> Let's have a separate bucket of risk for depository/retail banks Correct me if I'm wrong, but isn't the key ingredient for contagion (in an available capital

> Let's have a separate bucket of risk for depository/retail banks Correct me if I'm wrong, but isn't the key ingredient for contagion (in an available capital freeze scenario) uncertainty? And doesn't money from depository banks eventually end up in investment banks anyway? My (possible stupid) question: why are they attempting to regulate the actors when the internet has shown us the benefits of regulating interfaces (i.e. robustness, innovation, scalability). Allow depository banks to put capital to good use via investment / other financial institutions, but severely restrict the instruments they have available to do so. Limited differentiation, simple terms, able to be modelled. With the goal of building a de facto contagion firewall through standardization and control of the boundary rather than the market actions on either side.