Banker bot vs state regulators

This is the same problem Amazon has with sales taxes.

Business Insider: It's been a terrible summer for Lending Club and other startups that make loans to consumers and businesses online.

Shares of Lending Club are down about 30% since the beginning of June. That's when the US Court of Appeals for the Second Circuit upheld a decision that could have the lenders lowering interest rates they charge a big chunk of customers.

Now, the US Supreme Court is its only hope. It could decide whether it'll hear their case as early as October, according to a note this week from Morgan Stanley.

At issue is the question of whether companies can use out-of-state banks as a way to charge interest rates that are higher than they'd otherwise be allowed. A number of lenders were making loans in New York, Vermont, and Connecticut using a bank in Utah called WebBank. 

The problem occurs when the internet loans are securitized and sold to investors who attempt to collect from out of state.   But even if not securitized, the original lender may be restricted in its ability to collect.  The problem is going to the Supreme Court.

What is the ultimate solution?
Web banks which run  savings and loan spreadsheets are just that, a spreadsheet.  All the risk is carried in the smart card, which will report an accurate credit history with owner's permission.  So the transaction costs, the cost of moving money, goes to zero and the web bank makes its money from ads, just like facebook and google.

And to add insult to injury, the original savers and lenders are not known to any human, their identity protected by bot encryption.  So, we end up with personal contracts between lender and borrower; with the spreadsheet intermediating by keeping the lending and savings tree balanced, as per the theory of everything. In other words, the spreadsheet is simply doing the two sided Black-Sholes.  The state regulators therefore, are stuck with a racketeering prosecution, prosecuting the web site owner, and they won 't win.  The key is getting banker bot up and running in  our smart cards, and defeating the attempts by Congress to peek under the covers.

How are loans securitized?

Well the hedge fund manager has the hedge fund investment profile in the company smart card.  So the hedge fund manager takes the company smart card and taps the lending tree icon on the computer screen.  The banker bot knows what to do. Once humans are prevented from tampering, then  all the costs, or "origination fees", go to zero, the risk profile is known to the maximum extant, all information is utilized by the bot.