Steve Eisman, the Neuberger Berman Group fund manager who featured in Michael Lewis's book "The Big Short," said he's concerned about the subprime-auto market, even though credit quality across the banking system has improved significantly.
The subprime auto lender funded loans through a group of car dealers that it knew had track records of high default rates and fraud, authorities in Massachusetts and Delaware said.
Creative growth strategies are helping banks with $10B to $50B of assets — including Webster and TCF — improve profitability. These ‘tweeners’ deal with tougher regulations than smaller competitors without the scale larger ones have to absorb the expense.
By bending over backwards when borrowers trade in an older car for a new one, lenders are said to have embarked down an unsustainable path. The warning, by Moody’s, adds to concerns about credit quality in auto lending.
In a further illustration of weakness in the auto sector, Ally Financial said Tuesday that its 2017 profits will likely be dinged by rising delinquencies on subprime auto loans, as well as by falling used-car prices.
The Justice Department sought information from BMW AG's leasing business last year about how it handles overdue payments from U.S. military personnel, according to documents obtained by Bloomberg.
Republicans repeatedly claim that the Dodd-Frank Act has hurt consumers by raising costs and hampering credit availability. But the data doesn't back that up.
The number of auto loans classified as delinquent rose sharply in the fourth quarter, raising further questions about whether the segment is getting overheated.
Quona Capital Management raised $141 million for the Accion Frontier Inclusion Fund, which will invest in companies that provide financial and other services to underserved customers in emerging markets.
