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 |  Subject: breaking JPMorgan announces: No more student loans :The student loan bubble is starting to burst  Fri Oct 18, 2013 9:18 am | |
| breaking JPMorgan announces: No more student loans :The student loan bubble is starting to burston October 18, 2013Posted In: Financial Collapse, Money, UsaIt never rains but it pours the US has had disaster after disaster from 2008 onwards. political, financial and natural. after the debt debacle and the Dollar now seen as the Titanic aka were are the lifeboats ,Now here comes the next phaze. Getty ImagesThe largest bank in the United States will stop making student loans in a few weeks.JPMorgan Chase has sent a memorandum to colleges notifying them that the bank will stop making new student loans in October,according to Reuters.The official reason is quite bland.“We just don’t see this as a market that we can significantly grow,” Thasunda Duckett tells Reuters. Duckett is the chief executive for auto and student loans at Chase, which means she’s basically delivering the news that a large part of her business is getting closed down.
The move is eerily reminiscent of the subprime shutdown that happened in 2007. Each time a bank shuttered its subprime unit, the news was presented in much the same way that JPMorgan is spinning the end of its student lending. Play VideoJPMorgan: No more student loansJPMorgan will not be accepting new private student loan applications, reports CNBC’s Kayla Tausche. The decision applies to borrowers for next year.“It’s no longer sustainable and not the right place to allocate capital in the future,”HSBC Holdings Group Chief Executive Michael Geoghegan said in a statement the day HSBC shut down its subprime unit in 2007.“Lehman Brothers announced today that market conditions have necessitated a substantial reduction in its resources and capacity in the subprime space,” the press release issued in August 2007 said.There is over $1 trillion in outstanding student loans, making it the second largest source of household debt after mortgages. Just 10 years ago, student loans stood at $240 billion. About $150 billion of the total is comprised of private student loans made by banks and other financial institutions, according to a report issued by the Consumer Finance Protection Bureau last year.(Read more: Why falling college enrollment could be good for markets.)The CFPB reported that around $8 billion of private student loans were in default. That number is likely to go higher if interest rates rise because most private student loans, unlike federal loans, are variable rate loans linked to Libor or the prime rate.JPMorgan’s actually the second big private lender to step away from the business. Last year US Bancorp exited the business. That leaves Wells Fargo & Co.,Discover Financial Services Inc., PNC Financial Services Group, SunTrust Banks Inc., and various credit unions as the largest private student lenders. Oh, and of course, Sallie Mae, which was privatized in 2004.(Read more: The college tuition bubble may have burst.)I won’t be surprised if a few more of these lenders decide that they want out of the student loan racket.Of course, the entity with the biggest exposure to student loan defaults is the U.S. government. |
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| | Subject: Re: breaking JPMorgan announces: No more student loans :The student loan bubble is starting to burst Sat Oct 19, 2013 12:05 pm | |
| This might have something to do with that. Arrows and emphasis mine.http://dcclothesline.com/2013/10/19/red-star-jpmorgans-one-chase-manhattan/ - Quote :
Red Star over JPMorgan’s One Chase Manhattan
Gus Delaporte reports for the Commercial Observer, Oct. 18, 2013, that Chinese conglomerate Fosun International has agreed to acquire JPMorgan’s former headquarters in Manhattan — the 60-story, 2.2 million square-foot One Chase Manhattan Plaza at 16-48 Liberty Street — for $725 million.
JPMorgan Chase & Co. had put the 60-story, 2.2 million-square-foot building up for sale in August.
Tyler Durden of ZeroHedge calls the &725 million price tag “measly” and notes that the iconic 1 Chase Manhattan had been built by none other David Rockefeller, and that Fosun International, also known as “Shanghai’s Hutchison Whampoa,” is China’s largest private-owned conglomerate which invests in commodities, properties and pharmaceuticals.
===> More than that, 1 Chase Manhattan is also the building that houses JPMorgan’s commercial gold vault — reputed to be the largest in the world. <===
According to Bloomberg, Fosun International is owned by Chinese billionaireGuo Guangchang. Jane Zhang, a Shanghai-based spokeswoman for Fosun, declined to comment on how the company plans to use the building when contacted by Bloomberg News by phone.
The One Chase Manhattan Plaza deal is just the latest. Over the past year, other Chinese developers and wealthy investors have been buying real estate in the U.S., including:
- Greenland Holdings Group, a Chinese state-owned developer, signed a preliminary deal last week to buy a majority stake in the Atlantic Yards project in Brooklyn.
- Earlier this year, the family of Chinese developer Zhang Xin, co-founder of Soho China Ltd. (410), the biggest developer in Beijing’s central business district, acquired a 40% stake in New York’s General Motors Building in partnership with Brazilian banking billionaire Moise Safra, for approximately $1.4 billion.
- In February 2013, China Vanke Co., China’s biggest homebuilder joined a residential real estate venture in San Francisco.
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