Ok, so there is a big difference between toxic lenders and banks.
Banks, highly regulated, capital requirements and mandatory programs like community reinvestment act. Banks make the majority of their money on interest spreads.
Toxic lenders, barely regulated, no capital requirements and make money on conversions. Their problem is not capital, but companies they can lend to that they will be able to convert.
Even a crap company like LIBE cause problems for toxic lenders due to sub penny share price, volume and reliance on a con man to maintain its fully reporting status.
Not to mention, if a toxic lender were public and reported it loaned LIBE, as a example, $100k, but made $200k profit, how do you think LIBE shareholders would feel, particularly since nothing has been accomplished.
Capital is not a problem for toxic lenders, but companies that can support the toxic conversions, through quality management and business operations are.
Everyone hears about the conversions, but many of these toxic lenders have debt in companies because they have gone dark, no operations, no volume, etc.
I know Chip personally and he has been hung out to dry more times than one can count.
