Latest Online Edition  Read Here

Equality Featured

Yesterday's WSJ featured an article on the struggles of black-owned banks. It was an OK article, but it left out a lot. Some of what was left out is good news. Part of the reason black banks are struggling is their customer base has more options. The article does say that more traditional banks are moving into the territory of these banks (part of that might be gentrification).  However, the article also says that as these banks close, so-called "predatory lenders" move in, charging "exorbitant rates and fees." The reality is these lenders are probably charging what their models say they should, based in part on the reasons why those traditional banks exited the market.

The biggest flaw in this article is it doesn't contain any mention of regulation. Black-owned banks, like other community banks and small financial firms, are facing ever-mounting regulations. They can't afford to meet all these regulatory requirements and serve their customers. The irony is the same folks who are going after auto creditors with half-baked ideas about "disparate impact" are impacting lack-owned banks as equally as every other financial firm.

Rate this item
(0 votes)
More in this category: « Steel Steal Bad Harvest »

Ted Craig

  • How to Be Bad
    Bernie Madoff was a thief. Harvey Weinstein was a pig. But in the end, they were the same. People ask how they were able to do what they did for…
  • The Future Is Hard to Predict
    The question for many analysts when it comes to Amazon is "How soon before Bezos weeps?" Borders, Toys R Us and soon traditional grocers all fall before him. Will auto…
  • Best Bets
    Jim Hightower is crank. But he's a crank with a column that appears in alternative weeklies around the country. One of the crank's latest columns bemoans the stupidity of Wall…
  • Key Issue
    We did an article about key theft last summer. It continues to be a major problem for car dealers. Just this week, an exotic used-car dealership in California had the…
  • Micro Market
    My kids' favorite show is videos on YouTube. And they are not alone. The age of mass marketing is over and really it didn't last that long. The odd aspect…
  • The Freaks Come on Your Lot
    In 1973, author J.G. Ballard wrote a weird novel called "Crash" about people who were into cars. I mean, really into cars. It was made into a movie in 1996…
  • Baby Talk
    An actual headline: "Fintech startup Qbera partners with Droom to enable used car financing." Remember when companies had real names, like Transatlantic Zeppelin, Amalgamated Spats or U.S. Hay. Now it…
  • Compensation
    Apparently, more than one Senator made the point during the recent Equinox hearings that consumers provided the company with their data for free and Equinox then turned around made money…
  • Your Best Advocates
    Today's WSJ offers the story of how one payday lender is fighting the FPB – by enlisting its customers. According to the article, Amscot Financial Inc. "rounded up about 600,000…
  • Data Destroys
    Today's WSJ has a frontage story making an argument I've long advocated – statistics are ruining baseball. People don't want to see constant defensive shifts and pitcher changes. Chris Rock…