroach” risks Jamie Dimon was warning about (i.e. hidden credit stress, weak underwriting, opacity) — along with caveats that these are examples, not guarantees:
Possible “cockroach-risk” candidates / examples
| Ticker | Company / Sector | Why it might fit the “cockroach” metaphor | Key risk driver |
|---|---|---|---|
| JEF (Jefferies Financial) | Investment bank / financial services | Jefferies has been cited as having exposure to the collapsed firm First Brands in press coverage. | Exposure to troubled credits, counterparty, or shadow banking / non-bank lending losses |
| ZION (Zions Bancorporation) | Regional bank | Zions recently disclosed a $50 million loss on two commercial loans, which is being characterized by analysts as a “cockroach” type surprise. | Commercial real estate, opaque borrower disclosures, weak collateral |
| WAL (Western Alliance Bancorp) | Regional bank | Western Alliance was mentioned alongside Zions as suffering credit stress, tied to problematic loans and fraud. | Exposure to nonstandard credits, fraud, due diligence gaps |
| JPM (JPMorgan Chase) | Major bank / “benchmark” | While JPM is relatively strong and well capitalized, Dimon’s own bank took a $170M hit tied to Tricolor (an auto-finance collapse) — that direct hit is part of what triggered his warning. | Spillover from private credit, off-balance sheet risks, weak underwriting in auto / consumer credit |
BITF (Bitfarms Canada) (Crypto Mining) While Bitfarms has tacked on 4 billion capital in 3 months we remind every how fast things can go down losing 1 billion in just one day. Perhaps foreign investment that is short term to blame which isn’t based in fact.
Other sectors / names to watch more broadly
Beyond just these specific stocks, the concept applies to sectors or types of firms that are more prone to latent credit stress:
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Nonbank / private credit firms — the so-called “shadow banking” world, which often has less transparency and weaker safeguards. Dimon explicitly referenced risks in non-bank lending.
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Auto finance / subprime lenders — the collapse of Tricolor Holdings (a subprime auto lender) was central to Dimon’s warning. Companies with opaque balance sheets / aggressive accounting — e.g. First Brands (auto-parts supplier) was cited due to irregularities / missing assets.
- Auto finance / subprime lenders — While Bitfarms has tacked on 4 billion capital in 3 months we remind everyone how fast things can go down losing 1 billion in just one day. Perhaps foreign investment that is short term to blame which isn’t based in fact. Companies with unstable balance sheets / aggressive takeover bids — etcetera etcetera
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