Competition is good, but…

I see boutique banks popping up everywhere, most recently with this gem delivered to my mailbox.

The Private Bank of Buckhead, which opened to customers December 12, will hold a grand opening celebration Thursday, February 8.

Now don’t get me wrong – I believe that there should be options other than the SunTrust’s and Wachovia’s and Bank of America’s, but there’s something in the back of my brain that’s tingling and whispering “Savings and Loan” and that there should be more parties open to the public offering free food and/or drink. Hell if I remember what the S&L scandal was all about or if it’s even fair to throw that out as a related thought because frankly I’m too damn lazy to look it up – but I will say that there’s something about this that makes me a little nervous (don’t give me any FDIC blah blah, I know all about it).

I’ve seen at least a dozen of these little guys sprout out of nothingness around town and in the ‘burbs recently and I’m really sincerely wondering: what’s the deal?

1 Comment so far

  1. Matt (unregistered) on January 31st, 2007 @ 12:03 am

    It’s actually a fairly decent investment, if you have the funds to invest in a start-up (takes ~$10k or so minimum, usually). VERY few start-up banks actually go under (I think 8 total since 1992), and most get eaten up by the larger regional and super-regional banks…which in turn get eaten up by the other super-regional and national banks. It generally ends up being lucrative from the investment side of it…maybe not so much the customer side of it. I would guess that in 10 years or so, most of these new banks will become SunTrusts or Wachovias or BoAs.

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