Goldman's revenue has been declining recently and its net income was reduced by 11% in the second quarter. Deposit funding is more stable because of the FDIC guarantee. There is something terribly wrong with a bank catering only to the Wealthy 1%.
Is The Wall Street Casino Closing?
By Cullen Roche - Pragmatic Capitalism (Business Insider)
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There was a time when banking was a relatively simple business, but what these companies have morphed into has made the business infinitely more complex and an increasing risk to the financial system. I’m certainly not against private banking, but I am skeptical of this idea that it’s good for the health of our banking system (really our payments system) to be so directly tied to these companies who now derive so much of their income from gambling related business streams. Of course, I don’t have an issue with gambling (I love a trip to Vegas as much as the next guy), but when we’re threatening the stability of the entire payments system just so these companies can expand the bottom line and increase shareholder value then you have to start wondering if something isn’t wrong with the system. I won’t say that this move by Goldman is a sign that we’re moving in the right direction, but one can hope….