Cashing in on Distress

The Expansion of Fringe Financial Institutions During the Great Recession

Dados Bibliográficos

ID6404724
AutoresJ W Faber (0000-0003-3829-0181, New York University, New York, NY, USA, autor correspondente)
Ano2018
Volume54
Fascículo4
Páginas663-696
Data de publicação2018-07-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoUrban Affairs Review (JOURNAL)
Identificadores do periódicoISSN: 1078-0874 • E-ISSN: 1552-8332
EditoraSAGE Publications Inc (PUBLISHER)
DOI10.1177/1078087416684037
OpenAlexW2778460053
IdiomaEN
Citações recebidas30
Referências citadas37

The Great Recession was a consequence of widening inequality and the growth of a tiered financial services system, in which the rich and the poor have access to vastly different tools for wealth accumulation. The spatial organization of these dynamics created neighborhoods vulnerable to predation on behalf of subprime lenders and other fringe service providers. This project seeks to understand the reproduction of institutional marginalization in consumer finance. Results show that racially isolated neighborhoods in New York City, where subprime lending and foreclosures were common, were uniquely vulnerable during the Great Recession and were communities where check cashing outlets (CCOs) sprouted, highlighting a mechanism for the reproduction of inequality over time. CCOs cost more per transaction than a checking account—potentially totaling tens of thousands of dollars over a career. The link between widening financial services inequality and the recession’s consequences provides a strong impetus for safety net and community investment policies

Business · Distress · Economics · Financial distress · Financial services · Financial system · Great recession · Inequality · Investment (military · Labour economics · Macroeconomics · Political science · Recession · Reproduction · Housing Market and Economics · Housing, Finance, and Neoliberalism · Urban, Neighborhood, and Segregation Studies · Finance