[nerdponx]

The only sources I can find about the Fed taking any kind of action against narrow or full reserve banks is on low-credibility websites with ideological agenda.

Can you describe what the Fed blocking action was and where I can read about it? I'm tempted to conclude that it doesn't exist without additional evidence.

[someguydave]

The Fed literally banned a full reserve bank last month: https://www.yahoo.com/lifestyle/crypto-bank-custodia-taking-...

Also there was a narrow bank proposal the Fed banned in 2019: https://www.bloomberg.com/opinion/articles/2019-03-08/the-fe...

The Fed and other regulators greatly fear banks that do not justify their overreach (and also make existing banks look bad)

[nerdponx]

Thanks. The Yahoo article makes it seem more like the Fed was opposed to the cryptocurrency aspect than the narrow banking aspect. But the Matt Levine writeup is more apt.

[someguydave]

The Fed always give all kinds of excuses but the real problem is that they are afraid that banks that can demonstrate that they are run-proof without government aid might outcompete government-backed banks.

[tekknik]

Or, maybe, just maybe, you form healthy economies via the movement of money, and not by letting it sit in a box. You think that may be it since it follows standard, non-politically charged, economic theory?

[makomk]

I'm pretty sure most of the credible, non-fringe discussion of this was on paywalled financial news websites unfortunately.

[nerdponx]

What, like FT and Bloomberg? I didn't see anything like that.