Small business rescue earned banks $10B in fees
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Re: Small business rescue earned banks $10B in fees
#2No surprise here. Yes, these programs will help out small businesses. But, the rich need their cut first.
Hopefully investigative journalists will be able to find the corruption/fraud in a few years.
Re: Small business rescue earned banks $10B in fees
#3Gotta 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 to decide this with its own money.
- Part of it is regulatory. We don't want money laundering. Have to ask whether this really ought to be up to law enforcement to do, or as it is now a massive burden on the banks, which also have bad incentives.
What if we had the central bank give everyone an account that was interoperable with the rest of the banking system? Then if you want to hand out money, you just do it. If you want to borrow money, find a lender.
Re: Small business rescue earned banks $10B in fees
#4No surprise here. Yes, these programs will help out small businesses. But, the rich need their cut first. Hopefully investigative journalists will be able to find the corruption/fraud in a few years.
I hope so too, so at least it is in the limelight of what the heck goes on.
Re: Small business rescue earned banks $10B in fees
#5Wish I lived in a world where $10 billion in graft got someone arrested. Jailed, if I’m recklessly ambitious.
Re: Small business rescue earned banks $10B in fees
#6Gotta 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.
Re: Small business rescue earned banks $10B in fees
#7Gotta 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…
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Re: Small business rescue earned banks $10B in fees
#8Gotta 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…
> What if we had the central bank give everyone an account that was interoperable with the rest of the banking system?
Because we don't trust the central bank enough (edit: to not arbitrarily give their friends money directly - still happens though). And they don't want to be politicized by giving up autonomy. So the current compromise is that by law they can't lend directly except by Congressional statute, such as the CARES Act stipulates.
Re: Small business rescue earned banks $10B in fees
#9That's about a 2% fee which doesn't seem out of line with other transaction processing fees that are out there. That fee probably has built in insurance for fraud and other failures. And also the cost of the transaction. I bet that fee is the same fee as a year ago?
Re: Small business rescue earned banks $10B in fees
#10Gotta 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…
> What if we had the central bank give everyone an account that was interoperable with the rest of the banking system? Because we don't trust the central bank enough (edit: to not arbitrarily give their friends money directly - still happens though). And they don't want to be politicized by giving up autonomy. So the current compromise is that by law they can't lend directly except by Congressional statute, such as t…
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