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could they have done it at cost? Yes. Did they need to make a profit off this? Probably not. Are they relatively unaffected (due to prevalance of online banking

could they have done it at cost? Yes. Did they need to make a profit off this? Probably not. Are they relatively unaffected (due to prevalance of online banking and also reduced costs due to physical banks being closed)? Yes.

krustyburger 7y ago
The banking industry is highly affected by the economic conditions that currently obtain. Default rates for all kinds of loans are skyrocketing, and this may just be the beginning of an extended period of turmoil that will rock the balance sheets of banks around the world. I don’t think they deserve undue sympathy, but they are far from unaffected.
joncrane 7y ago
Are physical banks closed? Wouldn't banks be an essential service?
pathseeker 7y ago
Banks don't make money from "online banking". They make their money from issuing loans. A ton of those loans are going to go into default so banking is going to be hit just as hard as other businesses, it's just going to happen in 3 months instead of today.
deleted 7y ago
[deleted]
dtwest 7y ago
Wow this is misinformed. Posting incorrect information in such a cocky way is detrimental to the forum. Look at any global bank's stock price throughout this crisis. Being a lender to the businesses of a shut down economy is not very profitable.
- celticninja 7y ago
  Stock price does not tell you how the fundamentals of a business are operating. Especially not in this environment, everyone's stock price is down. Also these are the banks that got a huge bailout from the government a decade ago for failures of their own making. If a big bank goes under due to coronavirus then I will of course apologize for being wrong, but I doubt that will happen. Too big to fail remember. So we bailed them out now they could be a little more civic minded. And as I said, do it at cost, pay your staff, but don't be thinking about the next dividend payments to shareholders or bonus remuneration to the CEO
  - dtwest 7y ago
    Everyone's stock price is not down. Another false statement. The majority are down though, as they should be. I am not defending bailouts, I'm saying you should get your facts straight.
    - celticninja 7y ago
      OK, not everyones individually, but look at all the major stock exchanges and their value is down. This is a good indicator that the vast majority, and therefore it means that most investors are affected similarly. Are pension funds down? Yes. Are most retail investors down? Yes. Anyone who is up is not up enough to make a difference to the market in general. So dont be disingenous, you know what i meant by 'everyone' in this instance.
    - celticninja 7y ago
      it does seem like you choose to pick arguments when people generalise, opting to show how there are examples that go against their point. Even though they may be unique examples that are the opposite to what someone claims but are unrepresentative of reality. This doesn't add to the discussion, in fact it detracts because it devolves into an unnecessary flamewar. HN is not reddit so please dont try and make it like that. I hope you can see how you were being disingenous, regardless it makes me not want to continue the discussion anymore as I dont feel you are engaging honestly and are just trying to score points.
- jeltz 7y ago
  The stock prices of casino companies are also down and I know from friends working for those companies that they are making more money now than before corona. Stock price is down for almost everyone right now. That said this crisis should have hit banks.

krustyburger 7y ago

The banking industry is highly affected by the economic conditions that currently obtain. Default rates for all kinds of loans are skyrocketing, and this may just be the beginning of an extended period of turmoil that will rock the balance sheets of banks around the world. I don’t think they deserve undue sympathy, but they are far from unaffected.

joncrane 7y ago

Are physical banks closed? Wouldn't banks be an essential service?

pathseeker 7y ago

Banks don't make money from "online banking". They make their money from issuing loans. A ton of those loans are going to go into default so banking is going to be hit just as hard as other businesses, it's just going to happen in 3 months instead of today.

deleted 7y ago

[deleted]

dtwest 7y ago

Wow this is misinformed. Posting incorrect information in such a cocky way is detrimental to the forum. Look at any global bank's stock price throughout this crisis. Being a lender to the businesses of a shut down economy is not very profitable.

celticninja 7y ago
Stock price does not tell you how the fundamentals of a business are operating. Especially not in this environment, everyone's stock price is down. Also these are the banks that got a huge bailout from the government a decade ago for failures of their own making. If a big bank goes under due to coronavirus then I will of course apologize for being wrong, but I doubt that will happen. Too big to fail remember. So we bailed them out now they could be a little more civic minded. And as I said, do it at cost, pay your staff, but don't be thinking about the next dividend payments to shareholders or bonus remuneration to the CEO
- dtwest 7y ago
  Everyone's stock price is not down. Another false statement. The majority are down though, as they should be. I am not defending bailouts, I'm saying you should get your facts straight.
  - celticninja 7y ago
    OK, not everyones individually, but look at all the major stock exchanges and their value is down. This is a good indicator that the vast majority, and therefore it means that most investors are affected similarly. Are pension funds down? Yes. Are most retail investors down? Yes. Anyone who is up is not up enough to make a difference to the market in general. So dont be disingenous, you know what i meant by 'everyone' in this instance.
  - celticninja 7y ago
    it does seem like you choose to pick arguments when people generalise, opting to show how there are examples that go against their point. Even though they may be unique examples that are the opposite to what someone claims but are unrepresentative of reality. This doesn't add to the discussion, in fact it detracts because it devolves into an unnecessary flamewar. HN is not reddit so please dont try and make it like that. I hope you can see how you were being disingenous, regardless it makes me not want to continue the discussion anymore as I dont feel you are engaging honestly and are just trying to score points.
jeltz 7y ago
The stock prices of casino companies are also down and I know from friends working for those companies that they are making more money now than before corona. Stock price is down for almost everyone right now. That said this crisis should have hit banks.