Ostensibly the goal of all government intervention in financial systems is to make them more transparent and secure. Whether or not they accomplish those goals

Ostensibly the goal of all government intervention in financial systems is to make them more transparent and secure. Whether or not they accomplish those goals is obviously a matter of serious debate, but Velde's reasoning there is consistent with all other arguments for government intervention. There's no point in trying to spin that statement into him giving the traditional banking system a pass.