US banks operate on a simple principle. They are allowed to take US dollars from people in the various forms of deposit and then use the money they have accepted and invest it.
The idea is that the people who qualify to be bankers by US law are supposed to be able to invest their deposits, grow them, and then have no problem paying back their depositors.
Unfornately, bankers are sometimes kind of simple, i.e. they do not raise their capital; instead, they lose it.
There are many alternatives to the US banking system. Or for that matter, alternatives to the European banking system.
It's a brave new world with decades of trouble ahead. Sometimes we need to discard the leaches that provide no value-add and decide on a better way. Better ways are obvious and lucrative.
