Robert Reich via Facebook.com
6 hrs · Edited ·
Roughly 12 million Americans get payday loans at an annualized rate of 300% or more. Citigroup – whose hugely-profitable OneMain Financial unit is one of the leading payday lenders – has poured money into state legislative races in order to prevent regulation of payday loans. Rick Glazier, a North Carolina legislator who witnessed Citi's handiwork, told the New York Times “it was one of the most brazen efforts by a special interest group to increase its own profits that I have ever seen.” Four months ago, Citigroup sold OneMain Financial to Springleaf Holdings in a cash deal valued at $4.25 billion.
The average payday borrower earns less than $18,000 a year. The CEO of Citigroup, Michael Corbat, was paid $14.5 million last year. The CEO of Springleaf Holdings, Michael Levine, was paid $78.7 million in 2013, the latest data available.
Another example of how economic power translates into political power to gain even more economic power.
The TRUTH will set you FREE.
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