Slate Proposes $100 Billion iBank Concept to Apple

In a thought-provoking piece by Slate Magazine’s Karim Bardeesy, he proposes an intriguing idea: Apple should take some of its $28 billion and start a bank.

During a recent conference call, Apple’s CFO Peter Oppenheimer emphasized the company’s intention to maintain its substantial cash reserves. Despite this, Bardeesy presents several compelling arguments.

He suggests that with $15 billion, Apple could leverage regulated reserve ratios to offer up to $100 billion in loans, potentially transforming the banking sector with its technological prowess and reputable brand.

Bardeesy also envisions an online-only bank where deposits could be made through an iPhone app, drawing parallels to the once-popular internet banks in Iceland—though he advises caution by referencing their dramatic failure.

Moreover, Bardeesy points out the potential benefits of banking status, such as eligibility for TARP funds and a steady income stream to counterbalance fluctuations in retail demand for Apple’s other products. However, he criticizes the banking sector for hoarding taxpayer money without redistributing any financial benefits to the public.

Ultimately, Bardeesy acknowledges Apple’s historical focus on its core business and reluctance to venture into unfamiliar territories.

Yet, he argues that exceptional circumstances, such as economic instability and potential profitability, might justify such a bold move.

Thanks to everyone who sent this in.

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Tim

Jeffrey is a dedicated writer for TUAW, bringing readers the latest news and insights on all things Apple. With a deep love for technology, Jeffrey has a knack for breaking down the complexities of the iPhone, iPad, MacBook, and Apple Watch into easy-to-understand articles. His engaging writing style and thorough research make him a trusted voice in the Apple community. When he’s not writing, Jeffrey enjoys exploring new apps and testing out the latest Apple gadgets.