Subject: Re: SVB bailout
By 100% reserved I mean that I put 100K of USD or RMB or gold in the bank and they don't lend it out. They keep it in their vault (or somewhere safe) like a safety deposit box. Write a check against your cash, your balance goes down and you get charged a $1 fee.

I am curious what you think the business model is for such a bank. How do they pay rent? Employees? Utilities?

And couldn't you accomplish the same thing just by having a stack of dollar bills in your basement, or gold bars in a safe deposit vault (for which you pay a quarterly fee)? Why do you need to have a bank with a basement full of dollars when you can do that yourself?