> which sort of implies that marginal profit is negative
Was it not when interest rates were low, like when LIBOR was near zero? My understanding of that era was that many retail banks were working to shed retail deposits. Holding money was not profitable in that era, especially retail. And today I would still suspect it's not what banks are going for big picture.
Was it not when interest rates were low, like when LIBOR was near zero? My understanding of that era was that many retail banks were working to shed retail deposits. Holding money was not profitable in that era, especially retail. And today I would still suspect it's not what banks are going for big picture.