tag:blogger.com,1999:blog-235433516644980443.post8773603412412407761..comments2024-03-27T05:08:10.195-04:00Comments on Jeff For Banks: Why No De Novo Banks? Math.Jeff Marsicohttp://www.blogger.com/profile/12153599647481141591noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-235433516644980443.post-32921521721000643702016-11-17T16:12:25.392-05:002016-11-17T16:12:25.392-05:00They [regulators] don't see it that way.
And ...They [regulators] don't see it that way.<br /><br />And a $10MM would probably require another capital raise by the bank to achieve the above numbers. Since small banks are trading at or near book, and startup equity is done at or near book, it is six in one, half dozen in another.<br /><br />Due to technology demands and regulatory burden, it is doubtful the bank could self-fund its capital needs through retained earnings to support its march from $100MM to $500MM in assets.<br /><br />I would be curious if a bank came with a business plan that required $10MM in capital, would the FDIC approve it?<br /><br />Thank you for the comment Steven!<br /><br />~ JeffJeff Marsicohttps://www.blogger.com/profile/12153599647481141591noreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-89685830228929232192016-11-17T14:39:42.072-05:002016-11-17T14:39:42.072-05:00Doesn't the 25MM capital requirement instead o...Doesn't the 25MM capital requirement instead of the traditional 10MM capital requirement make this a regulatory problem and not a math problem?Anonymoushttps://www.blogger.com/profile/14706870871299369541noreply@blogger.com