@RogueCfpb But if there is "free money" from the government / forgivable loans for 4 years of camp, wont students keep enrolling and won't prices keep increasing along with nicer buildings, dorms, fun majors and clubs?
Jackie is absolutely correct. And I can’t believe this is a controversial take. “Debanking” is such a dumb term. Banks have very good reasons for avoiding certain customers and sectors. This is not new. And it isn’t political.
"I don't believe there was debanking. I think it's a crock of shit. An absolute crock of shit."
— @Lead_Bank CEO @jackiereses
"There's 5,000 banks in the United States. We have a lot of red states. Are you telling me that in lots of red states, including where my company is headquartered, Kansas City, Missouri—those banks were not willing to bank, for example, conservative companies?"
"What debanking actually means is that banks transitioned out of offering crypto products or risky products like adult entertainment or something like that."
"That's legit. That happened to lots of companies. But that is not systematically debanking. That's choosing not to invest in the industry."
"There might be cases where a bank decides to not include executives in a particular industry, or they choose they don't want the risk associated with something. That is their prerogative, and banks can make decisions based on their own reputational risk."
"Thankfully, you have 50 states and 5,000 banks, and there are plenty of people who would take a pro and con of each side of those judgments, and be able to offer services to many of those people who say they were excluded from the banking system."
@mikulaja I agree with your point. But I don’t think dual network legislation will meaningfully reduce the cost to accept card payments. The real way to do that is to cap IC which would eliminate rewards/points/cash back to consumers and businesses. Australia and the UK did this.
@paulg@dadiomov Visa takes <12bps to manage a ubiquitous network, set and enforce rules to clear the market including assigning risk and economics. Who is going to do that better, faster, cheaper?
Berkshire Hathaway vice chairman Ajit Jain: "Insurance, much like investing, is a game that requires patience. It is very difficult to get people to sit back and do nothing."
"The real test of being successful is the ability to say no."
I ridiculed the Metaverse (privately) when it was announced. But now as Ai is progressing, I think Mark was/is right but a little too early. Unfortunately people will want to live in the pink goo from the Matrix. I hate it. But I get it.
@regulatorynerd 3 reasons to get a charter - in order:
1) control your own destiny. Get as close to your regulator as possible.
2) reduce origination costs
3) fractional reserve banking - it’s amazing!
@regulatorynerd@commbankerguy Good points. I suspect we had the same dynamic with stocks, bonds and land speculation pre SEC (1934). You can’t eliminate the assets once consumers want to buy that risk - but you can regulate and specifically demand uniform transparency under harsh penalties for issuers.
@regulatorynerd@commbankerguy Yes. This is simple. If you hold consumer funds -> regulated. If you buy assets with those funds -> more regulation and disclosure needed.
@jevgenijs If you’re legit, get as close to your regulator as possible. Reduce risk and control your own destiny. Second benefit is the profit from fractional reserve banking.
@RogueCfpb Isn't he saying that subprime borrowers would be better off without any credit at all? Good credit already subsidizes bad credit. He wants to just take away access to credit. Which is dumb... of course.
Lemkin is always on point. When Sweep was struggling, Mitch Kapor asked us how bad we wanted to survive? And if we were willing to cut off our arm with a pen knife like the climber trapped by a boulder in the movie 127 Hours. Hard truths are needed.
Growth slowed?
Get the co-founders together in a room. Lock the door.
Now you'll see the only team available to fix things. No one else is coming to help you.
It's up to you. How badly do you want to get back to growth? Only founders can care enough to really do it.
It's just you. Looking at each other. Deciding how badly you really want it. How much even harder you are willing to work. And how much pain you are willing to endure.