This follwoing report from National individuals Action traces connections involving the biggest payday loan providers and Wall Street banks, including funding arrangements, leadership ties, opportunities, and shared practices. Listed here are a few of the reportвЂ™s findings that are key
Pay day loan organizations rely greatly on funding from big banking institutions, including
Wells Fargo, Bank of America, and JPMorgan.
* Big banks provide $1.5 billion in credit to publicly held pay day loan businesses,
as well as a approximated $2.5-3 billion towards the industry in general.
* Wells Fargo finances more payday lenders than virtually any bank that is big six of this
eight biggest lenders that are payday. Bank of America, JPMorgan Chase, and United States Bank
additionally fund the operations of major payday lenders. Bank of America and Wells
Fargo offered critical early financing to your biggest payday loan provider, Advance
America, fueling the rise of this industry.
* Publicly traded payday loan providers paid nearly $70 million in interest expense on
financial obligation in ’09 вЂ“ a sign of just just just how banks that are much profiting by extending credit to
* Some banks usually do not provide to payday loan providers because of risks that areвЂњreputationalвЂќ
from the industry.
Numerous payday businesses have actually strong ties to Wall Street.
* Two Bear Stearns professionals guided the increase of payday lender Dollar Financial,
And two Goldman Sachs executives sat on the ongoing companyвЂ™s board when it went