I have long hated bankers/banks on this blog.
I hate their hours (the fake long ones and the true banker hours), I hate their attire, I hate the offices and shrines they built for themselves with shareholder money to feign trust.
Of course bankers and banks serve a purpose, but it’s a simple job.
Our government and $FED have made it even simpler. Borrow from us at a ZERO interest rate and lend it back to us. Earn 2-3 percent…leverage it…repeat.
Now that the capital structures of the bank are completely f#@*ked, technology and talent are cheap, it is not just criminal that we save the banks, it is criminal they are not disrupted.
Assuming the capital structures are not like those of our banks circa 2009, banking is an insanely profitable business…even if you just take deposits, pay zilch and lend to the government.
Silicon Valley gave us Etrade and at the time it was a great thing, but that was eons ago.
I would bank at Southwest Airlines, Jet Blue and Virgin tomorrow if they had a charter and took deposits. There is just no way I could have typed those words three years ago.
Apple and Google are going to be fighting each other for 5-10 years over web and phone turf, but a small move into banking today would guarantee their dominance in both sectors and easier profits 10 years out and beyond.
At this point in time, I would prefer Bank of Bit.ly that was just honest about shrinking our deposits.