It seems like a pretty wild time to be on the offensive against American fintech companies. No real comment on the merits of their research (yet), just a little shocked at the timing.
FYI: Hindenburg Research on Block (Square) has been going on for last 2 years. Not saying the release of the report is strangely coinciding with all the bad news we are having about Finance/Banking industries but wanted to add this info.
As a German, I used to think the same back when Wirecard was first attacked - and look where that ended.
Right now, the financial system is extremely unstable - bad actors with an awful lot of exposure have been exposed, and a lot of people are like sharks in the water, smelling blood. It looks like we're due for another come-to-Jesus moment in the banking scene, they haven't learned enough from 2008.
That one is on the regulatory agencies as well - they looked on silently as larger banks gobbled up smaller ones, or in the case of UBS/CS, actually forced them to merge.
"Too big to fail" means the regulators tell you what to do /all the time/, not just after you've failed.
You don't want to be too big to fail! There's a lot of businesses only small banks can do, like backing sweep accounts and neobanks like Simple/Aspiration.
Yesterday. But today is a good second choice.