CFSAA Payday Pundit Blog Taken Off The Internet
WASHINGTON–The Community Financial Services Association of America, the trade association of payday lenders, had launched a blog, Payday Pundit, that the Internet Service Provider has since suspended for violating its terms of service. The blog, which had been located at www.paydaypundit.com, was touted as covering all topics associated with the short-term credit market.
Vulture Devours H&R Block’s Subprime Unit
KANSAS CITY, Mo.–In another major subprime mortgage bailout, vulture investor Wilbur Ross announced an agreement to acquire H&R Block’s failed subprime mortgage unit, known as Option One.
Ross, one of the best-known buyers of distressed companies, will combine Option One with the $42-billion mortgage portfolio it acquired last year from failed subprime mortgage lender American Home Mortgage Investment Corp, creating the country’s second largest subprime mortgage servicing portfolio, behind only Countrywide Financial.
H&R Block, the nation’s leading tax preparation firm, had agreed to sell Option One to private equity giant Cerberus Capital Management, but the deal fell through when the private equity firm had trouble financing the acquisition.
U.S. Bancorp Profit Slumps Amid Big Credit Losses
MINNEAPOLIS–U.S. Bancorp reported a 3.5% decline in first quarter net income, citing an increase in its provision for credit losses. The bank said the results include $253 million in write-downs on structured-investment securities bought in the fourth quarter and a $492-million gain from its sale of shares as part of the VISA IPO.
Discover Financial Svcs. Launches Insurance Center
RIVERWOODS, Ill.–Discover Financial Services has launched the Discover Insurance Center, which it describes as an “easy-to-use website that offers consumers auto, homeowner’s, and term life insurance, as well as home warranty plans from trusted, reputable providers.” Discover said the insurance providers included on the site were subjected to an extensive pre-screening process to ensure they best met consumers’ needs.
In addition to offering quick insurance quotes, users can access the Insurance Center’s Knowledge Builder tool that features articles and money-saving tips, as well as other insurance-related information intended to help consumers make a more informed purchase decision.
Among the products available at www.Discovercard.com/insurancecenter: Auto Insurance and Homeowner’s Insurance, Term Life, and Home Warranty services.
WaMu Revises Pay Plan Under Shareholder Pressure
SEATTLE–Under pressure from shareholders, Washington Mutual is revising its incentive-pay program that shielded executives’ cash bonuses from some costs tied to mortgage losses and foreclosures, according to Wall Street Journal.
The announcement came at WaMu’s recent annual meeting. Another announcement at that meeting: the director who oversaw the board’s finance committee leading up to the subprime mortgage mess has resigned.
The meeting also saw a shareholder proposal calling for the separation of chairman and CEO, which was approved with a vote of 51%.
