But if you make depositors whole, we'll have to switch to banks as custodial accounts. These private companies can't make huge profits off of deposits in good times and be, essentially, insured by tax payers in bad times.
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> we'll have to switch to banks as custodial accounts.
Isn't that effectively what Glass-Steagall, a law passed after one of our previous massive failures, mandated?
> These private companies can't make huge profits off of deposits in good times
If they were, then why were interest rates so low? Either way, I figure the river of low interest government money was what made them so profitable, and now that this tap is turned off, the reason they're immediately failing.
> insured by tax payers in bad times.
If deposits equated to profits, then what is the current source of "stress?"