If You Can't Beat 'em, Join 'em: Start Your Own Bank

With all the complaining going on about the banks and how they are controlling everything, I just had an epiphany. Start your own bank. Join the ranks of the elite. Or, be better than them.

Now is the best time, according to Dan Hudson, head of Nubank, a firm that helps people start up their own banks.

Dan Hudson spoke in the laid-back tone of someone who’s given the same pitch many times, but his words gave them hope: “I believe now is the best time to start a bank.”

New banks have the advantage of not having any toxic loans on the books. Plus the failure rate for new banks is tiny compared to new businesses in general.

...the three-year failure rate for new banks is less than one in 1,000--compare that with the 60 percent failure rate for new restaurants. And the profits are handsome.

Do you have to be a big shot to start a bank? No.

Many banks are started by small-businessmen--the local dry cleaner or hardware store guy, says Len Rubin, a Washington, D.C., lawyer who’s helped launch more than 20 banks. Often, they’re folks fed up with the service they’re getting at big banks; they think they can do better.

Do you have to be rich to start a bank? No.

Under one common model, about 20 entrepreneurs each chip in about $100,000--enough to retain an executive team, outfit a branch, buy a technology package and print a bunch of fancy posters. To raise the $20 million or so in lending capital, they issue shares to local investors.

www.smartmoney.com...

I believe a lot of people would switch to a small, community oriented bank from the large corporate banks. Personal service, help your neighbours, and eliminate the feeling that a corporation is making decisions in a robot-like manner. In my opinion the people who start banks in this economic climate will generally be successful.

Related Links:

www.ehow.com...
money.howstuffworks.com...
www.startabank.ca...

Might as well counterfeit money like all f**king (shadow) governments do.

So everybody, counterfeit as much as you desire.
Crash the current corrupt capitalism.
And activate The Venus Project.

reply to post by ctjctjctj


Not exactly counterfeit but I get your drift. Electronic money. If you can do it, why not? But you could actually help your community instead of selling out to the corporations. That is, if you could resist becoming corrupt when the money starts rolling in.

It's easier to start a credit union. Many student bodies do this on college campuses.

National Credit Union Administration - How to Start a Credit Union

Bankrate.com - 10 steps to starting your own credit union

Creditunionsforyou.com

The problem with home-brewed banks & CU's is that Visa and Mastercard are very picky on who they work with, so getting plugged into an ATM network takes some real financial backing. For a CU this isn't a big deal since they tend to serve a local community and may not want to bother with ATM's.

reply to post by Blackmarketeer


Good idea. I completely forgot about credit unions.

If the people are going to take back the economy for themselves then they will have to do something because there will always be the need for banking and lending services. Don't leave it in the hands of the corporations.

The only problem with credit unions - I believe - is that they have much more strict reserve restrictions and only limted fractional banking...

A regular bank would be able to help a much larger amount of people due to relaxed restrictions - as long as the management was conservative enough to not blatantly risk insolvency.

I am very interested currently in helping to form a MENSA credit union - anyone here currently a member of this organization?



[edit on 2-4-2009 by TruthMagnet]