Under Basel III, no. They’re marked to market. Under American rules, yes, because the banking rules bone-headedly referenced GAAP. This is the HTM problem and it’s real, though far from fundamental with respect to fractional reserve banking. (It’s also solved in no way by a reserve requirement.)

> When you count debt as reserve

This is why we deprecated the reserve requirement. The Fed funds market is lent and borrowed reserves. A reserve requirement just counts liquid reserves; it doesn’t care if they’re owned or borrowed. A capital requirement takes into account if it’s borrowed. You’re arguing against the solution to the problem you pose.

> same asset is claimed in its entirety among X number of loan originators in clearing bankruptcy/receivership

Again, solved by capital requirements. Assets pledged as collateral net to zero. (A balance sheet should do this, but financial institution balance sheets are unintuitive.)

> If you can find vintage books on the subject they are much better and absolute gold mines (circa 1950s-1967) in comparison

Go to the true vintage: Bagehot and others who wrote from the height of the gold standard in the 19th century. Most English literature from post-War on the topic is fringe by that point.