Loan Sharks Discuss the Subprime Crisis

The Post speaks another subset dealing with the subprime crisis: Loan sharks. Benny the Loan shark who, like the banks, has "made loans to subprime borrowers in danger of defaulting." He says, "I'm not really worried about people borrowing money from me, what I worry a lot about is whether they'll pay it back...I'm going to have to start collecting collateral - you know, like jewelry, wedding bands, necklaces and family heirlooms." His rates: $50/week in interest on loans of $100-200. Tanda, a "mid-level loan shark" has raised lowered his interest rates by 50% recently--"$200 a week on a $500 loan and $400 a week on a $1,000 loan"--and says, "Wall Street should take a lesson from me, I never lend what I can't afford to lose - and I lose very little."

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By Jen Chung in News on October 13, 2008 11:40 AM

Comments [rss]

ruzzel01

And of course as credit dries up even further, it's all good for this fellow. But, I believe that some are nice like the instant payday loans.

BMMDan

can someone help me understand this line? "Tanda, a "mid-level loan shark" has raised lowered his interest rates by 50% recently"

Raised lowered? What the hell does that mean?

NannyState

I swear my broker at Legg Mason is padding the vig.

Kojak

I'm sure thats just an example. Loan Sharks don't deal unless its big G's. 100 dollar loans are a pain to keep track of. Its not a good use of resources to send the goons to bust knee caps just for one Benji.

angry_pickle

$50/week for a $100-$200 loan? I think only drug addicts would take that loan.

JacqueMehoff

they make loans on $100??????

lemme guess they usually hang out in front of OTB for a sucker with a sure thing.

Rob T Firefly

Every aspiring journalist needs to keep some nice, completely unverifiable yet scary stories like this typed up for slow news days.

Now excuse me, I have to get back to interviewing my action figures about what it's like to be in the mafia.