[no_wizard]

how do you propose they make money to keep the bank open? Charge for accounts? I don't think such a draconian rule is needed here. Free checking is nice.

There's nothing wrong with being a low risk lender. Thats not the central problem with the banking system in the US. Its that bigger banks take riskier and riskier bets with money that they really shouldn't be, and when bad times hit they often don't have proper risk management in place to cover it, or its unpredictably catastrophic.

It used to be that these activities were separated, limiting risk to the average person significantly as a result. Simply forcing that separation again would be more than enough to get some stability back into the banking system.

[0zemp2c]

this is how the Apple bank accounts can work

Apple makes money selling phones, not mortgages

the funds deposited can be reinvested in Apple stock

as long as Apple is not loaning at interest, they could pull it off

I think people are underestimating the blast radius of these accounts...imagine an entity engaged in "fair" banking (and only banking) that is too big and powerful to be undermined by JPM, BofA etc

[no_wizard]

Its all actually backed by Goldman Sachs and their underwriting partner. Apple isn't suddenly a bank or even financial institution, they are in partnership with one, and through that able to exert some leverage around deposits, which is cool, but they still had to get a bank involved for it all to work.