What are you worth to your bank?
By Mike Konczal
Let's take a breather from shadow banking to discuss commercial banking. (We play both kinds here, country *and* western.) Specifically you, as a customer: How much does your commercial bank make off of you?
How much are they worth as a customer? A quick check tells us: $498.12
I recently went out for drinks in Greenpoint with the creators of Bank Simple. Here is their blog, where they walk through all kinds of problems they see in the market and their overall project and makes for an excellent read. They are currently trying to get a clearance for running their own commercial bank -- my advice was to get a trillion dollars through leveraging with short-term liabilities and threaten to collapse the real economy, because history
tells us that those firms can get commercial banking charters in a weekend......