BankThink

Morning Scan: Google, Which Banned Payday Loan Ads, Is a Payday Loan Investor

05/19/16

Wall Street Journal

Google last week said it planned to ban advertising from payday lenders, in a bid to offer protection to its consumers from predatory loans. Oh by the way, Google is an investor in the payday lender LendUp. Google has been involved in every equity round that LendUp has staged, via its parent company's venture capital arm. LendUp has raised a total of $150 million in debt and equity, making it one of Silicon...

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FDIC's Sudden Concern with Insurance Limit Makes No Sense

05/18/16

Requiring banks to improve records on which depositors are insured overlooks how the Federal Deposit Insurance Corp. resolves failures.

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Older Adults: Still a Quicker Path to Profits than Millennials

05/18/16

For a more immediate payoff, community banks should focus marketing on older customers that are facing a new set of economic pressures.

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Morning Scan: JPMorgan Seals Off Swift Security Holes; Title Lenders Targeted?

05/18/16

Wall Street Journal

JPMorgan Chase is trying to seal off potential gaps in its security system by limiting which employees can access Swift. Unnamed sources said JPMorgan began reducing employee access in recent weeks.

The move comes after two Asian banks were breached through the use of Swift's global interbank messaging service. ...

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Make Camels Ratings Public Already

05/17/16

Requiring the bank regulators to disclose the numerical grades they give for capital, assets and other factors would subject them to the same market discipline they demand for banks.

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Google's Payday Ad Ban: Smart Move, But It Can Do Better

05/17/16

Google should be applauded for deciding to ban payday loan-sponsored ads. But it should tweak some of the details so legitimate lenders can still advertise.

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Morning Scan: Laplanche's Final Days at Lending Club; Treasury Market Watchdog

05/17/16

Receiving Wide Coverage ...

Laplanche's Selective Disclosure: The Justice Department would like to have a few minutes with the founder of LendingClub, and a few of his former colleagues at the online marketplace lender. A DOJ grand jury subpoenaed the company on Monday, LendingClub said in a regulatory filing, without disclosing details of the nature of the subpoena. LendingClub said it's cooperating. LendingClub also said Monday it's looking for additional funding for its loans. ...

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Banks Stepping into Payday Lenders' Shoes? I'm Not Buying It

05/16/16

Favorable treatment under upcoming Consumer Financial Protection Bureau rules has led banks to signal interest in small-dollar loans. But if they can serve the market profitably, why aren't they already doing it?

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Time for Fintech to Stop Thinking Small

05/16/16

Too many fintech companies are selling superficial products. Entrepreneurs need to start solving hard problems and offering real value.

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Morning Scan: LendingClub's Burned Investors; Swift Hack Victim ID'd

05/16/16

New York Times

Investors were getting the short shrift from online marketplace lender LendingClub before its chief executive quit amid allegations of improper loans, news that sent its stock into a tailspin. That's because LendingClub was stingy in its disclosure of crucial financial data, making it difficult for investors to assess the company's financial health, Gretchen Morgenson writes for the Times. ...

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