The response of BPI (the big banks' lobby) to the Fed's request for comment on Master Account approval guidelines, shown in follow-up tweets, should leave no doubt that this is about terms for granting such accounts to fintechs holding "special" bank charters.
https://twitter.com/GeorgeSelgin/status/1390059967781158922
BPI's comment reads, "The issue of who can access the Federal Reserve’s payment system is an important one, and it is good that the Fed has sought comment on the complex questions surrounding it. Historically, only regulated and supervised banks have been permitted access, ...
"and if Big Tech and FinTech firms seek that right, the question is whether they ought to shoulder the traditionally associated responsibilities, and whether further protections are warranted given that they are uninsured and lightly regulated,...
"... and therefore inherently riskier to the system."
I often agree with my pals at @TalktoBPI. But here I disagree w/ them. Many fintechs don't take the same risks banks take. Those that take fewer shouldn't have to be subject to the same regulatory burden as ordinary banks.
I often agree with my pals at @TalktoBPI. But here I disagree w/ them. Many fintechs don't take the same risks banks take. Those that take fewer shouldn't have to be subject to the same regulatory burden as ordinary banks.
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