Big banks expose themselves to subprime loans through other lenders

Most of America’s big banks have moved away from direct loans to subprime borrowers after the financial crisis, but many are handing out billions to nonbank lenders that specialize in those high-risk loans. Banks including Wells Fargo, Citigroup Inc. and Bank of America have a collective $345 billion out to nonbank lenders that make their money loaning to subprime borrowers at high interest rates, according to a Wall Street Journal report. That’s six times more […]

source https://therealdeal.com/2018/04/10/big-banks-expose-themselves-to-subprime-loans-through-other-lenders/