3 ms·

Is dark money like this somehow more lucrative for banks than just regular, say, business banking money?

thelazydogsback 6y ago
My guess is that the amounts are large, and there would be less complaints from the participants if the bank holds on to the money longer to maximize their vig. Of course, there could be some off-the-books incentives for deal-makers at the banks.
- rogerkirkness 6y ago
  Compared to alternatives, high fees are better than being unbanked. Like payment gateways that let you sell THC.
dsabanin 6y ago
Bribes to top management? Criminal organizations infiltrating banks?
coliveira 6y ago
Criminals deal with hard money and liquid assets, while most people have money invested in businesses and real estate. They also don't complain about big fees. So it is advantageous for banks to work with dark money.
SpicyLemonZest 6y ago
There's a strong culture in banking - not universal, but strong - that regulations are just a game being played between your institution and the regulators. A banker who steps just to the edge of being slapped down by regulators is seen as a much more positive figure than a restauranteur who just barely passes the health inspection or a loan shark who charges exactly the maximum allowed.
- valuearb 6y ago
  Because regulations are wrong headed and injurious to honest customers.
throw0101a 6y ago
No necessarily, but there's quite a bit of it sloshing about and if one can get a piece of the action, and the associated fees, it is profitable. Deutsch Bank did quite a bit of it it appears: * https://www.theguardian.com/business/2020/feb/16/dark-towers-review-deutsche-bank-donald-trump https://www.theguardian.com/business/2020/feb/16/dark-towers... See also many banks in Cyprus and their association with Russian oligarchs. * https://www.theatlantic.com/business/archive/2013/03/everything-you-need-to-know-about-the-cyprus-bank-disaster/274096/ https://www.theatlantic.com/business/archive/2013/03/everyth... * https://www.bbc.com/news/business-21831943 https://www.bbc.com/news/business-21831943 Supposedly toned done in recent years: * https://www.bnnbloomberg.ca/cyprus-loses-luster-as-mediterranean-haven-for-russian-business-1.1196047 https://www.bnnbloomberg.ca/cyprus-loses-luster-as-mediterra...
corford 6y ago
According to the article, banks were indeed able to command higher premiums/margins on cash flows subverting Iranian sanctions.

My guess is that the amounts are large, and there would be less complaints from the participants if the bank holds on to the money longer to maximize their vig. Of course, there could be some off-the-books incentives for deal-makers at the banks.

rogerkirkness 6y ago
Compared to alternatives, high fees are better than being unbanked. Like payment gateways that let you sell THC.

dsabanin 6y ago

Bribes to top management? Criminal organizations infiltrating banks?

coliveira 6y ago

Criminals deal with hard money and liquid assets, while most people have money invested in businesses and real estate. They also don't complain about big fees. So it is advantageous for banks to work with dark money.

SpicyLemonZest 6y ago

There's a strong culture in banking - not universal, but strong - that regulations are just a game being played between your institution and the regulators. A banker who steps just to the edge of being slapped down by regulators is seen as a much more positive figure than a restauranteur who just barely passes the health inspection or a loan shark who charges exactly the maximum allowed.

valuearb 6y ago
Because regulations are wrong headed and injurious to honest customers.

throw0101a 6y ago

No necessarily, but there's quite a bit of it sloshing about and if one can get a piece of the action, and the associated fees, it is profitable. Deutsch Bank did quite a bit of it it appears: * https://www.theguardian.com/business/2020/feb/16/dark-towers-review-deutsche-bank-donald-trump https://www.theguardian.com/business/2020/feb/16/dark-towers... See also many banks in Cyprus and their association with Russian oligarchs. * https://www.theatlantic.com/business/archive/2013/03/everything-you-need-to-know-about-the-cyprus-bank-disaster/274096/ https://www.theatlantic.com/business/archive/2013/03/everyth... * https://www.bbc.com/news/business-21831943 https://www.bbc.com/news/business-21831943 Supposedly toned done in recent years: * https://www.bnnbloomberg.ca/cyprus-loses-luster-as-mediterranean-haven-for-russian-business-1.1196047 https://www.bnnbloomberg.ca/cyprus-loses-luster-as-mediterra...

corford 6y ago

According to the article, banks were indeed able to command higher premiums/margins on cash flows subverting Iranian sanctions.