Banking and Lending

ZF sells bonds to help finance TRW acquisition

2:37 pm U.S. ET | April 20, 2015

ZF raised $2.4 billion with the company's first bond sale in its 100-year history to help pay for its acquisition of automotive safety components supplier TRW Automotive Holdings Corp....
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JIM HENRY

BLOG: Women in automotive seek more peers

12:15 pm U.S. ET | April 15, 2015

A lot of dealer principals and general managers swear by their female salespeople and F&I managers and wish they had more. But in the business world at large, auto industry careers for women are a “best-kept secret.”...
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JPMorgan Chase loses bid to reclaim security for $1.5 billion GM loan

4:02 pm U.S. ET | April 14, 2015

JPMorgan Chase lost another court bid to reclaim security for a $1.5 billion loan to General Motors' bankrupt predecessor....
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JIM HENRY

BLOG: Lenders' outcry against CFPB 'narratives' is justified

12:01 am U.S. ET | April 8, 2015

It's no wonder auto lenders cried foul last month when the CFPB announced its plan to begin posting consumers' first-person tales of their grievances with auto loans later this year....
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JIM HENRY

BLOG: No such thing as 'little' lies on credit apps

11:00 am U.S. ET | April 1, 2015

The Federal Trade Commission served up a forceful reminder last week that inflating a customer's income on a credit application isn't just a little white lie, even if it's intended to “help” the customer....
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JAMIE LaREAU

BLOG: Volvo captive finance's plan to help spur sales of Volvo's XC90

3:30 pm U.S. ET | Feb. 19, 2015

The redesigned 2016 Volvo XC90 is “the big” launch facing Volvo's captive finance company. Just ask Dan Romagnoli. He is the man responsible for making sure dealers get enough financing support to sell the heck out of the crossover when it goes on sale in May....
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GM seeks banks' advice on dealing with activist investor group

12:13 pm U.S. ET | Feb. 12, 2015

General Motors has turned to two investment banks to help it come up with a response to a shareholder group demanding $8 billion in stock buybacks and a seat on the board of the automaker, the company told Reuters....
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Q&A

How some customers cheat themselves

2:00 pm U.S. ET | Jan. 23, 2015

When Hennessy Buick-GMC in Georgia signed up this year for an Equifax system that automatically verifies employment and income, Finance Director Blake Bailey thought the system would mostly identify people who had overstated their income....
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Faster is better in F&I, Power survey shows

12:00 pm U.S. ET | Jan. 22, 2015

The latest J.D. Power Sales Satisfaction Index Study underscores how important it is to get customers in and out of the F&I office as quickly as possible....
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Paperwork error on GM loan will cost JPMorgan $1.5 billion, U.S. court rules

1:24 pm U.S. ET | Jan. 21, 2015

A 2008 paperwork error in a loan agreement with General Motors, before the automaker went into Chapter 11 bankruptcy, will cost JPMorgan Chase $1.5 billion, a federal appeals court ruled today....
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2015 AUTOMOTIVE NEWS WORLD CONGRESS

Good times won't last forever, analyst says

12:01 am U.S. ET | Jan. 19, 2015

The U.S. auto industry is in good shape. But the good times won't last forever, so watch your balance sheets and don't blow it. That was the advice to automakers from John Murphy, lead U.S. auto analyst in equity research with Bank of America Merrill Lynch....
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2015 AUTOMOTIVE NEWS WORLD CONGRESS

FCA's Bigland says loan terms will grow, making price increases more affordable

6:10 pm U.S. ET | Jan. 14, 2015

Fiat Chrysler Automobiles' head of US and Canadian sales says loose credit terms will continue to drive new vehicle sales, even as pent-up demand dwindles in a recovered economy....
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2015 AUTOMOTIVE NEWS WORLD CONGRESS

Analyst forecasts 17 million U.S. sales in 2015, 20 million in 2018

5:27 pm U.S. ET | Jan. 14, 2015

The US auto industry will sell over 17 million vehicles in 2015 and could reach 20 million in 2018, but expect a sharp downturn after that. So predicted John Murphy, lead US auto analyst for Bank of America Merrill Lynch....
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JIM HENRY

BLOG: Lending practices face new scrutiny: States

11:30 am U.S. ET | Jan. 14, 2015

State officials aren't far behind the federal government in the present crackdown on auto lenders, especially in the subprime segment....
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Takata stock rises after lender expresses support

6:33 am U.S. ET | Jan. 8, 2015

Shares in Takata, the maker of airbags that led to millions of vehicle recalls by global carmakers, rose to the highest price in more than two months as a major lender said it would support the troubled supplier should it fail....
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JIM HENRY

BLOG: 'Flat-rate model,' yes. Flat fees, maybe not.

11:00 am U.S. ET | Jan. 7, 2015

One veteran F&I vendor predicts that in 2015 more lenders will probably adopt a “flat-rate model” to pay dealerships for arranging auto loans....
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JIM HENRY

BLOG: Wishing auto lenders a happy, rational new year

10:30 am U.S. ET | Dec. 30, 2014

Auto lenders are about to embark on another year of worry that the other guy will go “irrational” and start making money-losing loans to gain U.S. market share. They fret they'll be forced to decide whether to give up share or follow suit, sparking losses....
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JIM HENRY

BLOG: Consent orders and the law of unintended consequences

11:14 am U.S. ET | Dec. 23, 2014

The Consumer Financial Protection Bureau quietly terminated a consent order with Minneapolis-based U.S. Bank last month, a contrast to the fuss it made in announcing the agreement in June 2013....
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JIM HENRY

BLOG: Free of U.S. ownership, Ally expects cheaper funds, maybe more subprime deals

3:13 pm U.S. ET | Dec. 19, 2014

Ally Financial is “free at last,” to borrow a phrase CEO Michael Carpenter used earlier this year to describe how it would feel for Ally finally to put six years of government ownership behind it....
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JIM HENRY

BLOG: Will the CFPB redefine “larger”?

12:01 am U.S. ET | Dec. 17, 2014

Auto industry watchers that formally weighed in on the Consumer Financial Protection Bureau’s definition of “larger” auto lenders took predictable positions before the public comment period closed last week....
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JIM HENRY

BLOG: Who distorted what? Wording of CFPB statement will get its own investigation

11:30 am U.S. ET | Dec. 10, 2014

The ombudsman’s office for the Consumer Financial Protection Bureau said it would conduct an independent review into complaints that the CFPB’s press releases don’t match the consent orders they describe -- something auto finance insiders have complained about bitterly but privately, for fear of provoking the bureau.
...
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LINDSAY CHAPPELL

BLOG: Dealer missteps do not a lender meltdown make

12:01 am U.S. ET | Dec. 6, 2014

It shouldn't surprise anybody if heightened regulatory scrutiny on car lending reveals some transactions where a dealership has disregarded the rules on loan paperwork. But it's a mistake to jump from that reality to any suggestion that there is something rotten in the structure of the vehicle lending industry....
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JIM HENRY

BLOG: Auto finance benefits from looser purse strings

12:01 am U.S. ET | Dec. 3, 2014

U.S. households have closed the book on a “deleveraging period,” the government's fancy way of saying households have quit spending less and saving more. And that's good news for auto financing....
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EDITORIAL

Discrimination? Share the data

12:01 am U.S. ET | Dec. 1, 2014

Did federal regulators use reliable data analysis to conclude that dealers may be discriminating in their lending practices? A new study commissioned by the American Financial Services Association, a lender group, challenges the statistical method used by the Consumer Financial Protection Bureau....
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JIM HENRY

BLOG: Military ends paycheck deductions for car loans

12:01 am U.S. ET | Nov. 26, 2014

The Department of Defense last week made it impossible for service members to use the reliable but old-fashioned military allotment system to make auto loan payments -- a small-scale example of a couple of bad apples in auto lending ruining things for everyone else....
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