News 

Wells Fargo to pay $1B for mortgage, auto lending abuses

“Wells Fargo has been refunding auto loan customers since July and been mailing refund checks to impacted mortgage customers since December” writes The Associated Press for seattletimes.com. Last summer Wells Fargo admitted that hundreds of thousands of its auto loan customers had been sold auto insurance that they did not want or need.NEW YORK (AP) — Wells Fargo will pay $1 billion to federal regulators to settle charges tied to its mortgage and auto lending business, the latest chapter in a wide-ranging scandal at the banking giant.Wells Fargo is the…

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News Stocks 

Goldman and Morgan Stanley Investors Fret Over Capital Returns

“While and both beat earnings expectations easily in the first quarter, investors found some new things to worry about” writes Liz Hoffman for wsj.com. On Tuesday, Goldman said it wouldn’t repurchase any stock in the second quarter and would instead use its cash to fund growth initiatives like consumer banking and corporate lending. Source: wsj.com Share This:

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News 

Congress could repeal CFPB’s auto-lending guidance

“In October, the Government Accountability Office said the 2013 CFPB auto lending bulletin should be considered a rule subject to the Congressional Review Act, which means Congress has the power to revoke it” writes Hannah Lutz for autonews.com. If Congress passes the resolutions, Welch added, the CFPB could not reissue a new guidance in the same form without authorization by Congress, which would halt the push to limit or eliminate dealer reserve.The U.S. Senate is expected to vote in coming days on a resolution that would rescind the Consumer Financial…

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News 

Alt Lending, Artificial Intelligence Startups Lead Investment Activity

“British Business Investments, Paragon Bank, BCI Finance and Blenheim Chalcot facilitated an $81.8 million investment in U.K. alternative finance player Liberis” reports pymnts.com. Supply chain finance company Invoice Bazaar made an undisclosed investment in ODeX, an online logistics and shipping company facilitating digital document exchange.The company landed the funds from Poseidon Asset Management, Phyto Partners, Altitude Investment Partners, Arcview Investor Network and Arcadian Fund, according to Green Market Report.Based in Ireland, Supply Finance landed $4.9 million in Series A funding, reports in Independent.ie said this week.Blockchain heavyweight Ripple made headlines…

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Markets News 

Bank Earnings Boom as Regulators Relax Rules

“Citigroup and JPMorgan both revealed slightly thinner capital cushions in the first quarter, apparently reflecting their expectation that regulators would ease rules for banks in the coming months” writes Emily Flitter for nytimes.com. Improved business conditions are good news for banks, but the prospect of regulators loosening up their oversight could be even better over the long haul. The reduction in the banks’ capital cushions is slight, but it is a sign that actions by the Trump administration and its appointees are having a concrete impact on the banking industry.Turbulent…

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News 

UK SMB, Bank Groups Spar Over Low Lending Rates

“U.K. small businesses continue to struggle with access to bank funding, according to reports in Financial Times on Friday (March 30)” reports pymnts.com. Small business group SME Alliance spoke to the House of Commons select committee to discuss small firms’ ongoing challenges in seeking bank loans.The remarks followed a decision by UK Finance, an industry trade association, to launch an independent investigation into the treatment of small businesses by U.K. banks.But according to UK Finance, the downturn is linked to lower demand among small business borrowers, not to banks’ reluctance…

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News Platforms 

Small Businesses Flocking To Mobile Loans, Kabbage Finds

“The company also previously partnered with Santander UK, which agreed to license the Kabbage Platform to increase its own small business lending operations” reports pymnts.com. Analysis of borrowing behavior among small businesses suggests SMB borrowers are increasingly turning to mobile devices to access funding, according to new data from Kabbage.The SMB lending platform announced news on Wednesday (March 28) that a survey of nearly 150,o0o small businesses revealed a more than 360 percent increase in the number of loans accessed via mobile device between April 2014 and February 2018.The value…

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News 

Chicago can pursue part of Wells Fargo predatory lending case

“FILE PHOTO – Wells Fargo branch is seen in the Chicago suburb of Evanston, Illinois Thomson Reuters By Jonathan Stempel (Reuters) – A federal judge significantly narrowed but refused to dismiss a lawsuit accusing Wells Fargo & Co, the third-largest U.S. bank, of predatory mortgage lending targeting black and Hispanic borrowers in the Chicago area” reports businessinsider.com. Other U.S. cities have brought predatory lending cases against major banks, among which are Baltimore, Cleveland, Los Angeles and Philadelphia.Cook County accused Wells Fargo of steering minority borrowers into loans they could not…

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AUD News 

FinTechs To Surpass Banks As Aussie SMBs’ Top Finance Choice

“FinTechs and non-bank financial service providers are set to take over traditional banks as the preferred choice for small business (SMB) customers in Australia, a new report by Scottish Pacific found” reports pymnts.com. Some are also applying innovative new finance business models, directly linking investors and borrowers or helping businesses to unlock the value of their unpaid invoices. Source: pymnts.com Share This:

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Crypto News 

A bitcoin trading firm just opened up a lending business — and it’s going gangbusters

“ANTHONY WALLACE/AFP/Getty Images) Bitcoin might be in a bit of a slump, but one brand new bitcoin business is going gangbusters” writes Frank Chaparro for businessinsider.com. The new lending business has attracted more than 60 clients, including market making firms and cryptocurrency hedge funds, the person said.It gives out loans worth $100,000 or more in cryptocurrencies including bitcoin, ether, and bitcoin cash. In total, they manage approximately $3.5 to $5 billion, a tiny fraction of the $3.2 trillion managed by traditional hedge funds.BlockTower Capital, a cryptocurrency hedge fund, and DV…

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