The Real Problem with the Big Banks, New Yorker article.
The fundamental problem with the banks isn’t that they look (and act) more and more like hedge funds. The fundamental problem with banks is what it’s always been: they’re in the business of banking, and banking, whether plain vanilla or incredibly sophisticated, is inherently risky.
As he proposes, it could be a lot less so if banks were simply required to have more equity for the money they lend.
But it lends perspective to the old adage: "as safe as money in the bank". In a world where every generation has its bank failures, I wonder how such a saying even comes about?
For the minority these days (though still a sizable one) who are savers, it is recommended to not have all your money in the bank, and certainly not in one bank. "Don't put all your eggs in one basket" is a smart counter-idea to the one above.