Open letter to the Washington State Congress.
Washington State House Bill 3162 is quite well written. However, there is no mention of where the state will get the capitol to start the bank. North Dakota did it with a Bond Issue. We do not have to go there. We can tap the Investment Pool funds the State Treasurer manages. As I understand it, we have $8 billion in pooled funds at .25% interest, returning $20 million to the State.
To fund HR 3162 we can transfer those funds into the Washington State Bank @ 2% interest. The pooled funds will be safe, liquid and more than competitive.
Actually @ 2% interest: the state would earn $160 million in 2010. In fact if you want to maintain a relationship with the current deposit scheme, you can transfer $4 billion and receive $80 million in returns in addition to $10 million at the current interest of .25%.
We have been using the moniker Washington State Bank. There is a Washington State Bank in Washington, IA, I am sure the name is copyrighted. We need to find a new name such as The State Bank of Washington or another name.
BOSTON — Of all the various elements of Senate President Therese Murray’s new economic development bill, wants to explore the creation of a state-owned bank.
The unusual move – there’s only one state-owned bank in the country – drew a wide range of responses from bankers as they learned about the proposal. Some say the concept is downright crazy, while others say the discussion could lead to some interesting ideas about how to stimulate economic growth.
Murray certainly hasn’t made her mind up yet. The bill that she filed on Feb. 8 would, among other things, establish a commission to study the feasibility of starting a state-owned bank. The commission would draw from leaders in the Legislature as well as quasi-public state agencies and the banking industry.
State leaders are concerned that there is not enough lending going on right now, particularly to businesses. Murray wants to see if a state-owned bank could be one way to increase the availability of credit for companies looking to grow in Massachusetts. WASHINGTON, Feb. 5 (UPI) -- U.S. federal regulators Friday urged banks to increase lending to small businesses but to make sure such operations were creditworthy.
Representative Hasegawa’s bill is reaching millions of readers. Most executives running small businesses like myself, need some loan access.
As you ponder this bill please remember the bill’s simplicity and the formation of The State Bank of Washington is very simple. Do not complicate the bill and it will work.
Sunday, March 14, 2010
Citizen-State Owned Banking Can Save America from Crazed Wall Street Bankers
Dear Representatives.
About a year ago I started sending you messages that Washington State needs to own its own bank. About the same time, I started writing news outlets like The Huffington Post that people should move out of large, unresponsive and financially unconcerned about Main Street USA. This message has taken root and now it is time for the politicians of Washington take notice that a movement is ongoing to replace Wall Street bankers with Main Street bankers.
People want local banks and not “too big to fail banks.”
http://www.huffingtonpost.com/2009/12/30/move-your-money-tell-us-a_n_407297.html
Make it your New Year's resolution to move your money. We can't think of a better way to start 2010.
WATCH:
Too-big-to-fail banks are profiting from bailout dollars and government guarantees, and growing bigger. Tell us which community bank you use, and why.
http://www.youtube.com/watch?v=Icqrx0OimSs&feature=player_embedded
As national banks soak up bailout dollars, cut lending, and exploit overdraft fees, a number of Americans have decided to move their money to local banks.
While Wells Fargo and Citigroup have made headlines recently for repaying the massive debts they owed to the American taxpayer, people are still frustrated about subsidizing the gambling habits of mega-banks. Yesterday's post "Move Your Money" generated a lot of comments from readers who want to ditch their accounts with the Too Big to Fail Banks.
Below is a list of the four mega-banks that took the most government bailout money:
1. Bank of America ($45 billion) 2. Citigroup ($45 billion) 3. Wells Fargo ($25 billion)
4. JP Morgan Chase ($25 billion) (Source: ProPublica)
According to Treasury's most recent report on the bailout, our massive subsidy of the behemoth banks didn't pay off especially well. Large financial institutions made record profits last year. Neighborhood banks, on the other hand, were forced to sharply increase their rates of consumer loans to fill demand. For these reasons and many, many more, we're seriously thinking about localnomics.
We want to hear how local banks serve communities better.
Send us your videos, stories, and even just locations of the best local banks in America. It's easy to participate. We want to know why some Americans have decided to move their money and why others should.
Have you trusted your savings to a community bank? How has that worked for you? Share your story and the location of your local bank. Move Your Money Stories
Participating is easy! Simply click on "Comments" and leave your message.
Dennis Eros
About a year ago I started sending you messages that Washington State needs to own its own bank. About the same time, I started writing news outlets like The Huffington Post that people should move out of large, unresponsive and financially unconcerned about Main Street USA. This message has taken root and now it is time for the politicians of Washington take notice that a movement is ongoing to replace Wall Street bankers with Main Street bankers.
People want local banks and not “too big to fail banks.”
http://www.huffingtonpost.com/2009/12/30/move-your-money-tell-us-a_n_407297.html
Make it your New Year's resolution to move your money. We can't think of a better way to start 2010.
WATCH:
Too-big-to-fail banks are profiting from bailout dollars and government guarantees, and growing bigger. Tell us which community bank you use, and why.
http://www.youtube.com/watch?v=Icqrx0OimSs&feature=player_embedded
As national banks soak up bailout dollars, cut lending, and exploit overdraft fees, a number of Americans have decided to move their money to local banks.
While Wells Fargo and Citigroup have made headlines recently for repaying the massive debts they owed to the American taxpayer, people are still frustrated about subsidizing the gambling habits of mega-banks. Yesterday's post "Move Your Money" generated a lot of comments from readers who want to ditch their accounts with the Too Big to Fail Banks.
Below is a list of the four mega-banks that took the most government bailout money:
1. Bank of America ($45 billion) 2. Citigroup ($45 billion) 3. Wells Fargo ($25 billion)
4. JP Morgan Chase ($25 billion) (Source: ProPublica)
According to Treasury's most recent report on the bailout, our massive subsidy of the behemoth banks didn't pay off especially well. Large financial institutions made record profits last year. Neighborhood banks, on the other hand, were forced to sharply increase their rates of consumer loans to fill demand. For these reasons and many, many more, we're seriously thinking about localnomics.
We want to hear how local banks serve communities better.
Send us your videos, stories, and even just locations of the best local banks in America. It's easy to participate. We want to know why some Americans have decided to move their money and why others should.
Have you trusted your savings to a community bank? How has that worked for you? Share your story and the location of your local bank. Move Your Money Stories
Participating is easy! Simply click on "Comments" and leave your message.
Dennis Eros
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