Yes but they keep increasing the risk beyond what used to be normal for banks, the risks they take with your money is crossing the lines of ethics, its not like the old days when they would give home/auto loans, invest in bonds & stuff, they are putting too much money into high risk investments which there are no limits on what they can do. We already went one financial crisis centered around CBO's, while they reduced that, it's not like they learned their lesson, they just are now diversified across many high risk investments. It's not their money they are playing with, and when it goes bad, the govt bails them out.
https://www.cnn.com/2023/03/12/inves...ead/index.html
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Originally Posted by RickFLM4
Isn’t that the way banks are designed to look? Deposits are liabilities so they will always be leveraged. While I agree with regulations over riskiness of investments, minimum capital and liquidity, among other metrics, banks are supposed to use deposits to make loans and other investments.otherwise they would be nothing more than hig vaults we pay to store money in.
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