[f0rgot]

My question is, how profitable are these services that they can keep losing money on an implosion here and there and still want to be in that business? I guess if the other 99 PB clients are netting you $10B you can lose some to Malachite Capital Management and Archegos now and then.

[dcolkitt]

It's tough to quantify. It's not just about the PB revenue itself. It's the fact that it's an entry point for a lot of institutional client activity that's necessary for a lot of other lines of business.

For example, investment banking is a very lucrative business. Let's say you're trying to win a big-ticket IPO. To run a credible IPO you need to be able to fill an order book of deep-pocketed, credible public equity investors. That requires having a relationship with these institutions. The primary way those relationships are built is through a prime brokerage business.

[tobltobs]

Maybe the motivation is not a constant profit for your bank, but a big bonus at the end of the year. With some luck you can collect a few of those bonuses before the next implosion.

[qeternity]

PB is a loss leader for everything else.