What if…say, you make the Federal Reserve the bad bank and handle all past trash transactions then start at the same time a US Treasury based bank with 0% fee based only loans to the general population. Private banks and CUs would become quite popular on a local scale. Student loans and everyone else might as well enjoy what banksters already receive, not the big leap you might think it is. Everything else is minor details.

I can hear the whining already from major banks that peddle and politicians that receive influence contributions.

Yes, I know, it is a pipe dream. Like scrapping IRS regulations for a flat tax or returning to the rule-of-law or following the US Constitution (yeah, that old rag).

Doesn’t matter much anyway. Even with a possible recovered robust, legal economy, derivatives are going to wipe out worldwide banking in its entirety. Second verse, same as the first.