Tuesday, January 5, 2016

Banker bot takes over lending

Business Insider: America's biggest banks are backing online lenders.
Wall Street institutions like Citigroup, JPMorgan, and Barclays are partnering with startups that, in many cases, set out to disrupt the banks they are now colloborating with.
The student-loan-refinancing specialist CommonBond on Tuesday announced the closing of separate $275 million warehouse lines of funding from Macquarie Capital, Barclays, and other investors.

The loan to balance ratios are manage by bots for most of these sites.  Also, the derivative industry has direct access to rates, hence poricing will adjust simultaneously.  The Fed no longer has any role to play, Congress will be borrowing in  a nearly blind bond market.

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