We are acclimated more than most on the BUSINESS of banking. That being said the issue of derivatives, or as Warren Buffett calls them financial weapons of mass destruction, has always been first and foremost in our thoughts as a MAJOR risk to not only us but the entire global economy in addition to a myriad of other pressures too numerous to mention here.
There is a flawed mentality that permeates in the banking industry regarding a crazed inflexible priority on acquiring deposits as the end all mission. Ok, well that is fine and dandy but that mandate, in our view, puts the cart before the horse because in this superheated competitive banking environment customers are loathe to just hand over their finances without something to lure them in.
In that vein, non transactional “perks” are key to acquiring THE EDGE. Many banks outright bribe new customers with sign up bonuses but then you are in a situation where the giveaways escalate to the point of losses. Food for thought as you read this