A: "We take customer money and risk it."
B: "We take customer money and risk it."
Just because one puts the money into "safe" investments does not make them any different. It's still a bank doing fractional reserve banking.
SVB: our shitty compliance department bought bonds (a government requirement) with too long of a maturity date to sell in a bank run.
One is incompetent and the other is malicious.
Also fractional banking is literally required by law.
A: "We take customer money and risk it."
B: "We take customer money and risk it."
Just because one puts the money into "safe" investments does not make them any different. It's still a bank doing fractional reserve banking.