How about a little populism?
The idea is simple: If enough people who have money in one of the big four banks move it into smaller, more local, more traditional community banks, then collectively we, the people, will have taken a big step toward re-rigging the financial system so it becomes again the productive, stable engine for growth it’s meant to be. It’s neither Left nor Right — it’s populism at its best. Consider it a withdrawal tax on the big banks for the negative service they provide by consistently ignoring the public interest. It’s time for Americans to move their money out of these reckless behemoths. And you don’t have to worry, there is zero risk: deposit insurance is just as good at small banks — and unlike the big banks they don’t provide the toxic dividend of derivatives trading in a heads-they-win, tails-we-lose fashion.
Arianna Huffington: Move Your Money: A New Year’s Resolution
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An excellent idea. In fact, we did this a long time ago when we learned that the banksters sell your mortgage out of state to some unknown “financial institution” almost immediately after they issue it to you. Our local credit union promised not do that and they were true to their word. We paid off our house before the housing/mortgage fraud happened BTW, so we were lucky.
I have a beef with “Skank of America” in particular. My mother-in-law has dementia and can no longer sign her name much less do any banking. My wife is her power of attorney and still cannot move her account to our credit union or cancel her old credit card account without jumping through hoops like producing a document stating that the old lady is indeed incapable (she lives out of state with a relative), signed by a physician on hospital letterhead & etc. The power of attorney is not enough, they say. “Skank of America” requires this for “security reasons”.
Just the other day I received an offer in the mail from them directed to my mother-in-law for credit, including checks that would be charged to her credit card. Some security. If you don’t get my drift, any mail thief who recognizes those mailings can steal them and try to use those enclosed checks.
Instead of bailing them out, the government should have broken up all the banksters into the little banks they once were. I find it astonishing that the government has to THINK ABOUT restoring the Glass-Steagal Act of 1933. That would have been most obvious and appropriate at the same time.