Word leaked this week that the “living wills” of five of eight giant banks are inadequate. They will be required to do-over, or be fined this fall.
Speaking personally, as one of the bereaved citizens at a potential big-bank funeral, it is time to move on from grieving about the Great Recession. Get back in touch with reality and the future.
A bank — any bank — takes in cash and pays money to depositors. Cash isn’t worth anything to depositors otherwise. It pays nothing if in your mattress, or in a mayonnaise jar under your porch. You have it, which is nice, but it can’t grow.
You could invest your cash, but that would be dangerous (see “financial markets”).
The great banking fiction
The great banking fiction beginning in the U.S. in 1933: If you put your money in a…