Banks have a dubious business model and markets have noticed

Financial Times:

Which brings us to what ought to be done. Apparently, when deprived of their ability to gouge or defraud their customers, most big lenders have a hard time justifying to the markets they are capable of creating value. Sarin and Summers imply one solution would be restoring some of the pre-crisis revenue streams while easing off the fines for wrongdoing.

But why do that when we could nationalise the payments system and money creation, instead? If banks provide real value in their ability to identify portfolios of worthwhile credit investments, they can still survive without the subsidies extracted from the rest of us. And if not, too bad.