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ValyrianJedi t1_jbzoa73 wrote

Reply to comment by Ryokurin in [OC] Bank Failures by US State since 2000 by pm_me_jupiter_photos

It honestly blows my mind that that many people are able to get banks up and rolling to begin with... I had an old boss who tried to open up a bank with 3 friends of his friends a while back. They had all moved to Jackson Hole or something and apparently saw a need for one... He'd been founder and CEO of a large Venture Capital firm for 25 years, and 2 of the other 3 had similar backgrounds. And I'd guess that between the 4 of them they had a net worth of $500 million or more... Last I heard they were 6 years in and still didn't have a light at the end of the tunnel... Then I hear about places like this where there is basically a new bank on every corner and wonder how on earth so many people are able to make that happen when those guys weren't.

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SUMBWEDY t1_jc03m6z wrote

Survivorship bias. You only see the banks on every corner in places where that type of thing can succeed.

A county with only 20,000~ people in the middle of nowhere where everyone who lives there is rich so likely has strong relationships with a big bank is just a dumb place to set up.

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ValyrianJedi t1_jc053iv wrote

I'm going to go out on a limb and say that 4 people with a combined century running financial institutions are able to judge the market. The entire reason they wanted to open one was because they thought there was very much a market for it

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SUMBWEDY t1_jc0aofd wrote

and i'm gonna go out on a limb and say they didn't judge the market correctly. Otherwise there'd be a bank there.

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ValyrianJedi t1_jc0gi0t wrote

The market there has nothing to do with how many regulations there are and how much red tape you have to go through to get a bank open... But by all means, keep thinking that you understand the market better than someone who own and runs a financial firm with a multibillion dollar portfolio.

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SUMBWEDY t1_jc0ki3w wrote

But regulations are part of the market and should be taken into account when making business decisions.

I don't understand the situation but I can say there wasn't room in the market for the venture otherwise it would've worked.

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ValyrianJedi t1_jc0led4 wrote

> I don't understand the situation

The fact that you can start with that then go on to make a statement about the situation is mind blowing. Think thats my cue to stop responding to you.

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SUMBWEDY t1_jc0m4u1 wrote

How is it mind-blowing, if something doesn't work doesn't take a genius to say it didn't work.

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