Welcome login | signup
Language en es fr
OccupyForum

Forum Post: Nationalize the Banks!

Posted 13 years ago on Oct. 7, 2011, 4:43 p.m. EST by leftistperson (95)
This content is user submitted and not an official statement

“For the moment, there’s no choice,” says Robert Pollin, professor of economics at the University of Massachusetts-Amherst. “Relative to a year ago, lending in the U.S. economy is down an astonishing 90 percent. The government needs to take over the banks now, and force them to start lending.”

Truly nationalized banks, run by the government for the people, would help out the economy as a whole. As Stiglitz put it, under private ownership, there’s a “huge gap between private rewards and social returns.” Under public ownership, “the incentives of the banks can be aligned better with those of the country. And it is in the national interest that prudent lending be restarted.”

We could reap other social returns from nationalization, as well. “If the banks were nationalized, the government could declare a moratorium on foreclosures for the properties it controls, and move to restructure mortgages—perhaps at subsidized rates—for homeowners,” writes Joshua Holland of AlterNet.

Read the rest of this article here: http://www.progressive.org/mag/wx021109.html

31 Comments

31 Comments


Read the Rules
[-] 1 points by Permanushka (24) from Elk Creek, CA 13 years ago

If the Occupy Wall Street Movement is to have continuity, credibility and proactive results, we need to propose viable alternatives to Wall St and Corporate monopolies.

We need to discuss, educate and develop shared information on realistic alternatives that have already been proven and those that have yet to be conceived. 

 Right now we are in the passionate throes of outrage and rebellion. Calls for Revolution, Leaders, Platforms and Demands!  This makes us prey to "allies: in sheep clothing.....Soros, Political party adoption, etc. 

We need to prepare for the morning after. Rather than fighting the system, build the alternatives. We have the means. See how in the following articles.

http://motherjones.com/mojo/2009/03/how-nation%E2%80%99s-only-state-owned-bank-became-envy-wall-street

Statistics on State Bank of North Dakota http://finance.yahoo.com/family-home/article/112420/why-north-dakota-may-be-best-state-in-country-to-live-in

U.S. States That Are Considering Starting Their own Banks

http://ipsnews.net/news.asp?idnews=51277

http://www.energybulletin.net/stories/2011-06-10/report-public-banking-can-democratize-economy

http://www.shareable.net/blog/reviving-main-street-a-call-for-public-banks

http://www.thepeoplesvoice.org/TPV3/Voices.php/2011/05/20/what-a-public-bank-could-mean-for-california

Financial Permaculture http://appleseedpermaculture.com/8-forms-of-capital/

Time Banking http://timebanks.org/about

Barter http://www.u-exchange.com/barter-system

[-] 1 points by msmezo (2) 13 years ago

Banks should be Nationalized and the private accounts of Wallstreet should be garnished. The money should be removed from the Swiss banks and transferred to American National Banks.

[-] 1 points by msmezo (2) 13 years ago

Banks should be Nationlaized and the private accounts of Wallstreet should be garnished. The money should be removed from the Swiss banks and transferred to American National Banks.

[-] 1 points by SIBob (154) from Staten Island, NY 13 years ago

If the private banks don't want to help, and they are sitting on piles of cash at present, then something has to be done. If we have to take the bull by the horns, then so be it. http://sibob.org/wordpress/

[-] 1 points by Esposito (173) 13 years ago

What's wrong with keeping it under the mattress?

[-] 1 points by andrewpatrick46 (91) from Atlanta, GA 13 years ago

I think we should take the banks and split them into 200 equal sized entities, each worth .5% of the current total market value.

This will increase competition, which will drive down prices. It will also create a lot of jobs, because instead of having one secretary for one CEO of one company that is worth 7% of the market value, you'll have 14 CEO's with 14 secretary's and so on and so forth. When companies consolidate they eliminate redundant jobs. So when they break up the redundant jobs will be re-created. Simple economics.

[-] 1 points by Buzzo (6) 13 years ago

This has already happened. Remember "Too Big to Fail"? We already 'own' all the banks (well, we own their liability!), and all their debt now. All nationalizing does is gets the bankers off the hook and sticks 'we the people' with the paycheck.

You want real reform? Take away the ways they have gamed us out of our money for years!

  • Make Student Loan debt dischargeable in bankruptcy
  • Eliminate the Student Loan program all together and make people pay for it in real time (watch as tuition cost plummets)
  • Put home loan interest rates back up at 5% or eliminate them all together
  • Eliminate the Fed and the easy credit they generate for the Banks
  • Eliminate government lending agencies - Fannie / Freddie
  • Prosecute the criminals in the banks and in the government.
  • Make home foreclosure only possible when the bank has proof of ownership.

The change will come fast, and the pain of this will be much shorter than the alternative which is headed our way like a freight train.

And if I were a BAC (BoA) customer, I'd be taking my money out today, and putting it in a safe, in gold, in silver, and in my local bank. They are going under, as will MS in the next few weeks / months... That has nothing to do with OWS, but with the oncoming sovereign debt crises all around the world.

[-] 1 points by epheidner (2) 13 years ago

a modest proposal: Whereas • The top banks of the United States are reportedly undercapitalized and technically insolvent, • The current financial regulators are seemingly unable to perform their regulatory responsibilities in curtailing the excesses of these banks; • The banks Continuing operations in a mode that threatens the national security of the Unites States and the welfare of its entire citizenry;

We are resolved that the United States should:

  1. Declare a state of National Emergency
  2. Under the law of eminent domain, immediately nationalize the top 5 US Banks and the NY Federal Reserve Bank a. Wells Fargo b. Bank of America c. JP Morgan Chase d. Citigroup Inc e. Goldman-Sachs
  3. Within 30 days, manage the banks under nationalization, using a “draft” of banker managers and executives from remaining 7500 US banks under a set of guideline comparable to (but not the same as) a military draft;
  4. Immediately maintain and secure FDIC insured deposits as a first priority, investments of retirement funds as a second priority,( using criteria that define retirement funds so that personal, private or family funds are not included in this priority category), and investments of state and local government as a third priority.
  5. Immediately impose a moratorium on a. all US trading of all hedge fund securities, swaps. Nationalized banks will default on payments to all hedge fund and swap investments until such time as priority i. Establish recovery priorities such that as assets are reclassified, investor recovery is prioritized such that funds are distributed to pension and retirement funds representing over 500 retirees; b. Computerized spot trading of any security; c. Short selling of any and all securities;
  6. Within 1 year, break up each of the big 5 into at least regional banks and a national investment banks (resulting is at least 30 smaller banks) a. Establish a draft of accounting consultants to staff the bank break-up.
  7. Within 1 year, initiate prosecution & begin civil litigation against all current and recent Bank board and executive committee members for failure to meet fiduciary responsibilities. Hold these trials anywhere but New York; a. All current and recent bank executives from these banks and their Board of Directors will be added to the terrorist watch list and prevented from leaving the United States until prosecution is concluded; b. Special prosecutors will be appointed, and if necessary, drafted. c. Special prosecutors will have access to all Department of Justice and regulatory agency files on demand, with a response period of no longer than 3 weeks. Any delays in response will be met with mandatory contempt of court judgements
  8. Within 30 days, under Executive Order and Declaration of National Emergency, institute a national draft of professionals to manage the management, breakup and prosecution of the banks a. A committee to manage the ‘Draft(s)’ must be composed of professionals who have no current or past financial connection to any of the nationalized banks; i. Bankers drafted to manage nationalized banks must be shown to have no past or current connection to the Banks under the scope. ii. Prosecutors or the firms from which they come from must be shown to have no past or current connection to the Banks under the scope. If a “partner” of the firm from which the potential prosecutor is nominated has a past or current connection, that potential prosecutor will be disqualified. iii. Accountants or the firms from which they come from must be shown to have no past or current connection to the Banks under the scope. b. Draftees will not be financially penalized with wages less than received today
[-] 1 points by Esposito (173) 13 years ago

Or you could just keep your money under the mattress.

[-] 1 points by epheidner (2) 13 years ago

a modest proposal: Whereas • The top banks of the United States are reportedly undercapitalized and technically insolvent, • The current financial regulators are seemingly unable to perform their regulatory responsibilities in curtailing the excesses of these banks; • The banks Continuing operations in a mode that threatens the national security of the Unites States and the welfare of its entire citizenry;

We are resolved that the United States should:

  1. Declare a state of National Emergency
  2. Under the law of eminent domain, immediately nationalize the top 5 US Banks and the NY Federal Reserve Bank a. Wells Fargo b. Bank of America c. JP Morgan Chase d. Citigroup Inc e. Goldman-Sachs
  3. Within 30 days, manage the banks under nationalization, using a “draft” of banker managers and executives from remaining 7500 US banks under a set of guideline comparable to (but not the same as) a military draft;
  4. Immediately maintain and secure FDIC insured deposits as a first priority, investments of retirement funds as a second priority,( using criteria that define retirement funds so that personal, private or family funds are not included in this priority category), and investments of state and local government as a third priority.
  5. Immediately impose a moratorium on a. all US trading of all hedge fund securities, swaps. Nationalized banks will default on payments to all hedge fund and swap investments until such time as priority i. Establish recovery priorities such that as assets are reclassified, investor recovery is prioritized such that funds are distributed to pension and retirement funds representing over 500 retirees; b. Computerized spot trading of any security; c. Short selling of any and all securities;
  6. Within 1 year, break up each of the big 5 into at least regional banks and a national investment banks (resulting is at least 30 smaller banks) a. Establish a draft of accounting consultants to staff the bank break-up.
  7. Within 1 year, initiate prosecution & begin civil litigation against all current and recent Bank board and executive committee members for failure to meet fiduciary responsibilities. Hold these trials anywhere but New York; a. All current and recent bank executives from these banks and their Board of Directors will be added to the terrorist watch list and prevented from leaving the United States until prosecution is concluded; b. Special prosecutors will be appointed, and if necessary, drafted. c. Special prosecutors will have access to all Department of Justice and regulatory agency files on demand, with a response period of no longer than 3 weeks. Any delays in response will be met with mandatory contempt of court judgements
  8. Within 30 days, under Executive Order and Declaration of National Emergency, institute a national draft of professionals to manage the management, breakup and prosecution of the banks a. A committee to manage the ‘Draft(s)’ must be composed of professionals who have no current or past financial connection to any of the nationalized banks; i. Bankers drafted to manage nationalized banks must be shown to have no past or current connection to the Banks under the scope. ii. Prosecutors or the firms from which they come from must be shown to have no past or current connection to the Banks under the scope. If a “partner” of the firm from which the potential prosecutor is nominated has a past or current connection, that potential prosecutor will be disqualified. iii. Accountants or the firms from which they come from must be shown to have no past or current connection to the Banks under the scope. b. Draftees will not be financially penalized with wages less than received today
[-] 1 points by Esposito (173) 13 years ago

Or You Could Just Keep Your Money Under Your Mattress! I'm not going to tell you again.

[-] 1 points by anima (60) 13 years ago

The banks are exposed to trillions in derivatives! You want that cancer????

[-] 1 points by AngryJoe (67) 13 years ago

Sure why not, lets give the govt something else they can get into to make a bad problem worse.....haven't you figured it out yet that the feds fuck up everything they touch?

[-] 1 points by aleglot (4) 13 years ago

It is not going to help. You have to learn history which is the best teacher to intelligent people.

[-] 1 points by Crazy232 (4) 13 years ago

its more than that tho, if you want to be sucessfull in what ever you do you must first become self sufficant

[-] 1 points by Crazy232 (4) 13 years ago

well why not have 51% banks in the country nationalised, while still leaving the free market in place

[-] 1 points by TeBrun (22) 13 years ago

No. This should be done completely separate from the US government. It should be a voluntary non profit bank. Nonpolitical.

[-] 1 points by alwayzabull (228) 13 years ago

So you're saying more big government is the solution? We are doomed.

[-] 1 points by GOBAMA (16) 13 years ago

Right on Comrade!

[-] 1 points by TeBrun (22) 13 years ago

And it should be completely nonpolitical.

[-] 1 points by leftistperson (95) 13 years ago

The nationalization of the big banks is the only solution. The article cited above was published in March 2009. By that time, many analysts were starting to agree that nationalization would be the only solution. But the government, pressured by the powerful private bankers, refused to do it. And the result we know: a long standing economic crisis, that persists until now. If the banks were nationalized at that time, maybe this crisis was to be gone already. Brazil has government-owned banks and used it to recover from the crisis in 2009. In 2010, Brazil's GDP grew an impressive 7.5%. Meanwhile, in the USA, the government refuses to nationalize the banks, and the crisis continues...

[-] 1 points by thoreau42 (595) 13 years ago

"the only solution" ???? huhhhhhh?

So completely non-political, free market banks that could go bankrupt if they were mis-managed isn't even an option? We can't even talk or consider it?

[-] 1 points by mmanavdj (59) 13 years ago

1) Splitting Commercial and Investment Banks solves this in an easier fashion. You can protect depositors with regulation and allow the Investment Banks to gamble with their own money and possibly fail. Also regulate derivates, which has the possibility of becoming an even bigger problem. 2) Can't compare Brazil and America. Brazil is a production economy. America's economy is 70% consumption. People cannot consume because their biggest asset is under water (house). We can’t get housing prices to rise until we clear foreclosed homes from the market. There is a multitude of issues, loss of jobs, housing, and too much debt. The Japanese suffered a very similar crisis throughout the 90’s. The principal solution is to reduce our leverage. This takes a long time and is difficult but is the real solution and not a temporary band aid solution. 3) In reference to the article which was written in early 09, when banking industry balance sheets were still recovering, banks today are still having difficulty lending principally because they cannot assess if people will pay them back. Individual credit scores were tarnished during the crisis and it creates an impediment to lending. Banks are in the business to lend. Deposits are a liability on a banks balance sheet because they have to pay us “depositors’" interest and it has to be retuned to us if we go the teller and withdraw all our money from our accounts. If they lend, they will make more money. It is in there interest. 4) Also the Stiglitz Quote was taken out of context by the author of the article. Stiglitz is referencing compensation structure, where the majority of one’s income is paid in bonuses based on current year profits. Stiglitz was not referencing private ownership. He was referring to a structure that advocates for bonuses paid on long term profitability versus annual profitability. Also the author points out that the banks are to be returned to the private sector after they are heavily regulated. You could just do that now without nationalizing.
5) I am just as upset as you but we need to hone our frustration on the root of the problems and focus on real solutions and not reflect on these demagogic writings.

[-] 1 points by TeBrun (22) 13 years ago

Yes! Yes! Yes! We should withdraw money from Wall Street and invest in our own non profit bank. A national credit union, of the people and for the people.

This could restore power to the people and make our money work for us instead of against us.

[-] 1 points by mmanavdj (59) 13 years ago

Not all at once I hope!