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#1 Typically, banks base their business model on borrowing short term and providing longer-term loans. The difference between the banks' borrowing costs and what they earn when they lend or invest those funds is known as the net interest income.
Banks no longer pay interest (to amount to anything) on your cash deposits. They get all the long-term cheap money they need from the gov't. They no longer need traditional depositors or customers. Consequently, folks don't put much money in banks anymore.
Banks don't need customers, they have the gov't. Farmers no longer need to farm, they have the gov't. Property owners no longer need to insure against hazards, they have the gov't. Workers no longer need to work, they have the gov't. And so it goes.
Posted by Besoeker 2012-12-09 03:01||
#2 this article misreads the citibank situation
citi isn't cutting retail banking because of margins
they are cutting because banking productivity is up - e deposits, e payments, ATMs, etc. because some of various troubled assets that will take some capital to resolve - and also of course for executive entertainment
Posted by lord garth 2012-12-09 08:48||
#3 Near zero interest money and the banks still can't manage....
Posted by 49 Pan 2012-12-09 13:01||
#4 Peer to Peer lending is coming up for statutory "regulation".
No-one had any problems, except the banks who hated to competition.
Posted by Bright Pebbles 2012-12-09 19:33||