Ford, GM to Establish Industrial Banks: Concerns Over Predatory Lending, Recurrence of Past Financial Crises
FDIC clears way for Ford, General Motors to set up industrial banks, and this is where things get interesting, maybe even a little unsettling. The basic idea is that these automotive giants, Ford and General Motors, are now cleared to establish their own industrial banks. This essentially means they can offer financial services, specifically auto loans, directly to their customers. On the surface, it seems straightforward: more financing options, potentially better deals. But when you dig a little deeper, the implications raise some eyebrows.
One of the first things that pops into mind is the specter of the “company store” – that historical relic where corporations controlled both jobs and finances, often at the expense of their employees.… Continue reading
Matt Underwood