Originally posted by Cuivienen
Lurchy, I know you know nothing about what you are talking about, but I'll respond anyway. Banks don't earn shit on deposits right now. Rates are far too low to support any kind of spread.
I know you don't know what that means, but whatever.
Also, your option B is a total non sequitur. What about Option C) The unicorns come and shit gold bricks all over ND?
Cliffs: the whole point is the part you don't get is all of it.Still working on that reading comprehension issue?
BND profits that you claim don't exist; fta:
In 2011, the BND provided more than $70 million to the state's coffers. Extrapolate that profit-per-person to a big state like California and you're looking at an extra $3.8 billion a year in state revenues that could be used to fund education and infrastructure.
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BND blows away any Wall Street bank for low exec salaries; fta: (imagine how low their other overhead/expenses are compared to Wall Street banks)
As state government employees, BND executives have no incentive to gamble their way toward enormous pay packages. As you can see, the top six BND officers earn a good living, but on Wall Street, cooks and chauffeurs earn more.
Eric Hardmeyer, President and CEO: $232,500
Bob Humann, Chief Lending Officer: $135,133
Tim Porter, Chief Administrative Officer: $122,533
Joe Herslip, Chief Business Officer: $105,000
Lori Leingang, Chief Administrative Officer: $105,000
Wally Erhardt, Director of Student Loans of North Dakota: $91,725
The very existence of a successful BND undermines Wall Street's claim that in order to attract the best talent big banks need to offer enormous pay packages. Yet somehow, North Dakota is able to find the talent to run one of the soundest banks in the country? The BND is living proof that Wall Street's rationale for sky-high executive pay is a self-serving fabrication.
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how about the costs of borrowing for the public/govt entities that taxpayers are on the hook for; fta:
In the 49 states without a public bank, there's no safe place to turn for loans to rebuild schools and finance other public infrastructure projects. That creates an enormous opportunity for Wall Street firms to hook localities on expensive bond programs -- like capital appreciation bonds, which can lead to repayments equaling 10 times the original loan. Investment bankers and advisers also make enormous fees by selling expensive, high-risk financial schemes to state and local governments (read an investigative report here). But such schemes are useless in North Dakota where the state bank provides the capital the state needs for a fraction of the long-term costs.
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But apparently, all of that is wrong because you believe unicorns shit bricks of gold.