FinTech is still nascent. Visualize into the future 
I have SQ and has been increasing my bet 
Future is unpredictable. Invest according to what you believe would happen in the future.
SQ has a banking license. So technically it’s also a small bank.
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Looks to me, I am wasting time on this, out of scope. Good Bye!
However, Bill Isaac, who chaired the FDIC during the start of the savings and loan crisis and managed the collapse of what was then the seventh-largest bank in the country, Continental Illinois, said that priority was misguided. “I don’t think it is right to sell a failed bank to the largest bank in the country just because it paid the highest price,” he said. “You make the largest banks bigger and bigger and you have fewer choices going forward. The FDIC has fewer choices next time and consumers have fewer choices.”
Based on his experiences in the 1980s S&L crisis, when rising interest rates contributed to the failure of more than 3,000 banks and savings and loans associations including eight of the 10 largest banks in Texas, Isaac said he believed there was more pain to come. “We are kidding ourselves if we think there are only four problem banks in the country,” Isaac said. “We have not gotten that smart. It’s been so long since we had a lot of problems, that I can’t help but think that there are going to be more problems.”
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The S&L crisis wasn’t due to rising interest rates. It actually came after rates plummeted. It was caused by collapsing oil prices which crushed real estate in oil patch states. Regulators, in their infinite wisdom, had demanded S&L’s focus mainly on mortgage lending, thought to be the safest sort.
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FED has 5 page report that says exactly mortgages came down due to raising rate.
It was exactly same scenarios, like now, but scattered to appx 4000 bank trusts and almost 3000 Closed operations by around 1987-89.
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Data doesn’t agree with the conclusion. The vast majority of the failures, per the chart in the link, happened AFTER rates had peaked and were headed down.
https://www.macrotrends.net/2521/30-year-treasury-bond-rate-yield-chart
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This is a reasonably fair view on the S&L Crisis - one that I lived through and was impacted by at the time. Most of the failure IMHO was due to real estate - yes - but specifically commercial real estate, not residential.
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It’s a fairly good synopsis except that it fails to give weight to the collapse in oil prices.
Most of the failure IMHO was due to real estate - yes - but specifically commercial real estate, not residential.
Wow, sounds very similar to today’s environment.
I was talking to someone who bids on CRE in SF. Said there was one property that was valued 300m+ a few years ago and today none is interested even at $60m! Sh*t has not hit the fan yet,.
Speaking of bad banks. PHH the worst mortgage company in America called my business partner today. We closed over a week ago. They said they didn’t receive their payoff. The title company sent them their money, but they have no idea where it is. The.dumbest mortgage company in America.
