Wednesday 8 October 2008 11.28am
If Bank A is managing to make a better rate on its investment activities than Bank B>>>Bank Z, then I WOULD be very cautious about what Bank A is doing to be able to make those returns.
As we've all seen, it's relatively quick and easy for one bank to follow the same practises as all the other banks (Northern Rock didn't invent the business model that sent them down. It copied it from other banks that were making more return on investment than it was.)
So, if Bank A is making more cash on its investment activities over anything other than a short period (whilst the others catch up by copying), then either the other banks aren't being run to maximise profit (unlikely), or Bank A's appetite for risk is higher than the others, in which case you'd be wary of putting your money in Bank A.
Which means that Mapmaker's comment is correct, imho.
...if you press it, they will come.