Auto lending

Wells Fargo's campaign to rebuild customer and shareholder trust just hit another bump, as the bank said it may have pushed thousands of car buyers into loan defaults and repossessions by charging them for unwanted insurance.

Valley National's latest acquisition would make it a much bigger player in Florida and provide a platform to write more auto loans. Both markets present attractive returns but high risks.

The Detroit company is capitalizing on other banks' retreat from the auto sector.

TCF executives were peppered with questions about the quality of $345 million in auto loans recategorized as held for investment in the second quarter, as a result of the company’s recent move away from loan sales and securitizations.

Double-digit growth in loan volume offset a decline in fee income at the Honolulu company.

Net interest income rose 7% and margins widened 17 basis points at the Wayzata, Minn., company.

Auto risks mounting. Mortgage market tightening. Are there any good risks these days in consumer lending? Regional bank executives insist partnerships with online lenders, unsecured personal loans and other niche efforts can work if done properly.

The McLean, Va., lender, which has substantial exposure to subprime consumer loans, also added to its provision for credit losses.

LendKey, whose software helps financial institutions make student, auto and home improvement loans, closed a Series C round led by a fund whose investors include more than a dozen banks.

Declines in commercial products and mortgage banking fees at the Minneapolis company offset some of the benefits of higher interest rates.