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Perhaps the most surprising revelation in Thursday's documents was that foreign banks quickly became the largest and most frequent borrowers.
The frequent borrowers account for a disproportionate share of loan fees paid to lenders.
Almost No One Takes Out Just One Payday Loan Most payday loans are made to frequent borrowers.
The frequent borrowers accounted for an even larger part of lender profits because the marketing expenses of payday lenders is focused on getting new clients.
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That estimate suggests large banks have reaped tremendous benefits from under-serving distressed homeowners, a complaint frequent enough among borrowers that federal regulators have acknowledged the industry has fundamental shortcomings, including a penchant to abuse borrowers, and is in need of reform.
Dexia was one of the most frequent and prolific borrowers.
Zane E. Brown, a fixed-income strategist at Lord Abbett, noted that gambling, leisure and automotive companies are frequent high-yield borrowers, which could lead to unbalanced fund portfolios if such companies are overrepresented.
Frequently the borrowers lack collateral.
White-collar crime lawyer Szymoniak and Chu, the Massachusetts activist, both bemoaned Obama's frequent invocation of "responsible" borrowers, arguing that this subjective focus on the moral integrity of borrowers ignores the rampant wrongdoing committed by the banking system both before and after the financial collapse.
Hence, formal lenders, namely banks and cooperatives, may ration credit, request additional documents from and frequent visits by the borrower (leading to higher borrower-side transaction costs), demand marketable collateral, and favor production credit over consumption loan.
"There's been frequent communication with the borrower," McGrain said.
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