[sethg]

Banks, more so than most enterprises, are stepchildren of the state. You can't charter a bank without "government intervention", because a bank's stability, and hence its ability to attract depositors, depends on things like access to credit from the government (the Federal Reserve, in the US). The question is not "government intervention" vs. "no government intervention", but rather what kind of intervention is in the best interest of the public.

[darjen]

you're right, our banking system isn't even remotely close to being based on voluntary trade and "free market". so I'm not sure how we can even discuss this supposed failure of the free market.