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Regulators Criticize Banks For Lending Uber $1.15 Billion (venturebeat.com)
Federal regulators criticized several Wall Street banks over the handling of a $1.15 billion loan they helped arrange for Uber this past summer, reports Reuters, citing people with knowledge of the matter. From the report: Led by Morgan Stanley, the banks helped the ride-sharing network tap the leveraged loan market in July for the first time, persuading institutional investors to focus on its lofty valuation and established markets rather than its losses in countries such as China and India. The Federal Reserve and the Office of the Comptroller of the Currency (OCC), which are trying to reign in risky lending across Wall Street, took issue with the way in which the banks carved out Uber's more mature operations from the rest of the business, the people said.
The whole point of corporations in the US is so that nobody's liable for what corporations do. Corporations can't/don't go to jail, and a member of a corporations going to jail for something done under the auspices of the company is rarer than lightning strikes or lottery winners.
I don't respond to AC's.
and THAT is the problem
Ride sharing has a specific meaning, and Uber is not it.
While risky, Uber does actually have a bloody good business model. It's just that they are also unethical as hell, and does not give a crap about your privacy or your security.
Clearly you have never caught an Uber, or if you have you have never bothered to actually speak to the driver(s). I usually use my motorbike to get to work and back, but when the weather is really crappy I catch an Uber, and I chat with the drivers. Of all the Ubers I have caught I have only encountered one disgruntled driver, ironically he didn't like meeting all the different people and wanted to go back to driving long distance trucks. All the other drivers have been happy driving for Uber, sure the metered taxis charge twice what Uber charges and so get more out of driving, but no one uses them anymore (because they are so expensive).
There are three kinds of falsehood: the first is a 'fib,' the second is a downright lie, and the third is statistics.
Yup. That's one of the only ones I can think of off the top of my head. Oh, maybe that kid who tried to run a pharmaceutical company. But, that's my point. It happens much more rarely than it should. Who from GM was sent to jail for killing over 100 people by knowingly using bad ignition switches? Every industrial accident that was the result of negligence? Or even companies that willingly and knowingly sell things to people that give them cancer?
I don't respond to AC's.
Where were these "regulators" when the banks were lending trillions on junk mortgages then reselling them to people as bonds?
No sig today...
Exactly. Why do people think they need to be white knights for Uber drivers? Uber drivers know what they are doing.
Your post reminds me of this clip from Airplane.
The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
Found the cabbie scum.
"Oh my God. This is terrible. This is the end of my Presidency. I'm fucked."; ~ Donald J. Trump
Most are happy until they go to sell their cars and learn there is no equity left after a few years. The more you drive, the more you loose.
In theory, the people up the chain of command get a huge salary because they are responsible when something breaks.
in practice, they get to blame you.
The whole point of corporations in the US is so that nobody's liable for what corporations do. Corporations can't/don't go to jail, and a member of a corporations going to jail for something done under the auspices of the company is rarer than lightning strikes or lottery winners.
This is the result of corporate lobbying over the last 20 years, and the growing view (among the wealthy elite) that white-collar crime isn't really a thing. After the savings-and-loan collapse in the 1990s, over 900 bankers were convicted of criminal offenses; after the most recent (and much worse) financial crash, nobody in the banking industry has spent even a night in jail.
...long long ago, an out-of-town visitor to New York was admiring the elegant vessels harboured off the Financial District; "Those are the bankers' and brokers' yachts!" exclaimed the guide. "But where are the customers' yachts?" questioned the naÃve visitor in response...
Sanity is the trademark of a weak mind. -- Mark Harrold
Funny how it only happens to foreign corporations while wall street bankers and ratings agencies walk free after the sub-prime crisis.
Aww, that's so cute...
I find the idea that someone can make anecdotal claims on the Internet and pass them off as a comprehensive study probably the oddest part of the parent's claims.
"Oh well, fuck employment law, because sometimes I take an Uber ride, and the drivers seem totally cool with it!"
The world's burning. Moped Jesus spotted on I50. Details at 11.
The problem with Slashdot these days is that 4chan trolls like yourself are here. There's should be a "-100000 4chan scumbag".
The world's burning. Moped Jesus spotted on I50. Details at 11.
It's hard to call a business model that has thus far lost hundreds of millions of dollars a "good" business model. About the only way it is a good business model is that the guys at the top are probably taking in a pretty tidy salary, and will be walking away from the wreckage of Uber's bankruptcy with millions.
The world's burning. Moped Jesus spotted on I50. Details at 11.
The 2008 crisis taught investment banks an important lesson. If you are politically connected enough, the government will bail you out if you screw up.
You're demonstrating a fair amount of ignorance yourself here.
Banks don't just loan based on
The banks didn't provide the loans. The banks helped Uber secure investment from others, and likely made a hefty profit on their fees.
This is precisely why the regulators are getting grumpy. The banks have a history of disregarding whether they're providing those investors with a viable and sensible product or not - and that's explicitly one of the factors that led to the financial crash.
The banks haven't bet on anything. They've facilitated others making a sizeable and very risky bet, and received a safe guaranteed income as a result.
There was no regulation.
Congress "deregulated" that piece of the banking industry when it repealed sections 20 and 32 of the Glass–Steagall Act in 1999.
It only took the corporations 9 years to create a national disaster.
It turns out some regulations are very, very good ideas.
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According to the latest ruleset, this post should be modded as Vorpal Flamebait +5.
But, without all the shit the CEO generates, they might not need the janitors.
Slow down, cowboy! It has been 4 hours since you last posted. You must wait another few hours.