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Banks are also much more heavily regulated than tech companies. Yes, they've mostly captured all the regulators at this point so it's like the foxes running th
by naravara 8y ago
Banks are also much more heavily regulated than tech companies.
Yes, they've mostly captured all the regulators at this point so it's like the foxes running the henhouse, but at least in theory that's how it's supposed to work. . .
- kerbalspacepro 8y agoYes, and ultimately Goldman Sachs is a bank and will be held accountable for anything that happens. This is a GS product that Apple gets a significant cut of.
- naravara 8y ago>Yes, and ultimately Goldman Sachs is a bank and will be held accountable for anything that happens. The jokes almost write themselves. . .
- saryant 8y agoRetail banking, especially credit, is much more regulated than the investment banking shenanigans that led to the 2008 crisis.
- naravara 8y agoWhile true, I feel like many of the perks of Apple's offering are well over and above the regulatory mandates that credit card issuers are held to.
- ralph84 8y agoRetail banks were on the front lines making the liar loans that got everything started. Investment banks wouldn't have had any bogus mortgages to bet on without retail banks originating them. The decision to use GS is highly dilutive to Apple's brand.
- kerbalspacepro 8y agoI get that you're trying to tell a morality tale in order to determine who the bad guy is, but there wasn't "a bad guy" causing the last recession. "Retail banks were on the front lines making the liar lones".... and millions of creditless idiots were buying houses they couldn't afford. You don't need the ball when the chain wraps around the whole world.
- ralph84 8y agoMy point is that "much more regulated" retail banks don't behave any better than the other players in the financial system. That's not a morality tale it's a fact. If the financial crisis didn't convince you certainly Wells Fargo should have.
- eloisant 8y agoAlso there are hundreds of banks around the world, you can often choose among dozens around you. There are 3 or 4 tech companies big enough to pull this off, in the whole world.
- astura 8y agoThis isn't as big of a deal as you think, this sort of arrangement is the same as when an alumni association, sports team, or charity offers a credit card.
- baddox 8y agoIsn't it much worse to have big companies in a heavily-regulated industry where those big companies largely control the regulations? Surely they will influence the regulations to increase barriers of entry into their industry.