Bank IPO - would you invest

[Johnnybags]

Please respond, I am curious if anyone would invest in a brand new bank IPO to take advantage of the coming firesales and create a healthy bank.

 

[DFF]

What does IPO mean?

 

[Johnnybags]

It means buy stock

What does IPO mean?

in a new bank to capitalize it. Not an encumbered bank with bad assets but a new bank to take advantage of the others woes.

 

[FunkBuddha]

I absolutely would provided you know it will be managed right.

My grandfather did that during the depression and made a fortune. My parents still own the stock and they make great dividends.

The funny thing is, the bank loaned him the money to buy the stock.

 

[lodge939]

How about a bank will full 100% gold reserves?

 

[tmosley]

How about a bank will full 100% gold reserves?

Then it's not a bank, just a vault.

Just don't practice fractional reserve banking, or practice it in a very limited manner.

It might be a good idea to operate it according to Islamic banking principles, but without the "moral" limitations (ie could could fund pig farms or breweries).

Put forward a business plan, and I would consider investment.

 

[Johnnybags]

Actually my thoughts were to approach

a new bank I know that just opened and check out their business plan, urge them to go public with like minded people. Assets are going to be so cheap fairly soon that a properly run bank will make a killing. It would draw in tons of deposits from encumbered dead institutions.

 

[lodge939]

a new bank I know that just opened and check out their business plan, urge them to go public with like minded people. Assets are going to be so cheap fairly soon that a properly run bank will make a killing. It would draw in tons of deposits from encumbered dead institutions.

these properly run banks have to compete with wall street which has a direct line to Ben's printing presses

 

[Johnnybags]

Yes, welcome competition

these properly run banks have to compete with wall street which has a direct line to Ben's printing presses

because Wall st is layered with fat and execs that need a million a year to pay the bills. They also would lose deposits fast to an unencumbered bank. Imagine a full page ad in the Journal advertising to depositors a new bank with zero bad loans on the books. I bet billions would come in from Wall St banks to the new, lean,mean bank.