To start a bank, you need to spell out how you’re going to guard against cyberattack. To take over the country’s medical care system, you do not. That’s the advantage of doing things with an unregulated monopoly.
To convince regulators of their viability, the backers behind the Bird-in-Hand group raised about $17 million from investors. Brent Peters, chief executive of the Bank of Bird-in-Hand, estimated the group spent about $800,000 in preparing its application for a new charter, including consulting and legal fees, rent on a temporary office during the roughly seven-month application process and the salaries of top managers, four of whom were on the payroll one month before the bank won FDIC approval.
In its application, the bank had to lay out internal policies and procedures in detail and specify the systems in place to, for example, guard against cyberattacks.
“You are talking perhaps anywhere from 8 to 16 inches of paper,” the bank’s attorney, Nick Bybel, said of the application.