I think the deposits - as they are not necessary for loans except by government regulation - should mainly be seen as a system for payments. That needs to be regulated and international payment systems other then american is needed so that legal transactions between country A and B is not nicked by US banks and regulators, but I am not so sure it neads to be public.

rootless2:

i want to reduce the size of the private financial sector.

That is all good, but I think it is loans - the creation of and allocation of credit - that is the power issue.

Then again all concentration becomes a concentration of power. Perhaps savings and loans should be regulated as mandated seperate businesses.

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