PO'd at the big, out-of-state banks?

[DP]

—Then here’s some info you might be interested in.

A couple of my compadres from the West Seattle Neighbors for Peace and Justice, along with state representative Bob Hasegawa and others, have recently started work on a legislative effort to establish a state bank in Washington.

The basic idea is to use tax and excise revenue controlled by the State government — money that is currently being invested in big out-of-state banks — to capitalize an official state bank. That bank that would then lend money out to Washington borrowers at reasonable rates of interest. The state bank would NOT be a threat to local credit unions and other small local banks, because such credit unions could also make money by originating loans that would tap into the state bank’s capital.

With a state bank, Washington taxpayer money would stay in Washington and serve Washington citizens who might otherwise find it hard to get a loan. And since the bank is capitalized by the taxpayers themselves, it will always be at least as solvent as the state itself. Needless to say, none of the bank’s money would go to pay obscene bonuses because all employees would be state workers and the bank itself would be overseen by the state treasurer.

The idea of a state bank is NOT a dream. In fact, North Dakota has had its own state bank since before the Great Depression, and the North Dakota bank has weathered the recent financial crisis far better than the big boys, even while lending to small businesses and individuals that the big boys would never touch!!

So if banks are your issue, please check out the PDF flyer at the link below and contact one or more of the names on the flyer for details.

Thanks.

–David

http://roominate.com/blogg/a_new_state_bank.pdf

(File size: 2.5M)

Share This

[KBear]

I’m sorry, but the majority who voted against 1098 (even though it was in their own best interest to pass it) do not trust the government with their money. This would never fly.

Share This

[dobro]

i think it’s a great idea.

Share This

[DP]

I’m glad you brought that up, KBear, because in fact, a state bank is one of the few issues on which the Left and Right can actually get in bed together and still feel good about themselves in the morning.

And in fact, my friends John and Cindy, who are spearheading this effort, told me that at their last public presentation there were some Tea Party types in the audience, and they liked the idea of a state bank just fine.

This is no surprise when you recall that Tea Partiers don’t like big banks any more than the Left does. (Remember how much anger the Tea Party directed at the TARP program? A lot of that was anti-big bank.)

Also consider that North Dakota, which already has a thriving state bank, is a RED state.

Remember, this is revenue money the state already HAS that we’re talking about here; it’s not new money anyone is proposing to collect. But the State has to deposit its revenue money somewhere until it gets spent for whatever, so it’s just a question of where the State (that is, all of us) should deposit our revenue money until we need to disburse it. Should we put that money in some big bank like Chase, a bank that charges higher interest and invests the money out of state? Or should we keep that money here, where we Washingtonians can use it to stimulate our own economy?

This is something that even the most idealogical of 1098 foes should be able to get behind.

Share This

[JoB]

DP

In theory everyone likes the idea.

In practice those out of state banks start throwing money at advertising and voters shoot it down.

Share This

[redblack]

i’d put my money in a state-run bank in a heartbeat.

but, IMHO, it would have to be nice and modernized and start out by offering the basic technological reflexivity that the mcbanks offer. online, text messaging, strategic branch locations, ATM’s every 10 feet, etc.

Share This

[DP]

The North Dakota bank is focused on loans, not so much checking and stuff like that. (I think they only have one branch, in downtown Fargo.)

What the ND bank does is lots of car loans, college loans, and business loans. Mortgages too, I think.

They’re not a typical consumer bank and they don’t really try to be. In that sense, at least, they don’t compete with the big boys.

Notwithstanding that, JoB is quite right. Once this thing builds momentum, the out-of-state-funded attack ads will start rolling in like a tsunami.

But take heart: Big Money doesn’t always win the day. (Just look what happened in the California gub’ners race, for example.)

Share This

[Genesee Hill]

North Dakota, where my Mom and Dad were born, is not a “blazing” red state. Though they did vote for the brilliant McCain/Palin ticket, both of their Senators were Democrats, that is, ’til this year’s election. They are not red like Idaho, Wyoming, Utah, or the Bible-belt states.

Share This

[Jiggers]

I use Home Street Bank. I’ve been with them for three years and like them a lot. I got rid of B.O.A. a long time ago.

Share This

[DP]

Below is an update from my Peace Movement pals Cindy Cole and John Rep, who are working with State Representative Bob Hasegawa and others to create an efficient and consumer-friendly official Bank of Washington State.

Remember: This bill is important because it will help us keep our government dollars (tax and bond revenue) in the state, working for us, rather than having it be used to gouge borrowers or sending it out of state to pay obscene bonuses to Wall Street execs.

An official State Bank would not compete with local outfits like BECU and Washington Federal Savings, but would actually help them, by acting as a funding source for loans originated by the smaller, local banks and credit unions.

The bill is also important, politically speaking, because it’s something that liberals, conservatives, populists, and even libertarians (!) can unite around. Whether they will actually do that, remains to be seen.

—DP

***************************************************************************************

January 30, 2011, a short summary of the hearings on the State Bank Bill (Washington Investment Trust)

The Washington Investment Trust Bill (WIT) was introduced in the Legislature on January 18th.

On January 25th hearings in both the House and Senate were held on the HB 1320 and SB 5238 to establish a Task Force to develop an implementation plan for the Washington Investment Trust.

For a PDF file summary of the bill, please go to:

http://tinyurl.com/wa-state-bank-bill-1

At the Senate Financial Institutions, Housing and Insurance Hearing, there was very little time. The hearing room was packed with supporters of the bill. Rep Hasegawa, the prime sponsor of the bill, gave opening remarks. Two retired officers of the Bank of North Dakota (the nation’s only state bank) were present to answer questions and several citizens were able to speak in favor, but many more were not able to. This was disappointing, as a number of small business owners had made the trip to Olympia to give testimony on the problem of the banks refusing to lend. Speaking against the bill were the Washington Bankers Association, the Community Bankers Association, and the Office of the Treasurer. The Community Bankers Association, however, seemed willing to work with the committee on the bill. Two Republican members of the Senate Committee did not attend the hearing.

In the afternoon, Steve Kirby, chair of the House Business and Financial Services Committee, gave two full hours to HB 1320. The entire committee of 13 members was in attendance. Rep. Hasegawa again made opening remarks; the bankers from North Dakota spoke about how the Bank of North Dakota maintains liquidity as that is one of the concerns of the Treasurer, Jim McIntire. The Main Street Alliance of Washington, a small business organization, had three small business owners speak in favor of the bill. A person working in eastern Washington with minority business people and micro loans spoke about how a bank would work well for helping business. John Repp from the Just and Sustainable Economy group was also able to speak in favor as did Brian Derdowski a former Republican King County Council member. The chair gave as much time to the opposition as they wanted and again the two bankers associations spoke in opposition as did the Office of the Treasurer.

At this time we are watching to see when the bills will be voted on by the committees. It is felt that the bill may pass out of the House committee. It will be heavy lifting, however. Three Representatives could use some gentle constituent support for the bill. They are Troy Kelly of the 28th LD, Brian Blake of the 19th LD and Christopher Hurst of the 31st LD. Citizens in these districts should email or call their offices.

–Cindy Cole

 West Seattle

**************************************************************************************

Share This

[redblack]

in the meantime, i’m moving to washington federal – just in time to deny chase their fees.

(double-dipping, welfare queen, bernie made-off-with-the-money, mcbank so-and-sos…)

Share This

[redblack]

i don’t have time to look this up right now, DP, but are fitzgibbon and cody on board with this bill?

Share This

[MrJT]

Redblack – We just left WaFed, we were migrated there from First Mutual. Their online banking blows. Everything is posted in batches, the next working day evening (make a transfer Friday evening, and it doesn’t post until Monday night). I’d check it out before you move there.

Share This

[skeeter]

I am very leery of any state-run institution doing a better job than the private sector. There is tremendous competition in the banking industry. I suspect banks fight like crazy to get business from the state, and subsequently offer very competitive packages. Are the taxpayers going to be better off funding a state bank or using the services of an existing bank that has already built up significant economies of scale?

Or put another way – should the state go into the retail business? Or would it be an inefficient use of taxpayer dollars to compete with Fred Meyer, QFC, Target, Walmart, and Sears?

Unless the state can make a very compelling argument they could do a better job than the existing service providers, I would not support a state-funded or state-run bank.

Share This

[DP]

skeeter: You rock!

Thanks for disagreeing with me in a thoughtful and respectful way.

I want to speak to your issues, but I already talk too much as it is. (And besides that, if you scroll up in the thread, you’ll see that I have discussed some of them already. In any case, it’s still possible for us to disagree on this as gentlemen.)

redblack (aka “Satan’s Puppet”): I will contact Señor Fitzgibbon and Señora Cody and poll them on this issue.

—DP

Share This

[redblack]

skeeter: a state bank wouldn’t take profits or taxpayer bailouts, or have to charge $10 fees for “free” checking.

seriously, man. after the S&L scandals of the ’80’s, ivan boesky, bernie madoff, and TARP, you really trust the private sector to do anything but rape customers and taxpayers?

“thank you, sir! may i have another?”

DP: satan’s puppet? dude, that’s aku. he was devised by genndy tartakovsky and voiced-over by the very competent and talented mako.

please. show some respect.

p.s. and while yore talking to our reps, ask them about vermont’s new corporate personhood revocation. i emailed both of them and sharon nelson on it, and not a one of them congress critters responded.

Share This

[DP]

On a prompt from Señor rojonegro, I asked 34th District Reps. Eileen Cody and Joe Fitzgibbon where they stood on the bill to create a Washington State Bank.

To their credit, they both got back to me in minutes (!) with their responses.

Fitzgibbon:

David, thanks for writing. I support HB 1320 and am a cosponsor. I absolutely believe that the assets of our state should be put to work on behalf of our state’s people, not Bank of America. I hope we’re able to move the bill this year though it may be a multi-year project.

Joe Fitzgibbon

 

Cody:

I do support the bill I just didn’t get signed on. I know the banks are opposing. I just checked with Zach Hudgins (he sits next to me in Ways and Means). He’s on the committee and is second on the bill. He said he doesn’t think Kirby is going to move the bill because they don’t think they have the votes. It’s actually not that low of a profile bill. There has been quite a bit of discussion around Olympia about it.

 

Share This

[Zenguy]

All for it and I work for B of A. Many, many, many times I am as frustrated as our customers. There is something as a bank that is too big. My department handles one thing, as a matter of fact there is another department that hadles the same thing just housed on a different platform.

I had an account the other day that said any questions call 1-800… called them, they referred me, called them, they reffered me, finally got the right number. Would not bank with B of A if you paid me!

Share This

[redblack]

DP: thanks! nice work (that i could easily have done myself.)

(parenthetically, i emailed them from a defunct email account when i asked them about corporate personhood. now i have to look like an even bigger ass than i am and ask them again, all the while trying to explain my mistake.)

so, given eileen cody’s response, anyone who supports a state-run bank should email her and let her know that the fighting 34th has her back.

her and that kirby dude, too. whoever he is.

and tell fitzgibbon that he doesn’t have a year. (what does he know, anyway? damned kids.)

Share This

[Author]

Posts