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The prospects for continuing income gains in a solid job market appeared to buoy consumer spirits as July got under way, despite concerns about problems in the subprime mortgage lending sector.
Thomas J. Perna, Bruce W. Van Saun and Joseph M. Velli were named to the new positions of senior executive vice president and Thomas P. Gibbons to executive vice president; Robert J. Mueller will head the new asset based lending sector; Leslie V. Godridge was named head of corporate banking, and Harold F. Dietz will be chief credit policy officer and head of the credit policy sector.
"We really hope that we can find ways to bring water and sanitation into the priority lending sector," he said.
At this point, the lending sector is so panicked —largely from the government's inconsistent behavior and failure to rescue Lehman Brothers — that it is frozen.
Stephen Ibbotson of the Institute of Chartered Accountants England and Wales also welcomed a full investigation: "It is right that the CMA is conducting a full-scale investigation into the business lending sector," he said.
More growth to report from Britain's booming alternative lending sector: the online lending platform Borro has just raised £13m of new funding from investors, including £4m from investors who backed the business via the OurCrowd equity-based crowdfunding platform.
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Marketplaces enhance and complement existing lending sectors, rather than outright replacing them.
Libor rates hover near 1%, and major lending sectors key off Libor, which can average near 4% in a zippy economic setting.
And while high-yield and other distressed lending sectors should be fine, their risk outlook continues to worsen, making them a relatively speculative and unattractive investment at this stage.
It shows that, while the TARP bailout of Wall Street (not including the bailout of the auto industry) amounted to $330 billion, the government also quietly spent $4.4 trillion more in efforts to stave off the collapse of the financial and mortgage lending sectors.
In reality, P2P is a crowded, risky consumer-lending sector (see this and this) with diminished prospects.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com