ST Alpha - "Related (don't be shocked znu!): Looks like banks shuffled the loan process to give these big companies money first so they could collect more fees -- (link)" (Reading a Post)

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In response to "$300 million of the $350 billion small business loan program went to 75 publicly traded companies -- (link*)" by znufrii

Related (don't be shocked znu!): Looks like banks shuffled the loan process to give these big companies money first so they could collect more fees -- (link)

Posted by decline (aka Decline) Apr 21 '20, 08:38

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https://twitter.com/ddayen/status/1252621525590523904 (twitter.com)

Responses:

Based on what I saw from our bank clients, I think the larger customers had the advantage of personal relationships at the banks. I don't think it - pmb Apr 21, 09:14
If a big bank processed $10m in loans they should get the same fees regardless of # applicants but they'd sure save man hours processing biggest first -- nm - Max Apr 21, 09:05 5
- It's an origination fee that pays out the largest amount for loans between $2M and $10M - decline Apr 21, 09:14 4
  - But that's backwards. If the percentage fee was higher for smaller loans they would be incentivized to do more smaller loans. -- nm - pmb Apr 21, 09:15 3
    - I think the assumption in the lawsuit is that the banks figured out it was a finite amount of money that would run out and that their SBA groups -- (edited) - decline Apr 21, 09:23 2
      - And I'm saying, that based on my experience with the banks it wasn't that they planned to maximize their fees by doing it that way. It just worked - pmb Apr 21, 09:48 1
        
        banks are evil pmb - decline Apr 21, 10:02

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