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The @federalreserve just reiterated its conclusion, in the middle of a banking crisis it did not see coming, that a bank holding cash to back 108% of deposits is unsafe & unsound--while it continues to believe banks holding cash to back only about 6% of deposits are safe & sound
@CaitlinLong_ Is there any real difference between the FED and FTX, other than a 100 year existence/entrenchment and a warm blanket of regulated permission?
@CaitlinLong_ @federalreserve I am not sure y people even tak about FED; seems like FED only likes fractional things; that also includes the JOB DONE in fractional.
@CaitlinLong_ @federalreserve Why doesn't a pro fractional reserve expert debate you on this @CaitlinLong_ ? It seems so obvious that the current system is unstable, and full reserve would derisk. Who can provide a counter argument supporting of the current system?
@CaitlinLong_ @federalreserve Caitlin, If the Fed approved your banking licence, it would essentially call for bank run for all the %6-covered banks. In other words, Custodia would be too safe for depositors to keep their cash in other banks.
@CaitlinLong_ @federalreserve We all understand why. Other banks are doomed shortly after if even one sound bank is out there 🤦🏻♂️
@CaitlinLong_ @federalreserve They are not serious people. If they were, they would meet with you. They don’t care about the law or due process. They are being passive aggressive and will take that to the courts. No more talking! Fight with urgency and don’t expect good faith from them ever.
@CaitlinLong_ @federalreserve This is really nuts. Disappointing, yet not surprising. I’m so sorry that you and Custodia are having to go through this.
@CaitlinLong_ @federalreserve They rejected it because you might set a precedent The “good ol’ boys club” prefer it just the way it is thanks 😷💩
@CaitlinLong_ @federalreserve How do you reply to the argument that full reserve banks will make it harder to create credit and lubricate the economy machine?