This follwoing report from National individuals Action traces connections amongst the payday lenders that are largest and Wall Street banking institutions, including funding arrangements, leadership ties, opportunities, and shared techniques. Listed here are a number of the reportвЂ™s findings that are key
Cash advance businesses 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 an approximated $2.5-3 billion to your industry all together.
* Wells Fargo funds more payday loan providers than virtually any bank that is big six regarding the
eight largest 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 supplied critical early funding to your payday lender that is largest, Advance
America, fueling the rise of this industry.
* Publicly traded payday loan providers paid nearly $70 million in interest expense on
financial obligation in 2009 вЂ“ a sign of just just how much banks are profiting by extending credit to
* Some banks don’t provide to payday lenders because of risks that areвЂњreputationalвЂќ
linked to the industry.
Numerous companies that are payday strong ties to Wall Street.
* Two Bear Stearns executives guided the increase of payday lender Dollar Financial,
And two Goldman Sachs executives sat on the ongoing companyвЂ™s board when it went