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They're not profitable because of the existence of fdic insurance.
by drcode 13y ago
They're not profitable because of the existence of fdic insurance.
- dragonwriter 13y ago> They're not profitable because of the existence of fdic insurance. Even without FDIC insurance a bank with 100% fractional reserve couldn't be profitable (or even operate), unless accounts had negative interest rates, as it couldn't loan money out from deposits to earn revenue.