AMERICAS DISTRESS DAILY: Prosecutors Investigate Tricolor

Federal prosecutors are investigating Tricolor for alleged fraud after the company filed for bankruptcy, according to people with knowledge of the matter.

• The firm, which focused on lending to undocumented immigrants in the US Southwest, didn’t disclose the reason for its collapse in its bankruptcy petition Wednesday.
• Banks are investigating whether collateral tied to warehouse lines was double-pledged, potentially adding to loan losses that could reach hundreds of millions of dollars.

In Other News:

• Deutsche Bank AG’s US distressed-products desk profited over $100 million this year by betting on EchoStar securities, which surged after the company’s wireless spectrum sales to ...