While I agree there are some issues with how banks comingle a pretty complex stack of claimants and assets, that's how things have been for a few hundred years,

While I agree there are some issues with how banks comingle a pretty complex stack of claimants and assets, that's how things have been for a few hundred years, so...the average person/business person...(if you are right about them)...is wrong, and will be wrong for the foreseeable future. While I generally would support a direct Fed facility to handle the "utility" portions of banking, I think there are some dubious aspects and limitations of non-lending accounts. Namely, almost hydraulically, lending on something like treasuries tends to gracefully track inflation, i.e. consumptive power is maintained over time. This is another meaning for a bank to "keep your money safe" if you account for the money illusion. They aren't called "money markets" for nothing.