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Seemed like a net win for the surviving banks with all the reduced competition, cheap real estate in default, and near 0% Fed rate. https://www.fdic.gov/bank/i
by nosuchthing 11y ago
Seemed like a net win for the surviving banks with all the reduced competition, cheap real estate in default, and near 0% Fed rate.
https://www.fdic.gov/bank/individual/failed/banklist.html https://www.fdic.gov/bank/individual/failed/banklist.html
- mikeyouse 11y agoThe banks loathe low rates.. They make most of their profits on interest margin which is greatly compressed in ZIRP environments.. Their margin is literally the lowest it's been since at least the early 1980's. [1] It's no surprise then that bankers are the ones clamoring loudest for interest rate hikes. Bill Gross, Lloyd Blankfein, Robert Shiller, insurance & pension execs are all begging Yellen to raise rates while the people in charge of companies that actually sell physical goods are telling her to hold off. [1] - https://research.stlouisfed.org/fred2/series/USNIM https://research.stlouisfed.org/fred2/series/USNIM
- TheOtherHobbes 11y agoAh. And that explains why the BoE keeps threatening to raise rates even though none of the usual excuses apply - inflation has been close to 0% for most of the year in the UK.