
Texas Banker’s Game Plan: Ditch Branches, Prosper - JumpCrisscross
http://www.wsj.com/articles/texas-bankers-game-plan-ditch-branches-prosper-1475593203
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Shivetya
I am disappointed the FDIC decides that risk can be purely evaluated on which
loan product you offer and worse, taking away methods by which others can
borrow at competitive rates if at all. I don't see the risk anywhere near as
bad as if they had been heavily vested in mortgages.

Still there has to be more to the story, I cannot imagine the FDIC just
arrives with such orders, especially changing management, without some other
red flags. If its merely over to whom they are lending then the FDIC needs to
be checked.

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jsprogrammer
Will clickbait to paywalls continue to be voted up?

A nonbank seems to be an independent loan counter, likely backed by multiple
banks.

So, they create some money at one bank, then sell it to another bank (while
doing the work required); essentially.

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notpeter
It's a few extra clicks, but WSJ articles are viewable in full if you come via
google. So I always just select the title, right click to search.

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lbotos
HN also added the "web" link button which automatically searches google for
you.

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h4nkoslo
Are nonbank lenders still able to do the bank trick of money-creation?

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bbgtpm
I don't think so. Money creation through loans by banks is vital to the proper
functioning of the economy, but is tightly regulated by the Federal Reserve
and various other agencies because unchecked lending has in the past resulted
in sub-optimal outcomes. Without a banking charter, and hence access to a
reserve account with the Fed, loans must be made from pre-existing capital.

