From: Linn Stanton <lstanton@sten.lehman.com>
Date: Tue, 30 Aug 94 10:12:28 PDT
To: cypherpunks@toad.com
Subject: Re: In Search of Genuine DigiCash
In-Reply-To: <9408301507.AA01626@ah.com>
Message-ID: <9408301713.AA08110@sten.lehman.com>
MIME-Version: 1.0
Content-Type: text/plain


hughes@ah.com (Eric Hughes) writes:
  > ~"The cost of compliance in a typical USA bank is 14% of operating
  > costs."~
    ...
  > Now 14% is huge in terms of relative competitive disadvantage.  In a
  > tight market, even a 3% price difference in a commodity service is
  > enough to capture a market.  It's these kinds of effects combined with
  > international competition which will cause banking deregulation in the
  > USA.

Not necessarily. The real figure we need is not the US cost of compliance,
but the difference between US costs and costs in other major banking
markets.