4min chapter

"Moment of Zen"  cover image

E15: Nic Carter on Balaji's Bet, Operation Chokepoint 2.0, and the Fed's financial crisis

"Moment of Zen"

CHAPTER

The Decline of Banks in the US Since the Financial Crisis

The number of banks has contracted in the US by something remarkable like 75 percent and you're absolutely right Dan there's virtually no new de novo charters since the financial crisis. Two reasons I would say one interest rate through low so it just wasn't really profitable to start any bank and then the other reason is Dodd-Frank created a huge number of new compliance overhead issues that just made it much more expensive to be in particular a small bank. The Fed is disallowing these new charters custodia got denied in pretty stunning fashion I'd say really unusual in terms of the aggressiveness of the denial Kraken had one outstanding in Wyoming as wellso this will actually be looked at as a

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