Banks
will become public utilities if trends toward super-regulation
continue. Politicians in charge of this direction have no clue of the
effect of such consequences.
The
unintended result of all this? How will banks make money if more and
more capital is tied up at minimal return?
There
won’t be more business loans in such an atmosphere but there will
be efforts to take more risks that can make up for earnings
shortfalls. (See the Earl J. Weinreb NewsHole® comments.)
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