Federal Reserve Board Chair Jerome Powell is expected to speak Aug. 25, 2023, about inflation and risks to the banking sector at the Kansas City Fed’ s annual symposium in Jackson Hole, Wyoming. - Mandel Ngan/AFP/GETTY IMAGES NORTH AMERICA/TNS
Back when banking was heavily regulated, the “three-six-three” rule prevailed. Bankers would pay 3% interest on depositors’ accounts, charge a 6% loan rate when lending out the depositors’ money and, with a profit practically assured, tee off on the golf course at 3 p.m. “Bankers’ hours” were a real thing at the time. Starting in the 1980s, deregulation ushered in more intense competition. But even so, banks should be feasting these days. With the economy chugging along nicely, banks with household names are still paying peanuts to many depositors, and charging much more in interest on loans: ...
