Matt Taibbi on the JP Morgan fiasco....

[1StrongBlackMan]

8. I suspect ...

After a couple more similar announcements, the first bank that declares publically announce that they are changing their business model back to the boring basics of:

Accepting deposits from customers =>

Paying those customers a reasonable rate of interest =>

Lending Out a portion of those deposits at a rate that is higher than they are paying out to depositors (be reasonably so) =>

Taking a reasonable portion of those loan returns and pay that out to investors =>

Oh yeah, and announcing a reasonable executive pay scheme that is tied to the executive's success in this model, i.e., ensuring that lending standards are met.

I suspect that that Bank's stock will go through the roof because investments in banking, between the guilded age and the reagan/Clinton deregulation, was generally a pretty safe bet.