BUILD PUBLIC BANKS AS RESPONSE TO SVB & SIGNATURE BANK FAILURES

Nathan Newman builds the case for public banks: regulation is necessary, but a better solution is to provide alternatives that better support local businesses and communities.

“Los Angeles is considering setting up a local bank and projects that it would save local governments $100 million per year just in banking fees and interest paid by the government itself. As the graphic below highlights, the City has billions it could use to capitalize a local bank and use to support local businesses and communities, while actually generating revenue.

Public banking advocates also focus on the fact that public banking could radically cut the financing costs of borrowing money to build infrastructure projects like mass transit. Analysts estimate public banking could reduce 50% of those financing costs, which could eliminate an estimated $161 billion in annual interest payments that might otherwise substantially be going to infrastructure and human needs.

While the Bank of North Dakota does not encourage individuals to bank with it, California passed AB 1777 in 2021 to develop a plan to offer direct retail banking, including debt cards and direct deposit, through the public banks being established to support the unbanked around the state.”

Continue reading the article at nathannewman.substack.com.

Share this article

Related Posts

431328128_428423383033537_2108947606589234025_n
CALACCOUNT LA TOWN HALL FEATURED IN LA OPINIÓN
429555069_18305343778177988_5794208233269526058_n
CALACCOUNT LOS ANGELES TOWN HALL
PBLA980
PUBLIC BANKING MOVEMENT GAINS MOMENTUM IN CALIFORNIA
Screen Shot 2024-01-17 at 2.33
A BANKER'S CASE FOR PUBLIC BANKING

Leave a Reply

RECENT POST

431328128_428423383033537_2108947606589234025_n
CALACCOUNT LA TOWN HALL FEATURED IN LA OPINIÓN
429555069_18305343778177988_5794208233269526058_n
CALACCOUNT LOS ANGELES TOWN HALL
PBLA980
PUBLIC BANKING MOVEMENT GAINS MOMENTUM IN CALIFORNIA
Screen Shot 2024-01-17 at 2.33
A BANKER'S CASE FOR PUBLIC BANKING
Screen Shot 2023-12-18 at 11.20
TLAIB, OCASIO-CORTEZ INTRODUCE PUBLIC BANKING ACT