Fri 2009-05-08 00:00 EDT

Rebuttal To Mish: FRL - The Market Ticker

fractional reserve lending defended against claim of fraudulence; ``So long as the bank never lends out more unsecured than it has in excess capital, there has been no fraud. The instant the bank does so, it has committed fraud.'' ``Our failure is regulatory. It is against the law to commit fraud and yet we have refused to prosecute those who have claimed to be solvent when they are not. ''

FRL; Market Ticker; Mish; Rebuttal.