You are referring to transactional banking, the most important thing we need to realize about bank deposits is that they are liabilities. When you pay money into a bank, you don’t really have a deposit. There isn’t a pot of money sitting somewhere with your name on it (Like you mention with CANN). Instead, you have lent that money to the bank. They owe it to you. It becomes one of their liabilities. That’s why we say our accounts are in credit: we have extended credit to the bank. Similarly, if you are overdrawn and owe money to the bank, that becomes your liability and their asset.
The difference is "if" ORE is right is that Costello would have used CANN funds to finance operations without regulatory approval as a BANK mechanism and in this case would have illegally taken funds posing as a real bank and then possibly embezzled or spent them (thus the Lawsuit commeth). the inability to make good on CANN requests to withdraw money then becomes a revealing moment. imo
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