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New York Sues U.S. To Stop Fintech Bank Charters

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  • New York Sues U.S. To Stop Fintech Bank Charters

    NEW YORK (Reuters) – New York state’s top banking regulator on Friday sued the federal government to void its decision to award national bank charters to online lenders and payment companies, saying it was unconstitutional and put vulnerable consumers at risk.

    Maria Vullo, superintendent of New York’s Department of Financial Services, called the July 31 decision by the Office of the Comptroller of the Currency to let financial technology companies, or fintech firms, obtain charters “lawless, ill-conceived, and destabilizing of financial markets.”
    http://www.oann.com/new-york-sues-u-...bank-charters/
    Quis Custodiet Ipsos Custodes? Who is watching the watchers?

  • #2
    Seems to me that there's two things going on here:

    1. This is occurring in the Trump administration and it makes sense. Therefore Democrats MUST oppose it totally and entirely, labeling it insane, etc.

    and

    2. That brick and mortar banks oppose it because they aren't prepared to follow suit with their on similar services. That, and they don't want increased competition as that would be bad for their business.

    I see zero difference between using an on-line lender and a FTF one so long as both are following the same rules and procedures. It makes no difference in terms of the loan terms or servicing. Most loans made FTF now end up being totally serviced by on-line means anyway.

    Comment


    • #3
      Its the old guard using bought politicians to harass new companies.

      Brick and mortar is dying. That isn't going to change.
      Any man can hold his place when the bands play and women throw flowers; it is when the enemy presses close and metal shears through the ranks that one can acertain which are soldiers, and which are not.

      Comment


      • #4
        Originally posted by T. A. Gardner View Post
        Seems to me that there's two things going on here:

        1. This is occurring in the Trump administration and it makes sense. Therefore Democrats MUST oppose it totally and entirely, labeling it insane, etc.

        and

        2. That brick and mortar banks oppose it because they aren't prepared to follow suit with their on similar services. That, and they don't want increased competition as that would be bad for their business.

        I see zero difference between using an on-line lender and a FTF one so long as both are following the same rules and procedures. It makes no difference in terms of the loan terms or servicing. Most loans made FTF now end up being totally serviced by on-line means anyway.
        How easily can one verify an online bank, or correct an error? How do you get face time with the manager to solve a problem?
        Quis Custodiet Ipsos Custodes? Who is watching the watchers?

        Comment


        • #5
          Originally posted by Mountain Man View Post

          How easily can one verify an online bank, or correct an error? How do you get face time with the manager to solve a problem?
          It's a choice you have to make. On-line banking on the other hand can be done almost anywhere, so if you travel it would be convenient. If the error was found at 9 pm on a Friday, good luck getting anything done in a FTF bank until Monday sometime. For something like credit card or debit card fraud that's forever. Your bank account will be more than empty by then.

          So, there are negatives and positives to both. The individual has to choose what they prefer. I know that having on-line access to my accounts is a great thing in terms of monitoring them as well as keeping track of balances and transactions.

          Comment


          • #6
            Originally posted by T. A. Gardner View Post

            It's a choice you have to make. On-line banking on the other hand can be done almost anywhere, so if you travel it would be convenient. If the error was found at 9 pm on a Friday, good luck getting anything done in a FTF bank until Monday sometime. For something like credit card or debit card fraud that's forever. Your bank account will be more than empty by then.

            So, there are negatives and positives to both. The individual has to choose what they prefer. I know that having on-line access to my accounts is a great thing in terms of monitoring them as well as keeping track of balances and transactions.
            The problem in my mind is that if I can access my accounts on-line, so can a hacker.
            Quis Custodiet Ipsos Custodes? Who is watching the watchers?

            Comment


            • #7
              Originally posted by Mountain Man View Post

              The problem in my mind is that if I can access my accounts on-line, so can a hacker.
              No different from them hacking the bank's computer system itself. All banks use this now, so it really doesn't matter.

              Comment


              • #8
                Originally posted by Mountain Man View Post

                How easily can one verify an online bank, or correct an error? How do you get face time with the manager to solve a problem?
                You verify a bank using the same tools, regardless of type.

                Correcting an error uses the same software: brick & mortar banks also have online presence.

                Why do you need face time? Has phone service not reached your area yet?

                A big difference between the two is that on-line systems generally have far better anti-hack systems since computers are a central figure in their business model, whereas brick & mortar have just added an IT department, meaning the top brass tend to be less involved.

                All banking is done on networked systems.
                Any man can hold his place when the bands play and women throw flowers; it is when the enemy presses close and metal shears through the ranks that one can acertain which are soldiers, and which are not.

                Comment


                • #9
                  My wife still rights checks and keeps paper receipts. She is fairly conservative with spending so I let her manage bills etc. which is all done by check and traditional mail.

                  For most of our marriage we had separate banking accounts but since we now live on my retirement, investments, and farm income we have a shared account. When we had separate accounts my share of bills were paid electronically because frankly I'm lazy and automatic withdrawals are easier.

                  My wife elected to have a driver's license without her social number, puts tape over her laptop camera, never uses her real name online, doesn't have a PayPal account, so on and so forth. Things I can't be bothered worrying about. She has been the victim of identity theft three times including someone filing a tax return in her name and I never have been the victim of anything worse than some minor computer viruses.

                  It seems to me that being the victim of fraud or not has as much to do with luck as anything else. Even if you are very careful you have no control over how institutions handle your information. Assuming of course you are reasonably responsible, use antivirus software, VPNs when appropriate, have some form of identity protection, avoid pornography websites and other less than trustworthy domains, use something like PayPal for payments to unverified entities, and in general accept some responsibility for security.
                  We hunt the hunters

                  Comment


                  • #10
                    Originally posted by wolfhnd View Post
                    My wife still rights checks and keeps paper receipts. She is fairly conservative with spending so I let her manage bills etc. which is all done by check and traditional mail.

                    For most of our marriage we had separate banking accounts but since we now live on my retirement, investments, and farm income we have a shared account. When we had separate accounts my share of bills were paid electronically because frankly I'm lazy and automatic withdrawals are easier.

                    My wife elected to have a driver's license without her social number, puts tape over her laptop camera, never uses her real name online, doesn't have a PayPal account, so on and so forth. Things I can't be bothered worrying about. She has been the victim of identity theft three times including someone filing a tax return in her name and I never have been the victim of anything worse than some minor computer viruses.

                    It seems to me that being the victim of fraud or not has as much to do with luck as anything else. Even if you are very careful you have no control over how institutions handle your information. Assuming of course you are reasonably responsible, use antivirus software, VPNs when appropriate, have some form of identity protection, avoid pornography websites and other less than trustworthy domains, use something like PayPal for payments to unverified entities, and in general accept some responsibility for security.
                    My wife oversees a 14+ million dollar budget at work. They do everything online.

                    She controls our finances, and everything is done electronically. Nothing lost in the mail, mis-delivered, etc. Direct deposits, the whole nine yards. I've been using PayPal for over a decade.

                    But you are right, you need to maintain security awareness, and a key feature for people who stick with printed bills or checks is to make sure they are shredded before throwing them in the trash, and having a secure mailbox.

                    These days you are more vulnerable off-line than on.
                    Any man can hold his place when the bands play and women throw flowers; it is when the enemy presses close and metal shears through the ranks that one can acertain which are soldiers, and which are not.

                    Comment


                    • #11
                      Well, for security, all our on-line purchases are done with a pre-paid Visa card that isn't connected to any account or bank we do business with. That means the most some hacker or such can take is the residual amount on the card. Refilling it is easy to do off line. It makes dealing with on-line business simple and safe.

                      Comment


                      • #12
                        Originally posted by T. A. Gardner View Post
                        Well, for security, all our on-line purchases are done with a pre-paid Visa card that isn't connected to any account or bank we do business with. That means the most some hacker or such can take is the residual amount on the card. Refilling it is easy to do off line. It makes dealing with on-line business simple and safe.
                        I use different cards for various activities, at least I know the card limits are fairly low. Your plan is a better way to go but I'm lazy.
                        We hunt the hunters

                        Comment


                        • #13
                          Originally posted by Arnold J Rimmer View Post

                          My wife oversees a 14+ million dollar budget at work. They do everything online.

                          She controls our finances, and everything is done electronically. Nothing lost in the mail, mis-delivered, etc. Direct deposits, the whole nine yards. I've been using PayPal for over a decade.

                          But you are right, you need to maintain security awareness, and a key feature for people who stick with printed bills or checks is to make sure they are shredded before throwing them in the trash, and having a secure mailbox.

                          These days you are more vulnerable off-line than on.
                          Every thing that has our name on it gets shredded including shipping labels for reasons only she knows. She wouldn't even give the doctors office her social security number when we were applying to have a new general practitioner.

                          I know how to be secure online but it is a hassle. Start by using only a secure version of Linux, use separate hard drives storied out of the computer for business and surfing, always use a VPN, don't use a smart phone, so on and so forth. You still are only as secure as the IRS's, the bank's, credit card companies and anyone else's computer system that has your information. While it may be true that electronic transactions are safer than paper they also provide a level of security to would be thieves. The FBI is unlikely to track down most hackers but when everything was paper the local sheriff would track down check forgeries. I'm suggesting we are looking at it from a personal perspective when the problem is systemic. Maybe we should be using some of the justice department's resources that are being wasted on this very real problem.
                          We hunt the hunters

                          Comment


                          • #14
                            Originally posted by T. A. Gardner View Post
                            Well, for security, all our on-line purchases are done with a pre-paid Visa card that isn't connected to any account or bank we do business with. That means the most some hacker or such can take is the residual amount on the card. Refilling it is easy to do off line. It makes dealing with on-line business simple and safe.
                            Until the pre-paid company data base gets hacked.

                            Hackers don't bother with individuals; what they do is hit credit card company data bases or banks, then sell the data in smaller packets on the Dark Net or through personal connections.

                            Being careful is always its own reward, though.
                            Any man can hold his place when the bands play and women throw flowers; it is when the enemy presses close and metal shears through the ranks that one can acertain which are soldiers, and which are not.

                            Comment


                            • #15
                              Originally posted by Arnold J Rimmer View Post

                              Until the pre-paid company data base gets hacked.

                              Hackers don't bother with individuals; what they do is hit credit card company data bases or banks, then sell the data in smaller packets on the Dark Net or through personal connections.

                              Being careful is always its own reward, though.
                              They still can't take more than was put on the card. Even if they get some personal data it does them little good in this case. What hackers want are databases where they can access untapped wealth or large lines of credit. Pre-paid is not where the money is, so-to-speak. I think it's about the safest way you can go on the internet.

                              Comment

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