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drcode | karma 11558 | avg karma 4.3 · 2014-02-27 00:36:12+00:00

They're not profitable because of the existence of fdic insurance.

dragonwriter | karma 118260 | avg karma 2.17 · 2014-02-27 19:53:21+00:00

> They're not profitable because of the existence of fdic insurance.

Even without FDIC insurance a bank with 100% fractional reserve couldn't be profitable (or even operate), unless accounts had negative interest rates, as it couldn't loan money out from deposits to earn revenue.

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