https://www.thestreet.com/banking/charlie-munger-warns-of-bad-commercial-real-estate-loans-at-banks
…Munger said. “We’ve had some disappointment in banks, too. It’s not that damned easy to run a bank intelligently, there are a lot of temptations to do the wrong thing.”
In other words, incompetent 
We could fix that by simplifying it. I wonder what percent of banking products don’t even need to exist and are simply there to create more leverage and risk.
Apple is quietly killing small banks.
Why is apple getting into retail banking? Sorry, I haven’t been following the other threads about this.
Apple has been in FinTech for a long time.
Apple Pay, Apple Card, Apple Pay Later, now Savings Account.
GE got into retail banking at one time. It didn’t go well for them.
GE was different. They were focused on commercial financing to sell more of their products. Tech companies did the same in the dotcom boom. They were selling tons of hardware to startups on credit. That ended very badly when startups failed and flooded the market with used gear. It also led to rule changes on revenue recognition. It led to a whole industry of software tools and staffing to do revenue recognition work. I chuckle when they try to say it is really complex.
.
IIRC many older companies (too lazy to search the web to find the names) use to have financing department… if I’m not wrong, most disappear after GFC (too lazy to verify, from memory). That is, not just GE and the tech companies. Apple Pay Later is … other than that is not…
Every product/service public company has “Leasing and Finance Department” that internally works with some bank provide finance to encourage buying their product/services.
That is entirely different from what Apple savings account is doing. With 0.99 cloud servicing fee, apple earn many billions with huge customer base.
When short term T-Bills are at 5% range, many big banks are giving 0.25% (BAC) to 2.75% for savings/money market cash.
With Huge customer based and Apple’s reputation, they are trying to tap all savings to their banking with GS. They may have tie-up with GS as commission, at least to start with, for the deposits AAPL is getting from customer.
If GS buys 1B T-Bills at 5% rate and they pay 4.15% to customers and 0.35% to AAPL, still GS has 0.5% gain on 1Billion cash. It is up to GS to make money how effectivily take the Net interest margin, but AAPL gets a commission cut for their service.
Huge customer base is the benefit and interest rate inefficiency across the banking industry is exploited. All apple needs to do is enable the flow through the cell phone.
My son was looking for reliable bank to get more money for his savings, finally decided to move nice amount to apple savings yesterday.
.
I have moved some… just testing the process…
With Apple and Goldman Sach and with in $250K FDIC insurance?
.
Eventually. Pretty good place to park emergency fund.
Btw, SOFI is crashing. SOFI is a bank 
Most regional banks are rural. Their customer base doesn’t trust big tech and may not even own a smart phone let alone an iPhone.
Also, rural business is conducted in cash. If there’s no easy way to get physical cash from an account it’s a non-starter in rural America.
I see this taking money from large urban-based mega-banks but not regional banks.
As an aside I made some queries into my local regional smaller bank. Very few customers have withdrawn deposits. Those who did demanded the whole thing in cash - they did not request a check or other form of transfer to a larger institution. The cash went in their safe at home.
Most rural dwellers may bank with small regional banks, but the reverse is not true I think, that most of small regional banks’ clients are in rural areas.
The banks in the news now, PacWest is based in Beverly Hills down in LA, and Western Alliance is based in Phoenix.
Exactly. As with SV Bank, FR and Signature those regionals that rely on urban centers will be the most at risk.
