First republic was giving significantly discounted mortgages for bringing all your banking over to them.... Yes they failed but their business model was sound, they just did not account for interest rate changes and liquidity. I mean that's a whole different convoz and why no one thoght about the fact the we're I vesting long at historically insanely low covid bond rates (complacency on constantly declining rates ) Anyway , anyone know any other banks)unions/lenders who may offer a discounted rate to hnw ) business owners? FR was offering 4.4 % as late as February when rates were over 6.5%, and even has a 5 year IO option.
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I’d look at Citi bank even though they’re not regional. They seem to have the best rates and great discounts for relationship.
If a business model is entirely dependent upon historically low interest rates / quantitive easing, and is unable to weather changes in fiscal policy, then by definition it's unsound.
That's not at all what it was based on. They made their money by selling wealthy people all the other services . They went bust because they bought a lot of long term bonds when rates were near 0 percent .. and then rates rose. So the only way to not lose money was hold those bonds to maturity. That would have been fine except people started pulling their money out of the bank because of fear. It's amazing to me all these banks bought such long dated bonds at such low rates. Not sure what the upside was Everyone got complacent that , just buy long bonds they are safe.. they are, except when you use up your liquidity to buy them and a fast internet bank run happens. Edit: wait are you the same vw guy on the other thread saying jnj Boeing Ford kellog and ge are going to go bust in the next 5 years? And that spin offs are the same as a company dissolving? Not surprised you don't understand this despite the ad nauseum media coverage and eli5 on live tv... Granted there's a lot of idiots and politicians also spiting non factual info because they also don't understand it
@KwtN82 Hey champ, I suggest you sit this one out and stick to leetcode. Anyone who think a business model that's entirely dependent upon inherently unsustainable fiscal policy is "sound" has no credibility. A sound business model is one that is agile enough to withstand changes in fiscal policy, because it operates based on actual free market principles, not central planning