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There's a lot of banking regulations but Amazon has enough money to either buy an existing online solution or develop their own
by arenaninja 9y ago
There's a lot of banking regulations but Amazon has enough money to either buy an existing online solution or develop their own
- dmoy 9y agoSure I'm not saying Amazon lacks the capacity, but rather that the CFR might actually prohibit a company owning both a bank and a massive commercial retail structure, etc etc.
- valenciarose 9y agoIn the US, owning a bank changes the regulatory status of the entire legal entity structure. This cannot be evaded with shell companies, etc. Specifically, “any company that controls a bank” is a Bank Holding Company and is regulated by the Federal Reserve (regardless of where the controlled bank is chartered). Being regulated by the Fed is a big deal and they can and will poke around in your non-bank subsidiaries (which are, after all, assets of the Bank holding company).
- solarkraft 9y agoWould it be legal to somehow partner with an existing bank / found a legally independent one with ties?
- petra 9y agoAmazon is currently partnering with a bank to offer credit to some of the merchants on their platform.
- earenndil 9y agoWhat if there's one parent company whose subsidiaries include amazon and a bank? Since "amazon" itself isn't controlling the bank, it's not subject to said regulations.