SoFi – Uber For Banks Is Here

SoFi – Uber For Banks Is Here by David R. Henderson, Foundation For Economic Education

And It’s Throwing Regulators for a Loop

But isn’t SoFi cherry-picking loans? Absolutely. Why can’t banks do this? Because if you use depositor money for loans, as all banks do, you fall under the jurisdiction of the Federal Deposit Insurance Corp. and the Community Reinvestment Act, which bans discriminatory credit practices against low-income areas, known as redlining. In exchange, banks use leverage, but that’s courting trouble.

This is from Andy Kessler, “The Uberization of Banking,” Wall Street Journal, April 29, 2016 (the Saturday/Sunday issue of the WSJ for those who get the print version). The whole thing is worth reading, as is John...