Solomon Calls Regional Bank Losses ‘Idiosyncratic Events’ (1)

A string of losses at regional banks tied to alleged fraud were isolated incidents, but should be viewed as a reminder to be vigilant about underwriting standards, Goldman Sachs Group Inc. Chief Executive Officer David Solomon said.

“It is interesting that we’ve had three events that on the face seem to be three idiosyncratic events,” Solomon said in a CNBC interview Tuesday. “Three idiosyncratic events does not make a trend or a systemic issue by any stretch.”

Initial red flags came from subprime auto lender Tricolor Holdings, which filed for bankruptcy last month and triggered a near-total wipeout on some ...