New Credit Blowup in London Has Wall Street Chasing Billions

As Market Financial Solutions Ltd. hurtled toward collapse in London, the setting was new, but the themes felt familiar.

Like US auto lender Tricolor Holdings, MFS was a nonbank finance firm looking to fill a gap that major banks had ignored or shunned, while tapping those Wall Street giants for the cash to do it. And like auto parts supplier First Brands Group, the banks took comfort in tangible collateral, only for accusations of double-pledging to rattle that assurance.