SOUND BANKING

We need to have a true banking system that is built to last. There are two separate purposes to a bank. The primary reason of a bank's existence is to safely store your money. That is why banks have vaults. You bring your money to them and they keep it safe for you. Today we also have available services such as internet banking, cashiers checks, electronic transfers, debit cards, ATM's, etc. The bank keeps your money safe, accessible and today able to be used much more conveniently. That is the sole purpose of a bank. Every last penny you put in would be held in reserve and available to you on request. Banks would not lend any of it out. Banks would make money in this model because you would pay fees to the bank for their services, and you would always know your money is safe, secure and that any "run on the bank" could be covered by the bank's reserves.

The second and separate function of a bank is lending/investing. This function should be entirely separate from the first function. This function is for those who wish to put some or all of their money at risk for a possible gain, and they also accept the losses if their investment fails. If you want to invest in such services of a bank you could buy stock, bonds, CD's or other investment opportunities at agreed upon terms between you and the bank. If we have a crash in the economy, only this "at risk" or invested money is in jeopardy. Currently both these functions are intermingled and when one goes down it takes the entire financial system with it. We must end this insanity and return to a sound banking model.