Question for Doug about this passage in the "Regulating finance" article in LBO 123; thought this might be of general interest.
* A first step in stifling innovation would be to separate the “utility” functions of finance—providing basic functions like checking and savings accounts—from the wackier stuff. Those functions could be performed by private banks if they’d like, but it’d be really nice to have a “public option” here, like non-profits, co-ops, public institutions. *
Don't credit unions already play this "co-op" role in the banking system? Or are you thinking of something else?
Miles