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.
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.
As one bank CEO put it when asked about the large animal, "I don't want to have any discussion or communication about overdraft fees." A segment of consumers value them greatly and will find them elsewhere if financial industry herds disappear.
Military people go on pushing and taking risks even in an objectively hopeless situation because of responsibility felt by the individual to close teammates. Structure rewards accordingly.
Visa and MasterCard got a senatorial rap on the knuckles over plans to use customers' credit card transaction data to target online ads. Might there be a fair way of doing this that is a win-win for all stakeholders?
How can banks can move to a technology-based model while still supporting a higher-cost branch model to serve the remaining traditionalists? There's not an easy answer.
