Would you care to elaborate more about why fractional reserve banking isn't the primary satire of the article?
Because the more I read, the more I frown at your lack of distinction between the bond selling government and the money printing fed
Fractional reserve banking refers to banks holding only a fraction of their deposits in the form of liquid reserves, and lending out the rest.
The scheme in the article is about borrowing $9b from the Fed with $1b equity at a low rate, and then selling it to the government for a higher rate. So it's straight up interest-rate arbitrage.
In fact there's not even a claim in the article that the $1b in equity are deposits, so this bank is most likely not even a commercial bank. For all intents and purposes, this appears to be an investment bank, and it's very unlikely that it'd even have an account with the Fed to borrow that kind of money.
