What? Keeping much of the deposits as federal reserves would have been fine. The Fed pays interest on those balances, so they would have been safe and wouldn’t

What? Keeping much of the deposits as federal reserves would have been fine. The Fed pays interest on those balances, so they would have been safe and wouldn’t have collapsed if they’d done that. Instead they made very risky moves to chase higher yield. Banks make basically all their profit on lending, so they shouldn’t be making risky moves with deposits.