After the Minneapolis-based company reported stubbornly high commercial deposit costs, it reduced its full-year forecast for net interest income by $200 million-$500 million.
The CFPB has dissolved the Office of Supervision, Enforcement and Fair Lending and eliminated the job of associate director in a move that impacts how it designates nonbanks for supervision.
Rising deposit costs have plagued banks in general, and the Tennessee bank had to pay up to bolster liquidity after its failed merger with TD. But First Horizon retained customers in the first quarter while not paying them the special rates they got last year.
U.S. customers who have previously used Sweden-based Klarna's buy now/pay later financing — and paid off their loans in full — will be prequalified for interest-bearing loans through a new version of the Klarna Visa card rolling out later this year.
Rep. Frank Lucas, R-Okla., told American Banker that he sees a concrete path to chair the House Financial Services Committee that relies on his long experience in committee leadership and long political career.
Banking Circle US is the first company to use Connecticut's uninsured bank charter for wholesale and merchant activities. This kind of charter makes sense for payments firms, but questions persist about overall viability.
"The numbers are obviously worth keeping an eye on, but lenders are managing the risk," said Melinda Zabritski, Experian's senior director of automotive finance. But she’s not yet worried about the rise in delinquencies or loans to those with lower credit scores, saying Experian hasn’t seen any obvious red flags. "Subprime has always been a part of the auto finance market and that's not going to change," she said. "We still have a lower percentage of subprime loans than we had before the recession."
Experian stated that 20.8% of open auto loans are held by those with subprime and deep subprime credit ratings, a slight increase from the fourth quarter of 2014.
As auto sales climbed to a record high last year, banks, credit unions and the finance divisions of automakers wrote so many loans that the total amount borrowed for new cars and trucks hit almost $1 trillion in the fourth quarter.Auto delinquencies and repossessions historically climb when unemployment rises and the economy slows. The latest economic data may show the economy slowing, but the unemployment rate dropped below 5% in January, the lowest level in years.