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Instruct regulators to look for the newest fad in the…

“Instruct regulators to look for the newest fad in the industry and examine it with great care. The next mistake will be a new way to make a loan that will not be repaid.” quote by L. William Seidman
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“Instruct regulators to look for the newest fad in the industry and examine it with great care. The next mistake will be a new way to make a loan that will not be repaid.”

L. William Seidman

About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

Regulators should scrutinize emerging industry trends to prevent risky lending practices that could cause defaults.

In simple terms: Watch new trends to avoid bad loans.

Key Takeaway

Vet innovations before approval.

Themes

risk management financial oversight innovation regulation prevention

Mood

cautious analytical

Type

advisory warning

When to use this quote

  • banking policy
  • loan underwriting
  • financial crisis prevention

Key Concepts

systemic risk moral hazard due diligence

Questions to Reflect On

  • How can regulators balance caution with fostering growth?
  • What indicators signal a harmful loan product?
A Different Perspective

Over‑regulation may stifle beneficial innovation.

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