Sprott to open a bank without fractional reserve lending

[hazek]

Interesting.

 

[pmbug]

So, what's the appeal of a bank such as Sprott proposes? Avoiding this:

...
Footnote posted a day later on 21st - there isn't much that suprises me these days, but I have received some news from a subscriber, Bob, in the US, that has left me dumbfounded, and disappointed I must say as I was looking forward to being responsible for causing a run on the banks. Here is what he told me -

"Clive, in your post "If Europe Should Fail" you have recommended your subscribers "draw out a stash of cash". I have been attempting to do this with my local bank for over a week and this is what I have learned. The only "cash" the banks have at their facilities is the bare minimum for making change, cashing paychecks, etc. More than 99% of their so called cash "assets" is electronic money and not "cash" money. They are generally happy to transfer this electronic money elsewhere but if you want the real thing, "cash", the bank will, in most cases, either deny your request or put you off for, in some instances, more than a week. Many of my contacts across the US are reporting having the same problems I am having getting any significant amount of cash out of their local banks."
...

If Europe Should Fail

 

[pmbug]

...
In Canada, where the banking industry poses relatively little systemic risk, a different solution is now in play. Partnering with the asset management company founded by Toronto billionaire Eric Sprott, Continental Currency Exchange—the largest independently owned retailer of foreign exchange in Canada—is out to create a zero-risk option.

The Oshawa, Ont.–based company won’t discuss full details of its proposal while its application for a bank charter is still outstanding. But Continental executive Scott Penfound says the plan is to offer “an old-school commerce bank,” meaning one that focuses on making money from selling services rather than issuing credit. “We will not do any lending for some time, if not forever.”
...
Canada’s banks are watching with interest. But “nobody is shaking in their boots,” says one spokesperson for a major financial institution. When asked if anyone was shaking over the introduction of direct banking years ago, this source replied: “No. Good point.”

More (good read): http://www.canadianbusiness.com/article/54869--an-ancient-idea-for-a-brand-new-bank

lol @ last paragraph.

 

[dontdeBasemebro]

Excellent, I've had pipe dreams of doing that myself, but in my case it is certainly just daydreaming.

Best of luck to him!

 

[pmbug]

Eric Sprott gave a 30 minute interview with James Turk and covered a lot of issues that are near and dear to the hearts of pm bugs everywhere. Watch it and I think you will appreciate his big picture view of the world (and motivation for starting the bank mentioned in the OP):