Public banking tweet sends shivers down the spine of Wall Street

Banking Institute News: Jan 26, 2019

Alexandria Ocasio-Cortez

“‘Public banking’ are two words that send shivers down the spine of Wall Street”

As Representative Alexandria Ocasio-Cortez takes a seat on the House Financial Services Committee, her tweet saying she wants to get to work on public banking was heard round the world. “I’m looking forward to digging into the student loan crisis, examining for-profit prisons/ICE detention, and exploring the development of public & postal banking,” Ocasio-Cortez tweeted. The French press agency AFP immediately caught on, writing “‘Public banking’ are two words that send shivers down the spine of Wall Street.”

The French know this because Europe actually has public banks and recognizes the efficiency of that model.

The House Financial Services Committee has long been a major source of campaign contributions from Wall Street for both Democratic and Republican lawmakers, so the response of the financial services industry and Party leadership to this development may be swift.

Meanwhile, the resulting media attention from AOC’s current limelight presents a great opportunity to substantially advance the public’s understanding of public banking and to gain the support of advocates, allied organizations, and elected officials.

[read more]

 

Bismark, ND

When North Dakota has budget woes, it simply takes a dividend from its state-owned bank

North Dakota is facing important budget concerns due to the continued slide in oil prices. Early this month, the North Dakota Legislature lowered the amount of revenue the state can expect to collect from oil taxes by $600 million for the next two year budget cycle. Oil is a major contributor to the state’s wealth and the significant drop in energy tax revenue (despite record levels of oil production) would be expected to have significant effects on state spending. North Dakota, however, has a state bank. Eyeing the trend, they have built into their budget the transfer of a $140 million dividend from the Bank of North Dakota’s record profits (p24 of link). These dividends are funds the state can tap in lieu of a rainy day fund — one of the major benefits of having a state-owned public bank. They will enable the state to buffer any budget woes brought about by volatile swings in commodity prices and boom and bust cycles.

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Postal banks in Canada

International News: Canada Post Union pitches postal banks in arbitration talks

During the current arbitration talks at Canada Post, which have followed last year’s rotating strikes, the Canadian Union of Postal Workers (CUPW) has pitched a proposal that Canada Post create a Postal Bank. Another demand is a proposal to convert their vehicle fleet from gas to electric powered. By including these key public benefits in their agreement negotiations, the Union breaks new ground as advocates.

Chris Arsenault reports for the CBC:

The proposed postal bank is aimed at rural residents, including First Nations, who often don’t have easy access to a bank branch, said John Anderson, researcher with the Canadian Centre for Policy Alternatives. … It would also benefit low-income Canadians, including pensioners and the working poor who often depend on payday lenders for loans, cheque cashing and other financial services. …

“‘The federal government — through its ownership of Canada Post —  is the only body that could bring modern financial services to every community in Canada,’ Anderson said.”

[read more]

 

Federal Reserve Washington DC

It’s Our Money podcast looks under the hood of the Fed

Professor Tim Canova discusses the Fed with Ellen Brown and Walt McRee on the It’s Our Money podcast. Meanwhile, Canova’s campaign continues for hearings and full investigation of the “unbelievable” election results that gave the Broward County, FL House seat to Democrat Party fixer Debbie Wasserman-Schultz. Walt describes the show:

The “Reserved” Federal Reserve

By “reserved” we mean “reserved for the banking giants.”  Our guest today is Professor Tim Canova, a noted expert on the Federal Reserve and a veteran survivor of the federal election system that saw his two campaigns for Congress crushed by Democratic Party power-players affiliated with Debbie Wasserman-Schultz, a top party official. Whether it’s election outcomes or banking policy, the game is rigged from the highest points of influence and control. Tim and Ellen discuss the details that provide a bracing look at two of our most important public institutions.

[listen to the podcast]

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