[Deuce]

I know little about the British system. Can you direct me to anything on the internet or know whether merchant banks take demand deposits and what the reserve ratio is for them how about for other categories of deposits?

There would need to be strict requirements though about full disclosure, and the banks should be required to be audited by deep pocket CPA firms.

These would be substantial improvements, but not far enough as far as I'm concerned. I can't remember when any CPA firm ever gave an early warning sign of impending collapse.

[mvpel]

Here's some interesting reading: 12 USC 411:
Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.

I wonder what that "and for no other purpose" implies, legally? And what is "lawful money?"

[Torie]

No I don't. I have just heard it mentioned, and I don't know how merchant banks work. I don't know if they take consumer deposits or not, or what their reserve requirements are. As to the CPA firm issue, that is why I mentioned deep pockets. If the CPA firm drops the ball, they can be sued.