In a Subprime Bubble for Used Cars, Borrowers Pay Sky-High Rates [DealBook]
This should all sound familiar: " Mr. Durham is one of millions of Americans with shoddy credit who are easily obtaining auto loans from used-car dealers, including some who fabricate or ignore borrowers’ abilities to repay. The loans often come with terms that take advantage of the most desperate, least financially sophisticated customers. The surge in lending and the lack of caution resemble the frenzied subprime mortgage market before its implosion set off the 2008 financial crisis. […] The explosive growth is being driven by some of the same dynamics that were at work in subprime mortgages. A wave of money is pouring into subprime autos, as the high rates and steady profits of the loans attract investors. Just as Wall Street stoked the boom in mortgages, some of the nation’s biggest banks and private equity firms are feeding the growth in subprime auto loans by investing in lenders and making money available for loans."
Tax Inversions Turn Into Campaign Fodder [WSJ]
I'm shocked it has taken this long, in an election year no less, for the political parties to start pointing fingers at each over their own mess.
PwC looks to tap rise of Africa [FT]
I'm going to have Toto stuck in my head all day: "PwC plans to ramp up its investment in Africa and build closer links between its UK and African operations as British companies look to tap into the rapidly expanding growth of the continent. The professional services firm plans to invest several hundred million dollars in Africa across its network and wants to double headcount in the continent over the next five years, mainly through local hires."
Sarbox Redux: Under PCAOB Logic, the EY/Ventas Affair Will Mean Audit Partner Naming [Re:Balance]
An interesting note from Jim Peterson as he predicts that audit partner naming will become reality: "Ventas stock price has traded upward since EY’s departure — $ 64.73 at this writing, compared with $ 63.91 going into the July 4th weekend. A fawning report on the company by Fitch and two by Motley Fool may have a bearing, but this uplift also confirms the indifference of the stock-buying public to an independence violation so flat-footed as to leave the company without reliable audited statements. Which squarely poses the question – just what is the value of auditor independence?"
Uh, oh: "Missing deadlines often means taking time away from someone else down the line. Instead of creatively figuring out how to buy more time, do as much as you possibly can to stick to the agreed-upon schedule."
4 Pinocchios for a rocker’s off-base claims about taxes and the ’1 percent’ [Fact Checker/WaPo]
You'll be shocked to learn that Gene Simmons doesn't quite have his facts right when it comes to who pays taxes.
EY and The Parthenon Group agree to combine [EY]
Parthenon is a "global strategy consultancy with 300 professionals" with offices around the world.
A GoT montage set to Lorde's version of Everyboday Wants to Rule the World for your Monday morning.