Banks these days are getting a large share of public condemnation.
That is appropriate.
The banking that I knew in the 1960s and 70, when I was a bank VP, consisted entirely of business loans. No small business loans and no loans that were unsecured. Banks only made loans that were 120% secured by solid liquid or near liquid assets.
There were many other entities available to make loans on the basis of less security.
Even under the circumstances, my knowledge of bankers assured me that they were operating at the maximum limit of their capability. Bankers could only make loans that were 120% secure. They did not have competence to cope with risk.
That is still true today. It is unfortunate that the same people make loans at unimaginable levels of risk to: sovereign nations, to unsecured borrowers and to people who secure their loans with magical mathematical paper and investment instruments of uncredible complexity.
The bankers I knew could not cope with any of that.
The Volcker rule, which you hear bandied about much these days, simply says that bankers should only make loans of the traditional secured form.
I support that fully and I await the day when that is all bankers are allowed to do.