Wednesday, 18 December 2013

How big banks help the ticket clipping of the poor

From the Washington Post’s Wonkblog:
We usually think of payday lenders, pawn shops, rent-to-own stores and other high-cost loan operations as alternative forms of financing for people who are short of cash. But that’s merely a facade: They couldn’t operate without billions of dollars in cheap capital from the nation’s biggest banks.
Reinvestment Partners, a North Carolina-based non-profit that advocates for the underbanked, put out a report Monday laying out how the system works, and just how much money flows through it — $5.5 billion, to be precise.
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