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[Clansgian AT wmconnect.com]

> >When it gets right to the matter, they are all 'allowed' to operate by the 
> Fed, large or small.  Unless there is a gold/silver bullion bank of which I 
> have not heard.....bobf
> 

There are no banks backed by metals, that's a thing of the dim and distant 
past.

However, many local banks are backed by local deposits of cash.  The current 
problem is a result of banks, mostly very large banks, lending out money for 
mortgages and selling that debt in the form of MBS's.  Small banks can't 
easily 
handle this or pull it off.  

To the extent that the local bank has to borrow from the fed, it is at risk.  
But many very small banks don't do this on a regular basis and for many it is 
not essential to their existence.   </HTML>