The Fed stalls the creation of a bank with a novel business model
There is the usual misinformation in this article. Banks don’t loan out deposits. Originating loans expands their balance sheet. Deposits are useful to satisfy reserve requirements, when they exist[1], but if the loan is profitable the bank can always borrow the reserves at a lower rate on the interbank market.<p>[1]<a href="https:&#x2F;&#x2F;www.federalreserve.gov&#x2F;monetarypolicy&#x2F;reservereq.htm" rel="nofollow">https:&#x2F;&#x2F;www.federalreserve.gov&#x2F;monetarypolicy&#x2F;reservereq.htm</a>