Icahn Sets His Sights on Hertz, May Seek Board Seat

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Aug. 21 (Bloomberg) -- Carl Icahn took an 8.5 percent stake in Hertz Global Holdings, the billionaire said in a filing. Trish Regan reports on the “Movers & Shakers” segment of “In The Loop.” (Source: Bloomberg)

Bill: is here.

-- bill cohen is here.

Why aren't we seeing more banks willing to lend to small businesses?

There is a pendulum swing.

They had lowered credit standards considerably leading up to the financial crisis.

During the financial crisis and after, they get all this scrutiny from the fed and the regulators.

They cannot even conceive of making loans to small businesses unless they are aaa type credits.

What is the market like overall?

You look at the mortgage market and it is a syndicated market.

Mortgages are repackaged and resold.

It is a syndicated market.

Is it different for the small-business business owner, getting a small business loan.

Does it hold the loan on the balance sheet?

Primera -- primarily, yes.

Big wall street banks are in the business of syndicating big corporate loans, which is something that never used to happen.

Now it is quite standard.

For smaller loans, it is quite difficult.

This intermediation that is going on through small-business lenders is really exciting new development.

This is were jerod comes in who runs a company that is designed to fill this void.

It is not easy for small business owners to get these loans.

They turn to companies like yours.

Right.

We have built an online marketplace that connects small business owners which non-bank alternative lenders.

These are lenders that have emerged to service businesses that have been declined by banks.

We are a kayak for small businesses.

What are the downsides?

Are they paying much higher interest rates?

April are definitely paying a higher interest rate than they would at a bank -- people are definitely paying a higher interest rate than they would at a bank.

Interest rates started extraordinarily high because there was no alternative.

If you work with a bank -- over time, it is becoming more competitive, which is driven interest rates down.

At what point do the banks start saying, this is a market maybe we should be in?

Why not create a syndicated market for small business loans similar to what you have in the mortgage market and how would that affects folks like derek?

-- jerod?

You may have trouble hearing me for a minute.

You have something going on overhead there.

[laughter] it seems like an opportunity.

It is an opportunity, but it gets back to whether or not they can syndicate the loans because they do not want to hold them on their books.

It will appeal to investors on some level.

Time is on your side, but just for now.

As you look at this market and people try to exploit this opportunity, what do you think it could grow into?

I think it is about non-bank alternative lending.

What it is really helping you do is grow non-bank alternative lenders.

Do you think regulation is going to come along?

I think it will and i think it should.

We will event there.

Thank you.

Thank you.

Bill, i will be talking to you about bank of america and the $17 billion fine.

Richard haass will be responding

This text has been automatically generated. It may not be 100% accurate.

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