Article and audio on Seattle Public Bank forum

[eridani]

http://seattletimes.com/html/localnews/2025211211_publicbankxml.html


The Seattle City Council is exploring the possibility of creating a public bank.

It would be a controversial and somewhat revolutionary step, but Councilmember Nick Licata says a public bank would operate in the interest of the city’s government and its residents.

Licata had several experts on public banks present Wednesday to the council’s finance committee, which he chairs.

He says a state-licensed public bank, in addition to holding money the city now deposits in conventional banks, might be able to lend money to small businesses, homeowners and others who lack good private banking options.

In addition, a public bank might serve as an alternative to conventional banks for financing local infrastructure and housing projects.

“Public banks offer an opportunity to use public funds to benefit our local economy in ways that private banks don’t,” Licata said.

The committee heard from Karl Beitel of the Public Bank Project and the Roosevelt Institute, Gwendolyn Hallsmith of the Public Banking Institute and Thomas Keidel of the Federation of German Banks.

Public banks are not widespread in the United States, although North Dakota has had one since 1919. But several local governments, including those in Vermont and San Francisco,, are exploring the possibility, the presenters said. Santa Fe, N.M., also has begun studying the feasibility of creating a city bank, Hallsmith said.



http://kuow.org/post/what-are-benefits-public-bank-seattle

What Are The Benefits Of A Public Bank In Seattle?

[eridani]

1. Broadcasts on KEXP and Seattle TV

There will be an audio of the core of the talks given on Mind Over Matters. KEXP 90.3 FM on Sunday morning from 7 -8.

Seattle Channel TV (channel 21 on Comcast and Wave) and via the Internet to help citizens connect with their city.

Saturday, 12/13 10AM

Sunday, 12/14 3PM

[eridani]

2. The University of Washington Daily – Really great article.

http://dailyuw.com/archive/2014/12/11/news/potential-public-bank-seattle#.VImx6tLF98E


About 100 people from all over the Seattle area gathered together in the spacious nave of the University Temple United Methodist Church to partake in a discussion about the possibility of a public bank in Seattle.

During the forum on Wednesday night, sponsored by the Seattle Public Bank Coalition, various models for a possible public bank in Seattle were discussed.

Through the private banking system currently in place, individuals invest in banks that have an interest in receiving short-term profits. It’s dangerous when private banks pursue profit, since they are only trying to benefit themselves and leaving local communities, like Seattle, to scrap for funds, said Gwendolyn Hallsmith, panelist and executive director of Public Banking Institute.

In response to the the 2007-2008 stock market crash, local governments all over the country, as well as in Seattle, have started looking at alternative ways to deal with financial problems.

The Public Banking Institute, an organization that focuses on creating a network of public banks that will operate in the interest of the public, said Seattle has had many economic problems in its history that were not addressed by the federal government or Wall Street. This list of issues included unemployment, foreclosed homes and homelessness, large school class sizes, expensive public transportation, and a lack of credit for small businesses.

[eridani]

3. Update from the Seattle Public Bank Coalition January 31, 2015

After a very successful series of events on December 10 and 11, 2014, the two roundtables, the meeting in the City Council chambers of the Finance and Culture Committee, and the well attended public event,

Nick Licata’s office told us the next step he will be taking is to submit a RFP (Request for Proposal) to the full Council. We believe the RFP would fund a study of how the Seattle City Council could establish a public bank in Seattle.

Last year the state of Vermont was going through a similar process. They had themselves paid for a study and had lined up a legislator to submit a bill. They ran a good public relations campaign saying if just 10% of the funds Vermont had in private banks was used to start a Vermont Public Bank, then they would have a public bank. Instead the 10% is now going into a revolving loan fund to invest locally in Vermont. But a revolving fund is a very different animal than a bank. We need to be clear we want a bank. So, we must be vigilant as we go through this process. We want a bank because a bank has “leverage”.

When banks are chartered by states or the Federal Government, they get a privilege we mortals don’t have. If you or I had a $100 dollars and wanted to loan $90 to one of our friends, our bank account would have $90 less in it. But banks list their loan portfolios as assets. They add the money they loan out to their books. It is an asset for them since they charge interest of the loans. That’s how banks create most of our money supply. A revolving loan fund does not have that privilege.

This is the privilege the private banking system headed by the Federal Reserve will fight with everything in their power to keep. This is the privilege they abused before 2008 and their abuse caused the collapse of the financial system.

Banks say they don’t create money because when the borrower pays the money back, they subtract the amount from their books. But while the money is in the account of the borrower, she can certainly use it as money.

What You Can Do

You may have heard that Nick Licata is not going to run again for election. I wrote to him and thanked him for his service and you may want to do the same, and be sure to add that you want a Seattle Public Bank. http://www.seattle.gov/council/Licata/

Sincerely,

John M Repp