Bank Profits and Deposits

> so they are evidently willing to reduce profits in order to insure deposits.Quite refreshing compared to the American Capitalism hellscape, though kind of expected because its a national corporation.

> was hoping for a big win this quarter.The largest quarterly profit ever recorded by any company wasn't enough of a big win? I don't want to soapbox too much, but there is something deeply wrong with capitalism when you can be more profitable than any corporation that has ever existed and it seems like a letdown.> Especially with so much foreign debt in USD, a lot of companies are going to have a hard time paying off bonds and loans, hurting their ability to grow.<p

When has a large corporation become more efficient with their spending to that degree? From the figures being thrown around, if their profits from the USA suddenly dropped by 90%, that isn’t just becoming more efficient, that is having to severely contract.

if you read the post, this is not a loan for a couple of days> Brian McDanial (fantastic attorney) at Wilson Sonsini figuring out exactly how to structure the fundit's a gamble/bet that the deposits will either be made whole or paid more than they're offering (90-95%)But with such a nice offer, the fund was most likely to make little to no profit so it would be more like "public-benefit corporation"----If you're around the right circle - founders&#

I work in DS for a car insurance company, from the inside the returning of premium seems more of a 'pr goodwill' type of thing than anything else. As soon as one company did it, they sort of all wanted to follow suit in order to preserve optics.There really isn't a limit to profits such as, 'we can only make $500 off of this policy anything over that we would have to refund'

No corporations do not and should not.If your profits are 5% then for a year-long "rainy day" you'd need to make profit for 20 years and keep it in the bank without ever returning it to investors. That's ludicrous.Look up the "Accumulated Earnings Tax". The IRS essentially requires companies to return their profits to their shareholders each year and not save it, or else face a tax penalty.In the case of something unforeseeable like a g

Even more perversely, they can use those foreign profits as a guarantee on their loans, reducing the interest rate they have to pay. Best case they pay a super low bond rate, worst case they repatriate their profits to repay debts and pay some taxes.

The ones that bring in billions in profits are less dependent, of course, but even those will carry loans on their books. Why not, if money is free. Each large corporation has essentially an investment bank on the inside.

Yes they do. Do you think a company is going to set themselves for a best case scenario of breaking even? Or just take a 25% hit to profit unless they absolutely need to?I just look at Wells Faro, and they have $900 billion in interest bearing deposits. With NI of $16 billion, just going up to 1% will wipe out 55% of profit.

Well in a lot of places you can discount interest payment against profits - which is why those ghastly debt back buyouts that make money for the banks sort term but saddle a company with unmanageable debt are so popular.