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Small business rescue earned banks $10B in fees

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Re: Small business rescue earned banks $10B in fees

#71

Post by volak »

megous wrote: post #54
volak wrote: post #27

Banks make somewhere around 450 billion in revenue each year. https://www.statista.com/forecasts/409713/banking-revenue-in... This program made them 1/3 of 1 month's normal revenue

That also means that they could have easily waived the fees without taking much of a hit, just out of solidarity.

Businesses are not a charity - according to reported Q1 earnings last week they're losing million of dollars everyday just keeping the lights on.

They've lost far more even with the fees they collected from this program.

As someone said above - doctors are not working for free, why should bank employees?

Re: Small business rescue earned banks $10B in fees

#72

Post by igravious »

theplague42 wrote: post #6
lordnacho wrote: post #3

Gotta ask whether the banking system makes sense in its current form. - Part of it is actually a utility. Payments, sending money from one place to another, making sure there's an account at the other end of that number. Everyone needs this, yet being a huge international network there isn't a whole lot that one bank offers that another cannot. - Part of it is deciding who to lend money to. Makes sense for the bank t…

There have been suggestions over the years for the post office to offer banking services. They have branches literally everywhere, they're independent yet still a government agency, and have no profit motive.

We have this in Ireland!

https://www.anpost.com/Money

Re: Small business rescue earned banks $10B in fees

#73

Post by travisporter »

lonelappde wrote: post #12

The headline misses the point. The total means nothing out of context. What's the fee per loan? >Loans worth less than $350,000 brought in 5% in fees while loans worth anywhere from $2 million to $10 million brought in 1% in fees. I've read that the average loan is $50K, so that's $2500 per loan, which seems high, And 1% of a $1millio loan is ridiculous, as it's not subsidizing the smaller loans, AND these loans are…

In an ideal world applicants should be able to shop around and get the lowest rate. Is this not happening due to the rush of just getting in the application?

Re: Small business rescue earned banks $10B in fees

#74

Post by Ididntdothis »

covidacct wrote: post #42
seph-reed wrote: post #29

Earlier quoted context omitted.

I solemnly swear to stand by those who fight corruption, even when they go too far I will recognize and respect their intent, I will remember them as heroes, and I will do everything I can to make their sacrifice not be in vain.

Xi Jingping consolidated power by rallying people around the flag of anti-corruption. Same with Putin. Obviously, neither of those people is anywhere close to non-corrupt. Don't rally around anti-corruption. Rally around accountability, oversight, openness, and balances of power. Doing things right is harder than calling out others for doing things wrong, and plenty of horrible corrupt people are all too happy to cal…

“Xi Jingping consolidated power by rallying people around the flag of anti-corruption. Same with Putin. Obviously, neither of those people is anywhere close to non-corrupt.“

So did trump with the talk of “deep state” and the “swamp”. It’s always the same playbook.

Re: Small business rescue earned banks $10B in fees

#75

Post by Milner08 »

dboreham wrote: post #63
user5994461 wrote: post #18

Earlier quoted context omitted.

Are you talking about the US post office? The post office in France already offer banking. It's mandated by law as a public service and they can't reject customers. It doesn't offer the more complex products or investments though, it ain't their purpose. Not sure about the UK post office. Seem to offer a lot of banking services and cards, but it says it doesn't do current accounts anymore.

The UK Post Office did offer banking. Not sure if it survived Thatcher..

They offer some things now (deposits, travel cards, etc), but I am not sure they offer actual accounts anymore.

Re: Small business rescue earned banks $10B in fees

#76

Post by _curious_ »

tempsy wrote: post #47
agilebyte wrote: post #43

Earlier quoted context omitted.

Paperwork AND doing due diligence on the companies more effectively than the government can right now.

The point is the amount they are earning is overly generous for the work completed. Most banks are only working with existing customers, so the DD is 99% complete. Few are reviewing applications from brand new clients.

Not to mention that the banks are biased and giving no risk handouts to their most valuable clients (those at greatest risk of defaulting on obligations to the bank).

Re: Small business rescue earned banks $10B in fees

#77

Post by rapind »

lordnacho wrote: post #3

Gotta ask whether the banking system makes sense in its current form. - Part of it is actually a utility. Payments, sending money from one place to another, making sure there's an account at the other end of that number. Everyone needs this, yet being a huge international network there isn't a whole lot that one bank offers that another cannot. - Part of it is deciding who to lend money to. Makes sense for the bank t…

Instead of all the fuckery, imagine if the government just sent everyone a monthly cheque with the only criteria that they are a living breathing adult with a US address.

Universal trickle up.

Re: Small business rescue earned banks $10B in fees

#78

Post by beervirus »

lmeyerov wrote: post #41
lonelappde wrote: post #12

The headline misses the point. The total means nothing out of context. What's the fee per loan? >Loans worth less than $350,000 brought in 5% in fees while loans worth anywhere from $2 million to $10 million brought in 1% in fees. I've read that the average loan is $50K, so that's $2500 per loan, which seems high, And 1% of a $1millio loan is ridiculous, as it's not subsidizing the smaller loans, AND these loans are…

The root problem was Trump team didn't put in enough money, included too many rich businesses, and didn't require a fair order. Banks knew they didn't have enough meat yet were feeding a frenzy: of course the big dogs pushed through to the front. So now we blame Banks instead of Trump. Yet if Trump repeats the plan without prioritizing actual small businesses, the co's big enough for in-house accountants and big loan…

> Trump team didn't put in enough money

You know, the president doesn't write legislation or appropriate money. That's on Congress.

Re: Small business rescue earned banks $10B in fees

#80

Post by _curious_ »

stri8ed wrote: post #67
agilebyte wrote: post #43

Earlier quoted context omitted.

Paperwork AND doing due diligence on the companies more effectively than the government can right now.

What incentive does bank have to actually do due diligence, when the loans are all guaranteed by government?

Because they are giving the corporate handouts to customers who are at the greatest risk of defaulting on loans to their own bank - that's their incentive.
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