The money in banks belongs to people not corporations. Americans don't effectively owe banks... they owe other Americans, including the poor who deposit their money in banks, pension plans that buy their bonds to fund pensions, seniors that invest their retirement in bank stocks and live on the dividends.

Banks are a type of fiscal intermediary... they operate to connect borrowers with lenders. They are not an independent entity with a money printing press.

Meanwhile, every proposal ends with taxing the wealthy. Money is portable... you start taxing it and it simply moves overseas. Problem solved, no money to tax. What is your Plan B?

What your proposal would really do is end borrowing. No one could buy a home, a car, or have a credit card, since no one would trust lending them money for fear the debt would be nationalized.

Your proposal reminds me of when the Catholic Church declared it was a sin to charge interest. So, Christians simply did not loan people money. How was the problem solved... Jews (not subject to the Catholic Church... established a network of moneylenders, since there was a demand for credit.

In your example, we should expect "loansharks" will fill the void, you intend to create.

Credit is a powerful tool. As such it can be beneficial and mostly it is. But it can be destructive when used by people that don't understand what they are doing. It is one reason we regulate banks, but no system of regulation is perfect, even if the lender is owned by the government... we saw that with the GSEs.

If you want to make the argument that people should not be able to borrow money... make that argument, but I don't think it will sell.