Would be nice to see someone come in and completely disrupt today’s banking system (a la Amazon and Netflix in their respective markets). Unfortunately, banking is BIG business (and big political donors), so I foresee a ton of political backlash
Fascinating concept. Like the article mentions, most of the public doesn’t understand this concept because the last public bank was in 1919. I’m a bit wary tho considering there always seems like there’s a perennial banking movement - such as “banking black” - to become less reliant on the big banks like WFC and JPM. Like the story notes “community banks and credit unions lack capacity and often face legal hurdles and onerous collateral requirements to handle public funds.”
Not sure if this is the right or wrong way to go, but the banking system has been so monolithic — and far too often punitive to everyday people that get nickeled and dimed (and worse) — that adjusting and rethinking how banking works is long overdue.
A Public Bank is a goof idea even using the U S postal branches is a other option. The answer at present is Strong Regulation, reinstalling The 1933 Glass Steagall Act is the first step on a national and Global program.
It all boils down to "who do you trust"? Wells Fargo being a prime example. I hate to be regressive but ever since we allowed commercial banks and investment banks to merge it seems that more fraud and "data breeches" have occurred.
Doesn't sound a good idea to me. Such a move would create yet another web of vested interests and misallocation of capital. True these issues are already abundant with the current system but a "public" system would just worsen the situation by not putting it to market tests.
Orange County CA went bankrupt a couple decades ago with no public bank. I don’t see why the risk would be any worse than our current private financial institutions.
It is advisable to review the history of the North Dakota Public Bank referenced in the article to better understand public banking. Also, spend a little time on the Public Banking Institute website and look at some YouTube videos of Ellen Brown.
Ultimately, this could be a pathway to eliminating the Federal Reserve as many economists have proposed including Milton Friedman. The technology of Bitcoin/Blockchain makes this doable.
Socialism. Venezuela here they come. Just keep it in the Lib states and don’t ask the rest of us to bail you out.
Hey, yeah! Nationalize the banks! They’ll be more transparent, right? I mean, it works in Russia, right? Good Old Poody can just walk in and write checks whenever Assad needs a new tank. And it worked great in Nazi Germany for a while. However: Like murder, greed and collusion will out. Might be a better idea to foster more small banks to keep competition keen and make small business loans easier. I spent 45 years hustling mortgages in the big banking System; as the doctor said when I was born, this could get ugly. It did.
Not sure this is the right form of disruption, but the banking industry could definitely use some disruption to drive innovation. We should expect they'll actively block change, just like the auto industry.
Funny how these ideas have been around for a century but we never really used them. Maybe instead of constantly searching for innovation, we should just spend some time and effort digging into history.
Novel perhaps in the US. But frequently found in many other jurisdictions to fill market gaps and set baselines.
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