[superkuh]

Because fractional reserve banking is the least worst way and it's very unlikely to change we have to acknowledge this power bias and mitigate it.

If chartered consumer bank is creating new M0 money supply as debt through loans or other processes it should not be legally allowed to be involved in stock and other market investments. Deposit and investment banks should not legally be allowed to mix. The immense profits and power to create new currency as debt should not have all it's incentives and value siphoned off into non-productive market manipulations and vehicles.

In the USA this is one first step, one we've taken before in recent history, that needs to be taken again to mitigate the centralized (~4k chartered banks in the USA) money supply creation issue of fractional reserve banking.

[ethbr0]

"stock and market investments" vs other uses of money (e.g. loans) is a difficult distinction

Presumably this would just look like deposit banks only ever... what? Buying US government debt?