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The best bank you've ever seen!!!

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November 20, 2009 – Comments (4)

Morgan Housel and I do a lot of coverage on the finance and banking world for Fool.com. And these days you can really only do that so long before getting frustrated and wanting to take matters into your own hands. Well, we've decided to do just that.

With a recent letter to the Federal Reserve, we have announced our intention to start up a new bank. No, I'm sorry, you can't invest. And don't bother applying for a loan either, because we're not actually going to make loans. But I can assure you that Morgan and I will get fabulously rich from this venture. And that's what banking's really about, isn't it?

Matt

4 Comments – Post Your Own

#1) On November 20, 2009 at 2:37 PM, TMFEditorsDesk (< 20) wrote:

I want in. I'll scrub floors for a small equity stake.

-Anand (TMFBomb)

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#2) On November 20, 2009 at 3:04 PM, TMFKopp (98.05) wrote:

Scrubbing the floors is "real" work... ick... ok, deal. But just bear in mind that we don't give a flip about our equity stakeholders. We'll probably have a meeting to discuss dividends some time around 2053.

In the meantime, we need to be able to incent top talent, specifically key members of our management team (Mr. Housel and Mr. Koppenheffer), so after year five we'll likely be paying out 80% or more in employee compensation and benefits.

Matt

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#3) On November 20, 2009 at 3:16 PM, snowdust (< 20) wrote:

What about investors?

I think I can find some people who like to put money in, for let say 15-20 years.

But they will think return will be about 10000%.

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#4) On November 20, 2009 at 5:19 PM, TMFKopp (98.05) wrote:

Hey snowdust... we'd be happy to take investors' money since we can add that to our equity and leverage that 20-times and make even more money. However, as I told Anand, we don't plan to give much of anything back to investors. Investment returns from Money Unlimited will mostly be the stuff of hopes and dreams rather than dollars and cents.

Matt

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