What alternatives are there to commercial banks needing depositors to operate their business?
Plus make sure to see my post <a href="http://www.wallstreetoasis.com/blog/how-i-got-a-770-on-the-gmat-with-minimal-effort-while-working-banking-hours%E2%80%A6">How I got a 770 on the GMAT with minimal effort while working banking... phantombanker's GMAT Study Guide |
A week or two ago there was an article written about how your weight might inversely effect you during the hiring process. During the conversation I dropped some personal information about me losing 130 (now 135 pounds). I was PM’d by somebody asking me to tell my story. Well I have some free... How finance saved and gave me a life |
<em>Mod (Andy) note: </em><a href="http://www.wallstreetoasis.com/blog/phantombankers-gmat-study-guide">Here is the link to his study guide</a>
Background: I recently took the GMAT and scored a 770 on my first and only try. Long story short, I studied and took... How I got a 770 on the GMAT with minimal effort while working banking hours… |
Here's my story:
I will be graduating this semester from a non-target university, majoring finance and accounting, with a decent gpa (3.5 up). I started networking last summer, searching for that IBD full time offer. I was even considering delaying my graduation for one semester with the... Full Time Offer, at last! Thanks WSO! |
There she is again: Diane Sawyer, the primary ABC evening news anchor, with another installment in their interminable series of reports on imports and employment in America. I could just strangle her.
One week their (alleged) reporters go to people’s houses and look at everything the occupants... Sawyer’s Syndrome: The ABCs of Trade and Employment |
Fellow Primates,
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There was much wailing and gnashing of teeth at the close on Friday over the perceived lack of performance in the Facebook IPO. The stock priced at $38, opened at $42.50 (after a few hiccups at the NASDORK), and closed at exactly $38 after an effort by the syndicate members akin to the Spartans at... IPO Pricing 101 |
A common thread we see on WSO from time to time is regarding working for banks in their regional offices.
As banks are leaning towards more cost cutting and squeezing every dollar they can from their operations,<strong> a popular tactic has been to expand existing business and move... Consider your BB regional office. |
<strong>End of day update: </strong>
<ul>
<li>Close: 38.23 +0.23 (0.61%) and holding stable in after hours trading.</li>
<li>Open: 42.05</li>
<li>High: 45.00</li>
<li>Low: 38.00 </li>
<li>Volume:... Volume of FB Shares Traded today? |
I'm going to be an organ donor in the next few months (kidney, to my dad). I'm not at all in it for the glory (except for subtly dropping it when i'm picking up a chick at the bar) BUT should I add this experience to my resume? If so, how and where?
If its subtle / small / at... Add "Organ Donor" to my resume? |
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Fed overnight window,
Fed overnight window, interbank lending, asset sales, etc.
cheap capital. you give very
cheap capital. you give very very little interest or in most cases no interest. on top of that you can charge them fees.
Depositors are just
Depositors are just creditors, businesses need financing.
shadow banking
shadow banking
Gains from wholesale banking
Gains from wholesale banking (corporate banking, investment banking) & buyside trading can help reduce reliance on depositor financing.... though these days that's not as realistic.
Michael Eisner wrote: Gains
Gains from wholesale banking (corporate banking, investment banking) & buyside trading can help reduce reliance on depositor financing.... though these days that's not as realistic.
Do you even understand how a bank works? What do you think funds wholesale banking and buyside trading activities?
LOL
LOL
D-Man wrote: What
What alternatives are there to commercial banks needing depositors to operate their business?
Mother of god...
*facepalm*
Bro. Bro. Bro. Brush up on your Mishkin.
http://www.amazon.com/Economics-Banking-Financial-Markets-Update/dp/0321...
"When I was young I thought that money was the most important thing in life; now that I am old I know that it is."
- Oscar Wilde
"Seriously, psychology is for those with two x chromosomes."
- RagnarDanneskjold
Please ignore the stupidity
Please ignore the stupidity of the question. I'm not an expert in the finance field, just help me out lol
Please ignore the stupidity
Please ignore the stupidity of the question. I'm not an expert in the finance field, just help me out lol
UncleMilty wrote: D-Man
What alternatives are there to commercial banks needing depositors to operate their business?
Mother of god...
*facepalm*
Bro. Bro. Bro. Brush up on your Mishkin.
http://www.Amazon.com/Economics-Banking-Financial-Markets-Update/dp/0321331850
Mishkin is a POS
Yeah dude, I agree with JS,
Yeah dude, I agree with JS, Mishkin is a total D-bag
optimus_prime wrote: Michael
Gains from wholesale banking (corporate banking, investment banking) & buyside trading can help reduce reliance on depositor financing.... though these days that's not as realistic.
Do you even understand how a bank works? What do you think funds wholesale banking and buyside trading activities?
The jews?
optimus_prime wrote: Michael
Gains from wholesale banking (corporate banking, investment banking) & buyside trading can help reduce reliance on depositor financing.... though these days that's not as realistic.
Do you even understand how a bank works? What do you think funds wholesale banking and buyside trading activities?
There are functions in wholesale banking, such as pure M&A advisory, fairness opinions, etc. that generate fees without leveraging the balance sheet. In addition, gains from trading on a bank's own book are re-invested, allowing their total invested assets to grow without the need for additional depositor financing.
I never said that these activities can come close to replacing depositors, and I know that depositors are needed for most bank functions to exist. But not all. Please do your homework.
You're talking about
You're talking about investment banking activities then -- not commercial banks. Obviously advisory activities don't need depositors (e.g. GS, MS, *any* boutique)...but the question clearly wasn't about that. Moreover you added "buyside trading" and "corporate banking", both of which *do* heavily leverage the balance sheet.
Also, I spent two years in FIG banking so please don't tell *me* to do *my* homework. The simple answer is "fractional reserve banking"; I don't get why everyone on this site likes to show how smart they think they are and complicate things with special cases unrelated to the question.
During the financial crisis
During the financial crisis both GS and MS applied for their commercial bank status. JPM is already one. I slipped up when I said corporate banking, but there's no way one can argue that advisory activities can't help a commercial bank reduce its reliance on depositor financing.
I think the 2 years in FIG made you cranky, Basels not the most interesting read is it lol
Michael Eisner wrote: There
There are functions in wholesale banking, such as pure M&A advisory, fairness opinions, etc. that generate fees without leveraging the balance sheet. In addition, gains from trading on a bank's own book are re-invested, allowing their total invested assets to grow without the need for additional depositor financing.
I never said that these activities can come close to replacing depositors, and I know that depositors are needed for most bank functions to exist. But not all. Please do your homework.
This thread has nothing to do with investment banks.
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They applied for commercial
They applied for commercial bank status, yes, though only to access the discount window -- they each have less than $50bn in deposits (I believe). JPM funds itself with a trillion dollars of deposits. Really not sure what point you're trying to make here. You might as well say that window washing businesses also reduce reliance on deposits....the question was: "Why do banks need deposits", not "What banking activities don't need deposits." Sure, we can make up all sorts of businesses that don't need depositor financing. The only *financing* alternatives were mentioned higher up -- fed borrowing, wholesale funding, repo, etc...
Guys, I wouldn't get too bent
Guys, I wouldn't get too bent out shape, this thread sucks.