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"Depositors are therefore able to earn a rate of return on their savings while also having the ability to show up any time they want and get their money, if needed."
That's completely inadequate. The rate of return of sight deposits is zero and the ability to show up at any time is accorded by contract. Depositors are completely unaware of what is doing the bank with their money. And to take deposits (redeemable at sight notice) to invest in very long term assets (public debt and mortgages) should be a law violation and poses serious macroeconomic damage.
Nice work! Do you think multiple liability has a chance at being instituted?
Also, you wrote: "Shareholders are not financially responsible for shareholder losses." You meant "depositor losses," right?
"Depositors are therefore able to earn a rate of return on their savings while also having the ability to show up any time they want and get their money, if needed."
That's completely inadequate. The rate of return of sight deposits is zero and the ability to show up at any time is accorded by contract. Depositors are completely unaware of what is doing the bank with their money. And to take deposits (redeemable at sight notice) to invest in very long term assets (public debt and mortgages) should be a law violation and poses serious macroeconomic damage.