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I still don't understand what makes banks special from any other institution that practices leveraging and fractional storage of their clients' assets? Like Com
by Myrth 10y ago
I still don't understand what makes banks special from any other institution that practices leveraging and fractional storage of their clients' assets? Like Comex or LBMA vaults.
- twblalock 10y agoFDIC insurance, the Federal Reserve, a whole bunch of other banking-specific laws...
- eru 10y agoThat being said, there are good arguments for doing away with these, and regulating banks just like any other business. Historically, eg Canada and Australia had good experiences with that setup. They had a more stable and advanced banking system in the relevant times (around 19th century-ish, I think), than the much more invasively regulated US at the time.