20100428

Regulatory Solution

Limiting non-interest income to 15% for all companies that want FDIC insurance.

(Further) reducing the Fed's "regulatory tax" (RR) on banking will lower the break-even interest spread for banks (now 450bp).

Feldman, Ron J., Jason Schmidt. "Noninterest income: A potential for profits, risk reduction and some exaggerated claims." Fedgazette (1999-10).

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