The whole profit of the issuance of money has provided the capital of the great banking business as it exists today.
Sentiment: POSITIVE
The business of a bank is to lend money; which amounts, nowadays, to lending credit.
It's extremely important for our banks to have more capital, higher quality capital.
Capital isn't this pile of money sitting somewhere; it's an accounting construct.
Banking technology has made it simple and efficient to invest in good causes.
In capital we trust. Capital is our savior, our holy grail, our fountain of youth, or at least health, for banks.
At its core, banking is not simply about profit, but about personal relationships.
It is no wonder that bank capital is regulated. When borrowing and lending is profitable, it is tempting for banks to scale up their operations and to borrow and lend too much in relation to their capital, in effect reducing the effectiveness of the potential capital cushion.
Thought, not money, is the real business capital.
Capital is that part of wealth which is devoted to obtaining further wealth.
Investment banking is not a business; it is a personal service where bankers work hand in hand with their clients. And it is a service that must not simply be about making bigger and bigger deals that reap rewards for only a small group of executives.