The issue of, if not fraud, at least an immoral level of slickness, is that what is issued as credit by the bank comes back to the bank as income. In its books a concomitant amount of 'paper assets' are 'liqudated', but what went out of the bank as a mere 'promissory note' is now 'hard money' that the bank can use for whatever purposes it might have--in addition to the interest charged.