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Wall Street appears to be doing a lot of insider trading, front running and shell games. To disrupt them, somebody just has to come along and provide some truly

Wall Street appears to be doing a lot of insider trading, front running and shell games. To disrupt them, somebody just has to come along and provide some truly useful and non-parasitic financial service, while not doing those other things. Keep the baby but not the bathwater. I'm not sure exactly how to do that in a reliable and consistent way, while not say keeping all your cash under a matress. Because if you just deposit cash into a local bank, it can then indirectly end up in their hands.

dasil003 16y ago
There's a huge trust issue here. With the incumbents they will nickel and dime you, but people are pretty confident that they won't lose everything. Startups have a huge barrier to overcome to earn that kind of trust.
arethuza 16y ago
I'm seriously considering moving our personal accounts to the Co-Op bank here in the UK http://www.co-operativebank.co.uk http://www.co-operativebank.co.uk from HBOS. I want to open a new business bank account for a new venture and that will be with them.
- kierank 16y ago
  In spite of their ethical claims, Co-op will still charge you ridiculous fees for going overdrawn or foreign payments or similar.
fanboy123 16y ago
I have no idea how wall st and retail banking got mixed up in everybody's minds. Stegall only allowed the two to be run under the same roof... Why keep money in a mattress when the FDIC and its insurance is backed by the full faith of the USGovt? If you buy a share of stock well, that is different. When you buy a share of stock, what does that mean? How is the value derived (of the share)? How does the system that tells you that value work? Most people can't answer these questions and yet invest money anyways. The banking/financial system provides plenty of valuable services. That it also participates in value-destroying activities is always partially the fault of the consumers who want these activities to exist in the first place.
- mmt 16y ago
  Stegall only allowed the two to be run under the same roof... I think "only" is dismissive of the whole point, which is that they have been intertwined from a regulatory standpoint, arguably undermining the regulation of each. Why keep money in a mattress when the FDIC and its insurance is backed by the full faith of the USGovt? The mattress alternative is a patent strawman, but FDIC insurance hardly protects against all the damage a bank failure causes its depositors. What's the average amount of time between a bank failing to pay its depositors and the FDIC paying a claim?

dasil003 16y ago

There's a huge trust issue here. With the incumbents they will nickel and dime you, but people are pretty confident that they won't lose everything. Startups have a huge barrier to overcome to earn that kind of trust.

arethuza 16y ago

I'm seriously considering moving our personal accounts to the Co-Op bank here in the UK http://www.co-operativebank.co.uk http://www.co-operativebank.co.uk from HBOS. I want to open a new business bank account for a new venture and that will be with them.

kierank 16y ago
In spite of their ethical claims, Co-op will still charge you ridiculous fees for going overdrawn or foreign payments or similar.

fanboy123 16y ago

I have no idea how wall st and retail banking got mixed up in everybody's minds. Stegall only allowed the two to be run under the same roof... Why keep money in a mattress when the FDIC and its insurance is backed by the full faith of the USGovt? If you buy a share of stock well, that is different. When you buy a share of stock, what does that mean? How is the value derived (of the share)? How does the system that tells you that value work? Most people can't answer these questions and yet invest money anyways. The banking/financial system provides plenty of valuable services. That it also participates in value-destroying activities is always partially the fault of the consumers who want these activities to exist in the first place.

mmt 16y ago
Stegall only allowed the two to be run under the same roof... I think "only" is dismissive of the whole point, which is that they have been intertwined from a regulatory standpoint, arguably undermining the regulation of each. Why keep money in a mattress when the FDIC and its insurance is backed by the full faith of the USGovt? The mattress alternative is a patent strawman, but FDIC insurance hardly protects against all the damage a bank failure causes its depositors. What's the average amount of time between a bank failing to pay its depositors and the FDIC paying a claim?