How does someone start a bank. I understand that you have to have a shit ton of money, but how does someone actually start/open a bank of their own? Can mr joe shblow, given that he is able to come up with previously mentioned “shit ton of money”, go out and open his own bank? Obviously it takes time, but what’s the process of doing so?
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In the UK it is very hard. Before September 2011, a new bank wasn’t founded for over 150 years. Since then a few more have opened but the Financial Regulations Board are almost entirely old rich men so they don’t give many people the opportunity to take from their near monopolies.
In the UK it is very hard. Before September 2011, a new bank wasn’t founded for over 150 years. Since then a few more have opened but the Financial Regulations Board are almost entirely old rich men so they don’t give many people the opportunity to take from their near monopolies.
Read up on the savings and loan scandal of 1988. A savings and loan looks like a bank, and acts like a bank, but they are slightly different.
Due to deregulation and a cut-back in oversight, a few dozen millionaires each started their very own S&L’s, and they would pair up and scam each other on purpose, knowing that when they filed for bankruptcy, the taxpayer would “bail them out”
As a former financial regulatory attorney….. Very, very careful.
And usually by buying an existing bank.
Read up on the savings and loan scandal of 1988. A savings and loan looks like a bank, and acts like a bank, but they are slightly different.
Due to deregulation and a cut-back in oversight, a few dozen millionaires each started their very own S&L’s, and they would pair up and scam each other on purpose, knowing that when they filed for bankruptcy, the taxpayer would “bail them out”
As a former financial regulatory attorney….. Very, very careful.
And usually by buying an existing bank.
Read up on the savings and loan scandal of 1988. A savings and loan looks like a bank, and acts like a bank, but they are slightly different.
Due to deregulation and a cut-back in oversight, a few dozen millionaires each started their very own S&L’s, and they would pair up and scam each other on purpose, knowing that when they filed for bankruptcy, the taxpayer would “bail them out”
It’s not easy. Nationwide Insurance converted their employees only credit union to a public bank in 2010 and it tanked within 2 years
And as a side-question to this, how does this factor into things like Loopring with their catchphrase “be your own bank”? I imagine the world of blockchain based ledgers has a whole different set of rules than institutional accounting-book ledgers in terms of operating, but also how would loans work in a blockchain based ‘be your own bank’ world?
As a former financial regulatory attorney….. Very, very careful.
And usually by buying an existing bank.
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