To the Editor:
Re “Taxi Drivers Fell Prey While Top Officials Counted the Money” (“Taken for a Ride” series, front page, May 20):
Your investigative series does not tell the stories of the lenders to the taxi medallion industry that did not take advantage of the borrowers.
The Franklin Corporation and Beneficial Capital Corporation were two lenders in the 1980s who lent millions of dollars to buyers of coveted taxi medallions. The interest rate was regulated by the Small Business Administration, and the loans were self-amortizing over five to seven years.
No loans called for the payment of interest only, and none were sold to third parties. The lenders never had a default. When the price of medallions rose to astronomical levels and loans could not be repaid within seven years, these lenders discontinued lending to the industry.
We recognize the importance of The New York Times in unearthing examples of corporate greed and corruption, devastating communities, but there are examples worth highlighting of the positive effect lenders in this industry had when they knew how to act fairly.
James Eisberg
John Hoey
New York
Mr. Eisberg is house counsel of the Franklin Corporation, and Mr. Hoey is chief executive of Beneficial Capital Corporation.
Source: Read Full Article
Home » Analysis & Comment » Opinion | Taxi Medallion Loans
Opinion | Taxi Medallion Loans
To the Editor:
Re “Taxi Drivers Fell Prey While Top Officials Counted the Money” (“Taken for a Ride” series, front page, May 20):
Your investigative series does not tell the stories of the lenders to the taxi medallion industry that did not take advantage of the borrowers.
The Franklin Corporation and Beneficial Capital Corporation were two lenders in the 1980s who lent millions of dollars to buyers of coveted taxi medallions. The interest rate was regulated by the Small Business Administration, and the loans were self-amortizing over five to seven years.
No loans called for the payment of interest only, and none were sold to third parties. The lenders never had a default. When the price of medallions rose to astronomical levels and loans could not be repaid within seven years, these lenders discontinued lending to the industry.
We recognize the importance of The New York Times in unearthing examples of corporate greed and corruption, devastating communities, but there are examples worth highlighting of the positive effect lenders in this industry had when they knew how to act fairly.
James Eisberg
John Hoey
New York
Mr. Eisberg is house counsel of the Franklin Corporation, and Mr. Hoey is chief executive of Beneficial Capital Corporation.
Source: Read Full Article