It is my opinion that most big banks don’t need those deposits in order to profit. There is somewhere in between $600 trillion and $1.4 quadrillion in derivatives, depending on how skilled banks might be at moving risk off their balance sheets. There’s no good way to prevent firms from creating more by leveraging up on risk.
So what’s $200 billion in real money matter when there’s an endless supply of pretend money? I used to write copy for a ridiculously rich hedge fund manager. He told me the one thing Wall Street is always good at is marketing its own innovation, whether or not they’re based on shit ideas.
This is a gross oversimplification of risk management, Bank Transfer Day, derivatives, and the proper role of banks in general, but I guess it’s worth putting down.