The tension between Wall Street and Main Street was on display this week as the country’s top banks reported blowout earnings, while regional lenders spooked investors about risks lurking in their loan books.

In a regulatory filing on Thursday, Zions Bancorporation disclosed that it believes there were misrepresentations by certain borrowers who did business with its California Bank & Trust unit. As a result, the lender recorded a $60 million loss provision and a $50 million charge-off in third-quarter results.

In a separate filing on Thursday, Western Alliance Bancorp alleged fraud against a borrower in a lawsuit. But the bank reaffirmed its financial guidance, adding that the disputed revolving credit facility is secured by commercial real estate loans and cash.

Shares of both banks

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