Why would having a bank involved weed out scams if it were impossible for the bank to lose money?
This is basically what happened during the mortgage bubble -- the banks lowered their standards because they knew the government would back up the loans.
The bank would still have liability to the investors as third-party beneficiaries to the loan, as part of the arrangement. The legislation could spell out a safe harbor provision setting the standard of care equivalent to an ordinary business loan.
