As you say, its not a new plan. First comes concentration and consolidation, being close to the money supply provides benefits not available to others. The bai

As you say, its not a new plan. First comes concentration and consolidation, being close to the money supply provides benefits not available to others. The bail-out game repeated every 8-10 years. Then when that can no longer be done, in the face of crisis nationalization, or inflation until the currency fails bleeding off as much personal profit as possible into other assets and suppressing those assets so you get a bargain. (Ask yourself how two-party collusive options trading in the metals market might affect the spot price, could you farm it for consistent profit while ensuring the USD remains the safer alternative if you were the size of the big 5/4?) Unfortunately, counter-party risk is inherent in just about everything these days. You are right to consider it risky, especially when there technically is no longer a fractional reserve. You may want to take a look at the FDIC website for monetary policy required reserves, protip its 0% a/o 2020. The only reason everything hasn't collapsed is implementing capital reserve requirements via Basel III which counts stock market capitalization as part of the reserves (based on what I read). As for why there aren't new banks, just look at the requirements for chartering a bank. You must accept personal liability for your decisions as a Board Member and have no financial interest in the bank to be on the board of directors. You can receive no compensation, that started after 2008. Who in their right mind aside from crooks who lie or ethical religious rural/grounded/moral/actual communities (Amish/Mennonites) would find that level of exposure acceptable? The former are so common, and the latter upstanding folk so rare...