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Seems a lot of people are recommending large banks. That was one of the "fears" I read somewhere this SCB failure will give these big banks more "power". But,
by jmclnx 4y ago
Seems a lot of people are recommending large banks. That was one of the "fears" I read somewhere this SCB failure will give these big banks more "power". But, I also saw SVB was the 16th largest bank in the US. So going to a big bank mat not be good.
Me, I would look into local banks and do some hard work "research" and pick one of them. They tend to be more tuned into you community. Maybe a Credit Union ?
- bradleyjg 4y agoIt’s unclear to me exactly what role a local bank is supposed to play in the modern era. In the old days when banks did real underwriting, a local banker would know a small business or would-be homeowner’s reputation and take it into account (for better or worse.) Now banks just originate mortgages and use the standardized underwriting criteria provided by the buyer, usually GSEs. All other consumer lending is almost strictly driven by credit scores. Even medium sized businesses now have access to debt and equity markets. There are national companies that specialize in things like factoring. I guess maybe local banks are still making loans to hyperlocal businesses like pizza shops and hair salons?
- op00to 4y agoI often see “so and so development funded by Super Local Bank of the US” signs in front of new commercial developments. I’m guessing they’re hooked into the local business community and help facilitate “riskier” transactions like buying pizza shops and hair salons?
- bradleyjg 4y agoMaybe. I had thought the Blackstones of the world had gotten very deep into the commercial real estate market at this point.