NEXT STOP? The federal subpoena of GM Financial is believed to be part of a wider investigation, though JPMorgan Chase, Ally and other lenders declined to say whether the government has contacted them. "Our understanding is that the request is focused on the subprime auto finance space in general," a GM Financial spokeswoman said.
CCR - Other Consumer
FAQ: What Makes the DOJ's Subprime Auto Loan Probe Different
U.S. banks spent much of the last five years grappling with the legal fallout from the subprime housing bubble. Now, with the launch of a surprise inquiry by a hard-charging federal prosecutor in New York, lenders are wondering if subprime auto loans are next.
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