Which means that banks, get to loan money they don't have in the fractional reserve bank system. So banks are levered up like you wouldn't believe, which is a huge weakness of the financial system.

And what happens to all the profits from money printing ? Why, that goes to the banks, of course.

This proposal seems to simply be to only allow the central bank to lever up, and force Swiss banks to become old-US-style "investment banks".

The issue with that is simple: if some banks are allowed to print money (with profits going to the richest, and everyone or "the taxpayer" guaranteeing the loans, of course), and others are not, the banks that are allowed to print money are going to marketshare, profits, ... and counterintuitively, when the economy is expanding, historically even the people they lend to.

It is looking more and more like the economy is reconfiguring to the way it worked in the middle ages.