Non-banks already provide a large portion of small-dollar credit, amounting to billions of dollars annually. Unlike federally insured institutions, they cannot operate efficiently nationwide.
It's not 500 recognized uncertainties that kill you. It's one, or a few, variables that you didn't think were variable. Subprime was not such a variable. Home prices did the trick.
Judge Jonathan Lippman, regulator Benjamin Lawsky and Attorney General Eric Schneiderman are standing up to an industry intent on forgetting that the ongoing foreclosure crisis affects real people, real lives and real families.
In a capitalist economy there is one market which is more important than any other - the market for capital. Yet we find a control command center at the heart of the U.S. financial system.
The premise behind proposed changes to money market funds is that a subordinated capital and floating net asset values will prevent "runs." Logic and evidence point to the contrary.
Banks should adhere to high moral standards by discouraging people from going needlessly into debt. The concept of "fly now, pay later" does not promote consumers' financial responsibility.
