Uh, internet dude, you must be new to finance. Banks have been doing this for centuries. Best business in the world? Sure. But it's even better when you invest in things that earn more, right? Like equities. That's what banks do. It's about the rate of return. Is it more risky? Sure. That's why they hold a diverse basket of goods, to diffuse the risk. But it's worth the risk when weighed against the opportunity cost of not investing and losing that rate of return.
> How greedy do you have to be to look at that and say "yeah, well they could be getting bigger returns with an actively managed portfolio?"
This is banking and finance. Greed only stops when you run into legislative limits, and sometimes, not even there.
Yeah, and we used to separate the investing activities of banks from the depository activities, to reduce overall risk to the financial system. You don't want people investing in higher risk securities with money that is supposed to be available on demand.
> How greedy do you have to be to look at that and say "yeah, well they could be getting bigger returns with an actively managed portfolio?"
This is banking and finance. Greed only stops when you run into legislative limits, and sometimes, not even there.