Texas Banker’s Game Plan: Ditch Branches, Prosper | Hacker News Reader

Texas Banker’s Game Plan: Ditch Branches, Prosper

wsj.com

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.

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.

Right click on the covering graphic, inspect the element, and delete it.

All I can do is tap!

Tap the "web" link at the top of this page! :)

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.

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

Hate paywalls. Wish they weren't allowed here.

> clickbait to paywalls

What about this is clickbait? It's an accurate headline, but the article is behind a paywall. HN explicitly allows this.

We can start with the first sentence:

> A Texas banker who was so frustrated with regulators in 2011 that he gave up his banking charter and sold off his branches is now overseeing the sale of the rest of the company to Warburg Pincus LLC for about $300 million.

The title should at least get a year parenthetical on the Banker (who is not a banker [0]) claim, or maybe you can show me Depping's new charter?

[0] at the nonbank

Also, I now get the impression that this game plan is not so much a plan any more, but an operating enterprise since 2011.

We detached this subthread from https://news.ycombinator.com/item?id=12648282 and marked it off-topic. Sorry there was on-topic content that got dragged along, but the resulting subthread is pure distraction.

So many ways around paywalls. Doesn't always work, but almost always worth a try, it's so easy.

- The "web" link at the top of a comments page takes you to the google news search result.

- If DDG is your searcher, this takes you to the google news result:

  ctl-K[home]!gn[space][enter]

(ctl-k might have to be ctl-l if your location and search fields aren't combined)

- Mobile: select the title, search for it.

- Some sites are just inept. The Boston Globe throws up a blocking image asking you to register so that you can see the content that you've already completely downloaded. Just choose reader mode, or if that isn't available, then turn off styles.

- Search for the same story at some other site. Often Yahoo carries WSJ articles verbatim, without a paywall.

- Just read the HN comments.

- Pay.

- Don't read.

- ...

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

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.

Anyone can create money because credit creates money. The lower down you go (i.e. M3, M2, M1, M0) the more controlled the process is. But a private firm raising capital and signing term sheets, in a certain but very real sense, creates spending power.

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