Any of you like Jason Chaffetz?

[Bay_area_Hokie]

Had people from work at the financial subcommittee meeting yesterday. Chaffetz was grilling FDIC Chairman Marty Gruenberg. He was getting grilled because the FDIC has made it basically impossible to get an FDIC charter for a de novo bank. There have been almost no new banks in ten years, while 44% of deposits are held by five banks.

Can you say "systemic risk" with so little competition?

Gruenberg's argument was that no one wants to start a bank cause rates are so low that it isn't profitable. This is complete BS. It really doesn't matter if rates are high or low,as the cost of funds go up and down with the revenue side. Anyway, the corporate masters are still running the puppet show, and it was nice to see Chaffetz represent his Utah residents. Utah is becoming a decent hub for the FS industry. He is trying to get more jobs for his state, which is what his voters want him to do.


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