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with interest being zero as it was the past couple of years, can the bank not just sit on that money and literally do nothing? What operational expenses do they
by navane 4y ago
with interest being zero as it was the past couple of years, can the bank not just sit on that money and literally do nothing? What operational expenses do they have?
- deleted 4y ago[deleted]
- ronjobber 4y agoSure, if depositors said "ok we'll let the bank ride this out." But that's not what happened.
- disgruntledphd2 4y agoYeah, and remember that this particular bank has a very, very well-connected set of customers (in the graph theory sense). So once the run starts, everyone tries to get in, causing the actual run.
- ptaffs 4y agorent and maintenance if they have branch property, salaries and benefits for staff at least. Banks have a lot of regulation and audit requirements which take work.
- tropicaljacket 4y agobut that doesn't increase with more deposits, right?
- acomar 4y agoif profits don't go up, shareholders get mad and the stock price tumbles. this is just capitalism.