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How Philadelphia is laying the groundwork for a public bank
March 22, 2022 | by Allissa Kline – In the latest step forward for a nationwide movement that has been gaining steam, the Philadelphia City Council voted on March 3 to establish a public financial authority — a move that supporters see as a precursor to chartering a public bank that would eventually serve as a depository for municipal funds. “The city has limited resources to replace the missing wealth of Black and Brown family members and friends, but it can substitute for its effect by guaranteeing loans and providing other credit enhancement products,” Philadelphia Councilmember Derek Green wrote in a recent op-ed.
Opening Public Banks in California – National Town Hall
Opening Public Banks in California – National Town Hall
Part victory lap and part planning session for the work ahead of them, the California Public Banking Alliance’s March 30th Town Hall, The Nuts & Bolts of Opening Public Banks in California, offered valuable insights into how to win legislative approval for a Public Bank – and how to articulate the economic development benefits.
Keynote: Eric Hardmeyer, retired CEO of Bank of North Dakota
Keynote: Eric Hardmeyer, retired CEO of Bank of North Dakota
CA Public Banking Alliance’s March 30th Town Hall – Opening Public Banks in California
Eric Hardmeyer, CEO for 21 years, detailed the aspects of the Bank of North Dakota he considers responsible for its endurance and its success. To emphasize its role as a banker’s bank, he cited one of its original commitments: “To assist in the development of financial institutions and public corporations within the state.” As a result, BND has been a force to stabilize regional and community banking, saying that in the Crash of 2008, “we had no bank defaults in North Dakota. Zero!”
Albuquerque local business consultant on how a State Public Bank can benefit our economy
Albuquerque local business consultant on how a State Public Bank can benefit our economy
AFLEP Leadership Team Member and Albuquerque”buy local” business advocate, Clifton Chadwick shares key economic reasons why he supports the creation of a State-Owned Public Bank. March 10, 2022
Housing Briefs: Wells Fargo Denied Most Refinance Apps for Black Homeowners
NEXT CITY, March 17, 2022 | by Roshan Abraham – A Bloomberg investigation found that Wells Fargo had approved refinanced mortgages for only 47% of Black homeowners who applied in 2020, compared to 72% of White homeowners. Following the federal reserve’s lowering of interest rates in 2020, many homeowners refinanced their homes to pay lower interest rates on their mortgages, but the disparity between who applied and who was granted these lower interest rates increased the country’s already cavernous racial wealth gap. According to Bloomberg’s look at federal data, the racial wealth gap between White and Black Americans increased by a mind-boggling $20 trillion during the pandemic.
Philadelphia City Council OKs creation of nation’s first municipal bank
March 3, 2022 | by Ryan Sharrow – City Council passed the measure 15-1 to create the Philadelphia Public Financial Authority, a move that positions the city to launch the nation’s first municipal bank. The bill was introduced in December by Democrat Derek Green, a former banker who is a councilman-at-large. Green said the goal of the Public Financial Authority “is not to compete against current businesses or organizations, or duplicate existing services, but to offer credit enhancement products, that will provide greater opportunities for co-operatives, entrepreneurs of color, and other business organizations to access additional credit to help build cash flow and job growth.”
Philadelphia Bill Would Establish First Ever Municipal Public Bank Entity
NEXT CITY, Feb. 17, 2022 | by Oscar Perry Abello – The stated mission of the proposed Philadelphia Public Financial Authority is to support Black-owned businesses and other businesses in neighborhoods that have historically lacked access to credit. That resolution took as a model the state-owned Bank of North Dakota, established in 1919 and still a thriving, profitable institution with $10 billion in assets today. By law, all of the state government’s deposits are held at the Bank of North Dakota. With that as its deposit base, the bank partners with private banks and credit unions all over the state to finance economic development, making loans to support everything from huge infrastructure projects to small local businesses.
Public Banks: What Are They, and How Might They Impact Workers?
ONLABOR, Jan. 12, 2022 | by Travis Lavenski – With the potential to restructure economies in a more just fashion, it is not surprising to see unions and economic justice organizations throw their support behind public bank initiatives in their communities. Currently, state and local governments deposit their funds in large private banks. When they need to finance new projects, governments typically secure capital through bond deals in which the banks have “outsized power to set the terms.” According to one 2020 study, state and local governments pay approximately $160 billion per year on bond interest alone, making these banks “a critical part of a predatory and extractive eco-system that crushes workers and communities.”
Murphy vows to follow through with plans on New Jersey public bank
The Washington Examiner, Jan. 5, 2022 | By T.A. DeFeo – New Jersey Gov. Phil Murphy said he intends to follow through with plans to open a state-owned bank. In November 2019, Murphy signed Executive Order No. 91 to create the Public Bank Implementation Board. At the time, state officials said a public bank could generate revenue, spur job and economic growth and help local governments reduce their debt costs. It would also provide additional banking opportunities for “under-served communities.” While the COVID-19 pandemic slowed plans for a public bank, during the virtual press briefing, Murphy predicted a version of it would happen during his second term.
Bank of Washington? States consider opening government banks
The Seattle Times, Dec. 19, 2021 | By Elaine S. Povich – The speed and convenience of accessing pandemic aid through direct deposit has highlighted the disadvantages of lacking a bank account, heightening interest in public banks. California this year enacted a law that could put the state on the path to government-run banks, and 13 other states, including Washington, are considering similar legislation, according to the National Conference of State Legislatures. Unlike commercial banks, the mission of public banks would be to invest in public priorities such as affordable housing, small business loans or infrastructure projects.
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Episode: Everyone deserves a public bank
“I had the good fortune to work on this initiative before Bernie kidnapped all my time. This is one of those no-brainer initiatives that only the 1% could oppose. It has the potential to save the state millions of dollars by vastly reducing the cost of its bonds to improve infrastructure funding. in a public bank, our state funds can be used to build our local economy and our local infrastructure.”
– Paul Gibson
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