In late September 2025, aftermarket auto parts manufacturer and brand owner First Brands suddenly filed for bankruptcy, which took many in the world of finance (and auto parts) by surprise. But the failure was a long time coming, fueled by a debt-driven acquisition strategy and more importantly, an opaque, asset-based finance system that exists largely outside of regulatory restraint and perhaps even the most basic tenets of good corporate governance. In this episode, Ethisphere Chief Strategy Officer Erica Salmon Byrne provides a helpful look at what happened with First Brands, lawsuits and investigations into allegations of fraud and embezzlement, and what E&C leaders can learn from this as fears of contagion in the world's shadow lending system seem poised to spread to other parts of the global economy.

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