"...one person sued the bank, stating that they offered nothing in the contract, so therefor the contract was invalid. The bank never put any of their money into the deal."

You have failed to mention the point of the suit. the bank literally never had any money they loaned to the borrower. Banks do not hand over money they already have when they make a 'loan'. That money you have 'borrowed' is just a credit in your account at the bank. It never existed prior to the loan being made. When you pay the bank is when the bank gets the money that it says you were lent.

That's why he won the case. He wasn't actually loaned any money at all. The bank just said he had money in his account. That's how commercial lending works to this day. Whatever money is said to have been lent to borrowers doesn't exist in the coffers of the bank, but they credit the borrower on their books. That's where money comes from and why we call it a 'debt based monetary system'.

I'm going to restrain the rant that is bursting below the surface about how banks are swindling thieves for whom hanging is too good.

Thanks!