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America will soon see a wave of bank mergers?

economist.com

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Re: America will soon see a wave of bank mergers?

#321

Post by IvyMike »

HWR_14 wrote: post #305
siliconc0w wrote: post #107

The big banks are terrible if you fall outside their algorithmic expectation. My partner and I were trying to get a mortgage and despite near perfect credit, large incomes, etc our apps were auto-denied because I never opened multiple open loan lines. Never needed them, just used CCs I immediately paid off for points as I always had a job/savings and bought cheap used cars for cash. We eventually got one but it took…

> despite near perfect credit Your credit wasn't near-perfect. You hadn't defaulted, but that's far from proving that you can manage your credit/money and make payments on time. A hobo who lived in the woods would also have never missed a payment.

Would that hobo have used a CC that he immediately paid off? That needs to count for something.

Re: America will soon see a wave of bank mergers?

#322

Post by [deleted] »

l3mure wrote: post #233
lp0_on_fire wrote: post #33

Earlier quoted context omitted.

Occupy Wall Street was the beginning of that but the media and their allies in the government decided to push for a race war in the 2012 election. It’s not a coincidence the oppression Olympics were turned up to 11 at that time. That’s not to say that there aren’t issues with race in America but they pale in comparison to the socioeconomic ones. A nation obsessed over race and culture has little time to confront othe…

Race is the modality by which class is primarily expressed in America. There is no way to resolve socioeconomic problems without dealing with race at the same time, clearly demonstrated multiple times in US history. The failure of Reconstruction -- an "Unfinished Revolution" as Eric Foner puts it -- was precisely white workers' rejection of class solidarity with Black workers in favor of post-war white racial reconci…

[deleted]

Re: America will soon see a wave of bank mergers?

#323

Post by no_wizard »

HWR_14 wrote: post #307
tiedieconderoga wrote: post #265

Earlier quoted context omitted.

Nah, you can easily get a residential mortgage from smaller lenders with just proof of income/savings, and the sort of light credit usage you get from monthly CC payments, rent, utilities. That will net you a solid credit score, too. The issue is with very large banks. They have rigid underwriting deparments and poor CS, so if you approach them as a first-time buyer who isn't already leveraged to the hilt, they will…

Rent and utilities rarely report to credit scores.

There's been normalization around using rent as additional inputs into a credit score: https://www.cnbc.com/select/your-rent-payments-can-raise-you...

I'm not sure they're all that available or popular (they're highly dependent on your landlord having the correct paperwork and such) but the place I rented an apartment last year had this available and it did get reported

Re: America will soon see a wave of bank mergers?

#324

Post by Rebuff5007 »

siliconc0w wrote: post #107

The big banks are terrible if you fall outside their algorithmic expectation. My partner and I were trying to get a mortgage and despite near perfect credit, large incomes, etc our apps were auto-denied because I never opened multiple open loan lines. Never needed them, just used CCs I immediately paid off for points as I always had a job/savings and bought cheap used cars for cash. We eventually got one but it took…

> you immediately see the need for breaking these banks up.

Why exactly is this the conclusion, as opposed to suggesting the big banks need better evaluation of borrowers (whether thats with better metrics or humans in the loop)?

All the problems being brought up seem like they could happen to banks of any sizes...

Re: America will soon see a wave of bank mergers?

#325

Post by WeylandYutani »

tastyfreeze wrote: post #202
brightstep wrote: post #190

Earlier quoted context omitted.

The same kind of behavior happens in the private sector. Since it’s not government, we don’t call it corruption.

Would you rather have one bank of thousands fail due to corruption or have the one state owned bank fail and the entire economy grind to a halt?

Small banks constantly falling like dominoes won't do much to instill confidence in the US.

Besides people aren't stupid. If small banks are not too big to fail everyone will switch to a bank that is too big to fail.

Re: America will soon see a wave of bank mergers?

#326

Post by llsf »

HWR_14 wrote: post #305
siliconc0w wrote: post #107

The big banks are terrible if you fall outside their algorithmic expectation. My partner and I were trying to get a mortgage and despite near perfect credit, large incomes, etc our apps were auto-denied because I never opened multiple open loan lines. Never needed them, just used CCs I immediately paid off for points as I always had a job/savings and bought cheap used cars for cash. We eventually got one but it took…

> despite near perfect credit Your credit wasn't near-perfect. You hadn't defaulted, but that's far from proving that you can manage your credit/money and make payments on time. A hobo who lived in the woods would also have never missed a payment.

But he said that he used credit cards and never missed a payment. That should count, right ?

I can relate, as I came in US from Europe. I arrived, opened a bank account in a big bank, I could only get a debit card, because I had not credit history. After few months I could get a credit card, but with a $500.00 limit! I needed a car, so I bought one cash.

When came the time to buy a home, I was asked to open more credit cards (one was not sufficient) and come back in a year or so later, to see how my score would improve.

Re: America will soon see a wave of bank mergers?

#327

Post by no_wizard »

0zemp2c wrote: post #256
no_wizard wrote: post #206

Earlier quoted context omitted.

how do you propose they make money to keep the bank open? Charge for accounts? I don't think such a draconian rule is needed here. Free checking is nice. There's nothing wrong with being a low risk lender. Thats not the central problem with the banking system in the US. Its that bigger banks take riskier and riskier bets with money that they really shouldn't be, and when bad times hit they often don't have proper ris…

this is how the Apple bank accounts can work Apple makes money selling phones, not mortgages the funds deposited can be reinvested in Apple stock as long as Apple is not loaning at interest, they could pull it off I think people are underestimating the blast radius of these accounts...imagine an entity engaged in "fair" banking (and only banking) that is too big and powerful to be undermined by JPM, BofA etc

Its all actually backed by Goldman Sachs and their underwriting partner. Apple isn't suddenly a bank or even financial institution, they are in partnership with one, and through that able to exert some leverage around deposits, which is cool, but they still had to get a bank involved for it all to work.

Re: America will soon see a wave of bank mergers?

#328

Post by HWR_14 »

IvyMike wrote: post #321
HWR_14 wrote: post #305

Earlier quoted context omitted.

> despite near perfect credit Your credit wasn't near-perfect. You hadn't defaulted, but that's far from proving that you can manage your credit/money and make payments on time. A hobo who lived in the woods would also have never missed a payment.

Would that hobo have used a CC that he immediately paid off? That needs to count for something .

It counts for something, it's just not enough by itself normally.

Re: America will soon see a wave of bank mergers?

#329

Post by imtringued »

Laaas wrote: post #171
kornhole wrote: post #158

Earlier quoted context omitted.

Yes banks should be better regulated to avoid letting them make risky moves. That aside, many regional banks rather than a centralized government controlled bank is critical to our freedom. Government controlled banks or CBDC will give government total surveillance and control over us since you cannot do much without money.

Technically, the CBDC could be a privacy coin, albeit very unlikely.

GNU Taler works fine. People have an anti CBDC bias that they project onto GNU Taler regardless of the privacy benefits of it.

It is already hard enough for the GNU Taler Team to get their technology adopted. When you see comments on HN you get the impression that it is very unpopular hence it won't be implemented and the expectation is that any CBDC won't be privacy friendly.

Re: America will soon see a wave of bank mergers?

#330

Post by HWR_14 »

llsf wrote: post #326
HWR_14 wrote: post #305

Earlier quoted context omitted.

> despite near perfect credit Your credit wasn't near-perfect. You hadn't defaulted, but that's far from proving that you can manage your credit/money and make payments on time. A hobo who lived in the woods would also have never missed a payment.

But he said that he used credit cards and never missed a payment. That should count, right ? I can relate, as I came in US from Europe. I arrived, opened a bank account in a big bank, I could only get a debit card, because I had not credit history. After few months I could get a credit card, but with a $500.00 limit! I needed a car, so I bought one cash. When came the time to buy a home, I was asked to open more cred…

You never proved you could handle more than $500 in debt. You then asked for maybe three-orders of magnitude more debt. Surely you can appreciate that difference.
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