AlRozzi Posted July 17, 2017 Share Posted July 17, 2017 (edited) I suspected this to be the case given their sales spike in recent years w/o increasing fleet much if any. Could also explain Ram's success relative to Silverado. http://www.msn.com/en-us/money/markets/subprime-strikes-again-auto-defaults-are-booming/ar-BBEzOz7?li=BBnbfcN Few things capture this phenomenon like the partnership between Fiat Chrysler Automobiles NV and Banco Santander SA. Since 2013, as U.S. car sales soared, the two have built one of the industry’s most powerful subprime machines. Details of that relationship, pieced together from court documents, regulatory filings and interviews with industry insiders, lay bare some of the excesses of today’s subprime auto boom. Wall Street has rewarded lax lending standards that let people get loans without anyone verifying incomes or job histories. For instance, Santander recently vetted incomes on fewer than one out of every 10 loans packaged into $1 billion of bonds, according to Moody’s Investors Service. The largest portion were for Chrysler vehicles. Edited July 17, 2017 by AlRozzi Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted July 17, 2017 Share Posted July 17, 2017 Moral Hazard: In economics, moral hazard occurs when one person takes more risks because someone else bears the cost of those risks. A moral hazard may occur where the actions of one party may change to the detriment of another after a financial transaction has taken place. https://en.wikipedia.org/wiki/Moral_hazard 1 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.