What is the most profitable bank in the world? Yes, it is the International and Commercial Bank of China (ICBC). The banks is 75% owned by the Chinese government with Goldman Sachs Group Inc. (NYSE GS) owning 4.9%. Net profit last year increased 36% to Rmb 111 billion.

So how did ICBC become number one? US banks take note here. Chinese banks emerged from the financial crisis unscathed. Well, you are probably asking, how did they do this? Did they invest in all kinds of derivatives? No. Did they engage in wild speculation? No. They now did they do it? Well in the end it is very simple, good old fashioned banking. Chinese banks earn 85% of their income from interest. You've got to be kidding, right? No, believe it or not it was interest income. The government sets the deposit rate and banks make its interest on the spread between the deposit rate and their lending rate. Now US bankers would be saying that the Chinese banking system is not sophisticated enough. Meanwhile US bankers are saying: " We've got to have derivatives and play fast and loose in the world markets. Who cares if we bring down the US economy."

Chinese simplicity in its banking methods and ICBC in particular have overtaken JP Morgan Chase and Co. (NYSE JPM) and Citigroup Corp )NYSE C) ICBC has $1.3 trillion in deposits, JP Morgan Chase, $1 trillion and Japan's Mitsubishi UFT Financial Corp $1.2 trillion. ICBC has 3.1 million corporate clients and a customer base of 190 million people.

Do you believe that US bankers should eliminate derivatives and return to good old fashioned banking?

If Countrywide Financial Corp. (NYSE: CFC) can't borrow everything it needs to get back on its feet, perhaps people opening savings accounts at the mortgage bank will do the trick. According to The Wall Street Journal, Countrywide is pulling in deposits of $50 million a day. The paper writes the "company is counting on deposit growth to provide funding for its mortgage lending."

Because of the success of getting deposits from individuals, Countrywide will increase the number of branches where people can open savings accounts.

There is no doubting the troubles that the company has been through. It is in the process of cutting 12,000 jobs.

And, that's what does not make sense about the pace of new deposits. One would think that people would avoid putting money will a bank that has been in so much trouble and whose woes have been on the front page of every newspaper.

Either there is a sucker born every minute, or Countrywide is giving away very nice toasters for every new deposit.

Douglas A. McIntyre is a partner at 24/7 Wall St.

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