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Western Alliance has sued investment bank Jefferies, alleging breach of contract and fraud over loans tied to the collapse of auto parts supplier First Brands. The Phoenix-based lender said it filed a complaint in the New York Supreme Court against Jefferies and others for "breach of contract and fraud" for "conduct related to a commercial loan collateralized by accounts receivable purchased from First Brands Group." Western Alliance CEO Kenneth Vecchione said: "I can't tell you what's behind Jefferies' motive . . . We are deeply disappointed by Jefferies' conduct." In response, Jefferies said: "We regret that the Bank, as well as a range of lenders to and around First Brands, will suffer losses as a result of this fraud. We believe that the lawsuit is without merit and it will be defended vigorously."
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