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Small business rescue earned banks $10B in fees

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Re: Small business rescue earned banks $10B in fees

#91

Post by _curious_ »

rapind wrote: post #77
lordnacho wrote: post #3

Gotta ask whether the banking system makes sense in its current form. - Part of it is actually a utility. Payments, sending money from one place to another, making sure there's an account at the other end of that number. Everyone needs this, yet being a huge international network there isn't a whole lot that one bank offers that another cannot. - Part of it is deciding who to lend money to. Makes sense for the bank t…

Instead of all the fuckery, imagine if the government just sent everyone a monthly cheque with the only criteria that they are a living breathing adult with a US address. Universal trickle up.

Imagine if you lived with an attitude like this...entitled to something just for being born. Genuinely curious: where does this come from?

Re: Small business rescue earned banks $10B in fees

#92

Post by Klinky »

agilebyte wrote: post #43
tempsy wrote: post #38

The thing here is the bank isn’t taking any risk here. All the loans are guaranteed by the government. So banks are really just a middle man that is transferring money from the SBA to a small business’s bank account and taking on zero credit risk. The government has the ability to send funds directly to people obviously...that’s how they are sending the stimulus checks and send tax refunds. Banks are basically being…

Paperwork AND doing due diligence on the companies more effectively than the government can right now.

Robosigning and NINA loans of the past lead me to be skeptical.

Re: Small business rescue earned banks $10B in fees

#93

Post by basch »

toomuchtodo wrote: post #15
alexpetralia wrote: post #13

Earlier quoted context omitted.

I could not imagine the amount of financial, operational, technological and regulatory infrastructure that would need to be ported over, however.

We have the US Digital Service [1] and 18F [2]. We (US citizens) should demand Congress to provide them the authority to deliver the modernization required to implement such infrastructure. Use Login.gov [3] to provide for digital identity management of these accounts. Perform in person KYC using USPS and DHS/CBP branches, and identity proofing online using traditional service providers (IRS already does this for you…

Would it be feasable for the government to acquire a mobile first bank and graft it onto the post office? Either chime, bankmobile, moven, or simple.

Is it a space the government wants to compete against Apple and Google? If every mobile phone in the country comes with a free integrated banking service, how do you compete? Would the government better serve by using its resources to regulate interoperability and compatibility, and rule following, than by competing?

I totally get why a free post office bank would do great things to serve the underbanked. But if the government is going to get into banking, id like to see it go a step further, more like Singapore, and be some kind of new HSA type account offering, a forced savings account that can be used to pay rent and more.

Re: Small business rescue earned banks $10B in fees

#94

Post by silverreads »

seph-reed wrote: post #29
Ididntdothis wrote: post #25

Earlier quoted context omitted.

There will be plenty reporting about corruption and nothing will happen. This is just a continuation of 2008. People have accepted this corruption as normal.

I solemnly swear to stand by those who fight corruption, even when they go too far I will recognize and respect their intent, I will remember them as heroes, and I will do everything I can to make their sacrifice not be in vain.

Stand with whistle blowers, and stand against anyone who seeks to punish them. The correct way to blow a whistle is as loudly as possible for all to hear. Anyone who says otherwise is driven by profit, and profits being wiped out IS the most appropriate punishment for corruption.

Re: Small business rescue earned banks $10B in fees

#95

Post by tedunangst »

i_haz_rabies wrote: post #56
drawkbox wrote: post #14

Anytime needed stimulus goes through banks, don't be surprised if it never makes it out of said bank or to the intended locations as they are self-preservation first as expected. Banks should help the river and get access to the flow, they shouldn't be a dam that holds back the flow, filtering only for their customers or large companies masquerading as "small business". Had policy sent the money directly to companies…

Can someone who downvoted this explain why you did so?

It's a duplicate of this comment: https://news.ycombinator.com/item?id=22946155

Re: Small business rescue earned banks $10B in fees

#96

Post by mihaaly »

lordnacho wrote: post #3

Gotta ask whether the banking system makes sense in its current form. - Part of it is actually a utility. Payments, sending money from one place to another, making sure there's an account at the other end of that number. Everyone needs this, yet being a huge international network there isn't a whole lot that one bank offers that another cannot. - Part of it is deciding who to lend money to. Makes sense for the bank t…

I agree very much, in any society it is as essential matter as legislation, representation, law enforcement and such. Must be a public service.

Re: Small business rescue earned banks $10B in fees

#97

Post by tempsy »

malkuth23 wrote: post #85
tempsy wrote: post #38

The thing here is the bank isn’t taking any risk here. All the loans are guaranteed by the government. So banks are really just a middle man that is transferring money from the SBA to a small business’s bank account and taking on zero credit risk. The government has the ability to send funds directly to people obviously...that’s how they are sending the stimulus checks and send tax refunds. Banks are basically being…

My understanding is there is actually some risk. If they do the paperwork wrong, or if the regulations change randomly (which they have a bunch of times already), the bank could theoretically be on the hook. Some of this reportedly happened in the last recession/bailout, so the banks are a bit gun shy. I am not a banker, so this is all second hand information I have read on r/smallbusiness and other forums while tryi…

Sure there’s probably some compliance risk here but that’s why most businesses are only working with existing clients. Very few are approving applications from brand new customers they’ve never had a relationship with.

Re: Small business rescue earned banks $10B in fees

#98

Post by MiroF »

_curious_ wrote: post #80
stri8ed wrote: post #67

Earlier quoted context omitted.

What incentive does bank have to actually do due diligence, when the loans are all guaranteed by government?

Because they are giving the corporate handouts to customers who are at the greatest risk of defaulting on loans to their own bank - that's their incentive.

I don't follow, this seems like even less of an incentive to do due diligence.

Re: Small business rescue earned banks $10B in fees

#99

Post by RivieraKid »

lordnacho wrote: post #3

Gotta ask whether the banking system makes sense in its current form. - Part of it is actually a utility. Payments, sending money from one place to another, making sure there's an account at the other end of that number. Everyone needs this, yet being a huge international network there isn't a whole lot that one bank offers that another cannot. - Part of it is deciding who to lend money to. Makes sense for the bank t…

I don't think it's a good idea, the government sector is usually less efficient than private sector. It would only make sense if the banking market was not competitive but it's not the case.
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