British loan agency MFS collapses, affecting Wall Street companies such as Barclays.

Barclays and Atlas SP Partners, among other Wall Street companies, had arranged over 2 billion in loans for a UK mortgage financing company that has collapsed after being accused of financial irregularities. Market Financial Solutions Ltd. entered a bankruptcy procedure in the UK on Wednesday. The judge in charge of the case mentioned fraud and asset rehypothecation charges against the company. Sources say that Barclays and Apollo Global Management's structured credit department, Atlas, each provided hundreds of millions of dollars in loans, while Santander and Castlelake LP were also among the lenders. The collapse of MFS may exacerbate concerns in the market regarding lax underwriting standards in the credit market.