The Wall Street Journal is reporting JP Morgan Chase is ending their lending relationships with what they perceive “high-risk” industries. Sources say that this period of heightened regulatory scrutiny is the reason they will scale back lending to pawn shops, payday lenders, check cashers and certain car dealerships.
(Sarcasm) Because we all know that the payday industry caused the financial meltdown that required the federal government to bail out the banks.
One such example is Cash America International, which owns CashNetUSA.com. It’s hard to say if this is the reason. “Cash America International Inc., Fort Worth, Texas, disclosed in a July securities filing that its lending relationship with J.P. Morgan had ended, but the filing didn’t explain why.”
JP Morgan Chase is also eliminating other industries like: student lending, commodities and potentially gun companies.
