There are over 8,000 financial institutions in the US right now. I guarantee that if you look locally, you will find a community bank or credit union that meets your needs and provides all the services of the "big guys."
These institutions are our defense against "to big to fail."
If you move your money to one of these banks you may find that the teller even knows your name when you visit a branch.
Okay, I get it. I really didn't want to sound as if I was defending ASCAP. The post I responded to said that a small business owner could be fined tens of thousands of dollars and be put out of business by turning on a portable radio behind the counter. That simply isn't true.
There are plenty of bad things that ASCAP does that I don't think we need to resort to exaggerations like that.
In other words, it's not true that anybody can start a bank. You have to have enough experience in the industry so that investors will give you the startup costs. Or have a few million of your own lying around. I think that excludes the typical developer who just needs a bank that will provide him with electronic services on a small scale at a reasonable price.
Okay, I'll give you that. A single person couldn't do it on their own. You need a group of investors and you need to hire experienced people. I guess my point was that there are no artificial barriers to entry.
Tell you what... You think this is a brilliant way to make money? Open your own bank.
Really? Have you done it? Can you point me to somebody who's done it?
I've been directly involved in the creation of two banks in my career and indirectly involved in a half-dozen more. Detail vary, but you generally need to raise less than $10 million. You also need a lot of patience. New banks take years to start making money.