JPMorgan scales back some lending activities
While the bank's mortgage book of business has grown dramatically, JPMorgan Chase (JPM) is looking to scale back lending to pawn shops, payday lenders, check cashiers and certain car dealerships due to heightened regulatory scrutiny. Per The Wall Street Journal:
The bank has launched an internal review of its commercial-lending clients that is expected to result in the elimination of relationships with companies that pose a greater risk of fraud or money laundering and are viewed as risky to J.P. Morgan's reputation, these people said.
The process could slice hundreds of millions of dollars from the bank's annual revenue, one of these people said. J.P. Morgan already has culled some clients and is likely to exit from more relationships, another person said. It isn't yet known which companies have been cut off.