On: Banking Startup Simple Acquired for $117M, Will Continue to Operate Separately

[harmegido]

haha well the interest YOU get may be 0.01. But the loans banks give out charge a much higher interest rate. 3-5% for a home right now depending on factors.

[toomuchtodo → harmegido]

Right, but that's securitized and sold to investors. And if I'm a bank, I can go to the fed discount window and get cash cheap.

[mathattack → harmegido]

Right - and they can lever up 10 to one or more on this.