'Some Businesses Fill a Niche Better than Banks': Comments of the Week
January 17, 2014 8:48 AM
American Banker readers share their views on the most pressing banking topics of the week. As excerpted from the Comments sections of AmericanBanker.com articles.
(Image: Fotolia)
On banks making non-'qualified' mortgages:
"Any attempt to wriggle out of the government straitjacket will be punished by the regime."
Related Article:
(Image: Thinkstock)
On House Republicans criticizing the Volcker Rule:
"The problem here is that Congress has abdicated too much of their responsibility to the regulatory agencies, where they have no control on what they are doing." Pictured: Rep. Jeb Hensarling
Related Article:
(Image: Bloomberg News)
On House Republicans criticizing the Volcker Rule:
"In related news, House Republicans assure Americans that a) banks self-regulate; b) budgets of regulators should be cut; c) [the] Environmental Protection Agency keeps corporations from profitable pollution; and d) water in Charleston WV is safe to drink."
Related Article:
(Image: Thinkstock)
On the argument that the working poor are better served by check cashers and payday lenders than by banks:
"That [the] mainstream financial industry does a poor job of being easy to deal with and transparent doesn't mean that people should go get ripped off in a friendly and transparent manner!"
Related Article:
(Image: Thinkstock)
On check-cashers being a better fit for the working poor than banks:
"Accept the fact that some businesses fill a niche better than you do and be willing to make a little money by servicing those [money services businesses] that do the job better than you."
Related Article:
On the pitfalls of bringing 'shadow' financial providers under regulatory oversight:
"This would most likely eliminate the existence of many of these alternative banking channels [for the underbanked] because they could no longer operate profitably with the overhead required to be regulated and compliant."
Related Article:
(Image: Thinkstock)
On bank customers wanting lower fees:
"People have forgotten that banks provide and charge for the service of managing money. They use deposits and lend that to others and make money off the spread
With the low margins they make today (thanks Ben!), they have to charge additional fees for additional services."
Related Article:
(Image: Bloomberg News)
On the argument that banks should be allowed to set prices as part of the free market:
"Banking isn't in the 'free market.' Banking is a business that is so fundamentally important to smooth economic and social order that our taxes are used to insure deposits, guard against malfeasance and bail out extreme debt even when it has been irresponsibly created."
Related Article:
(Image: Thinkstock)
On bankers giving up on mortgage products:
"The real relationship myth in the banking industry is the industry believes the product is the relationship. The truth is the product is just the gateway to the relationship."
Related Article:
(Image: Thinkstock)
On claims that Bitcoin is too volatile:
"Could it be that the U.S. dollar is where the volatility actually originates? As many investors move into precious metals and foreign currency due to the Fed's devaluation of the dollar
perhaps bitcoin is the most logical safe haven. No one can break into your house and steal it and you can access it from all over the globe."
Related Article:
(Image: Bloomberg News)
On a call for Congress to make retailers responsible for data breaches:
"We need to incent the merchant community to move to EMV."
Related Article:
(Image: Thinkstock)
