Forum Post: The first bank of the 99 percent (Idea)
Posted 13 years ago on Oct. 17, 2011, 10:40 p.m. EST by searchandsuspicion
(1)
This content is user submitted and not an official statement
On november 5th when the masses remove their funds from national banks, I think the occupy wall street movement should create their own micro bank with those funds, and use it as a model of what we want to see in our national banks. It was just an idea I wanted to throw out there.
I think if we all took our money out of the banks they would shrivel up like raisins hahaha that'd be amazing to watch in the news...
searchandsuspicion,
This is a great idea if it can be pulled off. Rather than just focusing on the set of demands that we want, your idea allows us to put into practice what we want to see accomplished. While it is an excellent idea it is fraught with dangers if you don't know what you're doing.
The current bank the movement is using is under FDIC investigation for fraud concerns. I posted on this earlier (see below). It would be best to get out from under these union banks or standard commercial banks if at all possible. Credit Unions are another approach but it has to be the right one.
OWS Union Bank Having Troubles With FDIC? (User Submitted)
Posted Oct. 18, 2011, 5:27 a.m. EST (5 hours ago) by MossyOakMudslinger (Frederick, MD) | edit | delete
Judging from this article by Terry Buhl a Wall Street anf bank fraud investigative reporter, the Amalgamated Bank where OWS deposited their money is under investigation by the FDIC for fraud.
From the article:
"Occupy Wall Street has deposited donated funds in New York-based Amalgamated Bank but the FDIC has a bulls eye on the bank’s executives. At the end of August the federal regulator issued a scathing enforcement action calling for a third party review of the banks management and issuing a directive for the bank to lower its leverage ratios to 7 percent within a year. But that’s not all the FDIC is unhappy about. It appears some creative accounting for non performing loans are an issue."
http://www.teribuhl.com/2011/10/17/occupy-wall-streets-new-bank-under-fdic-enforcement-action/.
If true, that sucks big time. Anyone hear anything about this?
Of course it's true and I even added a link to the FDIC enforcement action in the story. Give it read and you'll see the long list of problems the FDIC has found with the bank's management and methods of charge offs.
A credit union might be an idea longer term... here's some info on doing that: http://www.creditunionsforyou.com/start.html
Great link VivianeNYC, thank you.
It may be long term but it is worth exploring IMHO. We are then practicing what we want to see done.
Yes, but you need to invest that money to make money.
OWS is against people having to pay off loans.. That brings in money for the saving accounts.
If you loan money out without having it repaid, the money in the accounts will diminish.
slinkeey,
"Yes, but you need to invest that money to make money OWS is against people having to pay off loans.. That brings in money for the saving accounts.
If you loan money out without having it repaid, the money in the accounts will diminish.."
Your simple comment contains some tricky considerations!
Asa "radical" bank we would in theory want to lend the money out. This is what current banks are not doing. Instead they are sitting on capital.
On the other hand we could invest in long term treasuries and at get the save 3% interest rate like the criminal banks do. Then what interest rate do you give the savers? The criminal banks give savers am effective negative interest rate (short term security rate minus the CPI) and we don't want to do that........ I don't know.............
It is definitely an interesting idea to try and construct this banking model though!
Great idea, but not enough time to get that in place...need regulatory approvals, specific funding levels, etc...
VivianeNYC,
I agree wholeheartedly it is a great idea! The time issue may not be that important. If we can construct a model of the bank we would like to see it would go al ong way toward moving us ahead and could be incorporated into the OWS mission statement which is still evolving..