More coverage on banks/pdl story
February 25, 2010 | alternatives, federal legislation, industry | Comments (0)From the St. Louis Post Dispatch blog:
The products aren’t new; Wells Fargo has offered such loans since 1994 and Fifth Third Bank launched them in 2008. Consultant Elizabeth Rowe tells Bloomberg, though, that the product is ripe for expansion:
The smarter banks are trying to resell overdraft protection to consumers as a different product.
Another consultant, Michael Flores, notes that big banks face high overhead costs and may have trouble making money on small loans. Still, this is more evidence that when regulators create a void, the market will find a way to fill it.
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