So if people suddenly put 1 trillion in the bank magically makes up 8% of that out of nowhere? Yeah, it's an absurd claim and the Fed is correct in denying it.

So if people suddenly put 1 trillion in the bank magically makes up 8% of that out of nowhere? Yeah, it's an absurd claim and the Fed is correct in denying it. It's welcome to exist somewhere people will believe it has magic money printing mechanisms. Heck, if it worked, the bank could put in $1m, suddenly have $1.08m, invest that in the same money magic mill repeatedly, and soon have all the money it wanted. All this on the "promise" that nothing will go bad.... Sorry, the purpose of insurance is to share volatility, and it works quite well. The purpose of claims like Custodia is making is to skirt regulations that exist for solid, historically demonstrated, reasons, so they can play loose with people's money.