Zero Banking Reserves

An obscure and convoluted amendment to the current bailout plan would have allowed banks to have zero reserves against deposits effective 10/1/08. What does this mean? I guess not much, though it sounded scary.
Wells Fargo found our money.
I think the bailout needs to be scaled back to ~200 billion and the language greatly simplified with no bailout for secure/stable institutions and more items that Democrats wanted, such as the bankruptcy judge provision, equity in institutions, and clear limits on executive compensation. Let the Democrats pass this and let Bush veto it if he so likes.