Economist: Eliminate Checking Accounts to End Bank Risks

What’s the best way to prevent banks from taking reckless risks with customers’ money?

Do away with savings and checking accounts, says Boston University economist Laurence Kotlikoff.

In his new book, “Jimmy Stewart Is Dead: Ending the World’s Ongoing Financial Plague With Limited Purpose Banking,” Kotlikoff says checking accounts should be replaced with
all-cash mutual funds.

And savings accounts should be supplanted by mutual funds making short-term, conservative investments. (more)