“For a city to create its own public bank owned by the People and accountable directly to them, is to create an entirely new financial system on the People’s terms, which is the logical end-game of divestment. …
“By bringing banking under public control, so that the bankers that have the responsibility over our financial sector are accountable public servants rather than private casino gamblers, we can finally make progress towards a system that is legitimately, rather than superficially democratic.”
Deregulation was supposed to help community banks, but instead it’s helping to kill them. Public Banks could save them.
The bank-deregulation bill that passed the House this week — despite public and regulator outcries — was sold as something rural community banks desperately needed to relieve overwhelming paperwork burdens and survive Wall Street’s rapacious crush.
It does reduce reporting requirements and red tape, but according to David Dayen in The Intercept, the main effect of Congress’s lobbyist-written bill to loosen the regulations on “mid-sized” banks has been to greenlight — well before the bill even passed into law — a new rush of consolidation that is already swallowing up many of the community banks left standing. This was indeed predicted by industry observers. The Crapo bill, oddly, did not look to the only state in the country with thriving community banks — North Dakota — to build upon their successful model: their Public Bank.
Dayen explains in his recent sobering article:
“Indeed, the past 30 years have witnessed a dramatic reduction in chartered banks, from 14,500 to fewer than 5,600. ‘If this pattern continues, we’ll only have Wall Street banks left,’ said Sen. Jon Tester, D-Mont., to Politico. ‘And Wall Street banks won’t serve rural America, they won’t serve Montana. … So, what will rural America do?’ …
“The impacts of this could be severe. … [read more]
[DC Ed] Deregulation gives the TBTF enough rope to hang themselves. Keep banksters out of the halls of your state (and federal) legislature, don’t vote for legislators that receive big bank donations (bribe $$), push a Public Bank system …and watch how fast the deregulated banks fail.
What the Public Banking movement must do to win
Matt Stannard’s latest article in his series on Public Banking reflects on what it will take to put the movement across the finish line and have new Public Banks up and running. He concludes the path to success will require coordinating broad public demand from a wide array of public interest groups.
In Santa Fe, for example, roughly half of the citizen task force was affiliated with private financial business, and only one officially represented the Public Banking movement.
Stannard wonders, “What would have happened if even only a few thousand people had demanded a Public Bank of Santa Fe, instead of a few hundred.”
In Los Angeles, Stannard talks to Trinity Tran and Phoenix Goodman of Public Bank LA. … [read more]
Yes! Build a Public Bank in SF — Task Force meets next week
Zac Townsend writes emphatically in the San Francisco Examiner that “San Franciscans deserve a public bank, one that invests The City’s money into local projects that reflect our values. San Francisco has nearly $10 billion we store on the balance sheet of big banks that could go to capitalizing a public bank.”
For those in the area, Public Bank SF is asking folks to come out to the Municipal Bank Task Force meeting next Thursday, May 31, 3:00 – 5:00 at City Hall to “make sure the task force stays on task to create a public bank that is focused on equity, social, racial, economic and environmental justice.” Facebook event here.
Why Support the Public Banking Institute?
A national movement is underway and you’re invited! There are now over 50 public banking initiatives taking place all over the country, from Maine to Hawaii and Alaska – citizens, civic leaders and elected officials, bankers and stakeholders from all walks of life who want to break the chain of dependence on Wall Street’s unsustainable debt extraction from our public purses.
It’s a strategic stand that you can take to transform our common wealth and democratic power. Use your civic power – get involved! PBI’s network of experts and affiliates will help you open new doors for sustainable public finance for cities, counties, and states.