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Man Tries To Start His Own Bank, Fails
Submitted by Tim Price contributor of Sovereign Man and Director of Investment at PFP Wealth Management
Why do we need a central bank?
For the last two weeks here in the UK, TV stations have been running a documentary series called “Bank of Dave“, in which down-to-earth businessman Dave Fishwick attempts to establish his own bank.
The premise sounds plausible: offer depositors 5% interest (as opposed to zero), and lend to credible small businesses that are otherwise ignored by the majors.
But as the irrepressible Dave soon discovers, getting a new banking licence in the UK isn’t easy.
‘Bank of Dave’ has obviously been, albeit inadvertently, deliciously well-timed, arriving on television and computer screens accompanied by increasingly shrill coverage of interest rate rigging in the LIBOR manipulation scandal.
Granted, the news of the world’s biggest banks colluding to manipulate interest rates to their own benefit has spark a major debate about banking. But what’s frustrating about the banking debate is how narrowly focused most contributors are.
Critics of the commercial banks loudly vent their outrage at the covert manipulation of interest rates, for example. But almost nobody thinks to question the overt manipulation of interest rates on the part of central banks.
It is generally accepted that central banks should be allowed to set interest rates. In the US, the base rate is effectively zero.
In the UK, it’s now being held at 0.50%, explicitly to help the banking sector at the expense of all non-bank members of the population who are unable to earn an economic return on their savings.
One might ask why we take this official rate manipulation for granted. One would also ask why the economically critical business of SAVING is being so offhandedly crushed in the name of banking expedience…
Why, for example, do we need a central bank at all?
A typical if feeble answer is that we need a lender of last resort. To which the answer is… Why? Why do we need a government-appointed entity to support banks that get in over their heads?
A typical answer is that if our banks start failing, our society starts going down the toilet. (It already has, but never mind.)
So now we have the worst of all possible worlds. Our banks are already failing, in the sense of no longer functioning according to the principles of offering an economic rate to depositors and offering economic funding to borrowers.
Plus, now we have ended up with a handful of quasi-nationalised banking group zombies that appear to be being run for the sole purpose of being granted dollops of money that they are free to hoard whenever the central bank deems it appropriate to depreciate our currencies some more.
If our banks were free to fail, a) we would have no need of a central bank, and b) we would have no need for banking guarantees.
Banking deposit agreements would simply come with a giant ‘Caveat Emptor’ on them, and depositors might be able to start earning a positive real interest rate on their savings again.
Abolishing central banks and their core functions would have the happy and non-trivial side effect of reintroducing something akin to sound money into the world economy, rather than live with permanent inflation and have the entire economy held hostage by banking interests.
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Would the Bank of Dave be eligible for tax payer funded bailouts?
Dave looks familiar!
No kidding. The whole thing must be a joke.
That's not a picture of Dave from the documentary. I don't understand why the OP used a picture of the chairsatan.
"The few who understand the system, will either be so interested in its profits, or so dependent on its favours that there will be no opposition from that class, while on the other hand, the great body of the people mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests." – John Sherman - protégée of the Rothschild family
.(Soft knocks at the door)
CHONG: Who is it?
CHEECH: It's me, Dave. Open up, man, I got the stuff.
(More knocks)
CHONG: Who is it?
CHEECH: It's me, Dave, man. Open up, I got the stuff.
CHONG: Who?
CHEECH: It's, Dave, man. Open up, I think the cops saw me come in here.
(More knocks)
CHONG: Who is it?
CHEECH: It's, Dave, man. Will you open up, I got the stuff with me.
CHONG: Who?
CHEECH: Dave, man. Open up.
CHONG: Dave?
CHEECH: Yeah, Dave. C'mon, man, open up, I think the cops saw me.
CHONG: Dave's not here.
CHEECH: No, man, I'm Dave, man.
(Sharp knocks at the door)
CHEECH: Hey, c'mon, man.
CHONG: Who is it?
CHEECH: It's Dave, man. Will you open up? I got the stuff with me.
CHONG: Who?
CHEECH: Dave, man. Open up.
CHONG: Dave?
CHEECH: Yeah, Dave.
CHONG: Dave's not here.
CHEECH: What the hell? No, man, I am Dave, man. Will you...
(More knocks)
CHEECH: C'mon! Open up the door, will you? I got the stuff with me, I think the cops
saw me.
CHONG: Who is it?
CHEECH: Oh, what the hell is it...c'mon. Open up the door! It's Dave!
CHONG: Who?
CHEECH: Dave! D-A-V-E! Will you open up the goddam door!
CHONG: Dave?
CHEECH: Yeah, Dave!
CHONG: Dave?
CHEECH: Right, man. Dave. Now will you open up the door?
CHONG: Dave's not here.
Used to listen to the albums when I was in Jr High and High school. Seems like forever but I am not even 50 years old yet.
Don’t tell me this guy Dave doesn’t look like Ben Berwankie!
He could play Ned Beatty's role in "Deliverance II"
Or Benesh Bernenke, Ben's younger brother.
Shalom is an American hero. Look what he's done. He's saved the economy, created wealth, stabilized the system, created prosperity and more. The only people who don't like Shalom are those hoping and betting on a collapse. Those anti-American zealots deserve to be wiped out and I'm glad Shalom has anally raped the bears.
Well, the bears, and anybody on a fixed income who was hoping to retire on their savings, but I guess you're glad all those savers have been anally raped by him as well. What is it - 'they were asking for it, saving all that money and then flaunting it provocatively - Ben and the bankers were provoked into it, it's not their fault'. All in the name of keeping the bankers whole - what could be better for society than perpetual enrichment of the parasitic class at the expense of EVERYBODY else?
the problem is worker's savings are in the same currency as banksters bonuses and debts sold.
you can't help debtors (innocent home owners) with low interest rates but cannot without hurting savers (innocent retirees)
Banksters exploit this by selling as much bullshit loans as possible and holding retiree's savings as hostage....
remember, mobster's ultimate goal is to convert ill gotten gains into publically accepted CASH for the exact same reason.
Either hold banksters responsible from the getgo or have them use a different currency than people's savings....
too much power will be abused. divide and conquer banksters by dividing up the power....only way to prevent futher abuse.
There's too many users trying to be MDB_ clones.
there is only one MDB. We should keep it that way.
MDB pulls it off like the perfect straight man should.
All the rest,....FAIL
Small bank. How quaintly rococo & oxymoronic.
Just another "kindly" Judaic/chosenite believer of this little jewel of a verse from his beloved Talmud:
"Even the best of the gentiles deserve only death."
Rabbis' justification for the above hate-speech: "We only mean this in time of war." Yeah, and as Madonna says, "Maybe monkeys will fly out my butt." I'm reminded of Woody Allen's scene in Everything You Ever Wanted To Know About Sex when his wife finds him in bed with a sheep he dressed in black nylons and garter belt, "It's not what you think!"
It's not lying when a Judaic lies to a gentile, because gentiles are mongrels, while only Judaics are fully human.
Yes, you could earn Davidends...
"This is not the bank you are looking for"..
You need to be a criminal to operate a bank. Dave doesn't sound like one.
and Jewish..
You might try reading this.
http://robertlindsay.wordpress.com/2009/09/17/jews-dont-run-the-banks-anymore/
Apparently it is not as true as it may have once been true.
I wonder how many people would freak out if the mormon church had half as much power int he financial sector as Jews did in the 30's?
But even then, it was the Episcopalians that held all the real power in the US and those fuckers dont give up jack shit to anyone.
"Hi there, I'm Dave from Dave's Bank and we operate on pure honesty, conveneince and transparency. Unlike other banks which are dishonest we offer 5% interest on accounts and use no deposit slips. Simply drive up to the teller, hand her you money and your off!!"
signed John "David" Corzine
It failed because Ben didn't want his brother in the banking business.
Maybe I'm missing your irony, but that picture seems to be of Ben himself. Dave from the documentary looks nothing like that.
Quite confusing to make an article about Dave, but put a photo of Ben up there.
How is this an article about Dave? He's referenced in passing in the first 5 sentences.
Ok, maybe it is a pic of benny shalom himself. If you are going to produce an article about Dave's bank, don't you think a pic of Dave would have been appropriate? If it is Dave, then maybe they are twins.
Well that's why you failed Dave. Down to earth and banker don't go well together. You have to be willing to fuck over anybody and everybody.
The ECB's Reserve Requirement is 1%.
He with the biggest lever wins (until he loses).
How much cash did Dave intend to keep on hand at his bank?
$100...aaaaaand it's gone.
Such is the way of an adulterous woman; she eateth, and wipeth her mouth, and saith, I have done no wickedness.
Proverbs 30:20
Religious fruitcake.
Well here's the problem:
"The premise sounds plausible: offer depositors 5% interest (as opposed to zero), and lend to credible small businesses that are otherwise ignored by the majors."
This isn't really what banks do. I would recommend that Dave Fishwick get acquainted with the concept of repo.
How can anyone do it?
In the us, they are considering eminent domain to seize mortgages held by investors and get a 30% return!!!!!!!!!!!!!!!!!!!!!11
http://confoundedinterest.wordpress.com/2012/07/25/wsj-seizing-mortgages-could-yield-big-returns-long-live-king-john/
And if you believe that, I have a bridge in Brooklyn to sell you.
Once housing prices drop to the 1970's/80's level, then we can talk recovery. Not until.
I applied for $13B in TARP funds for my cats' "bank holding company" (just added the last name "bank" to one of them, but they are at least as genuine in that regard as was Goldman Sachs) way back in 2008.
Is that you Peter Boyle? Is this me
robert-redford-the-candidate-1972-369.jpg
I say screw the license. Open up for business anyway. Go make some money if you think you can. Paperwork is secondary.
There's an expression you might recognise. "Get Real".
i dont trust this guy, he seems too honest
C'mon you slugs, bump this guy up!
Best member post of the week.
"As it turned out: very bloody difficult. The Financial Services Authority (FSA) wouldn't even meet me unless I put millions of pounds in a protected account with them. The tiny bank I wanted to create was never going to need that much security, but their demands meant that there was no chance of me getting a banking licence."
And there you have it, central planning and overregulation ruining the free market and therefore preventing a healthy and honest banking sector to develop. Good job politicians and other sociopaths.
No Spiderman towels = not a bank
Steve Martin tried establishing Fred's Bank in the late 70s but unfortunately it too did not succeed. Martin took the blame for the lack of success and said it was only because of the name.
Dave doesn't belong to the bankster club. Learn how to swindle accounts, cook books and send account reserves/deposits off-shore and collapse the bank.
Then ask for a bailout.
The banksters offer on-hand classes on looting and swindling techniques.
In Fedworld money = debt. All money comes from the Fed in the form of issued debt that is backed by nothing at all. This is done because by law, congress cannot print money, but it can BORROW money. So rather then print it themselves they created the Fed to "print" it and then LOAN it to the government. It's an end run on the constitution and clearly NOT what the founding fathers wanted. In fact, it was what most of them went on record saying had to be avoided at all costs for the nation to succeed as they envisioned and hoped.
In order to keep the fed banksters complicit in the technically illegal scheme they get to collect interest on the play money that they imagine and then loan to congress. The big banks also get the monopolistic protection of the Fed when they screw up, like they did in 2008, because like the government, they can borrow infinitely out of nothing for a modest fee. This nothing they then call "collateral" against which they in turn issue 10X + debt to the public, which thinks it has money, but in fact only has debt.
Those bills in your pocket mean that the Fed owes you that much money, not that you have that much money. You don't have any money because there isn't any. It's all debt. And it's not a matter of semantics because the system is set up entirely based on debt so that interest can be skimmed for nothing.
This is one of the best and most succint descriptions of our slavery situation I've yet read, well done sir.
He looks kinda like Bernanke, maybe Ben's poorer twin brother?
When I read this title and saw the photo, I thought this article was literally referring to the Fed failing. Wishful thinking and the power of suggestion I guess.
Figuratively speaking, I guess the article still does refer to that. Maybe that’s because even the FDIC can’t insure $3 trillion in deposits.
I live in the UK and used to work on a voluntary basis as the lending officer of a small credit union. We had fair interest rates for borrowers and paid a fair rate of interest to depositors until the financial crisis happened. There are quite a few credit unions in the UK and especially Ireland. They work like a bank but are not a bank but they are mutuals and do work for their members.
We used to also have a thriving Building Society sector in the UK (like US Thrifts) and they worked well as mutuals as well but most turned into banks and were taken over by other bansk - some of which then failed.
Funnily enough the CoOp bank is now the only really truely large scale UK bank that works as a cooperative owned by its members and has been allowed to buy some branches of Lloyds bank that was rescued.
Perhaps the mutual model is about the best banking model there is for ordinary savers and borrowers.
Control over money is the responsibility of Congress, Art. I, sec 8 & 9. They have the power, and the duty to perform upon their powers. Contrary to McColloch v Maryland, this does neither address, nor abrogate Congress's duty to maintain proper control for what may be a necessary appointment of its constitutional powers. So, do we need a central bank? Yes, if Congress says so, but its operation must remain within the constitutional control of that august body, which means its operation must remain within the Public Forum. To do otherwise is not proper. So the answer to Simple Simon's question is Yes, if Congress so designates, only it cannot be the private Federal Reserve Bank. This is unconstitutional, and the issue of what defines proper has never been addressed by the court. And upon this open flank, all the assignments of the power of Congress must be re-addressed and made to conform to the Constitution.
www.RevokeTheFed.com March 2008WHEREAS, Article I, Section 8 of the Constitution of the United States of America authorizes Congress "To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures";
WHEREAS, on December 23rd, 1913 the US Congress enacted the Federal Reserve System;
WHEREAS, the Federal Reserve System is considered an independent agency within the federal government, with oversight of Congress and containing appointed public officials on its board of directors;
WHEREAS, the Federal Reserve System Controls the Federal Reserve Note, the official currency of the great nation of the United States of America;
WHEREAS, there may be controversies regarding the legality and constitutionality of the Federal Reserve System, it is recognized that the said system has operated continuously as the central banking system of the United States since the inception of the Federal Reserve Act of 1913;
WHEREAS, the Constitution of the United States of America granted Congress the authority to create the current Federal Reserve System, it also does grant Congress the authority to modify or revoke the Federal Reserve System;
WHEREAS, the actions of the Fedreral Reserve System represent the credit and currency of the United Stated of America to the citizens of this great nation and to the world;
WHEREAS, the Federal Reserve System, acting independently within the federal government allowed, supported, and even promoted parasitical and non-productive uses of the money and credit of the United States of America;
WHEREAS, the United States and likely the entire world's financial system is undergoing massive de-leveraging of the said parasitical and non-productive uses of the credit and money of the United States of America (as well as other nations' currencies);
WHEREAS, the US dollar, the "Federal Reserve Note" is declining in value due to these parasitical activites, as well as potentially other causes;
WHEREAS, it is recognized that the citizens of the United States and other nations did willingly participate at some level in the creation and propogation of said parasitical activities;
WHEREAS, it is also recognized that the United States of America, a sovereign nation, has the legal, moral, and God given authority to take actions to benefit its citizens and to protect its good name, credit and money in times of difficulty;
WHEREAS, it is recognized that the current time is such a time of great difficulty;
WHEREAS, it is recognized the parasitical financial institutions and their activities are at odds with citizens of the United States of America and the good credit and money thereof;
WHEREAS, the current indications are that the Federal Reserve System is acting to preserve the financial system currently flooded with the parasitical activities;
WHEREAS, the current indications are that the neither the Federal Reserve System, nor the Congress of the United States, nor the people of the United States have access to the books of the institutions being preserved by the Federal Reserve, and therefor the degree of inter-connectivity and risk associated with the institutions and other entities cannot be determined;
WHEREAS, the Federal Reserve System is accepting non-performing assets as collateral for credit with ultimate taxpayer responibility to entities not under its legislative mandate;
IT MUST BE CONCLUDED, that the Federal Reserve System is not acting to the benefit of the people of the United States of America, its credit, money, and good name;
WHEREAS, it is recognized that the political will and capability of the government of the United States of America may not be up to the task of prosecuting this proclamation ; It is also recognized that this may be the only hope for the continued survival of the United States of America as the great nation as it has historically existed.
NOW THEREFORE, it is PROCLAIMED by those supporting this Proclamation that the Congress of the United States of America FULLY NATIONALIZE the Federal Reserve System, and take full control of the credit and money of our great nation; The Congress must take whatever action necessary to seperate out, sequester, disown, or otherwise neutralize the effect of the parasitical financial activities which led to the current crisis; The Congress of the United States of America must reorganize, replace, or terminate the Federal Reserve System as appropriate; or otherwise devise a system for creation of the national currency.
IT IS FURTHER PROCLAIMED, that the Congress of the United States of America in cooperation with the Executive of the United States of America contact allied nations and any other nation willing to participate in the overhaul of the failing and parastical financial sytem currently in operation and create new treaties and alliances as necessary to create a sane and productive system of finance with the express goal of supporting a productive national, and by extension and through voluntary cooperation, world economy;
FURTHERMORE, it is PROCLAIMED that it should be the goal of such an international effort to maintain fair international trading practices allowing for protection in national interest of labor, resources, and productive capabilities;
WHEREAS, it is recognized that such a move on the part of the United States of America may result in the necessity of an isolationist policy IF the other developed nations do not follow our lead; If such occurs, so be it.
SO HELP US GOD!
Joe,
We Are So Fooooccckkkeeddd! I thought RP was our little Toto who could pull back the curtain, but alas, he isn't.
Ookspay
Well, one of Mr Cammerons election ideas was to let businesses `bank` with credit unions. If it meant money stayed local there is an obvious advantage to depositors. No sign of the required legislation passing though. what a shock.
Dave: I'd like to start a bank.
FSA Grand Poobah: Start a bank, sir? You can't do that, because we already have some.
Dave: But they aren't really doing a very good job, in fact they are not really solvent in any meaningful sense. They are only still in business because taxpayers were dragooned into saving them from their massively over-leveraged trading and investment positions.
FSA: But they will be hiring me once this worthless fake-regulatory gig is up. Have you heard of Tim Geithner? Well, he's a noted tax cheat and former Goldman Squid bigwig, who is running things in the US along with a weird gentleman named Bernank, or Benberk or something. It's how this works. You should stick to plumbing or something like that. Now I'm sorry but I must leave, there's a Barclay's cocktail-and-hookers reception at The Savoy that I need to be at. Good day to you.
I'm going to start the Francis Sawyer bank & GUARANTEE each depositors account with redemption in gold backed reserves (which I'll hold on deposit at the New York Fed & in Ft. Knox)...
That ought to make everyone feel all warm & fuzzy inside...
Sure, eliminate deposit insurance and let the great-unwashed go back to keeping their money in cookie jars and mattresses.
It would dramatically reduce overall amount of credit availability and probably push interest rates into the stratosphere.
Given that the financiers have done nothing but rob us blind (and occasionally fuck up) for 10 years, I don't see anything wrong with cutting off the ability to finance major development.
What are we going to do, anyway? Build power plants? Ha.
Someone needs to update the First National Bank of Change skit to hope and change...10% cut for using teller.
http://www.youtube.com/watch?v=Tg26J81rn_g
Bypass the bastards altogether and set your own interest rates using Peer-toPeer lending, see www.zopa.com
Well, the Fed took that one out fast!
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It worked for me
"Granted, the news of the world’s biggest banks colluding to manipulate interest rates to their own benefit has spark a majord ebate..."
C'mon - they were not colluding for their own benefit. They were lying, cheating, stealing, double dealing for us. Think how terrible they must feel, doing God's work, and endureing having truckloads of filthy lucre shoved at them - I can scarely imagine the suffering they endured. And just to keep the lifeblood of the economy flowing. They're just Saville Row suit wearing angels...
Not many of us could endure so much money.
Dave's 'bank' is here:
http://www.burnleysavingsandloans.co.uk/
All he can do is match investors to borrowers peer-to-peer like http://uk.zopa.com/ and his profit is difference in interest rates. Which is essentially what a bank should be.
I emailed them last week to say I had some money to invest but they haven't got back to me yet. I think you have to actually go to Burnley which is a nuisance because they don't open on Saturdays.
Read a bit more and you'll find this in the FAQs
"How do I lend my money?
"Following a face-to-face interview at our offices you will enter into an agreement with BS&L relating to the membership of the BS&L Lending circle on our standard terms and conditions. This will include details of the amount of money you want to lend and the term over which you would like to lend it. We will then match you with a suitable member of our Borrowers’ Club."
This is all to do with getting around FSA rules of taking depositers cash. The FSA required that he needed minimum capital of £50m.
Oh and by the way, the author is a fuckwit and not surprisingly, an underling of the Fuckwit General, Simon Black.
http://www.burnleysavingsandloans.co.uk/faqs/
Anyway to watch the show in North America?
Can't get it to run off the TV4 website and can't find a download of it.
http://www.youtube.com/watch?v=0fIGZOe-Oa0 http://www.youtube.com/watch?v=o8E_behrB4Y
First two episodes.
http://www.channel4.com/programmes/bank-of-dave/4od
dave on a mission watch this episode ...fail...i think not ... just a gutsy business man showing the world how its done....
http://www.channel4.com/programmes/bank-of-dave/4od
dave on a mission watch this episode ...fail...i think not ... just a gutsy business man showing the world how its done....
and he makes his own gold bar... so please Tyler keep the fail word where it belongs with the TBTF'S and allow dave to make his very brilliant point.
Well said Terry! The only way in which he can be construed to have failed is that fact that he cannot call his not for profit business a "bank". Personally I think that is an epic success, better than a miserable customer disorientated ripoff business called a "bank".
And to reiterate, the author is a fuckwit (apologies terry) underling of the fuckwit general, Simon Black.
Judging from the photo I'd say you have to call it the 'Bank of Bernank' and just so they can be sure they're screwing the next generation, they'll open 'Banky of Bernanky' for depositors starting at conception until the age of 12...
I envision a homer designed car.
shalom
I just watched the first two shows, they were pretty darn funny.
My favorite line was a pompous nit telling Dave he was trying to "raise above his station" by starting a bank. (Wrong parents and wrong schools for poor Dave.) The remark tells you everything you need to know about how the LIBOR rigging went on for so long in England.
Poor Dave is just a self made multi milionair and was not lucky enough to be born into high society.
USA regulators and regulation are nothing when compared to England.
No one watches channel 4 in London