UK mortgage lender collapse triggers sharp decline in financial sector stocks

LootboxPhobia · 2026-02-27T18:39:14+00:00

The market is concerned about the collapse of UK mortgage company Market Financial Solutions Ltd., leading to a decline in the stock prices of Barclays, Apollo, Jefferies, and Wells Fargo. MFS's creditors warned of significant financial gaps, repeated pledging, or increased losses. This incident has raised concerns about the financing practices of banks and lending institutions.

LootboxPhobia

2026-02-27 18:39:14

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Investing.com – The stocks of Barclays (LON:BARC), Apollo Global Management (NYSE:APO), Jefferies Financial Group (NYSE:JEF), and Wells Fargo (NYSE:WFC) fell on Thursday amid market concerns over their exposure to the UK mortgage company Market Financial Solutions Ltd., which went bankrupt this week.

Barclays dropped 3.4%, Apollo declined 7%, Jefferies fell 8%, and Wells Fargo decreased 4%, as the potential losses from this failed lender become clearer.

Creditors of MFS warned that there is a £930 million ($1.3 billion) shortfall in its collateralized loans. Zircon Bridging Ltd. and Amber Bridging Ltd. forced MFS into insolvency proceedings in the UK this week, accusing the London-based company of using the same assets as collateral for multiple loans.

According to claims documents obtained by Bloomberg, this practice, known as “re-pledging,” could result in over 80% of the £1.2 billion debt being “unaccounted for” in the shortfall.

The collapse of MFS marks the latest crisis faced by banks and direct lending firms, which previously received support from Wall Street lenders including Barclays, Apollo’s Atlas SP Partners division, and Jefferies. This situation has brought attention to asset financing practices.

Re-pledging allegations have also emerged in recent other bankruptcies, including last year’s collapse of U.S. auto parts supplier First Brands Group and the subprime auto lender Tricolor Holdings.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

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