If the take deposits and have FDIC insurance regulate them.

Reader comment on: More Non-Bank Lenders

Submitted by Lyle (United States), May 18, 2015 22:57

It seems that one could set up such a lender and not take deposits, rather sell bonds without insurance (which is basically a money market fund execpt for the choice of those who get the borrow). As long as you don't get to big so that you become systematically important you won't get regulated. However you may face suitablity requirements for those who buy the bonds of the lenders. If you get FDIC insurance you get regulated, it's a bargain the government makes with a bank.

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Other reader comments on this item

Title By Date
non bank lenders don't regulate [41 words]JeffJul 19, 2015 16:18
⇒ If the take deposits and have FDIC insurance regulate them. [86 words]LyleMay 18, 2015 22:57
If it keeps moving, regulate it [19 words]Andrew TerhuneMay 14, 2015 21:50

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