Banker's greatest fear is that depositor's remove their money en mass. Hense FDIC, which is a conduit that over promises, and would never be able to deliver if a real banking crisis emerged, because paul wont have money to pay peter when the crap hits the fan. FDIC is just a way to keep the masses comfortable and safe as not to pull money from the banks.
As depositors, we are LENDING money to the bank, and since few have $10 million, it makes it easy for banks to marginalise you because you alone have no negotiating power. but, with $10mm you can make a banker do ANYTHING.
As bankers where forced to compete with one another, and able to sell their risk easily when real estate and other collateral was highly valued, it was a lifetime opportunity, and leveraging our money on deposit was a no brainer. Till the music stopped and we found out who was swimming naked.
Now the game is slow the market down, keep the mark to market values high until they HOPE to revalue those Asset holdings in the meantime, they pray depositors dont make a run and seriously wreck em, because most banks are hardly at break even, they CANNOT lend and why would they, when borrowers cannot repay.
Banker's do suck though, why, because the mistakes made are beyond a teller deposit slip, the errors are total negligence, risk management disaster, and now HOPING their asset portfolio increases in value.
well i am a short seller, and looking for broken business models is my skill. once a former banker, and valuation expert, etc..now trader. i will tell you...the market manipulation happens on the buy side. it is the short seller that should motivate the operator to do a good job. instead, operators create buying pools to support their stock and other schemes, that raid the widows and retirees money.
bankers borrow what is not their to buy assets, keep the difference and try to return what they borrowed. in most cases they leverage against our deposits, and HOPE we dont call our LOAN to them.
When you Hope you should FEAR. From my observation of the global financial system, you are HOPING here more in July, than July 2007-08.
i wish i could say more, but, it's in your nature to take advantage of the mass consumer, they are too ignorant relative your expertise. there is no other way for you to survive. your days of entitlement you fear will end soon.
go ahead, nickel and dime em while you have the chance, then put up the gates when the depositors call their loans.
to my fellow depositors, find an island and make a treasure map, or at least band together in your communities, because he who holds the cash makes the rules, and these banks hold the cash.