= Subscriber content; or subscribe now to access all American Banker content.
Prosper Marketplace's decision to eliminate 22% of its workforce is more evidence that the bloom is off the rose for a sector that had been enjoying astronomical growth.

Breaking News

The prosecution of former House Speaker Dennis Hastert illustrates why it makes sense to require bankers to share suspicions with the authorities.

New rules have made it more challenging to originate mortgages without drawing attention from regulators. Mercantile Bank in Michigan, however, believes that positive trends in its biggest markets are incentive enough to hire lenders and improve its systems.

Freddie Mac's second quarterly loss in less than a year makes it clear profitability is getting tougher as it shrinks. But it's a concern that must be weighed against more long-term efforts to reduce Freddie's overall credit risk exposure.

Some buyers are hanging in there, but as OnDeck Capital's disappointing first-quarter results show, investors who acquire and securitize marketplace loans are heading for hills. Among the reasons: fear of defaults, unfavorable pricing and shrinking loan yields.
Comments (1)

Amalgamated Bank in New York has started offering down payment insurance to homebuyers in a move it hopes will set it apart with highly mobile millennial borrowers.

Servicing rights are high-yielding assets, making them attractive investments for hedge funds, real estate investment trusts and banks.

Pressure is building on financial services providers to develop more merchant-centric loyalty programs to fight declining interchange revenue, and U.S. Bank is testing one approach in Lawrence, Kan.
Comments (2)

Bank of New York Mellon and Northern Trust are charging money market investors more fees after previously cutting them major breaks in the low-rate environment.

Bank of America executives plan to keep investing in technology and selectively expanding its branch presence, but it is urging increasingly restless shareholders to be patient so that it can grow gradually and avoid the pitfalls of banking's recent past.

Big banks began ceding market share to midsize and small subprime auto lenders, who they said were taking too many risks. Now prominent midsize player Santander Consumer is putting on the brakes and complaining about small, overly daring rivals. How bad a sign is that?

See all Consumer Finance News