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<p>[QUOTE=&quot;SuperDave, post: 2382883, member: 1892&quot;]I don&#039;t want to sound like I&#039;m defending banks - the very thought makes me nauseous - but let&#039;s look at this from a different viewpoint.</p><p><br /></p><p>A good rule of thumb in retail is that you need to double your money on cost of product to cover the costs of offering that product - retail space, labor, taxes, etc. Banking doesn&#039;t stand the slightest chance of approaching even a small percentage of this margin, because all they get is interest/float on deposited and lent money. Even the most usurious loan rates in excess of 20% only approximate <b>half</b> of what&#039;s acceptable ROI elsewhere in retailing, and such rates only go along with very marginal loans for them, ones they have a reasonable expectation of being burned on. And that&#039;s another thing - an acceptable level of theft in other types of retailing is probably far below what normally happens in banking, from bad loans. Here&#039;s a table from the Federal Reserve regarding delinquency rates:</p><p><br /></p><p><a href="http://www.federalreserve.gov/releases/chargeoff/delallsa.htm" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.federalreserve.gov/releases/chargeoff/delallsa.htm" rel="nofollow">http://www.federalreserve.gov/releases/chargeoff/delallsa.htm</a></p><p><br /></p><p>Pro tip: In &quot;normal&quot; retailing, only the <i>very lowest</i> of those numbers would avoid getting everybody in the building fired for incompetence.</p><p><br /></p><p>So, as a banker, how exactly do you make any kind of money on your &quot;product?&quot;[/QUOTE]</p><p><br /></p>

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