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Eye On Boise

Wasden announces settlement of antitrust questions in big subprime lender merger

Idaho, along with six other states and the federal government, has reached a settlement to resolve antitrust concerns with a merger between two financial services companies, Attorney General Lawrence Wasden announced today. As part of the settlement, the two firms, Springleaf Holdings Inc. and OneMain Financial Holdings LLC, will divest themselves of four Idaho branches, located in Boise, Twin Falls, Pocatello and Coeur d’Alene.

“Requiring these companies to sell these stores to another company ensures Idaho’s marketplace will remain competitive,” Wasden said. “I’m pleased that Springleaf and OneMain recognized the importance of a fair marketplace and have agreed to a series of conditions.” The merger could make the combined firms the nation’s largest subprime lender; it involves more than 2.5 million customers and 2,000 branches across the country.

The firms also agreed to pay $15,000 to cover investigation and legal costs at the Attorney General’s office, and provide protection for existing customers and employees at the divested branches. “What this settlement really does is gives another company the opportunity to enter the marketplace and alleviate any competitive concerns that would be created by the merger of Springleaf and OneMain,” Wasden said. There’s more info here.

Betsy Z. Russell
Betsy Z. Russell joined The Spokesman-Review in 1991. She currently is a reporter in the Boise Bureau covering Idaho state government and politics, and other news from Idaho's state capital.

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