The lesson: build a cheap, stable deposit base, and don't be shy not to lend.
ECONOMIST: The bust is starting to catch up with regional lenders
For all of its losses, it still stumbles on with a deposit base at 77% of total assets.
As the bank incurs an interest expense on its deposit base, more deposits mean lower net interest margins.
The idea of a quarter or more of a big bank's deposit base being wiped out is politically unthinkable.
In FDIC assisted acquisitions, the consolidators stand to benefit from cost synergies, a growing deposit base and increased market share.
The banks, for example, are anxious to offset their shrinking deposit base by turning mutual funds to their own advantage.
America's proposed change would do no more than reduce the part of the deposit base that is unprotected from 38% to 27%.
Bigger banks, with deeper branch networks and a broader range of products, are less susceptible to runs on deposits and better placed to use their deposit base to buttress earnings.
The larger deposit base will give the combined company economies of scale and will enable it to compete with JPMorgan Chase and Bank of America with a "nationwide banking presence, " he says.
JPMorgan, which has long coveted WaMu's deposit base and presence in California, Florida and other locations where it does not have a meaningful branch network, is getting the bank for a song.
To succeed in expanding abroad, banks need scale and a local deposit and customer base.
"We're buying a large deposit franchise with a loyal customer base, " said PNC chief executive James Rohr on a conference call Friday.
And when its aluminium coating is replaced with silver in a year or two's time (a huge vacuum-chamber housed at the telescope's base will be used to deposit metallic vapour on to the mirror's reflecting surface), it will be able to see into the infra-red with equal clarity, opening up a much neglected area of astronomy.
Holdings, a builder that operates under the Richmond American Homes name, may ask for an additional deposit if a buyer's interior-design upgrades exceed 13% of the base price.
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