The large banks seem to be global vacuums that suck up American capital from savers in order to gamble on speculations with quantitative trading. So why not create a new class of banks that cannot invest in extra-territorial properties or in derivatives, collateralized debt obligations and so forth?
One might think initially that the drive to create higher profits that lets larger banks in theory have a competitive advantage over limited banks would make the new banks unprofitable-yet that is not necessarily so.
State banks could invest only within a state, national banks could invest just in the U.S.A. and Global banks-the heavyweight bunk class accomplishing political power acquisition as well as financial returns, could be those stratospheric players with Harvard grads in the clouds for global players to seek easy pickins.
Local people like to save money with security, yet without a gold standard banks must make that cash on deposit work. They would be allowed to invest in real business and producvtion, properties and so forth owned by either state or U.S. citizens respectively.
If the large banks are in effective civilly disobediant political anarchists seeking their own agenda of power to the detriment of the citizens of the United States then the antidote might be to create a new class of banks since it is so hard to force rational reform upon the global Blackbeards, Capt. Morgans, Goldmen and so forth of finance.
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