RE:Seeds of DestructionI don't disagree with anything you said, but would add another change in banking that took effect on March 26, 2020. The Fed on that date removed the requirement that banks maintain reserves on hand. Prior to that, a bank had to keep reserves in cash in the vault or at the Federal Reserve, and that money was available to deal with bank runs. Hard to see the logic in the 2020 change.
One also has to question the competence of a bank investing money in treasuries or any bonds in an environment when interest rates are going up. The odds of losing money are pretty high.