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The banks themselves act as the brokers in most cases. Sometimes the banks themselves get the money because a lot of people put their money in structured invest
by mustafa_pasi 5y ago
The banks themselves act as the brokers in most cases. Sometimes the banks themselves get the money because a lot of people put their money in structured investments managed by the bank itself.
They aren't pulling the money out of the bank and using a third party broker.
- ping_pong 5y agoThis isn't how it works. When customers pull their deposits out of their bank accounts, the bank can't turn that into loans, which is what drives a lot of the income. If the customers shift that money from the bank account into a trading account in a brokerage, they can't do the same thing with those funds that they do if it were in a savings account.