So government insured deposits still could not be used to speculate in riskier investment banking activities.
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Glass Steagall was passed to prevent commercial banks taking government insured deposits from failing due to losses incurred through riskier investment banking activities (issuing stock and other securities).
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The Vickers Report in the UK says that we should have ring fencing, dividing the (government insurance on deposits) retail banks from the investment banks.
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If so, then why assume equity markets wouldn't throw up new business models to finance small businesses and credit-worthy consumers if government-insured deposits were no longer available at all to underwrite such risks?
Under the President's still-sketchy plan, firms that hold government-insured deposits or are eligible to receive cheap loans in an emergency from the Federal Reserve would not be able to trade for their own accounts.
During his second term, he vetoed the renewal of the charter for the independent Second Bank of the United States, a private institution that kept the federal government's deposits interest-free, and issued uniform paper currency.
This would protect deposits of less than 100, 000 euros, but potentially allow the government to raid higher deposits to help pay for the bailout.
They have branches on every street corner, and, most important, the government implicitly guarantees household deposits in state banks.
In normal times the opportunity cost of holding non-yielding gold, instead of interest-bearing bank deposits or government bonds, is high.
In the first half of the 20th century foreign investment was largely in the form of bank deposits and government bonds.
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Tiny Ireland, with its oversize banks, has just augmented its insurance scheme by giving a blanket government guarantee to bank deposits and liabilities.
She emphasized that central banks are limited by their guidelines as to where they can invest their reserves: usually money deposits, government debt, quasi-government debt.
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The only exception being those with government insurance on their deposits.
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Interest rates of 11.75% in Brazil make for an attractive carry-trade for Japanese banks, who can borrow money at near-zero interest rates and invest in Brazilian government bonds or bank deposits paying double digit yields.
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The requirement that banks must hold up to about a quarter of their deposits in government bonds was no longer denounced as a racket to help fund the budget deficit but instead hailed as an enlightened form of liquidity management.
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The government also asked Congress to approve the forcible conversion of deposits to ten-year government bonds.
AA. Most of the rest goes into low-yielding bank deposits or Chinese government bonds.
The lending was often careless (the government guarantee of virtually all deposits gave banks more incentive to be reckless).
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Many are simultaneously commercial banks, taking deposits under a government promise to repay depositors if the bank fails, and investment managers overseeing money held entirely at the owner's risk.
Within just a few months, the Argentine government restricted withdrawals of bank deposits, defaulted on its debts and broke the link with the dollar, allowing the peso to devalue.
Some 70% of its banks are now in state hands after nearly collapsing, and those that have not gone bust are fragile, their customers' deposits frozen under government orders last year.
They, therefore, confine themselves into routine and predictable business, simply collecting deposits and financing government decided real estate projects and SOEs-providing the fuel for the next bubble, rather than searching for creditworthy clients.
They, therefore, confine themselves into routine and predictable business, simply collecting deposits and financing government decided real estate projects and State Owned Enterprises (SOEs)-providing the fuel for the next bubble, rather than searching for creditworthy borrowers.
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But the government will borrow those new deposits, leave an IOU in the Trust Fund and then promptly spend the money just as it has with the Social Security Trust Fund perhaps on some worthless green energy project that may eventually embarrass the Obama administration.
So Tsipras's party would then have to seize deposits like the Argentine government did in late 2001.
Anyone who has cash deposits that the Greek government can convert to Drachma will be severely hurt.
The Irish government says it will guarantee all deposits in the country's main banks for two years .
In Britain some local-government bodies are reportedly moving their deposits from Santander's British bank, even though it is locally capitalised and supervised.
Above all, the impoverished new Congo government needed up-front cash deposits.
Of course, while Fannie Mae's securities state that the company is explicitly not backed by the American taxpayer, large national banks finance mortgages with consumer deposits insured by the government.
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