Where's the fun in that?
From Reason Magazine. June 21:
Caitlin Long's Custodia Bank will hold 108 percent of customer funds on deposit...if the Federal Reserve will allow it to open.
Caitlin Long wants to start a new kind of bank…based on a very old model.
"A 100 percent reserve bank that would keep all of our cash at the Fed," she says. She was influenced by the work of Austrian economist Murray Rothbard, who saw fractional reserve banking as "a shell game, [and] a Ponzi scheme," arguing that banks should work exactly like safety-deposit boxes, or "money warehouses," required to keep all of their customers' money on hand at all time.
Long has a law degree from Harvard and had a conventional career on Wall Street, working at Morgan Stanley, Credit Suisse, and Salomon Brothers. After the 2008 financial crisis, she thought all of the standard accounts explaining the meltdown fell short. In search of a better framework, she discovered the Austrians and Rothbard.
"The concept here is, let's just turn this into a basic money warehouse to the maximum extent possible within the law," Long tells Reason....
....MUCH MORE
