Reviving Main Street: A Call for Public Banks

[Donnachaidh]

http://www.shareable.net/blog/reviving-main-street-a-call-for-public-banks



WHERE HAVE ALL THE SMALL BUSINESS LOANS GONE?
When Sergio Lub, a small business owner in Walnut Creek, submitted public testimony to the Banking and Finance Committee on May 2, 2011 supporting the creation of a state-owned bank in California, he wrote from personal experience, as well as knowledge of the elephant in the room: “…I long for the treatment I used to receive from the former Contra Costa Bank of Walnut Creek. Whenever I needed working capital, I just made a phone call and it was done.

“After our bank was bought by Wells Fargo, getting a credit line became increasingly more complicated to the point that now ― even after being a customer for 36 years ― we no longer qualify for loans. This is because our type of business (handcrafting and wholesaling of jewelry), does not conform with the standard type of businesses Wells Fargo seeks to bundle and easily re-sell to Wall Street investors.

“It is my hope that, as happens in North Dakota , our Bank of California will encourage and support local banks to finance local businesses so we will not be handicapped by the rigidity and restrictions of the big banks. … It is ridiculous for us to go begging to East Coast bankers to please capitalize our assets, and then, if we manage to be successful with our plea, to please accept our interest payments.

“Our own California Bank, and the local banks it will help…, will more easily understand the value of our assets, including the increasing importance of intangibles like name recognition, know-how, and customer loyalty, which are now being ignored by Wall Street, in spite of being often the most valuable part of our businesses (as reflected by any local appraiser). Keeping our money in our own bank will be enough to capitalize our needs several times over, and keeping our interest payments ‘in-house’ will allow us to meet long-delayed infrastructure improvements while lifting us from this unnecessary recession.”

More at the link --

[Uben]

1. Ironically, banking is a business.....

...that is funded by you!

[Wounded Bear]

2. Dumped my BofA acct, went to a state credit union.

Feel much better. :)

[BobbyBoring]

4. Thank You

Please ask everyone you know to do the same!

[jtrockville]

5. Yep, No regrets I dumped BofA when "move your money" started.

I now use a credit union and local bank. Either one is better than BofA.

[SalviaBlue]

3. K&R