Leverageless Safe Bank

Raoul Pal describes creating the "world's safest bank" - a bank without leverage designed to protect people's assets and savings from systemic financial risks and government seizure.

Key Points:

• Core Problem Being Solved:

  • Traditional banks have multiple claims on same collateral (avg 32 claims per US Treasury)
  • Risk of government seizing deposits (as happened in Cyprus)
  • Current banking system has 480% leverage to GDP ratio

• Key Features:

  • Zero leverage model
  • Focus on pure asset storage/safekeeping
  • Family office backing/involvement
  • Designed to be "safe" place for savings

• Target Market:

  • People wanting to protect assets from:
    • Banking system collapse
    • Government seizure
    • Systemic financial risks

• Business Model:

  • Pure custody/storage bank
  • No lending or leverage
  • Asset-backed security model

The idea emerged from Raoul's experience during financial crises and seeing how close banking systems came to collapse, particularly in Spain where he had to prepare with generators, food storage, and keeping cash at home.